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.

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.

Calculate Turnover Rates In Retail

Posted on March 3, 2020August 18, 2025 by Jennifer Brazer

Master Retail Turnover Rates: Efficient Calculation Tips

Calculating turnover rates in retail involves dividing the number of employees who left during a specific period by the average number of employees, then multiplying by 100 to get a percentage. This essential metric helps retail businesses understand workforce stability, predict staffing costs, and identify areas needing management attention, particularly important given that retail experiences 60% average annual turnover compared to just 22% across all industries.

Over my 20 years as CEO of Complete Controller, I’ve worked with retail businesses across every sector—from boutique shops to multi-location chains—and I’ve seen firsthand how accurate turnover calculations transform chaotic staffing situations into predictable, manageable workforce strategies. When you understand that replacing a single retail employee costs between $45,000 to $60,000 for someone earning $30,000 annually, suddenly those turnover calculations become your most valuable business intelligence tool for protecting profitability and building sustainable operations.

What does it mean to calculate turnover rates in retail?

Calculate turnover rates in retail by dividing total employee departures by average headcount during any period, multiplied by 100 for a percentage
Monthly calculations use the beginning plus the ending employee counts divided by two for the average number
Annual rates provide industry benchmarking, while monthly rates reveal immediate operational issues
Department-specific calculations identify problem areas requiring targeted management intervention
Seasonal worker exclusions prevent artificial inflation of core operational turnover metrics

Understanding Retail Turnover Rate Fundamentals

Retail turnover calculations present unique challenges that standard business formulas don’t adequately address. The retail workforce includes part-time employees, seasonal workers, commissioned sales staff, and hourly associates—each requiring different calculation considerations for accurate workforce analytics.

According to the U.S. Bureau of Labor Statistics, retail maintains a 60% turnover rate, placing it among the top four highest-turnover industries nationwide. Part-time hourly store employees experience 76% turnover rates while corporate retail positions maintain just 17%, demonstrating the dramatic variations within retail sectors that demand segmented calculation approaches.

Key components of retail turnover calculations

Accurate retail turnover calculations require three fundamental data points:

Beginning headcount: Total employees at the start of your measurement period
Ending headcount: Total employees when the period concludes
Total departures: All employees who left during the timeframe

Additional tracking variables enhance calculation accuracy:

Voluntary versus involuntary separations
Full-time versus part-time classifications
Department or location-specific departures
Seasonal versus permanent employee categories

Monthly, quarterly, and annual calculation periods

Different calculation periods serve distinct management purposes in retail operations. Monthly calculations quickly identify acute problems like scheduling conflicts or problematic managers causing departure spikes. These short-term metrics enable rapid intervention before small issues become expensive trends.

Quarterly calculations smooth out normal retail fluctuations while providing stable benchmarks for performance reviews and strategic planning. Annual calculations remain the industry standard for external comparisons and long-term strategic decisions, though smart operators maintain all three timeframes for comprehensive workforce intelligence.

Step-by-Step Retail Turnover Rate Calculation Process

Begin your turnover calculation by establishing clear employee definitions and gathering comprehensive workforce data. Include all individuals who worked during your measurement period, noting their employment classification, department assignment, hire date, and departure date if applicable.

Calculate your average employee count using this formula: (Beginning Employee Count + Ending Employee Count) ÷ 2 = Average Employee Count. For operations with significant monthly variations, consider averaging monthly snapshots rather than using only beginning and ending figures.

Implementing the standard retail turnover formula

Apply the turnover rate formula systematically:

Count total departures during your measurement period
Calculate average employees using the formula above
Divide departures by average employee count
Multiply by 100 for the percentage rate

Example calculation:

Beginning employees: 150
Ending employees: 110
Total departures: 13
Average employees: (150 + 110) ÷ 2 = 130
Turnover rate: (13 ÷ 130) × 100 = 10%

Advanced calculation techniques for retail operations

Sophisticated retail operations benefit from segmented turnover analysis that separates departure types and employee categories. Track these segments independently:

Voluntary turnover: Employees who chose to leave
Involuntary turnover: Terminations and layoffs
Functional turnover: Poor performers you wanted to lose
Dysfunctional turnover: High performers you wanted to keep

Department-specific calculations reveal concentrated problem areas. Calculate each department’s rate separately using the same formula applied to departmental data rather than company-wide figures.

Retail Industry Benchmarks and Performance Standards

Current retail turnover benchmarks vary dramatically by position type and business model. Hourly in-store positions experienced 75.8% turnover in 2022, up from 68% in 2021, according to Korn Ferry research, representing one of the steepest year-over-year increases on record.

Best-in-class retail operations achieve 30-40% annual turnover, proving that significant improvement beyond industry averages remains achievable. Costco’s remarkable 8% annual turnover rate demonstrates what’s possible when retailers invest strategically in employee retention, saving approximately $387 million annually compared to industry-standard turnover costs.

Segment-specific retail turnover expectations

Different retail segments exhibit distinct turnover patterns:

Food service retail: 17.2% monthly (highest segment)
Sporting goods retail: 14.8% monthly
General merchandise: 60% annually
Specialty retail: 55% annually
Retail distribution: 23% annually

These variations reflect operational models, compensation structures, and career development opportunities unique to each segment.

Geographic and seasonal variation factors

Urban markets typically experience 10-15% higher turnover than rural locations due to employment alternatives and cost-of-living pressures. Seasonal variations can spike turnover by 20-30% during holiday periods when temporary workers complete intended short-term assignments.

Track both raw and seasonally-adjusted turnover rates to understand true workforce stability trends. Calculate seasonal adjustments by excluding planned temporary departures from core turnover metrics while maintaining separate seasonal worker analytics.

Technology Tools and Software Solutions for Turnover Tracking

Modern workforce management systems automate turnover calculations while providing predictive analytics that identify at-risk employees before they depart. These platforms integrate with existing payroll and scheduling systems to maintain accurate, real-time turnover metrics without manual calculation errors.

Key features for retail turnover tracking systems include:

Automated departure categorization
Department and location-specific reporting
Predictive turnover modeling
Exit interview integration
Cost impact calculations
Benchmark comparisons

Integration with payroll and scheduling systems

Seamless data flow between systems eliminates duplicate entry and calculation errors. When scheduling software automatically updates employee counts and payroll systems track departures, turnover calculations become real-time business intelligence rather than historical reports.

Multi-location retailers particularly benefit from centralized turnover tracking that identifies location-specific issues while maintaining enterprise-wide visibility. Automated alerts notify managers when turnover exceeds predetermined thresholds, enabling immediate intervention.

Data analytics and predictive modeling capabilities

Advanced analytics platforms combine turnover data with performance metrics, customer satisfaction scores, and employee engagement surveys to reveal departure predictors. These correlations inform targeted retention strategies addressing specific risk factors before they manifest as actual turnover.

Predictive models typically analyze:

Attendance patterns
Schedule change requests
Performance review trends
Training completion rates
Engagement survey responses

Cost Analysis and Financial Impact Assessment

The true cost of retail turnover extends far beyond recruitment expenses. Industry research confirms that replacing a retail employee costs 1.5 to 2 times their annual salary, with some positions reaching 4 times for specialized roles. For a mid-sized retailer with 100 employees experiencing 60% turnover, annual replacement costs reach $600,000 in direct expenses alone.

Hidden costs multiply the financial impact through customer service disruptions, team morale degradation, and knowledge loss when experienced employees depart. New employees typically require eight weeks to reach full productivity, during which sales performance and customer satisfaction measurably decline.

Calculating direct replacement costs

Direct turnover costs for typical retail positions include:

Recruitment expenses: $4,000 average
Training investments: $2,500 average
Productivity loss: $3,500 during ramp-up
Total per departure: $10,000 minimum

These figures exclude management time, overtime coverage, and potential sales losses from understaffing.

Hidden costs and operational disruptions

Indirect turnover costs often exceed direct expenses:

Customer relationship disruptions
Institutional knowledge loss
Team morale impacts
Management time allocation
Quality control issues
Brand reputation effects

Strategic Workforce Planning Using Turnover Data

Transform turnover calculations from reactive metrics into proactive planning tools by integrating departure patterns with business cycles, expansion plans, and market conditions. This strategic approach enables predictive staffing models that minimize disruption while optimizing labor investments.

Target’s successful turnover reduction strategy demonstrates the power of data-driven workforce planning. By investing $300 million in wage increases and expanding benefits, Target achieved five-year low turnover rates while improving customer service metrics and overall profitability.

Developing retention strategies based on calculation results

Turnover calculations guide targeted retention investments:

Identify high-turnover departments through segmented calculations
Analyze departure patterns for root causes
Design targeted interventions addressing specific issues
Measure impact through ongoing calculations
Adjust strategies based on results

Successful retention strategies combine competitive compensation, career development pathways, flexible scheduling, and recognition programs tailored to address your specific turnover drivers.

Succession planning and leadership development

Use turnover data to identify critical positions where departures create disproportionate impact. Develop internal talent pipelines for these roles through structured development programs that reduce external recruitment needs and associated costs.

Retail-specific leadership development addressing communication, performance management, and culture building typically generates positive returns through reduced management-related turnover and improved team performance.

Final Thoughts

Mastering retail turnover calculations provides the foundation for transforming chaotic staffing challenges into predictable, manageable workforce strategies. The basic formula—departures divided by average headcount times 100—becomes powerful when applied with retail-specific considerations for seasonal workers, department variations, and employment classifications.

Throughout my career helping retail businesses optimize their operations, I’ve witnessed how companies achieving below-average turnover rates consistently apply systematic calculation methods while using results to drive strategic improvements. When you understand that every percentage point reduction in turnover saves thousands in replacement costs while improving customer service and team stability, these calculations become essential tools for sustainable growth. Contact the experts at Complete Controller to discover how professional financial management can help you leverage turnover analytics for competitive advantage.

Frequently Asked Questions About Calculating Turnover Rates in Retail

How do I calculate turnover rate for part-time retail employees?

Calculate part-time employee turnover using the same formula, but track them separately from full-time staff. Divide part-time departures by average part-time headcount, multiply by 100 for the percentage rate.

What turnover rate should trigger concern in retail operations?

Turnover rates exceeding 80% annually or 8% monthly indicate serious retention issues requiring immediate attention. Rates above industry averages by 20% or more suggest systemic problems.

Should I include terminated employees in turnover calculations?

Yes, include all departures—both voluntary and involuntary—in overall turnover calculations. Track terminations separately to distinguish between retention issues and performance management effectiveness.

How often should retail businesses calculate turnover rates?

Calculate monthly for operational insights, quarterly for trend analysis, and annually for strategic planning and industry benchmarking. Maintain all three timeframes for comprehensive workforce intelligence.

What’s the ROI of reducing retail turnover by 10%?

Reducing turnover by 10% saves approximately $100,000 annually per 100 employees, based on $10,000 average replacement costs. Additional benefits include improved customer service, team stability, and management efficiency.

Sources

AIHR. (2025, May 5). “How To Calculate Employee Turnover Rate [FREE Template].” www.aihr.com/blog/how-to-calculate-employee-turnover-rate/
Edume. (2024). “Retail Employee Turnover Rate: What’s the Industry Average and How Do I Calculate Mine.” www.edume.com/blog/retail-employee-turnover-rate-whats-the-industry-average-and-how-do-i-calculate-mine
Harvard Business School. (2024, December 3). “Costco and other retailers prove a ‘good jobs’ strategy works.” www.hbs.edu/bigs/costco-and-other-retailers-prove-a-good-jobs-strategy-works
Harvard Business Review. (2016, November). “The Hidden Cost of Turnover.” hbr.org/2016/11/the-hidden-cost-of-turnover
Korn Ferry. (2022, November 15). “Retail Employee Turnover on the Rise.” www.kornferry.com/about-us/press/retail-employee-turnover-on-the-rise
RetailWire. (2022, March 1). “Target is serious about cutting employee turnover.” retailwire.com/discussion/target-is-serious-about-cutting-employee-turnover/
SHRM. “Retail Workforce Analytics.” www.shrm.org
TruRating. (2025, May 1). “Employee Turnover in Retail.” trurating.com/blog/employee-turnover-in-retail/
U.S. Bureau of Labor Statistics. “Employment Statistics.” www.bls.gov
Xoxoday. (2025, July 31). “How to Reduce the Average Retail Turnover Rate: 5 Proven Tips.” blog.xoxoday.com/empuls/retail-turnover-rate/

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.

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Mastering Merchant Accounts

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

Merchant accounts are bank accounts for businesses that enable them to accept debit and credit card payments. They are agreements between three parties (retailer, payment processor, and merchant bank) to settle credit and debit card transactions.

The process concerning the transfer of funds is simple. First, the payment will be deposited into the merchant account. From there, they shift into the bank account owned by the business. This transfer into the business account can occur daily or weekly, depending on whether the merchant bank provides the merchant account services.

Having an Internet merchant account is necessary to start an e-commerce business that accepts credit card payments.

Getting a Merchant Account

Getting a merchant account is not that simple. Many factors come into play when you apply for one. Merchant account providers must minimize their risks. They look at a variety of things before approving your merchant account. Here are some questions that give you an idea of what information the bank will look at.

Does your business have a high risk of credit card fraud?
How long has your company been operating?
Is there an event in your business’ history worth taking note of? (e.g., Bankruptcy, Default)
Does your business have any other merchant accounts?
How is your personal credit history?

Getting approval for a merchant account from a bank that holds your business and personal statement is easier.

If your answers to the questions above do not look favorable, your account may still be approved. However, the merchant bank will likely charge higher transaction fees to ensure risk. However, that high fee can then be renegotiated later when the business has a better standing.

Internet Merchant Accounts

An internet merchant account is specifically used to hold and transfer funds originating from online credit card transactions. These accounts usually have a higher fee than a standard merchant account, as Internet card transactions are more risky.

Internet card transactions include one more thing: a payment gateway that authenticates credit card information, just like a POS machine does in a retail store. The payment gateway forwards the transaction information to the credit card company, which then authorizes the payment. Furthermore, some merchant banks offer a solution that eliminates the requirement of having a separate payment gateway.

You must know that you will need a separate Internet merchant account for the different types of cards you want to accept. Getting your internet merchant account through a third-party provider, including Moneris, PS iGATE, or Internet Secure, is more convenient.

The Structure of Fees

There are many different types of fees attached to merchant accounts. Some may be mentioned in the contract, and other expenses might not be mentioned. Here are a few that you should expect:

Setup Fees
Application Fees
Discount Rate
Monthly Fees
Per Transaction Fees
Credit Card Terminal Rent
Cross Border Fee

Excessive fees might hurt your business margin, so it’s essential to compare the fees you must pay for your business’s merchant accounts. However, carefully reviewing merchant account contracts can help you avoid minimum-term agreements, which may require a cancellation penalty.

Alternatives to Merchant Accounts

PayPal

This service offers a complete solution for online transactions. If you use PayPal, you can avoid several fees by only paying on a per-transaction basis. Moreover, you can also use it to improve your margin, which gets smaller and smaller due to the extra fee associated with utilizing internet merchant accounts.

However, you can place a PayPal pay button on your website’s checkout page. You can also use the Website Payments Pro option, which offers a more professional payment interface for your e-commerce website.

Credit card reader

These are devices that connect to your phone to carry out transactions. Offered by various service providers, they are ridiculously cheap (or even free) and charge a reasonable per-transaction fee.

Conclusion

In conclusion, understanding merchant accounts is crucial for businesses to facilitate debit and credit card payments. Businesses can optimize their financial operations and enhance customer convenience in the ever-evolving commerce landscape by carefully considering factors influencing approval, navigating fees, and exploring alternatives like PayPal and credit card readers.

Non-Profit Tax Exemption: Compliance

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

It is common knowledge that tax exemption is not easy; it requires a lot of time and effort to do it correctly. Tax exemption recognized by the IRS allows you to devote your financial resources to charitable causes instead of paying taxes. Tax accounting for non-profits includes similar accounting procedures that go into running a proper business.

Determine Your Charitable Organization Type

The first task is to determine the type of charitable organization you run—whether it’s a trust, a corporation, or an association. A charitable organization can also be a sole proprietorship or a partnership.

Filing Proper Tax Accounting for Non-Profit

After determining your organization type, the next step is collecting all the necessary documentation for the tax-exempt status. This is one of the most important steps in developing the procedure for tax accounting. Important documents could include the articles of incorporation, any paperwork related to the trust, or articles of organization. Ensure all the needed documentation is accurate and complete and does not miss any important information.

After gathering all of the important information, you need to complete Form 1023—Application for Recognition of Exemption Under 501(c)( 3) of the Internal Revenue Code (or Form 1023-EZ). This form is about 30 pages long and requires all of the necessary information.

Maintain Tax-Exempt Status

Tax accounting for non-profits allows an organization to maintain its tax-exempt status after you are successful in getting the exemption. It must abide by the various rules and regulations to keep the exempted status.

It is important to ensure the public owns the non-profit to keep the exemption. The board of directors manages the organization, and the board officers are allowed to make important policy decisions, including overseeing all its activities.

It is necessary to protect the board of directors from any personal liability. Sometimes, it may seem like an arduous thing to do, but the members usually have voting rights, and they use them to make important decisions. Such decisions also include amending the organization’s articles or operational bylaws or electing new members of the non-profit organization.

An essential part of having a tax exemption status is to have a detailed record of every transaction conducted while determining the tax accounting for the non-profit. Most organizations use a double-entry transaction system, which allows you to have all the necessary documentation in the paper trails. Under the IRS’s recognized tax-exempt status, the responsibility of senior management is to restrict particular activities and file all of the paperwork on time when it is due for submission. Tax accounting for non-profits also includes the following:

The organization must not make any contribution to any political campaign
The non-profit is not allowed to donate anything to any political party
Non-profits are allowed to conduct limited lobbying, but the process is heavily restricted
The non-profit must not provide any revenue or profit based on its charitable activities
Salaries and other operational costs are permitted

Increased Scrutiny of Non-Profits

The IRS amplified its scrutiny of charitable organizations around 2007, holding tax-exempt organizations further accountable for their actions. Hence, proper tax accounting for non-profits is essential. Continual variations in accounting and auditing standards increase costs to the certified public accountant or CPA, but establishments may not have improved their budgets to sanction that.

Conclusion

In conclusion, the journey toward tax exemption for charitable organizations demands a thorough and dedicated approach, requiring careful determination of organization type, meticulous documentation filing, and adherence to IRS regulations. Maintenance of tax-exempt status necessitates stringent governance by the board of directors and meticulous financial record-keeping. The increased scrutiny from the IRS underscores the significance of robust tax accounting practices, essential for upholding the integrity and trust of charitable organizations. Despite potential cost implications, proactive compliance with evolving regulations is vital for ensuring long-term sustainability and effectiveness in serving charitable causes.

Small Businesses: Combat Cyber Fraud

Posted on March 3, 2020March 6, 2024 by Jennifer Brazer

There is no denying the fact that small to mid-sized businesses are more vulnerable to cyber theft than larger businesses. They are an easy target for cybercriminals as, often, these businesses have no IT department or simple networks and are less likely to follow industry best practices to prevent their sensitive data from being stolen.

This is causing US-based companies to lose billions of dollars each year, which is why the need for hiring top IT professionals to prevent cyber fraud is becoming inevitable. A data breach can be costly to companies looking to expand their business operations in other IT domains. In short, cyber fraud is a curse kicking many multinationals out of the competitive race, so companies need to develop a sound theft prevention plan to achieve their intended business goals and ambitions.

Cyber Fraud In Small Businesses

Prevention of cyber fraud is critical to a company’s long-term success. The biggest dilemma is that many small business owners fall prey to the idea that their company is too small to be a playground for cybercriminals and mistakenly believe their business won’t be a target. Regardless of the company’s size and scale, cyber attackers will exploit any opportunity and steal sensitive information using sneaky tactics. They are smarter than you think and imagine, and their hacking knowledge encourages them to get into this “so-called” profession and make the most out of it.

The age of digital evolution has brought vulnerabilities, strains, and repercussions. Along with it, cyber fraud is becoming much more common in today’s corporate setting. Generally, we hear news about multinational corporations affected by malware infections, viruses, and other advanced persistent attacks costing billions of dollars annually. But what about small businesses? Small business owners feel reluctant to accept that cyber fraud can happen to them, and they, too, can be under the radar of malicious cyber attacks.

Protecting Small Businesses from Cybercrime

According to a study conducted by one of the top IT firms in the US, as many as 63% of cybercriminals target small businesses. Cybercriminals are generally known to be magicians who know the art of stealing by skimming through online channels and networks. Therefore, small businesses need to change their approach and do something to prevent their sensitive information from leaking out of their company networks.

Why Are Small Businesses A Target For Cyber Criminals?

There are countless reasons why cyber attackers often target small businesses. Here are the top two reasons small businesses are more vulnerable to cyber fraud.

No IT Department

Small businesses usually lack the resources to hire top IT professionals to secure their networks, devices, websites, servers, and online operations. This is why they are more likely to face potential threats from cyber criminals every single minute of the hour. The biggest misconception about hiring IT professionals is that ‘they are expensive.’ However, this is not the case. Many IT professionals and start-up cyber security agencies offer services at competitive rates.

If you are doing it yourself, you need to update your servers and install the latest security software to take more control of the rising situation at hand.

Simple Network and Systems

Small businesses have simpler networks and systems than larger firms. A small business generally lacks a room full of servers and network devices. Even if they have on, they are often outdated and non-operational. New networks and systems now have advanced security and layers of encryption that prevent information leakage. Cybercriminals find it hard to break into advanced networks and systems, allowing businesses to identify the intrusion and giving them time to secure their data.

Conclusion

In summary, the threat of cyber fraud looms large over small to mid-sized businesses, often perceived as easy targets due to their limited resources and simple network structures. Despite their size, these businesses increasingly fall victim to cybercriminals, leading to significant financial losses and reputational damage.

To mitigate these risks, companies must recognize the importance of investing in top IT professionals and implementing robust cybersecurity measures. By proactively safeguarding their sensitive data and bolstering their defenses, small businesses can better protect themselves against cyber threats and secure long-term success in today’s digital landscape.

Complete Controller. America’s Bookkeeping Experts

Efficiency Boost: Job Costing

Posted on March 2, 2020March 6, 2024 by Jennifer Brazer

Technological advancements in various fields have made it effortless to do daily tasks efficiently. What was once considered moving mountains in the past is now just a few clicks away while sitting on the couch. However, such luxuries have not come cheap and without hard work. It takes a lot of backend work for such efficient processes to come alive. In today’s fast-paced times, job costing, along with other systems and processes, needs to be swift and crisp with clear indicators that tell us whether or not, as a business, the right direction is being followed.

Job costing helps us get direction and enhance operations and business activities. At the same time, growth is achieved along with developing business structure, clientele threshold, employee contentment, and, above all, market dominance. Making a profit is not foreign to any business, and the objective and aim are to thrive while making money. This is where business processes and implementation of systems come in that enable it to spawn better chances of success. Tracking expenditures for each job or task is a vital aspect of sound financial practices and readily gives a birds-eye view of the overall health of a business.

The Essential Role of Job Costing in Business Optimization

Estimated costs on which prices are based are the result of the accuracy of a manager’s assessment of costs incurred at each step during the production of any product. Managers review the profitability of each job against actual revenue and costs to determine its viability. They also inevitably review the performance of each department’s gains or losses. To predict and forecast changes in material and labor costs, managers feverously compare estimated costs with actual costs to get a clear picture of what to expect further into the project.

Job costing is a fundamental part of a business account. Everything from raw materials to shipping is handled with job costing in mind so that mass production is lucrative while not too burdensome for consumers that it would affect their purchasing power. The single most off-putting act of a business for a consumer is overpricing, which is how not to be a good tradesperson. The mark of an excellent tradesman is understanding the needs of a specific industry and catering to its consumers in the best way possible, even at the expense of putting in more time to put a smile on a client’s face.

Strategic Imperatives of Job Costing for Business Growth

Job costing is more than just a process. It is a method of creating the optimal environment for the company’s flourishing. For the over-ambitious tradesman who prefers a sale over a client, it is only a matter of time before their skies come tumbling down with ineffective pricing and costing strategies, inadequate customer relations, and careless inventory management. The ability to foresee market scenarios that affect managers’ costs ultimately leads the business toward progressive growth and steady development. The stability of a company relies heavily on the manager’s capacity to determine problems much earlier before they ever occur.

Firms, such as advertising agencies or law firms, can adapt job costing because it is highly scalable. It can be set up to match the exceedingly diverse range of processes, whether related to complex manufacturing operations or a simple minimalistic business process. Directing specific costs towards their designated accounts can also direct a business to be on top of their accuracy in account management and cost allocation to its designated step, causing their processes to be lean and spillage-free. A tradesman needs to be able to calculate the indirect costs, such as manufacturing overheads, to have that highly vital piece of information that leads to their decisions being profitable for their business.

Conclusion

In conclusion, technological advancements have transformed daily tasks, but achieving such efficiency requires meticulous backend efforts. In today’s dynamic landscape, job costing is a cornerstone for business success, providing invaluable insights into operations, profitability, and market dominance. As businesses navigate the pursuit of profit, strategic implementation of systems like job costing fosters better chances of success, enabling informed decision-making and sustained growth.

Moreover, the adaptability and scalability of job costing make it indispensable across diverse industries, empowering businesses to optimize processes, minimize costs, and drive profitability. Ultimately, mastering job costing is a process and a strategic imperative for businesses aiming for long-term prosperity and stability in an ever-evolving marketplace.

Accelerate Growth: Hire an Accountant!

Posted on March 2, 2020March 6, 2024 by Jennifer Brazer

Hiring a good accountant or bookkeeper is your secret weapon for faster growth, and they can genuinely add real value to your business. Besides helping you manage your accounts, they will help you grow your company with better financial decision-making, employ legal tricks to minimize your tax bills, reduce accounting errors, and save you a lot of time on admin.

Most MNCs (Multinational Corporations) have in-house accounting teams that work around the clock all year to ensure that taxes and other corporate debt(s) are paid on time. Salaries and bonuses are disbursed, profit potential is evaluated, financial reports are created and balanced, and growth is managed successfully. A good accountant/bookkeeper’s job is to get things moving in the right direction, resolve all financial discrepancies, and make realistic monetary projections year-round.

On the contrary, small-scale businesses are also looking to hire professional accountants because they know they can only grab a significant market share and survive in the competitive market if their financial equation is favorable. It does not matter whether you are in the initial phases of business creation or have an established business. The need for hiring a pro-level accountant never dies. Your accountant and bookkeeper are the backbone of your business and, undoubtedly, your secret weapon for faster growth. Any small-scale business with a sound game plan and business execution strategy can expect to reach the top if the company has an excellent accountant to look after its financial operations.

Planning and Forecasting Your Cash Flow

Planning and forecasting before decision-making make sense, but they are not helpful once you start taking a ride on the sinking boat. Small or large businesses almost always strive to achieve a perfect balance in cash flow, especially when they structure the company’s operations on a DIY accounting model. The influx and outflow of cash must be appropriately maintained, or the lack of adequate financial management can be fatal to the future of your business. On the other hand, a good accountant and bookkeeper can make your business move in the right direction and help you achieve faster growth. A professional accountant with superior bookkeeping services will help you with better financial decision-making, allowing you to succeed quickly.

Reduction in Taxes and Financial Discrepancies

Professional accountants and bookkeepers have superior accounting knowledge, skills, and experience, which helps them stay on top of cash flow, taxation rules, and regulations. They know the tricks to handle tax-related issues and help you reduce them, up to a great extent. Hiring a good accountant is more of a need than a desire because, without them, you cannot expect to achieve faster growth or strategic goals. The theory of tax reduction is quite simple: the more relief you can claim, the more you save, the faster you grow.

Sharpen Your Focus

Hiring a professional bookkeeper lets you focus on the core business operations, ultimately sharpening your focus. Small-scale businesses usually do everything independently—from conceptualizing ideas to business establishment to managing their finances. However, little do they know that they can help their company achieve faster growth if they define how to manage their finances well. A good accountant or a professional bookkeeper seems appropriate as they help you with better decision-making, reduce accounting errors, and find financial discrepancies.

Compare Your Numbers with Industry Benchmarks

An excellent accountant must inform clients about their current financial standing and the financial decisions they must make if they expect to achieve faster growth and success. KPIs (Key Performance Indicators) are a good starting point for determining whether you are performing better or worse and what possible measures you can take to keep the financial equation favorable. Comparing your numbers with industry-specific benchmarks helps accountants visualize your financial standing for suitable measures.

Conclusion

In conclusion, the role of a skilled accountant or bookkeeper in the journey towards business success cannot be overstated. From navigating complex financial landscapes to maximizing profitability and ensuring compliance, they are invaluable assets. By leveraging their expertise, businesses, both large and small, can drive growth, minimize risks, and stay ahead in competitive markets. Investing in professional financial management is not just prudent; it’s essential for realizing your business’s full potential and achieving sustainable success.

5 Manufacturing Cost Tips

Posted on March 2, 2020March 6, 2024 by Jennifer Brazer

The millennial era has caused rapid changes in the manufacturing processes of almost all industries operating worldwide. To keep up with these changes and improve the custom assembly process, entrepreneurs must spend vast amounts of money to stay updated with the ever-changing market and ensure that their product or service is the latest and greatest. These are five practical ways to optimize your manufacturing while saving costs.

Taking the Production Process Up a Notch

Entrepreneurs should look at their entire business and not limit their focus to the custom assembly line, manufacturing costs, or products. This will enable them to focus on process optimization, which is essential in improving overall efficiency.

Consider even the slightest factors involved in your production process. Point out all the big or small characteristics that affect your business in the bigger picture. Optimizing only one aspect of the company will cause other procedures to deteriorate or slow down, increasing your costs rather than cutting down on costs.

Entrepreneurs should ask themselves what effect changing a single machine in the assembly line or replacing a production task would have on the entire business.

Enhancing Your Workforce

Decisions related to the production of business are based upon the capacity-utilization approach. Instead, achieve lower labor costs and requirements by switching to a demand-calibrated approach. Workforce optimization will help you cut down on overtime expenses. You can establish a hyper-productive team of employees through a labor-management system that includes:

Visibility of the current and future earnings of a company
Performance Accountability: The division of work among employees by the manager
Self-initiated incentive pay- Employees driving the work productivity

Managing and Monitoring Energy Consumption

Optimizing your production process and a more efficient workforce will enable you to work slowly, cutting down one of the most significant expenses in the custom assembly process: energy consumption.

Make decisions related to production based on the demands of the customer. Educated decisions will increase customer satisfaction and improve production by reducing excessive energy costs, such as the electricity used to manufacture your products. Focus on these areas to cut down the costs of energy used in the production process:

Installing lighting in your business premises that is energy efficient.
Optimizing the air compressors and repairing leakages.
Overhauling or repairing the HVAC systems that have grown old makes them use more electricity.
Establishing a team that only works on managing energy costs.
Rescheduling the usage of electric machinery that uses high amounts of electricity.
Continuous assessment of energy

Lowering Costs of Regulatory Compliance

Once the production processes are managed, the costs of manufacturing regulatory compliance should decrease. The number of mistakes made in the production process will decline, reducing the errors’ costs. Investing in technology will benefit you by keeping your compliance up to date with the help of your automation technologies.

Practical training of your employees will enable your team to stay updated with any technologies you introduce in the manufacturing process, reducing the cost of any damage the new machinery may cause.

Consider the Carrying Costs of Your Inventory

Storing inventories for more extended periods can prove to be highly cost-effective. Consider the following points, if applicable, as a manufacturer:

Cost of storage
Maintenance of the inventory
Disposal of useless or worn-out products in the inventory

Be careful that overproduction does not occur, as it will increase the costs of your production process. Furthermore, reduce storage costs by disposing of useless products from your inventory. An effective way is to plan the production process so that your operations respond directly to the customer’s demands. Within a short period, if you apply the above steps, your bookkeeping records will prove that these cost-cutting methods were effective in a huge way.

Conclusion

Optimizing manufacturing involves a holistic approach, from process refinement to workforce efficiency and energy management. By implementing these strategies, entrepreneurs can cut costs and stay competitive in the ever-evolving market

Tax Returns: Legal, Social & Financial

Posted on March 2, 2020March 6, 2024 by Jennifer Brazer

Filing a tax return is a yearly activity undertaken as a moral and social obligation by every country’s citizens. Whether it is a business or an individual, everyone is liable to file returns because these are the means for the government to define the amount and plan the expenditures of its citizens. It also offers a stage for the filer to claim refunds and other relief from taxation as they become eligible for it. A specific amount or percentage of your income must be paid as taxes, and failing to do so can result in penalties and other severe repercussions.

Legal and Social Implications of Filing a Tax Return

There is generally a fixed date to file tax returns at the end of each financial year. However, the date may be a little later for cases that need to be audited before filing. When you file the returns, you define a legal sanction for your income to be used, however and wherever. Similarly, the inability to pay taxes on time can result in legal action against you, depending on the due amount. However, the repercussions of late payments are generally related to higher interest rates and penalties.

In addition, it is your social duty as a citizen to file a tax return. Because you use facilities provided by the government every day, such as roads, public transport, parks, and others, which require regular maintenance, it is in your interest to pay tax bills on time. Complying with your social duties makes you a responsible citizen of the country, and with time, your social status improves.

Loans and Registrations

When you apply for a home, education, or any other type of loan, showing your returns to the lending institution is mandatory, as it is their standard operating procedure. We all require loans from time to time, whether for business or individual purposes, so maintaining a good tax history can ensure that you are approved every time you are in need. Also, provide filing a tax return before your VISA processing, as the government might impose certain travel restrictions on people who have not filed their returns.

Registration of your immovable assets in certain states requires you to show tax returns, and without it, the specific property or support cannot be registered in your name. If you have filed your returns, the whole process can be much easier. Also, issuing certain credit cards and using other bank facilities are banned for non-filers; therefore, if you want to avail of these benefits, file as soon as possible.

Filing a Tax Return for Government Tenders

Tax returns must be filed for someone with a business involving government institutes and some private corporations. In some cases, you may have to show the receipts for the past five years because they like to ensure that they deal with an individual or business with a good track record. However, this is not a hard and fast rule, and, in some cases, you may get the tender without showing the returns. Therefore, it depends on the institution that you are dealing with.

Faster Refunds

Refunds in taxation work on a first-come, first-serve basis. The earlier you file your return, the sooner you get your refund. When filing a tax return, you disclose everything you earned in that financial year. The IRS reviews your returns, and individuals who filed earlier are eligible for the reimbursements quicker than others. Filing early also ensures you have enough time to review it and correct the errors if you have made a mistake.

Therefore, filing a tax return on time has numerous benefits. As a responsible citizen of your country, you have a moral obligation to ensure that you do so.

Conclusion

In conclusion, filing a tax return isn’t just a legal obligation; it’s a social responsibility. Beyond avoiding penalties, timely filing supports government services, enhances your creditworthiness for loans, and expedites refunds. As conscientious citizens, it’s imperative to fulfill this duty promptly, ensuring a smoother financial landscape for all.

Restaurant Cash Management Guide

Posted on March 2, 2020March 6, 2024 by Jennifer Brazer

Without proper cash management and monitoring, obtaining high returns from your restaurant is nearly impossible. Below are ten empowering steps you can take to manage your cash closely in the restaurant industry.

Adequately Prepare Employees

Fast-service eateries are often famous for high worker turnover rates, which may compel a brisk hiring and hurried preparation process for new staff members. Well-prepared employees are not only more inclined to stay faithful to their working environment, but they are likewise more inclined to maintain the strategies and techniques implemented by the restaurant.

Ensure Exactness

It can be easy to overlook proper money management when managing busy periods during the day, despite a general sense of vigilance. Employees might be busy with long lines of customers and guaranteeing that requests are filled effectively, bringing money management to the bottom of the list. Focusing on the significance of precision with your employees will guarantee that they viably process money exchanges, tolerate the appropriate measure of money, and apportion the correct change to customers.

Lift Responsibility

Low rates of worker responsibility frequently join high manager turnover rates. While furnishing staff with preparing openings will help support responsibility, entrepreneurs can likewise make protections to guarantee that their employees maintain consistency. Utilizing money administration innovation that requires individual ID numbers to obtain entrance will permit management staff to track exchanges made.

Lower Danger of Robbery

Snappy administration restaurants process a high volume of money exchanges during the day and, now and then, have a lot of little money categories on location. Putting away high volumes of money on location makes you powerless against interior robbery and outside burglary. If your money drawers and safes are overflowing, potential criminals will have easier access to your money.

It is essential to organize the security of your employees, customers, and business by diminishing the probability of robbery. Bookkeeping records should be kept in safes and optimized for authorized access.

Spare Time (And Cash!)

There is not a minute to save in a busy, popular restaurant! Putting resources into mechanization like coin and money sorters makes staying aware of the requests for appropriate money taking care of more productive. They precisely and effectively tally and sort your money, enabling you to total your money by adjusting errands rapidly. This spares time for your staff and decreases your general work costs.

Create and Update Policies and Techniques

Policies and techniques are the foundation for executing another money management framework. Not only do they detail the best practices and approaches to finish assignments, but they also go about it as a kind of perspective for staff and are there to counsel should any disparities emerge. Ensure that your policies and methods are frequently updated and your employees are educated about progressions.

Secure your Money

By investing in mechanized money administration arrangements that limit access to your money to only approved staff members, you can avoid potential risks and upgrade your security. Influencing the interest in a safe will give your business secure capacity, assurance against fake extortion, and precise money aggregates. It is refreshing how your business functions with money, which will support security and open doors for developing benefits inside your business.

Keep a Steady Framework Set up

Each restaurant’s money management framework looks somewhat different. The key is that you stay consistent. When preparing and hiring new employees, guarantee they are up to speed on all money management strategies identified with their employment. It is a sound practice to utilize carefully designed store sacks so that supervisors and clerks can write in the measure of each bill, change, and the aggregate being kept.

The Outcome of Not Executing this Technique

When there is an irregularity in cash and stores do not coordinate records, you will not have the capacity to follow the greater part of the means to distinguish where something went wrong.

Actually, how will you know whether there are irregularities if you have no reliable practices? Cash will disappear. Servers and supervisors will stash money. It will go over your head and affect your primary concern.

Have Clerks Claim Their Drawers for the Whole Shift

“Money is the most pined for the type of burglary, especially for workers who abruptly encounter an outside issue or worry that requires speedy installment.”

If this measure is set up, an employee short on money one month will not have the choice to take money. When an employee arrives for their shift, have a supervisor get a register for them. Teach the employee to tally their cabinet before their shift begins. Since you have set a dollar sum that the cabinet should dependably be left at (ex: $150), they will know whether the cash is off. On the off chance that the beginning sum is right, that employee now has responsibility for the drawer for their entire shift.