Visual Merchandising in Retail

Posted on March 5, 2020March 31, 2024 by Jennifer Brazer

Visual merchandising is an essential element that can significantly influence customers’ buying decisions in the retail industry. It’s not just about making products look attractive; it’s a strategic art that blends aesthetics with psychology to create environments that engage and inspire shoppers, ultimately driving sales and enhancing the shopping experience. As a business owner in the retail sector, understanding and implementing effective visual merchandising techniques can set your store apart from competitors, fostering brand loyalty and boosting your bottom line. Let’s dive into visual merchandising and explore some industry tips and tricks for achieving success through visual merchandising in your store.

Understanding Visual Merchandising

At its core, visual merchandising is the practice of arranging products and designing store layouts to maximize the appeal of goods to attract customers. It’s about storytelling and creating an immersive shopping environment that reflects the brand’s identity and values. This can include window displays, in-store arrangements, product placements, lighting, and signage. The goal is to make the store visually appealing and to guide customers through a journey, making it easy and enjoyable for them to shop.

Why is Visual Merchandising Important?

Visual merchandising plays a crucial role in the retail experience by:

Capturing attention: Eye-catching displays can lure customers into your store from the street.
Encouraging purchases: Well-designed product presentations can entice customers to buy more than they initially planned.
Enhancing customer experience: A visually appealing and well-organized store can make shopping more enjoyable, encouraging repeat visits.
Differentiating your brand: Unique visual merchandising can set your store apart, making it memorable for customers.

Tips and Tricks for Successful Visual Merchandising

Understand your target audience

Knowing your customers is the first step in effective visual merchandising. Design your store layout and displays with your target audience in mind. What appeals to them? What are their needs and desires? Tailoring the shopping experience to meet these preferences can significantly impact your sales.

Create a focal point

Every display should have a focal point to draw customers’ attention. This could be a new or best-selling product or anything you want to highlight. Use lighting, color contrasts, and positioning to ensure the focal point stands out.

Tell a story

Use your displays to narrate a story. This could be thematic, based on seasons, holidays, or even lifestyle scenarios that include your products. Storytelling through visual merchandising can create emotional connections with customers, making your products more appealing.

Change displays regularly

Keeping your visual merchandising fresh is critical to retaining customer interest. Regularly update your displays to reflect new arrivals, seasons, or promotional themes. This attracts repeat customers and keeps your store looking vibrant and dynamic.

Use lighting strategically

Lighting can dramatically affect how products are perceived. Use various lighting techniques to highlight products and create ambiance. For example, spotlighting can draw attention to specific items, while softer, ambient lighting can create a warm, welcoming environment.

Maximize space and flow

Your store layout should facilitate an easy and enjoyable shopping experience. Ensure a logical flow guides customers through different sections, leading them on a path that maximizes product exposure. Be mindful of space; overcrowded displays can be overwhelming, while too sparse can seem lacking.

Leverage technology

Incorporate technology into your visual merchandising strategy. Digital displays, interactive kiosks, and augmented reality can offer engaging and personalized shopping experiences. Technology can also be used to virtually test different visual merchandising strategies before implementing them in-store.

Train your team

Your staff plays a significant role in maintaining the visual appeal of your store. Train your team on the principles of visual merchandising and the importance of maintaining displays. Encourage them to contribute ideas for displays and to take initiative in keeping the store looking its best.

Gather feedback and adapt

Collect feedback from customers and staff about your visual merchandising. What do they like? What could be improved? Be open to experimenting with different strategies and layouts based on this feedback to find what works best for your store.

Conclusion

Visual merchandising is not a one-size-fits-all solution; it requires creativity, experimentation, and a deep understanding of your brand and customers. However, implementing these tips and tricks can elevate your store’s visual appeal, enhance the shopping experience, and ultimately drive sales and success in the competitive retail industry. Remember, the goal of visual merchandising is not just to sell products but to create an environment that customers love to return to time and again.

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.

Financial Reporting & Audit Overview

Posted on March 5, 2020March 7, 2024 by Jennifer Brazer

Financial Reporting and Audit Report

The calculation of indicators is based on the balance sheet and profit and loss statement. There are two approaches to the calculation of indicators. There is a momentary one when the calculation is made based on balance sheet data at the end of the period and the calculation for the mean values over the analyzed period. The second option is preferable if, for example, a company makes significant payments at the end of the month. Using the average for the period of values of the settlement account allows it to eliminate the resulting distortion of the liquidity indicator. In process auditing, bookkeeping can also be used to determine the numbers.

Principles of Financial Accounting

The fundamental principles of accounting are a set of principles, concepts, and definitions that enable the identification, estimation, accounting, formation, and transfer of financial information in a clear, consistent, timely, and understandable manner. Accounting is a process of using fundamental principles that create helpful financial information. The purpose of financial statements is to provide information on the financial position, activities, and changes in the financial position of the bank, which can be helpful to a wide range of users when making critical economic decisions.

To effectively implement this process, it is necessary to consider the requirements for transferring financial information to interested persons. These requirements are usually divided into two categories – the requirements of internal users (bank management) and external users of financial information.

Internal users are interested in the information contained in the financial statements. However, they also have access to additional management and financial information that helps them fulfill their planning, decision-making, and control responsibilities.

External users are interested in information about the activities and indicators of the bank and changes in the financial situation, which can be helpful for a wide range of users when making economic decisions. Financial reports satisfy the everyday needs of most users.

Financial Strategy

The financial strategy covers all aspects of a corporation’s activities, including optimization of fixed and circulating assets, profit distribution, non-cash settlements, tax and pricing policies, and security policies. It is developed within the framework of a corporation’s strategic financial planning. It is focused on achieving the specified level of the main parameters of its activities: sales volume, cost price, profitability, financial stability, payment, and price competitiveness.

Financial Ratios and Indicators

The main requirement for the enterprise’s break-even operation in market relations conditions is economic and other activities that ensure profitability. The economic measures are aimed at reimbursing expenses by the received incomes and profit reception for the satisfaction of the economic and social needs of members of the collective and material interests of the proprietor. There are many indicators for engineers and architects to characterize the activity, including gross income, turnover, profit, costs, taxes, and other characteristics. For all types of enterprises, the leading financial indicators for engineers and architects of the organization and their activities are financial stability, liquidity, profitability, and business activity.

The indicator dynamics are taken into account, which not only determine the financial strength of the firm or its insolvency but also reveal the critical state of the organization’s finances to identify the accurate liquidity index. Sometimes, the liquidity indicator is low due to an increased demand for the industry’s products. Such an organization has high solvency since its capital consists of cash and short-term loans. The dynamics of the main financial indicators demonstrate that the situation looks worse if the organization has working capital only in the form of a large number of stock products, which are current assets.

Their transformation into capital requires a certain amount of time for implementation and the availability of the customer base. The enterprise’s main financial indicators, including liquidity, indicate the state of creditworthiness. The company’s assets must be sufficient to pay off short-term loans. In the best position, these values are approximately at the same level. If the enterprise has circulating assets that are much higher in value than short-term loans, this indicates an inefficient investment of money by the enterprise in current assets. If the amount of working capital is lower than the value of short-term loans, this shows the firm’s pending bankruptcy.

Complete Controller. America’s Bookkeeping Experts

End IRS Payroll Tax Problems Now

Posted on March 5, 2020October 14, 2025 by Jennifer Brazer

Resolve IRS Payroll Tax Problems & Save Your Business Now

IRS payroll tax problems occur when businesses fail to properly withhold, deposit, or pay employment taxes, leading to severe penalties ranging from 2% to 15% of unpaid amounts, potential criminal charges, and business closure. These “trust fund” taxes represent money withheld from employee paychecks that legally belongs to the government, making non-compliance one of the most serious tax violations a business can face.

As the founder of Complete Controller, I’ve witnessed countless small businesses brought to their knees by payroll tax issues that started as simple cash flow problems. Over my 20 years leading a cloud-based financial services provider, I’ve had the privilege of working with businesses across every sector, and I can tell you that payroll tax violations hit harder than any other financial crisis. The IRS treats these violations more harshly than income tax debt because you’re essentially spending your employees’ money. The good news? With the right approach and prompt action, even the most complex payroll tax issues can be successfully resolved.

In this article, you’ll discover the exact steps to stop IRS collection actions, negotiate favorable payment terms, and implement systems that prevent future violations while keeping your business operational.

What are IRS payroll tax problems, and how do you resolve them?

Payroll tax problems with the IRS involve violations related to unpaid or incorrectly administered employment taxes, including Social Security, Medicare, and federal income tax withholding.
Immediate consequences include failure-to-deposit penalties of 2-15%, Trust Fund Recovery Penalties equal to 100% of unpaid withholding, and potential criminal prosecution
Resolution requires stopping current violations, negotiating payment plans or settlements, and implementing compliant payroll systems
Business survival depends on swift action within IRS notice deadlines and professional representation to avoid personal liability
Prevention involves proper cash flow management, automated payroll systems, and regular compliance monitoring

Understanding the Severity of IRS Payroll Tax Problems

Payroll tax compliance represents one of the most critical risks for businesses, as these taxes are deemed “trust fund” obligations held for the government. An estimated 33% of small businesses incur payroll penalties each year, with average fines of approximately $845 per violation. Unlike income tax debt, where businesses typically face civil penalties, payroll tax violations can trigger criminal prosecution, with penalties including up to five years imprisonment.

The Trust Fund Recovery Penalty (TFRP) adds another layer of severity, allowing the IRS to pursue business owners, officers, and even accountants personally for 100% of unpaid withholding taxes. This penalty applies to Social Security, Medicare, and federal income taxes withheld from employee paychecks, essentially making responsible parties personally liable for these debts even if the business declares bankruptcy.

The escalating penalty structure

The IRS penalty structure for payroll tax problems escalates rapidly based on how late deposits are made. Deposits that are 1-5 days late incur a 2% penalty, while deposits more than 15 days late face a 10% penalty. The most severe penalty occurs when deposits remain unpaid for more than 10 days after receiving an IRS notice, triggering a 15% penalty on the entire unpaid amount.

Criminal prosecution trends

The Department of Justice has dramatically increased emphasis on criminal prosecution of employment tax violations, stating that failure to pay employment taxes is “not simply a civil matter.” IRS Criminal Investigation achieved a 90% conviction rate in fiscal year 2024, with 1,571 total convictions and investigations identifying $2.12 billion in tax fraud. A business owner of a construction company in Portland, Oregon, exemplifies these consequences – he was sentenced to 30 months in federal prison and ordered to pay $29.9 million in restitution for a payroll tax evasion scheme involving $192 million in under-the-table payments that caused $68 million in tax losses.

Immediate Steps to Stop IRS Payroll Tax Problems

When facing IRS payroll tax problems, the first 30 days determine whether your business survives or faces closure. Revenue officers typically make a determination on Trust Fund Recovery Penalty assertions within 120 days of case assignment, making immediate action critical. The key is addressing both current compliance and past liabilities simultaneously to prevent the situation from deteriorating further.

Achieve current compliance first

Before negotiating any resolution of past payroll tax debt, businesses must demonstrate current compliance with all filing and deposit requirements. This means ensuring all current quarter payroll taxes are deposited on time and all required forms (941, 940, 944) are filed accurately. The IRS will not negotiate installment agreements or offers in compromise with businesses that continue to fall behind on current obligations.

Comprehensive financial documentation becomes crucial for any resolution strategy. The IRS requires detailed financial statements, including Forms 433-A for individual finances and 433-B for business finances, when evaluating payment plans or settlement offers. This documentation should include:

Bank statements for the past three months
Profit and loss statements
Balance sheets
Detailed expense records
Asset valuations and depreciation schedules

Establish communication with the IRS

Proactive communication with assigned revenue officers can prevent aggressive collection actions like bank levies and asset seizure. When businesses ignore IRS notices, revenue officers escalate to enforcement actions that can shut down operations within days. Establishing dialogue demonstrates good faith and often provides breathing room to negotiate resolution terms.

Resolving Payroll Tax Liabilities Through Payment Plans

The IRS offers several installment agreement options specifically designed for businesses with payroll tax debt. The In-Business Trust Fund Express Installment Agreement (IBTF-Express IA) allows businesses to repay trust fund taxes over 24 months while continuing operations. For larger debts, Full Payment Installment Agreements extend repayment terms up to 72 months, though businesses must demonstrate the ability to maintain current compliance throughout the agreement period.

Long-Term Installment Agreements accommodate businesses with substantial tax debts that cannot be repaid within standard timeframes. These agreements extend beyond 72 months but require detailed financial analysis and often include periodic reviews to ensure continued viability. The IRS may require direct debit arrangements to minimize default risk on longer-term agreements.

Payment plan negotiation strategies

Successfully negotiating favorable payment terms requires understanding IRS collection priorities and demonstrating business viability. Revenue officers evaluate whether proposed payment amounts represent the maximum the business can pay while maintaining operations. In a Treasury Inspector General audit, 99 of 265 Trust Fund Recovery Penalty cases reviewed had untimely or inadequate actions, with delays ranging from 31 to 910 days – highlighting the importance of persistent follow-up and professional representation.

Professional Help and Asset Protection Strategies

The IRS workforce decreased from about 102,000 employees to fewer than 76,000 between the start of the 2025 filing season and June – a 26% reduction representing staffing levels not seen since the 1970s. This dramatic reduction means businesses face longer wait times and more complex resolution processes, making professional representation increasingly critical.

Tax attorneys provide attorney-client privilege protection crucial when businesses face potential criminal exposure. Enrolled agents and CPAs can handle most civil resolution matters, but cannot provide the same legal protections as licensed attorneys. Businesses should engage professionals immediately upon receiving IRS notices regarding payroll tax problems, as early intervention often prevents escalation to criminal referral.

While resolving payroll tax problems, businesses must carefully manage asset protection to avoid inadvertent preference payments that could trigger additional penalties. Paying other creditors while owing payroll taxes can be construed as a willful violation, potentially exposing additional parties to the Trust Fund Recovery Penalty liability.

Building Compliance Systems That Prevent Future Problems

Preventing future payroll tax problems requires systematic approaches to payroll processing, tax calculation, and deposit scheduling. Automated payroll systems significantly reduce calculation errors and deposit timing mistakes that commonly trigger IRS penalties. Integration with accounting systems ensures accurate recording and tracking of all payroll tax liabilities throughout each quarter.

Many payroll tax problems originate from cash flow challenges that lead businesses to “borrow” from withheld taxes to meet other obligations. Establishing dedicated payroll tax accounts prevents commingling of tax money with operating funds, reducing temptation to use these funds for other purposes. Small business bookkeeping best practices include:

Automated transfer systems moving tax obligations to separate accounts immediately upon payroll processing
Monthly reconciliation of payroll tax accounts to identify discrepancies
Quarterly reviews with tax professionals to ensure continued compliance
Cash flow projections specifically accounting for payroll tax obligations
Emergency credit facilities designated for tax obligations

Final Thoughts

IRS payroll tax problems represent one of the most serious challenges businesses can face, but swift action and proper strategy can resolve even the most severe situations. Throughout my years helping businesses navigate these challenges at Complete Controller, I’ve seen companies emerge stronger by implementing proper systems and working proactively with the IRS.

Payroll taxes represent money held in trust for your employees and the government – never treat these funds as available cash flow for other business needs. With proper planning, automated systems, and professional guidance when needed, your business can maintain compliance and avoid the devastating consequences of payroll tax problems. For expert assistance with payroll management and tax compliance that goes beyond basic bookkeeping, visit Complete Controller to discover how our comprehensive financial services can protect your business from costly tax complications.

Frequently Asked Questions About IRS Payroll Tax Problems

What happens if I can’t pay my business payroll taxes?

If you cannot pay payroll taxes, the IRS will assess failure-to-deposit penalties ranging from 2% to 15% of the unpaid amount, potentially file tax liens against business assets, and may pursue Trust Fund Recovery Penalties against responsible individuals for 100% of withheld taxes.

Can payroll tax debt be discharged in bankruptcy?

Payroll tax debt, particularly the trust fund portion representing employee withholdings, typically cannot be discharged in bankruptcy, and the IRS can pursue responsible parties personally through Trust Fund Recovery Penalties even after business bankruptcy.

How long do I have to resolve IRS payroll tax problems?

The IRS typically makes Trust Fund Recovery Penalty determinations within 120 days of case assignment, though businesses should respond to initial notices within 10-30 days to avoid accelerated collection actions like bank levies and asset seizure.

What is the Trust Fund Recovery Penalty, and who can be held liable?

The Trust Fund Recovery Penalty equals 100% of unpaid withholding taxes and can be assessed against any responsible person, including business owners, officers, accountants, or employees who had authority over payroll tax decisions and willfully failed to pay.

Can I negotiate a settlement for less than the full amount of payroll tax debt?

While the trust fund portion of payroll taxes typically cannot be compromised, the employer portion (matching Social Security and Medicare) may qualify for Offers in Compromise, and individual Trust Fund Recovery Penalties may be settled based on personal financial circumstances.

Sources

ADP Resources. “Payroll Tax Penalties.” ADP. https://www.adp.com/resources/articles-and-insights/articles/p/payroll-tax-penalties.aspx
Boxelder Consulting. “Payroll Tax Resolution – Tax Relief.” https://boxelderconsulting.com/services/tax-relief/payroll-tax/
Brager Tax Law Group. “Payroll Tax Problems.” https://www.bragertaxlaw.com/payroll-tax-problems.html
Coleman, David. “Employment Tax Penalties: Let’s Keep It Civil.” The Tax Adviser, February 2018. https://www.thetaxadviser.com/issues/2018/feb/employment
FinCEN. “FinCEN Calls Attention to Payroll Tax Evasion and Workers’ Compensation Fraud.” May 31, 2023.
IRS Criminal Investigation. “IRS Criminal Investigation Boasts 90% Conviction Rate in FY24.” Thomson Reuters Tax, December 5, 2024.
IRS. “Payments and Penalties.” https://www.irs.gov/payments/penalties
IRS. “Installment Agreements.” https://www.irs.gov/payments/instalment-agreements
IRS. “What You Should Know About Tax Liens.” https://www.irs.gov/compliance/collections/what-you-should-know-about-tax-liens
Lift HCM. “Payroll Compliance: Top 6 Issues and Solutions for 2025.” July 23, 2024.
National Taxpayer Advocate. “National Taxpayer Advocate Issues Mid-Year Report to Congress.” IRS, June 25, 2025.
Treasury Inspector General for Tax Administration. “Trust Fund Recovery Penalty Actions Were Not Always Timely or Adequate.” November 2024.
Complete Controller. “Small Business Bookkeeping: 9 Tips and Tricks.” https://www.completecontroller.com/small-business-bookkeeping-9-tips-and-tricks/
Complete Controller. “Bank vs Vaults: Asset Protection.” https://www.completecontroller.com/bank-vs-vaults-asset-protection/

Jennifer Brazer Founder/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.

See Full Bio

Reviewed By:

Small Biz Fraud Prevention

Posted on March 5, 2020March 7, 2024 by Jennifer Brazer

According to the 2016 ACFE Global Fraud Study Executive Summary, a typical organization loses 5% of its yearly revenues due to fraud. Corporations of different sizes tend to have various fraud risks. Corruption was predominant in big corporations, while check tampering, payroll fraud, and stealing were twice as common in small businesses.

Frauds are often more common in small businesses as they lack special security checkups and foolproof systems. A small business may have installed accounting software but may lack many functions reserved for software purchased by big corporations. Even though you may have bought good accounting software for a small firm, there remains a chance of fraud. Usually, a single person is trusted to operate the accounting software and business bookkeeping in a smaller company.

Focus on these areas in a small business to minimize small business frauds:

Expense
Procurements
Payments

Top Areas to Monitor for Employee Fraud

Frauds come through these channels:

Frauds through Purchase Order
Misuse of Business Credit Cards
Frauds on sales and receivables
Payroll Frauds
Information systems and critical data stealing

Frauds through purchase order

Employee purchases goods that he intends for personal and private use.
The employee makes a vendor’s account in which he pays fraudulent invoices.

You can trace fraud through purchase orders by checking if the same person makes purchases and approves payments. You can also detect fraud if various split purchase orders are within an allowed limit.

Misuse of business credit cards

Many businesses give corporate credit cards to their employees when they are going on a business trip. When the credit card bill arrives, do not mindlessly sign the account. Before signing, check the outlets where you had used this card. You should not use your business money for any unapproved items or excursions.
Many frauds fall into a double billing fraud type. An employee uses the business credit card to make an expense. Then, he again submits the receipt for the same payment to reimburse the money. There should be a strict procedure to keep a check and balance on double billing frauds.

Frauds on sales and receivables

The employee develops personal contact with the sales representative and gets a commission.

Fraud tests can spot customer accounts receiving unusual discounts, customer reports having higher memos, customer accounts with high credit terms, and when the shipment address of sales is the same as employees.

Payroll frauds

Payroll fraud can be of the following types:

The payroll of a person who was terminated or died still exists in the payroll section
The payroll of a person who does not exist at all
Adding overtime payments to the payroll without permission or reason

Information systems and critical data stealing

Employees can steal and misuse critical data from a company’s information system. They can sell the customers’ data and information related to addresses and contact numbers to a third party.

Run specific tests on the computer system to check for data theft from your business database. The test will detect the accounts that accessed the database from their company’scompany accounts. Check if this employee had the authority and permission to log in to the company’s database.

If an authorized employee frequently logs into the system and there is no apparent need for such logins, monitor closely. Run tests to determine whether any data was copied and moved.

A unique software program runs discretely to detect emails carrying critical and essential company data.

Conclusion

No business is immune to fraud or theft. Employers should closely monitor the activities of their employees. They should focus on the above five areas that act as a channel of employee fraud. Employers must strictly observe the bookkeeping, mainly to prevent fraudulent activity.

Mastering Business Bookkeeping

Posted on March 4, 2020January 8, 2025 by Jennifer Brazer

Keeping your books is not just about preparing for tax filing or tax savings; there is a lot more to it. Many critical decisions about the business are made based on the information offered in financial statements. Some might consider bookkeeping to be something that anyone can do. However, maintaining accurate records of business financials is not an ordinary task and requires skills and expertise. Businesses outsource professional accounting and bookkeeping services for this job because they consider it essential and understand the significance of doing it right. Here are some of the reasons why business accounting tasks should be taken seriously.

Corporate Veil and Bookkeeping

The corporate veil is a legal concept that separates a corporation from its shareholders and protects them from being personally liable to company debts and obligations. Maintaining separate books for each business subsidiary demonstrates that you have recognized it as a separate entity. Therefore, everything related to the entity is a business of its own. Also, keeping your personal and business finances separate makes it easier for you and the auditors to measure the business performance accurately.

Cutting Corners

Unfortunately, this is an approach that many new business owners opt for, and it inevitably comes back to bite them. Accurate bookkeeping is indispensable for tracking the growth of your business and legal/tax purposes. Legal business demands you to maintain a precise measure of cash flows, expenses, labor costs, and revenues. Cutting corners to save time and money must not be an option and should be avoided at all costs.

Audit and Tax Protection

Every business, whether big or small, must go through IRS auditing. Auditing can be bad for you if your books are not well maintained. The audit team will note discrepancies in financial records, and you can face potential charges from the IRS. These charges can result in you paying heavy penalties or fines and, in some cases, even lead to the closure of your business. Paying fines is undoubtedly a situation that you must avoid. Appropriate bookkeeping is the only way to prevent such scenarios.

The amount of taxes that you must pay depends on the revenues generated by your business. Professional accounting procedures ensure that you pay payroll taxes and prepare the documentation for filing your taxes on time. If you have maintained your books properly, you can search for legal ways to reduce the tax burden, which is entirely possible given you understand accounting practices. If you are not adept at accounting, I recommend hiring a professional to assist you with this task.

Bookkeeping Leads to Improved Decision Making

The success of any business depends on its ability to interpret the given information accurately and make informed decisions based on the provided knowledge. Any business’s best source of information is its financial records, including expense tracking, budgeting, income statements, and sale reports. Any inaccuracy in these records will mean that your decisions are based on imprecise information, resulting in disastrous consequences. Whether you handle the bookkeeping needs internally or have outsourced the job, you must ensure that the highest standards are followed in their compilation. As a business owner or manager, you must find someone capable enough to perform this critical task for you.

Automating the Process

The evolution of technology has simplified most tasks that were thought to be complicated just a few short years ago. Using automated bookkeeping services, such as QuickBooks automates most previously handled functions manually. This means that the tasks are completed efficiently with fewer resources than previously required. You will notice a significant fall in costs related to bookkeeping. You will not have to spend surplus payroll money on a full-time staff bookkeeper to handle the job, as the automated software will:

Keep essential information at your fingertips.
Efficient use of online banking
Better collection of receivables
Track real-time receipts and invoices.
Give you access to financial information on the go.

In conclusion, do not be naïve and laid back about managing your books. Take charge of your business with the help of these vital tips.

Business Finance Mastery: Vital Tips

Posted on March 4, 2020March 7, 2024 by Jennifer Brazer

Managing Business Finances

Business finance is a crucial term in corporate finance and accounting, encompassing various disciplines and business activities related to money management and other valuable financial assets. It teaches us about effective management and utilization of financial resources, investing strategies, accounting methodologies, and effective debt management. In short, it defines the fate of any company’s business and long-term growth and profitability.

Significance

Businesses must effectively manage their financial resources, pack their bags, and go home to survive in an extremely competitive environment. In our demanding era, business finances work just like oxygen for survival, stability, strength, consistency, and growth. In short, money keeps your business running and your employees working to attain business goals and objectives.

However, the influx of money needs to be assured at the hour of need, or your business may face a financial crisis, eventually leading to overall business failure. Some of the most common ways a business can be financed or money raised include business loans, private loans (family or friends), mortgage loans, crowdfunding, etc.

Critical To Business Success

Entrepreneurs or business adventurists around the globe face many difficulties in generating business finances for their unique business ideas. But, even those who generate desired finances often strive to maintain or manage their money—perhaps due to the lack of financial knowledge or management of money-related skills. They may have scarce resources, but hiring a professional accountant or bookkeeper seems smart. This allows them to concentrate on the core affairs of the business while their bookkeepers take care of the rest (money-related matters). The matter’s sensitivity is indispensable in managing business finances effectively to maintain a sustainable competitive advantage.

5 Crucial Tips to Keep Your Business Finances In Order

Get Yourself Ready For the Tough Job Ahead

To survive in a volatile economy, you must develop new and effective ways to get things right—the first time. No one is a born genius; your motivation, inspiration, and result-oriented approach encourage you to learn the game’s art before taking on challenges head-on. To manage the finances of a business, you need to educate yourself and prepare for the tough accounting job ahead, as financial recording is no easy feat. A company’s fate depends on financial recording and analysis—the better they are, the higher the results. This makes it clear that the management and bookkeeping of business finances require accounting knowledge, skills, and, hence, complete accounting know-how for keeping finances in order and perfectly streamlined.

Keep Your Personal and Private Finances Separate

To develop more command and control over your personal and business finances, you must deal with them separately to avoid confusion. The cash outflow must be managed well to track your business transactions properly. This will help where your money is going but also help when submitting tax returns at the end of the term. Small businesses often struggle to sort between business and private finances as they lack awareness, accounting knowledge, experience, and expertise in dealing with money-related issues. By sorting this out, you will have the exact status of your money.

Choose a Suitable Accounting Software

Salutations to superior accounting tools and techniques have made recording business transactions much easier than traditional and manual methods. If you haven’t yet moved to cloud technology to manage your money and resources in real-time, we suggest you do it immediately. Today, you have a myriad of options to choose from; however, integrating the right accounting software or technology is crucial.

Hire a Professional Bookkeeper

You may have basic accounting knowledge and experience in keeping transaction records, but this may not be enough for your business. To effectively manage everything related to your business finances, you must consider hiring a qualified and reputable bookkeeper. This will not only help you solve financial discrepancies but will also help you save a lot of money in the end.

Make a Budgeting Plan

By creating a budgeting plan, you will get things aligned and more organized than ever. Business budgeting is a necessary evil, which means that no matter how far you run away from it, you still have to create it. This lets you know the business expenses and see whether they need to be cut if they exceed the limit or need to be financed with more money.

Conclusion

Many business owners do not keep records of their finances; even if they do, they are most often disorganized or cluttered. To establish 100% command and control over your business, you must manage your finances and cash flow carefully. Hiring a qualified bookkeeper to achieve the intended outcomes and pave your way to business success is better.

Cyber Security For E-commerce Websites

Posted on March 4, 2020March 7, 2024 by Jennifer Brazer

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 risk, such as ransomware.

Cyber security for e-commerce sites is not easy. Managers and business owners often lack technical training, and the lack of information can discourage even the most cautious and security-conscious business owners. This guide will be useful for managers who want to secure their e-commerce websites and overcome security obstacles.

Identify the Most Vulnerable Areas

To protect a business from any threats related to cyber security, the initial precaution to consider is to identify the vulnerabilities of a website and the company 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 data type the company stores? Knowing its vulnerabilities is challenging in increasing cyber security for e-commerce sites without proper information about the data type.

Businesses have crucial data related to their intellectual property, 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. Considering the negative effects of a cyber security breach on the business, employees, and relationships with customers and partners is essential. 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 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, which makes them susceptible to a cyber attack. Hire an IT service to provide adequate protection protocols for the computer equipment and servers to enhance the cyber security 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 for hacking into computer networks or websites. The most common reasons behind a cyber attack are that the hackers want to make their political stance clear, they want to make some money, or they are 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 regularly update the software to improve cyber security for e-commerce sites.

Anti-Virus Programs

Viruses can do many things; they are malicious in nature and 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 substantial threats to e-commerce in cyberspace.

Key Differences

Some differences exist between malware and ransomware. Malware works by prompting the victim to download certain software, thus gaining 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.

Ransomware is a malware type that, when launched successfully, can deny access to the targeted computer and prevent the user from accessing crucial data until the ransom is paid. It works by forcefully encrypting your data; once the encryption is complete, it requires a special key held by the attacker. 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 must take precautions to increase cyber security for their E-Commerce sites.

IRS Business Tax Audits

Posted on March 4, 2020March 7, 2024 by Jennifer Brazer

What You Should Know About Business Tax Audits Conducted by the IRS

Most of these audits are conducted in person by the IRS.
These audits are comprehensive and cover income, employment, and payroll taxes. Proper preparation is crucial for the audit.
The determination of the IRS agent is not final. You have the right to appeal against their conclusion.

Your business tax return audit is conducted to verify the authenticity of your filed information. These audits are not shown at random. The IRS selects returns likely to have some errors through a set of intricate criteria. The audits begin within a year of filing and are completed mostly within that year.

The Returns of Audits are Conducted in 3 Ways

By mail: This type of audit is called a correspondence audit.
At an IRS Office: This type of audit is called a desk or office audit.
In-person: This audit is conducted at the site of your business or home and is known as a field audit.

As mentioned above, most business audits are conducted in person, i.e., mostly field audits. Field auditing is an extensive task and is considered a physical inspection of all aspects regarding owners and their businesses. The IRS closely examines the accounting system and business records while physical checks are carried out to deem the authenticity of those records. A business audit can take up to a year to complete (in most cases). However, you can reduce the audit time if a business adequately prepares for the audit with prompt responses to the requests and questions raised by the audit team.

While the audit is being conducted, the IRS requires you to submit all necessary documents (such as bookkeeping records) to determine your financial position. It would be best if you were accurate and precise when providing the information requested by the IRS. It is recommended that you have a licensed tax professional handle your audit-related tasks. You must provide your tax professional with the necessary facts to conduct the audit.

Understanding the Scope of an Audit

The scope varies according to the type of audit being conducted. Here is what you should keep in mind:

Mail Audits are extremely limited. They include a check on a few items mentioned in the audit letter that the IRS mails you.
Office Audits go into more detail. They are generally less complex than field audits, but they may have a scope like that of a field audit in certain situations.
Field Audits are the most time-consuming. They include questions that probe into the activities of your business and your business’s financial position. It is a wise decision to hire the services of a tax professional to represent your business in front of the IRS.

Preparing Responses to Questions Asked by the IRS

Mail audit: Preparing for a mail audit is relatively easy. You will only have to prepare complete responses to the questions in the audit letter you received via mail.

Field and office audits: These can be more complex. In this, you will need to:

Prepare for the meeting with the IRS agent/officer conducting the audit.
Prepare and compile the information that the IRS has already requested.
Prepare for any questions the IRS and the IRS Agent/Officer might ask.

In simpler words, you must prepare to answer any question related to your financial activity during the year for which you are being audited. You will also need to recreate documentation for anything that is not documented (or if relevant documents have been misplaced). You must use third-party records or other records to reconstruct such documents.

Respond to Any Request for Documents and Information Promptly and on Time

The IRS will ask more questions if they think you must change your returns. For example, suppose you get an IDR (Information Document Request) asking for more financial information. In that case, it is important to respond by the deadline to avoid any suspicion on the IRS’s side.
The IRS may tell you that income and deductions have been misreported. If you disagree with their conclusion, you must present your interpretation to the IRS.
Finally, the audit is closed, and the IRS either recommends some adjustments to your returns or accepts them as they are. You would. However, you have a 30-day window to appeal their decision.

Simplify Payroll: Best Tools

Posted on March 4, 2020March 7, 2024 by Jennifer Brazer

Many bookkeeping software solutions are more alike than different in terms of features. Standard components include overall ledger management, invoicing, and payment processing. Every association has additional requirements and needs. You can customize them for their size, kind of employees and clients, and the industry. For these reasons, no system can proffer perfect functionality out-of-the-box if you need a lifeline for processing payroll—and avoiding the feared delinquent payroll tax—not to worry. Many small business owners struggle with those same problems: you are not the only one. Check out these top-notch payroll-focused accounting tools listed below.

WagePoint

WagePoint is a simple online payroll application designed for small businesses in North America. Managing payroll is essential for small and mid-sized companies, and WagePoint gets the work done quickly and easily. WagePoint can manage government remittances/reporting, direct deposits, and year-end reporting for hourly and salaried workers. WagePoint is an intuitive, easy-to-use, web-based payroll software. It is perfect for small businesses seeking to pay their employees or contractors while remaining compliant with IRS regulations. It is an ideal app for companies in a wide range of industries.

Thousands of small businesses use WagePoint, and it offers an easy-to-use interface that allows establishments to set up the app in a few hours. The salesperson offers a service called “Switch It” – for businesses with more than ten employees to help them switch their existing payroll system to WagePoint.

Gusto

Gusto (previously named ZenPayroll) is a featured payroll, welfare administration, and compliance management platform. It was created mainly to assist small businesses. Gusto provides tools to manage core HR needs, such as time tracking, hiring, onboarding, and training. Employees can fill out their details in the system with devoted online accounts and track all paperwork in one principal place. Companies can mechanize their payroll operations by scheduling payment and benefits releases. The solution automatically delivers electronic payslips to an employee’s inbox upon completing the transaction.

Employees even choose to make charitable donations directly from their paychecks to their association of choice. The solution mechanically calculates, pays, and files a company’s local, state, and federal payroll taxes:

Additional features include custom reporting
Multiple pay rates
Multiple pay schedules
Third-party calendar integrations

SurePayroll

SurePayroll is a complete online payroll solution for every business. It has also created an administration platform in its payroll software called One-Click Payroll. It simplifies all the payroll procedures in just a few seconds without sacrificing accuracy and reliability.

The bookkeeping software comes with an interactive, customizable dashboard. Another highlight is that it supports multiple payroll types and calculates and delivers payroll taxes. Many businesses choose SurePayroll to handle payroll processes because of its extensive payroll-processing tools and unparalleled recordkeeping. SurePayroll is built to streamline the payroll process with fantastic tools and excellent third-party integrations. It is a solid option for any business looking for software to make payroll faster yet perfectly accurate and reliable.

With SurePayroll accounting software, workers can quickly check their payroll information, including paychecks, vacation leaves, pay stubs, etc. They can also do all these via smartphones, tablets, and other mobile devices. The system also takes care of taxes by automating the processes while maintaining compliance with the company’s payroll services. Customer support is also credible—the software field has knowledgeable and responsive support staff and can easily access the support center.

Conclusion

Aside from key features, when choosing the best bookkeeping payroll software for your business, consider these other accounting aspects: ease of use, compatibility and integration, and security. More importantly, it would be best if you prefer a cloud-based software model.

Stock Market Tips: Beginners’ Guide

Posted on March 3, 2020March 7, 2024 by Jennifer Brazer

Are you interested in the stock market and considering investing in a stock portfolio? Knowing what you want is already a good start—getting guidance before jumping into stocks is even better. Here are three tips to avoid making a fatal mistake on this path strewn with pitfalls.

Diversify Your Portfolio

No one is immune to a failed stock market investment. Even when they manage billions of dollars in assets, it happens to the best fund managers. There is only one solution to limit the damage when this event occurs. It is to diversify your portfolio of actions.

First, avoid investing all your savings into corporate stocks. You can never rule out a recession or a stock market crisis, and holding a certain percentage of bonds (directly or through funds) in your portfolio is advisable. You can also add real estate, raw materials, etc. However, the shares should rarely exceed 60% of your assets, except in exceptional cases(if you are a business executive, for example).

To obtain a diversified portfolio, you must hold shares in different sectors of the economy. Do not buy only banking and financial stocks, even if they seem like the best deals. In the same way, vary the countries. All the markets do not progress at the same time or speed. Remember to be patient.

Know How to Make Mistakes

When dealing in the stock market, you must recognize your mistakes quickly to limit the damage. You cannot be against the market; it is more powerful than you, and it is what decides the price of the action. Unless you are very well informed and know something that the public does not, it is very risky to be facing the market. Stocks do not have a maximum price, but they can go down to zero. Bankruptcies are commonplace in the stock market, and many more companies disappear than companies still in business today.

Keep adequate risk limits (through the diversification mentioned above) and decide to close a position when one of your investments turns sour. You will be able to recognize your mistakes and limit the damage. Of course, selling a losing position requires a step back and great wisdom, but it is often the best decision. Learn from your mistakes!

Do Not Burn the Steps

Going public with a portfolio that works very well is not effortless. Do not invest all your savings in one go on the stock market; go gradually by paying a sum monthly or quarterly on your account title. We advise you to start, for example, by investing in trackers that will ensure the task of diversification. Trackers or ETFs make investing in a sector (non-diversified) or more general (and therefore diversified) index possible. With fees and annual fees often limited (less than 1%), they are an inexpensive alternative to investment funds, and their performance does not have to blush those of some hedge funds.

Once you are used to placing orders, you can start taking positions with more potential in the forex market, CFDs, commodities, or shares of small businesses. Continue watching and learning on an ongoing basis by consulting specialized forums on the internet and reading the works of stock exchange experts.

With a bit of methodology, you will unlikely regret your investment in the stock market. Hopefully, you will reap the benefits after some effort and not miss this opportunity to grow your capital.

Conclusion

In conclusion, venturing into the stock market requires careful consideration and strategic planning. Diversifying your portfolio across various assets and sectors is crucial to mitigate risks and safeguard against market downturns. Additionally, learning from mistakes and maintaining prudent risk management practices are essential for long-term success. Take gradual steps, starting with diversified investments like trackers or ETFs, and continue to educate yourself through ongoing research and learning from experts. With diligence and patience, you can navigate the complexities of the stock market and potentially grow your capital over time.