Jennifer Brazer | Complete Controller

Websites for Start-Up Accounting

Posted on March 11, 2020March 12, 2024 by Jennifer Brazer

Starting a business is a complex and intimidating endeavor, and managing finances can be one of the most challenging aspects of it. Accounting is a detailed and time-consuming process that requires much attention to detail, and new entrepreneurs often struggle with it. Fortunately, there are many websites out there that offer valuable and comprehensive advice to help startups with their accounting needs. This article will explore some of the best websites for startup accounting advice.

QuickBooks

First on our list is QuickBooks, a popular accounting software that provides a wealth of resources for small businesses. QuickBooks has a dedicated small business center that offers a range of articles, guides, and videos on accounting, taxes, and financial management. Furthermore, they also have a community forum where entrepreneurs can ask questions and get advice from other business owners who have used the software.

FreshBooks

Another excellent resource for start-up accounting advice is FreshBooks. This accounting software offers various resources for entrepreneurs, including a blog that covers topics like bookkeeping, invoicing, and taxes. FreshBooks also has a comprehensive resource center with webinars, guides, and e-books to help entrepreneurs manage their finances. Overall, their customer support team is available 24/7 to answer any questions.

Xero

Xero is another accounting software specifically designed for small businesses. Furthermore, it offers a range of resources to help entrepreneurs manage their finances, including a blog that covers topics like cash flow, budgeting, and taxes. Like QuickBooks, Xero also offers a community forum where business owners can connect and share advice.

SCORE

SCORE is a nonprofit organization that provides free mentoring and resources to small businesses. Its network of volunteer business mentors offers advice on everything from accounting to marketing. SCORE also offers webinars, workshops, and online courses on various topics. Overall, its website has a dedicated section for accounting and finance, with articles and guides that cover topics like financial statements, budgeting, and taxes.

Complete Controller. America’s Bookkeeping Experts

Inc.com

Inc.com is a website that offers advice and resources for entrepreneurs. They have a dedicated finance and accounting section, with articles covering bookkeeping, taxes, and financial planning. Overall, Inc.com also has a community forum where entrepreneurs can connect and share advice.

Entrepreneur.com

Entrepreneur.com is another website that offers advice and resources for small businesses. Like Inc.com, it has a dedicated finance and accounting section, with articles covering topics like cash flow, budgeting, and taxes. Furthermore, Entrepreneur.com has a community forum where entrepreneurs can connect and share advice.

The Balance Small Business

The Balance Small Business website offers advice and resources for small businesses. They have a dedicated section for accounting and finance, with articles covering bookkeeping, taxes, and financial planning. The Balance Small Business also offers a community forum where entrepreneurs can connect and share advice.

Investopedia

Investopedia is a website that offers financial education and resources. They have a small business section covering accounting, taxes, and financial planning. Investopedia also provides a comprehensive dictionary of financial terms, which can be helpful for entrepreneurs who are new to the finance world.

Summary

Embarking on a journey to start a business is an exciting and fulfilling experience that can bring immense satisfaction. However, managing the financial aspects of your new venture can be daunting and overwhelming. But fret not; many resources are available to support and guide you through this process. We highly recommend exploring various websites that offer comprehensive advice, tools, and support to help startups manage their finances effectively. These websites provide top-notch accounting software, mentorship programs, and educational resources that can help you streamline your finances and make managing them stress-free.

With these invaluable resources, you can confidently venture into entrepreneurship and create a thriving business that can stand the test of time. In conclusion, starting a business can be daunting, but many resources are available to help entrepreneurs with their accounting needs. These websites offer valuable and comprehensive advice, resources, and support to help startups manage their finances. Whether you are looking for software, mentorship, or educational resources, these websites have something to offer for every entrepreneur.

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.

How You Can Retire Without A Mortgage

Posted on March 11, 2020March 12, 2024 by Jennifer Brazer

Retiring without a mortgage is an American dream. Most Americans dream of retiring without carrying a heavy burden. The kind of stability needed to earn cash to keep up with mortgage payments does not appear after retirement unless you continue working. The home is a reliable asset that is the retiree’s nest of eggs they own and depicts financial solidity. For many, a family’s economic strength is portrayed by owning properties and a house.

However, it is easier said than done, which is why you are here. There are many ways to retire without a mortgage. Some are easy, and others are not. We want to stick with those that are not as technical, like setting up savings accounts or using high-tech gadgetry to monitor business prospects. No! None of that! Here, we will talk about a few ways to help soon-to-be-retired professionals with mortgage issues relieve themselves of dire stress.

One great way is obvious: to retire after paying off your mortgage. Retiring could be a lengthy process, but considering paying your mortgage ahead of time would allow you to enjoy your retired life easily. Committing without a mortgage requires a certain tenacity to reap the benefits after a blissful retirement. This option may help you, depending on your career choice.

Early Settlement

If you have the financial capacity, an early settlement of all mortgage payments helps immensely after retirement. It can help free up cash you can use in more places than one. The notion of having plentiful money at your disposal is a beautiful one. So, make it a point to pay earlier than anticipated or scheduled.

By saving interest, you reduce your payments by thousands of dollars. To retire without a mortgage, the exciting part of the hefty payments is burdening as most of the cash you hand in has a certain percentage deducted. Your actual price is not building up as you expect.

When accumulated, this deducted amount saves thousands, which may be a viable option for those who wish to save money immediately. You can find relief by paying off other heavily pressurizing payments, and the funds can be used elsewhere, where applicable. Maybe even consider creating a retirement fund to help with vacations or holidays in the golden years!

If That Does Not Work

If it does not pan out for you to retire without a mortgage, there are other ways to compensate for this drawback. We realize that this neat little trick will not always work, so it is good to have some ideas to rely on if everything goes south. If you are in a stable financial condition or money is not an issue now, saving enough for an emergency fund is highly recommended.

Saving is a vital but seldom implemented idea for all homeowners. Keeping a savings fund equivalent to at least four or five mortgage payments is an ideal way not to get stressed out after retirement. Getting some financial advice will not hurt either. It may even streamline your expenses to help you retire euphorically. Paying off high-interest payments will also enable more to be done with your income.

Eradicating and finishing off a credit card or loan debt is strongly recommended. All the cash can be contributed towards retirement if needed. Create a plan, make efforts to fund this plan each month, and work on it. Make it a priority to save as much as possible according to your plan. This financial investment works on many levels, and we insist on trying this method.

Other Things You Can Do

Keep in mind that there are always options. There is never a dead end. If you are still confused, here are some other ways to reduce mental stress after retirement.

Short-term loans:

Although not advised unless necessary, taking out loans would help contribute immediately and cause you to incur extra payments each month.

Smaller housing for reduced costs:

Moving into a smaller place means your mortgage bill will be lower, as will maintenance costs. Utilities will also fall dramatically, enabling you to save more.

Mastering Budgeting Guide

Posted on March 11, 2020March 12, 2024 by Jennifer Brazer

Budgeting is the procedure of generating a strategy for spending money, called a budget. Producing this expenditure plan permits you to decide in advance whether you will have enough money to do what you need or would like to do. If you do not have enough money to do everything you would like, you can use a definite formation process to prioritize your spending and focus your money on the most important things.

Since budgeting allows you to create an expenditure plan for your money, it guarantees that you will always have sufficient cash for the things you need and consider essential.

Whether you use a budget worksheet or not, you need some technique to determine where your money is going each month. The trick is to figure out a way to track your finances that works for you. This step-by-step guide can help you create and develop a realistic savings plan.

Phase 1: Note Your Net Earnings

The first and foremost stage in generating a budget is categorizing the amount of money coming in. Keep in mind that it is easy to miscalculate what you can afford if you consider the total income you must spend. Remember to subtract the deductions for taxes. Your final take-home salary is called net income, the figure you should use when creating a budget.

Phase 2: Track Your Expenses

It is imperative to keep track of and classify your expenditures to know where you can adjust. This task will help you detect what you are spending the most money on and where it might be easiest to cut back. Initiate this by listing all your fixed costs. These monthly bills include rent or mortgage, utilities, or car payments. It is improbable you will be able to cut back on these, but knowing how much of your “once-a-month” income they take up can be helpful.

Next, list your variable expenses—those that may change from month to month, such as groceries, gas, and entertainment. Credit cards and bank statements are excellent places to start since they habitually enumerate or categorize your monthly expenditures.

Phase 3: Set Your Objectives

Before you start selecting through the information you have reviewed, make a list of all the financial goals you want to achieve in the short and long term. Short-term goals should take no longer than a year to complete, while long-term goals may take years to reach.

Short-term (1–3 years)

Emergency trust
Trip
Down payment for a vehicle

Long-term (4+ years)

Retirement
Your child’s schooling.
Down payment on a home or a remodeling project

Phase 4: Create a Strategy/Plan

Use the variable and fixed expenditures you assembled to help you understand what you will spend in the coming months. You can foresee how much you must budget with your fixed expenses. Use your previous spending habits as a guide when forecasting your variable costs. You might choose to break down your expenditures even further between things you need to have and things you want to have.

Phase 5: Regulate Your Habits if Needed

Once you have completed all this, you have what you need to initiate your budget. Having documented your income and spending, you can start to see where you have money left over or where you can cut back so that you have money to put toward your goals.

Phase 6: Keep Checking in

You must regularly analyze your budget to be sure you are staying on track—a few essentials of your budget are set in stone. You may get a promotion, your expenditures may increase, or you may have reached your goal and want to plan for a new one. There are so many variables that require flexibility and focus.

Conclusion

Before starting a budget process, planning must be done to define your objectives and goals clearly.

What Do The Best POS Systems Offer?

Posted on March 11, 2020March 12, 2024 by Jennifer Brazer

What Is a Point-of-Sale System?

A POS or Point of Sale system is essentially a system that eases the payment process of a company or retail store. It is software used to record all of the details of each sale while updating the inventory and providing customer management features that enable the smooth running of your store. It generates reports for you to analyze your sales data quickly. The hardware of a POS system may consist of a bar code scanner, cash drawer, receipt printer, order puncher, and other peripheral equipment based on your particular needs.

How do you Determine the Best Point-of-Sale Systems?

The best POS System is affordable, user-friendly, and capable of more functions than merely processing your sales and accepting payments while printing receipts. A sound POS system includes features that save time and help you manage your enterprise or business more quickly. These features may allow you to analyze your sales data with a click. It enables you to manage your inventories, staff, and customers. A good POS system would include integrated email marketing and other features to enhance sales and support your operations by saving time and growing your business.

Features to Look for in POS Systems

You must buy the most efficient POS system to benefit your business and help it grow. Though the features of a point-of-sale system may vary from one industry to another, the basics remain the same. Here are the top features you need to consider before you buy a POS system for your business.

Employee Management

Your POS systems should allow you to set up your employees’ schedules, assign them duties and permissions, keep track of their tasks, and enable them to use the software to mark their time in and time out.

Inventory Management

The inventory management feature allows you to check the levels of your stocks regularly and receive alerts when stocks are replenished and ending. The inventory trackers in point-of-sale systems are very helpful, especially in restaurants and cafes. The system reduces the time wasted in manually counting the available stocks.

Offline Mode

Almost all POS systems are cloud-based. They come with a feature that allows access to the POS system even offline and when the internet is down. However, the functionality is limited when the system is offline and varies between POS and POS.

E-Commerce Integration

The best POS systems can connect to an e-commerce platform at the backhand. The ease of this connection depends on the type of e-commerce platform to which it is connected.

CRM Capabilities

Almost every new POS system is now available with a feature that allows adding related customer information and other marketing tools to maintain contact with customers, check customer feedback, and predict customer recurrence to your business. This information is often used to build strong business-to-customer relationships and enhance your business through effective customer interactions.

Purchase Order Management

Point-of-sale systems also have a feature allowing customers to submit their purchase orders (POs). The PO management system will enable you to process all orders and maintain a clean digital record.

Bookkeeping

The Best POS Systems come with built-in bookkeeping features, providing you with glance reports to analyze your business’s current state.

How Would a POS System Benefit Your Business?

The right POS System would benefit your business in multiple ways. It would facilitate transactions and sales, and it would help you manage things better by saving time during lengthy procedures, which would help you make timely decisions.

The following are some ways that you and your business would benefit from the point-of-sale system.

Saves Money

A POS System helps multitask and tends to sales, accounting, customer engagement, and store management from anywhere. This streamlines money from different charges and resources you would have otherwise hired.

Saves Time

Do things quickly and efficiently by performing all crucial tasks from a single POS System.

Reduces Waste and Theft

The Best POS systems provide detailed insights into all of a business owner’s essential concerns. Tracking inventory and financial records reduces waste and theft.

Cloud Data Security Protection

Posted on March 10, 2020February 3, 2025 by Jennifer Brazer

Cloud computing security generally refers to a wide range of policies, technologies, and controls deployed to protect cloud data, applications, and infrastructure. Emails containing financial documents in cloud hosting are at the highest theft risk. Overall, businesses should always avoid sharing critical information over the Internet. Please keep reading to learn more about the significant security issues you must consider and ways to prevent them.

The security concerns associated with cloud computing are divided into two main categories:

Security issues faced by the cloud security providers.
Security issues faced by their customers using the cloud security software.

Securing the data is divided among providers and customers. The provider should always ensure the infrastructure is secure and their client’s data is protected. On the other hand, users should also keep a keen eye on their cloud security applications and inhibit safety protocols such as placing solid passwords and authentication methods so that only authorized personnel can access the data.

Whenever an organization decides to put its data online with a cloud security software or application, the physical accessibility is reduced. Therefore, keeping a watchful eye over the employees with access to that information is necessary, as insider attacks are a considerable threat to organizations and businesses. Data centers should also be under surveillance most of the time.

Cloud Security Controls

Cloud security architecture is effective only when you have a proper security and defense system. Without appropriate security measures and authentication procedures, online emails or any data exchanged between the customer, the client, the employee, and the employer are at an exceedingly high risk of being lost to foreign uninvited entities. Although there are many types of controls that management can implement and utilize to reduce the risk of data loss or online attacks, they can be found in one of the following categories:

Deterrent Controls

Deterrent controls make attackers aware that there will be adverse consequences if they proceed with stealing data or performing suspicious activities. They work more like a warning system.

Preventive Controls

Preventive controls play a vital role in strengthening the system. For example, strong authentication of cloud users enables only authorized personnel to access the data.

Detective Controls

Detective controls intend to detect and react appropriately to any incidents that may occur on the online platform where you have stored your data. In an attack, the detective controls trigger the security protocols and inform the attacker and the data owner that something is suspicious. Furthermore, detective controls include system and network security monitoring, intrusion detection systems, and prevention arrangements.

Corrective Controls

Corrective controls usually limit the damage of attacks by coming into effect during or after the incident. An example is when the system backs up in case of an attack.

Now that you know how to protect your online data, let’s examine the security and privacy methods you can adopt to reduce theft.

Security and Privacy

Identity management

Almost every industry has a verification system that allows only authorized people into the business vicinity. Cloud providers primarily integrate the customer’s identity management system into their system or use a biometric verification system. Overall, no matter what procedure you use, ensure you know the people leaving and entering and the people accessing the online date.

Physical security

Cloud service providers ensure the security of a workplace against unauthorized access and theft. They also ensure that essential supplies, such as electricity, are provided to minimize the damage caused by theft or loss of critical financial documents.

Privacy

Providers ensure that critical data is masked and encrypted and that only authorized users can access the necessary information.

Several security threats are strongly associated with cloud data services. Therefore, whatever purpose you have for cloud data services, always ensure that you have suitable security protocols, especially when you share financial emails or any data that may be at risk.

Data security can be highly beneficial and accessible, but it is also necessary to protect it from risks. Overall, ensure that accuracy is maintained, data is kept confidential, and you can access the controls of your online services and cloud data usage.

Managing Overcapitalization

Posted on March 10, 2020April 7, 2024 by Jennifer Brazer

Overcapitalization is a term that might seem complex at first glance, but it’s an essential concept in the financial world, especially for businesses striving for longevity and success. Understanding overcapitalization, its implications, and how to manage it is crucial for any business owner or financial manager. This article will explore the essence of overcapitalization, strategies to minimize it, and why managing it effectively is vital for the health and success of your business. We’ll sprinkle in some related business statistics and facts along the way to paint a clearer picture.

What is Overcapitalization?

Overcapitalization occurs when a company has more capital than it can profitably invest or deploy. In simpler terms, it means the company has too much debt or equity funding, leading to a situation where the cost of capital (interests on loans or dividends on shares) exceeds the income generated from these investments. This imbalance can significantly affect a company’s profitability and, in the long run, its viability.

For instance, a study by the Small Business Administration (SBA) suggested that improper capital structure is one of the leading causes of business failure among small businesses. This highlights the thin line between having sufficient capital to grow and having so much that it becomes a liability.

The Implications of Overcapitalization

Reduced earnings per share (EPS)

With more shares in circulation than necessary, earnings are spread too thinly, reducing the EPS.

Decreased market value

Companies suffering from overcapitalization often see a decline in their stock prices as investors lose confidence.

Increased vulnerability

Excessive debt can lead to higher interest payments, squeezing cash flow and making the business more vulnerable to economic downturns.

How to Minimize Overcapitalization

Prudent financial planning

Businesses must carefully plan their capital needs and avoid raising more funds than necessary. This includes thorough market research and realistic revenue projections.

Debt management

Regularly reviewing and optimizing the debt structure can prevent over-leveraging. This might involve refinancing high-interest debt or paying off loans early when possible.

Equity financing

While issuing new shares can dilute ownership, it’s sometimes a preferable alternative to debt financing. However, it’s crucial to assess the market conditions and investor appetite to avoid overissuing shares.

Investment in profitable ventures

Ensuring that every dollar invested brings a return higher than the cost of capital can prevent funds from being tied up in unprofitable ventures.

The Importance of Managing Overcapitalization

The management of overcapitalization is not just about preventing financial inefficiency; it’s about securing the future of your business. A study by Deloitte highlighted that companies with optimized capital structures are 15% more likely to outperform their peers in terms of revenue growth and profitability. This is a testament to balancing capital’s importance in fostering sustainable growth.

Furthermore, managing overcapitalization enhances a company’s agility. In an economic landscape that is constantly changing, having a lean financial structure allows businesses to adapt more quickly to market changes, seize new opportunities, and mitigate risks effectively.

Case Study: XYZ Corp

Consider the case of XYZ Corp (a fictional company), which experienced rapid growth in its early years. Eager to capitalize on this growth, XYZ Corp aggressively pursued debt financing to fund expansion projects. However, as market conditions shifted, the revenue from these investments failed to cover the interest expenses, leading to financial distress.

By restructuring its debt and focusing on high-return investments, XYZ Corp managed to navigate its way out of overcapitalization. This turnaround not only stabilized the company’s finances but also restored investor confidence, leading to a gradual increase in its market value.

Conclusion

Overcapitalization is a complex challenge that can have far-reaching consequences for a business. However, it’s a challenge that can be overcome with careful planning, prudent financial management, and strategic investment. The key is to strike the right balance between having enough capital to pursue growth opportunities and not so much that it becomes a burden. Remember, in the world of business, more is not always better, and efficiency is the name of the game. By managing overcapitalization effectively, businesses can ensure their success and longevity in the competitive market landscape.

Embrace Automation & Cloud

Posted on March 10, 2020March 12, 2024 by Jennifer Brazer

The accounting needs of today’s small business industry can be described in the words of John F. Kennedy.

“History … has no present, only the past rushing into the future. To try to hold fast is to be swept aside.”

Not much has changed in a long time when we talk about the system of using double-entry as a way of bookkeeping to track a company’s possessions. It is the equation that revolutionized the bookkeeping method in all types of businesses, big or small.

Bookkeeping is a standard and precise process in business and accounting that helps business owners ensure their accounts are accurate and timely. It helps them gather all the necessary and relevant information to formulate their accounts.

The alteration in bookkeeping for small businesses today is due to the development and advancement of technology, which has made it much easier for accounting experts to perform their work. Advanced accounting platforms have improved performance, streamlined analysis and entries, and decreased errors, tampering, and omissions with interest charges, penalties, and dishonesty.

With the introduction of various cloud accounting programs, it has become a trend for small businesses to manage their accounting books with automated systems. However, many small business owners are anxious about making the switch. They must realize that they must adapt to automated bookkeeping, or they may be left behind.

Shift to the Cloud

Small business owners already have many time-consuming tasks that they must manage. Automated bookkeeping should not be one of them. Cloud accounting programs can save so much time and effort.

Experts have said that today’s business owners must streamline the cloud into their accounting processes. The process needs to be cloud-based, from ERP to managing expense and travel reports. This program allows small business owners to focus more on other parts of their business. With cloud-based accounting software, they will spend fewer resources and time on administrative activities.

Automate Your Accounting and Bookkeeping Software

If a small business owner is using accounting software, they should be aware of all the automation options offered by the software. Do not let it go to waste.

Automate your bookkeeping to track all of your business expenses and earnings. Use the app that connects to your bank account. This way, you will automatically save receipts and pull transactions. Delegating such an arduous task will save you time and allow you to be able to spend your valuable time focusing on growing your company.

Separate Personal Expenses from Business Expenses

Most small business accounting software allows owners to separate their personal and business expenses.

Experts say that small business owners should create separate checking, credit card, and savings accounts for their businesses. This allows you to accurately track business spending without mixing personal spending accounts. By doing this, you will discover that it makes it much easier to determine your deductions and filings on your tax return.

Conclusion

In the fast-paced world of small business, embracing change is essential for survival. As technology advances, so does the landscape of accounting. From traditional double-entry methods to modern automated systems, the evolution of bookkeeping has revolutionized how businesses track their finances. Today, cloud-based accounting programs offer efficiency and accuracy, allowing business owners to focus on growth rather than administrative tasks.

By embracing automation and leveraging accounting software’s capabilities, small business owners can streamline their operations and gain valuable insights into their financial health. Separating personal and business expenses is crucial for maintaining financial clarity and maximizing tax deductions.

How To Calculate Net Profit Margins

Posted on March 10, 2020March 12, 2024 by Jennifer Brazer

Are you embarking on a business venture? Have you considered how much profit you aim to make? This is a crucial aspect to ponder. It’s essential to grasp the concept of net profit margin, a key element in bookkeeping that can significantly empower your financial management to do so effectively.

Net Profit Margin

The net profit margin of a product is the difference between the sale price to the final consumer (without value-added tax) and the costs of production or purchase of the said product. According to this, the formula to calculate the net profit margin is:

Net profit margin = (Retail price without value added tax) – (Production or purchase costs)

Let’s delve deeper into the concept. The net profit margin is different from the ‘percentage of profit.’ It’s a term used to divide the net profit of a sale by the cost of goods, providing a clearer picture of a company’s profit on the sale of goods, not the overall profit. To illustrate, consider Firm A. In one year, it generated a revenue of $2 million with expenses of $ 650,000, resulting in a net profit margin of 67.5%. However, the following year, despite an increase in revenue to $2.25 million, the net profit margin dropped to 11.11% due to a significant expense increase. This real-life example demonstrates how changes in revenue and expenses can impact the net profit margin.

Likewise, increasing or decreasing a company’s spending does not indicate improving or worsening its net profit margin. Assume that Firm B has revenue and expense of $2 million and $1.5 million, respectively, in one year, with a net profit margin of 25%. However, the following year, the firm restructured by lowering its total revenue and expenditure by lifting a product line. If the second-year income and expenses of Firm B are $1.5 million and $1.2 million, respectively, the net profit margin is now 20%. Thus, Firm B has significantly lowered its costs, but its net profit margin has fallen because revenue falls faster than spending.

Net Profit Margin Limitations

While the net profit margin is a useful and popular metric for assessing a company’s profitability, it has limitations. For instance, it’s most effective when comparing companies within the same industry with similar business models. However, companies in the same sector can have vastly different business models and sources of income, making such comparisons less meaningful.

Consider a company that sells luxury products with high-profit margins but low sales volume compared to a company that sells staplers with lower profit margins but higher sales volume. These differences in business models can significantly impact the net profit margin, highlighting its limitations in specific contexts.

Net Profit Margin Variations

Analysts and investors utilize several changes in the net profit margin to determine certain aspects of a firm’s profitability. Such a variation is the net profit margin that is acquired by dividing the net profit by the earned income. This change has some limitations, as management often has too much control over material costs. In such a scenario, the net profit margin is less effective in defining the overall quality of management. Additionally, industries that do not have a manufacturing process have no or low sales costs.

The net profit margin is effective when it comes to companies that are involved in producing certain goods. A specific variation of the net profit margin is the operating profit margin that divides the operating profit into income distributions. Traders and analysts can often use pre-tax profit margins by dividing their pre-tax earnings (revenue without deduction of tax costs) on a revenue basis.

Entrepreneur Skills Mastery

Posted on March 10, 2020March 12, 2024 by Jennifer Brazer

Most motivated professionals and expert entrepreneurs know the importance and advantages of investing in themselves—developing and sharpening valuable skills that boost their strengths over time. While you certainly require guts and patience to initiate and run a new venture, you must also concentrate on nurturing these six essential business skills vital to succeeding as an entrepreneur in critical situations.

Communication

Your company can instantaneously turn from a good to a bad situation when your communication lacks clarity, purpose, and impact. On the contrary, effective communication has enough potential to revolutionize an idea, thus breathing new life into your product or brand. Besides being a creative and design genius, Steve Jobs, the founder of Apple, was also an influential communicator. If you revisit his marketing taglines and keynote speeches, you will immediately realize how communication played a crucial role in building one of the most valuable companies in the world. Many psychologists and business experts also believe that effective communication is one of the most essential skills for becoming a successful entrepreneur.

Branding (Personal as well as Business)

In today’s digitally evolved corporate environment, knowing how to establish yourself as an expert professional in your industry is critical to your entrepreneurial success. Branding now includes being active on social media platforms like Facebook, YouTube, Instagram, and Snapchat. It is shaped by content marketing both on and off your business website. However, poor content can result in negative branding. Consequently, it is necessary to determine how to share your content and marketing resources so that your target audience not only wants what you have to offer but also finds it valuable.

Critical Thinking

Critical thinking is the objective analysis and assessment of a matter to form a logical judgment. It typically begins with questioning assumptions, hypotheses, opinions, and claims rather than simply accepting them as gospel. Just like bookkeeping is fundamental to creating business accounts, critical thinking is essential to smart entrepreneurial decisions, making it, in turn, a key to becoming a successful businessperson.

Today, we are continuously bombarded with tactful content and sound bites. That is why our ability to question to determine what is real and what is not, to understand casual relationships, and to reason logically instead of generalizing from a given data point has become more critical than ever before.

Consequently, question everything, especially superstitions, and common doctrines. Also, listen to people who challenge your popularly held beliefs. Here, you must resist habitual pressure to look at matters in “us vs. them” or black-and-white terms. In addition, you should learn to view the world from different viewpoints, perspectives, and angles.

Sales

Although you may not identify as a salesperson, you are involved in sales to a great extent when running a business. You might have a great sales team handling all of your corporate sales. However, you typically tap into your sales skills when you give a presentation about your business products, negotiate with a vendor, or simply convince anyone of anything.

There are numerous strategies for selling, even without selling. Take a moment to think about corporate conversations you have with your potential clients. Those that make a sale are probably not hard pitches to get your potential customers to purchase from you. They primarily focus on helping them find a solution to their problem. Thus, it would help if you also concentrated on helping them instead of selling. This way, you will have more confidence in the sales process, which will also bring in more sales.

Confidence and Assertiveness

While listening is necessary for effective business communication, you must also determine when to take control of a conversation and assert your viewpoints, opinions, and beliefs. Although you must be attentive to other people’s requests and claims, you must also understand when to say no. You must learn to be consistent and open-minded to earn the trust and respect of those around you.

Perseverance

Most successful entrepreneurs have faced devastating failures and defeats in their lives. Instead of looking at such situations as a demotivating factor, they view them as stepping stones towards their business success. Besides maintaining their perseverance and optimism, they also make smartly calculated changes to their future efforts. Always remember that you fail when you do not try, as persistence is the key to success in just about any aspect of a business.

Understanding Foreign Qualification

Posted on March 9, 2020September 23, 2024 by Jennifer Brazer

Doing business in other states is known as a foreign qualification. Please don’t get confused by the wording; it can be misleading. You may think it sounds like an international idea but it’s not. In this case, the phrase “foreign” doesn’t mean outside the United States. It’s simply about operating in the U.S. but outside the state where you incorporated your business.

What is a Foreign Qualification?

Foreign qualifying is simply registering a business in a state other than the one you incorporated. Companies and LLCs are considered domestic only in their state of incorporation.

Foreign Qualification Process and Requirements

When you foreign qualify your company, you are essentially registering for a Certificate of Authority in the state(s) where your company will be conducting business and also paying the required state fees. This informs the state that your company is conducting business within its limitations. If your business expands into new states and requires foreign qualification, you should consider these initial and ongoing fees as a necessary part of doing business.

Do you Need to Foreign Qualify?

If you are currently considering incorporating in a state other than your home state, you should consider whether you need to foreign qualify in your home state. There are many factors to consider when determining the need for foreign qualifications. While different states have different criteria for conducting business, consider the following:

Does your company have a physical presence in the state?
Do you have workers in the state?
How does your company receive orders within the state?
Do you have a company bank account in the state?

If you answered yes to these statements, you will likely need to foreign-qualify your business in the state. If you’re still unsure if you need to get foreign qualifications, you may want to seek the advice of a lawyer.

Consequences of Not Foreign Qualifying

State laws mandate that foreign corporations and LLCs conducting business within their borders must obtain qualification, and the penalties for failing to do so far exceed the associated costs:

You may lose access to the court system in that state
May face fines, penalties, and back taxes

Foreign Qualified or Incorporated in Each State?

A practical alternative to foreign qualification is to incorporate your business or form your LLC in the other state(s) where you plan to do business. By incorporating or forming your LLC in multiple states, your company gains a crucial advantage. It becomes domestic in each state, establishing distinct entities and expanding its reach. Consider the following in making your decision:

Increased corporate formalities: The increase in corporate formalities significantly hinders corporations. Corporate procedures include drafting and maintaining regulations, issuing stock, and recording all stock transfers. In addition, they hold initial and annual meetings for directors and shareholders, carefully documenting minutes for all meetings in the corporate records. Unlike corporations, LLCs are not subject to as many regulatory requirements.

Separate owners and management: Establishing a separate corporation in each state means each will have its own stock, shareholders, directors, and officers. Even if the same individuals are involved in each corporation, it’s vital to adhere to the formalities for each domestic corporation, which significantly increases the annual record-keeping requirements.

One company versus separate companies: When you foreign qualify, only one corporation or LLC exists. Corporations, irrespective of the number of states in which they foreign qualify, need only one set of statutes: stock, shareholders, directors, and officers. The bookkeeping for initial and annual meetings of directors and shareholders only occurs once.

Separation of liability between businesses. Creating a new corporation or LLC in each state allows for liability separation. However, if you are foreign qualified in each state, only one corporation or LLC exists, meaning there is no separation of liabilities.

Conclusion

Foreign qualification is the important process of officially registering a business to operate in a state other than its original state of formation. This typically involves completing and submitting an application along with paying a fee to the Secretary of State or a similar governing body in the new state. Additionally, once a business is foreign qualified, it must comply with the ongoing requirements of that state, such as annual report filings, additional tax obligations, and other regulatory requirements. While this can involve additional paperwork and fees, it is essential for businesses to prioritize foreign qualifications in order to ensure compliance with the legal obligations of conducting business in multiple states.