Cloud Accountability Accounting

Posted on February 19, 2020February 29, 2024 by Jennifer Brazer

Cloud computing services for resource accounting establish, host, and manage services rented out to a remote consumer (individual or business). The scope of services ranges from offering essential computational assets like bandwidth, storage, and computational power to sophisticated enterprise applications such as SaaS.

The commonly used business model to charge for these services is a pay-per-use base, where the consumers use resources according to their needs and are then billed for the used resources at the end of a defined period. Idyllically, the consumers should be offered an explicit resource accounting model to identify all factors considered for calculating the consumption charges.

Giving the consumer access to their resource usage data can help them in IT budget planning, making them aware of billing applications and automating the assortment of services according to their specific needs. Also, it is to the benefit of the cloud service provider to make this data available to consumers. It would help them come up with specifically designed user-centric services. Most providers already offer their clients their usage data. However, there are concerns regarding accountability.

Accountability Concerns

An issue that concerns the resource accounting model for such services is the accountability of the resource usage data, whether it is the provider who does the measurements of this data, the consumer, or some other trusted third party.

A combination of these players to measure accountability is also an option. However, like other traditional utility services such as gas and electricity, provider-side accountability is the norm in the cloud services industry. But unlike the consumer-trusted metering for traditional utilities, there is no such metric for consumers to measure data usage. Therefore, they have no choice but to accept what the provider offers them.

Consumer Side Proposition

Continuing the above discussion, we propose a customer-centric resource accounting model to resolve the concerns of all parties. A customer-centric accounting model will allow the customer to programmatically calculate billing charges from the service provider. They will be obliged to respond to the request.

Subsequently, a customer-centric solid accounting model will measure the cloud services billing charges independently by the customer or a trusted third party. This will allow consumers to measure their billing charges, which is only fair. It is proposed that the providers adopt the customer-centric models to perform regular checks and raise alarms when there are apparent contradictions in the consumption data.

Inspecting Consumer Centricity of the Resource Accounting Model

Many service providers provide or publish details of their billing information. However, it must be examined if the detailed information is based on a customer-centric notion. We will start with a basic example and see if there is room for improvement.

S3 Amazon

We take a simple S3 cloud storage service from Amazon to investigate the notion. It is an essential pay-per-use base service. It is marketed as a fast, reliable, and low-cost service, yet, upon examination, researchers found a few ambiguities in the model that cannot be programmatically queried from Amazon.

This suggests that even the simplest resource accounting models cannot match a robust consumer-centric model’s standards, which are relatively loosely coherent with the weak model. However, specifically for S3, the uncertainties can be easily fixed internally by paying little attention. However, it is recommended that a cloud service provider opts for assembling the third party as a measurement service to access and measure their data usage efficiently.

Limitations

Time Zone

One of the ambiguities was the lack of reference to the time zone upon listing the price concerning geographical location. The start and end days of the billing cycle cannot be determined for sure. However, it can be inferred from the provided Amazon developer’s guide that S3 servers are synchronized to GMT.

Data and Metadata

Another concern of S3 is regarding the measurement of user data. In addition to its data, the S3 resource accounting model has system metadata and user metadata. System metadata is only used by S3, while user metadata is only used by the consumer and has a maximum size of 2KB. However, Amazon fails to clarify the storage space acquired by data and metadata.

Checkpoints

Amazon states that they check the user’s storage space at least twice daily. However, they fail to mention the exact time these checkpoints take place. Upon further investigation, it has been observed that they do not check the cloud storage usage twice every day, and the event randomly takes place anytime in a Zulu time zone.

Therefore, it is concluded that the resource accounting model for the cloud still needs to define specific operation parameters before they become trusted consumer utilities.

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Tackling IT Problems In Today’s World

Posted on February 18, 2020March 8, 2024 by Jennifer Brazer

Welcome to the exciting digital age, where businesses face many IT challenges! From the ever-changing landscape of technology to the constant barrage of cybersecurity threats, it can be challenging to keep up. But don’t worry; you can conquer these challenges and succeed with the right mindset and strategies! This article will explore some of the top IT challenges businesses face today and offer insightful tips on tackling them effectively. Let’s get started!

Cybersecurity Threats

One of the most prominent IT challenges faced by businesses today is cybersecurity. Cyber attacks can significantly damage a business’s reputation, financial stability, and customer trust. Adopting a proactive approach to cybersecurity is crucial to preventing attacks rather than just reacting to them.

Businesses should implement a robust security framework to successfully mitigate cybersecurity threats. This can include deploying firewalls, antivirus software, and intrusion detection systems. Regular security testing and monitoring can also help identify vulnerabilities and prevent data breaches. It is also essential to educate employees on cybersecurity best practices, such as using strong passwords, avoiding suspicious emails, and being vigilant of phishing attacks.

Cloud Computing

Many businesses are turning to cloud computing to increase efficiency and reduce costs. However, transitioning to the cloud can be daunting, and companies often face challenges such as data migration and security concerns.

To successfully implement cloud computing, businesses should conduct thorough research to find a reputable cloud service provider that meets their needs. It is crucial to choose a provider that offers robust security measures, such as data encryption and redundancy. Additionally, businesses should consider the impact of transitioning to the cloud on their existing IT infrastructure and ensure they have the necessary resources and expertise to manage the transition.

Digital Transformation

Digital transformation is leveraging technology to improve business operations and customer experiences. While digital transformation can provide significant benefits, it also presents challenges. One of the main challenges is ensuring that all employees are on board and equipped with the necessary skills to adapt to new technologies.

Businesses should provide comprehensive training to employees and involve them in the process to be successful in digital transformation. This can help create buy-in and ensure everyone is on the same page. Additionally, businesses should consider developing a digital strategy that aligns with their overall business goals and objectives.

Data Management

As businesses accumulate more data, managing and analyzing it becomes increasingly challenging. This is especially true for small and medium-sized companies that may not have the resources to invest in expensive data management tools.

Businesses can explore cost-effective solutions like cloud-based data storage and analytics platforms to overcome data management challenges. Additionally, businesses should consider implementing data governance policies to ensure data accuracy and consistency.

IT Talent Shortage

Many businesses struggle to find and retain skilled IT professionals. This talent shortage can create significant IT challenges as businesses cannot keep up with the latest technologies and trends.

Businesses should invest in employee development, such as training and certification, to address the IT talent shortage. Partnering with IT service providers can also expand access to talent and expertise.

In Conclusion

Wow, what an exciting time to be in Information Technology! While it’s true that businesses face some challenges, we believe that with the right mindset and strategies, anything is possible. We’re confident that companies can proactively address cybersecurity threats, conduct thorough research before migrating to the cloud, involve their employees in digital transformation, explore cost-effective data management solutions, and invest in employee development programs. Businesses can overcome any obstacles and achieve their goals by taking these steps. It’s all about staying positive, enthusiastic, and thoughtful – and we’re here to help every step of the way!

Non-Profit Management Guide

Posted on February 18, 2020May 28, 2024 by Jennifer Brazer

A non-profit organization is a non-business entity exempted from tax in many countries. The Internal Revenue System in America grants non-profit organizations a status of business exempted from the tax.

Non-profit organizations are established for a cause. If a non-profit generates revenue, it is used for the exact reason the organization was created. Non-profits pay no income tax on the donations they receive or any money they make through fundraising movements.

Guide to Starting and Running a Non-profit Organization

Be clear on the purpose and mission statement

What is the mission statement?

The mission statement of a non-profit organization should be clear on the purpose of its creation. Mission statements become essential when you want to generate profit for your organization. Mission statements will also clarify where and for which the money generated will be used.

The mission statement describes the whole purpose of the non-profit organization. The statement can be of any length but must be concise, comprehensive, and easy to understand. Mission statements should include the benefits to its clients, services it will provide, the population it will focus upon, and how the non-profit organization will operate.

For example, if you run a charity show, you collect donations, and the public gives the donations based on the mission statement of that non-profit organization.

Plan the working of a non-profit organization and its members

Friends make some non-profit organizations with a shared vision to serve their common purpose. They manage the tasks per their schedule and feasibility. However, it is good to register their non-profit organization if they want to grow it further.

A non-profit can have a bank account and is a legally registered entity.

Avoiding fraud in a non-profit

If the non-profit organization also gets donations and funding by other means, that non-profit should always be audit-ready. Suppose the financial data is not current and the organization is not audit-ready. In that case, this clearly indicates discrepancies in the organization’s bookkeeping. Accounting statements must match.

Financial statements must be related to the balance sheet and cash flow statements. You can easily spot a financial fraud if the accounting statements do not match. When the directors know that there is enormous cash present in the account of a non-profit, but checks frequently bounce back, this may indicate fraud. An audit must be conducted to ensure transparency.

Consider fiscal support

You can initially get finance management support and sponsorship from another non-profit organization. It is called its fiscal sponsor. This fiscal sponsor can train the members of the new non-profit how to deal with financial management issues.

Proper documentation and bookkeeping

For example, if a natural disaster in your area and your non-profit organization comes in front to help people, you cannot just collect money and say it was used for that cause. There should be proper documentation and proper planning that goes into collecting money. Volunteers give their services free of cost. The money donated can be used to assist further in re-establishing the families of that area. There should be complete recording and data of your finances at all times.

Find the right partners

You must find the right type of people to work for and with your non-profit organization. The directors, managers, volunteers, and doers should be working for a great cause and believe in your mission statement. You will most likely need accounting consultancies if your non-profit organization keeps a banking account and finances to support its cause.

Conclusion

If you want to build and run a non-profit organization, it is a great way to help ailing souls in any way. Non-profits are tax-exempt, and the money generated is solely used on the cause for which the non-profit was made. Follow the above guidelines to establish and successfully run a non-profit.

Expanding Your Business Without Debt

Posted on February 18, 2020February 29, 2024 by Jennifer Brazer

An entrepreneur takes business debt to fund massive purchases that they could not afford under normal conditions. A debt arrangement means the borrower is given money because borrowed money will be paid back later. The majority of the time, this is paid back with high interest. There can be different types of loans. Debt can be issued either to an individual borrower or a business.

A service company is also a business. However, it provides services instead of physical goods or products. There are various categories of service companies. An accounting firm that performs audits of other companies prepares income tax returns, and provides bookkeeping services to another company is an excellent example of a ‘service company.

Impacts of Debt on Your Service Company

Bankers and lenders will be more than interested in providing loans with interest to your service company. They will ask for your guarantee of debt. This debt will work like a handcuff for you. Even if your service company fails, the lenders have all rights to receive the money-back for the loan from you, personally and legally. A few of these lenders who give away loans to small-sized businesses will take payments from your business checking accounts.

On a big scale, if a service company grows fast and a small loan is taken with a low-interest rate, it is not necessarily bad. An affordable debt is sometimes a good choice when running a service company. However, consider all the pros and cons before initiating a loan-taking process.

Grow your Service Company Debt-Free

Reduce expenses.
Do not mix your finances with your business account. Start paying for the things you need, not want.
Sacrifice the fast track for slow growth. Many entrepreneurs want to grow their businesses by leaps and bounds in no time. A small service company will grow more slowly without debt, but a debt-free business is still a better option.
Never miss a chance to pick customers who give gross margins to your service company.
Know the exact cost of the services you provide to your customers. Never compromise on the price; your company will dissolve or go into debt.
Keep a firm handle on your business bookkeeping.
Business operations must be routinely carried out for all companies, including service companies. Keep all accounting statements current and know where you stand at all times.
Use your budget wisely.
Never spend all of your gross and profit margins. Fix a percentage of 30-40% of gross margin and 10% profit margin. Only spend in this range from gross margins. Do not distribute profit all at once among shareholders. You will need much of the cash to fund the growth of your service company.
Stay sharp with your business situation. Use accounting software to keep an up-to-date accounting system.
Credit cards should be minimally used in small-sized businesses as the loans will pile up quickly.
Do not select your prices out of fear of going into debt. Know the actual cost of the services you provide and price accordingly. Overpricing may become a cause of losing customers.
Company leaders must be efficient, intelligent, confident in sales, good at interpreting accounting statements, and fair to employees. Such a service company will grow successfully.

Conclusion

Bigger is not always better. A debt-free and profitable service company is better. Service company owners must keep the debt financing option as the last priority and when it is needed. Debts halt the growth of small businesses. A service company ideally needs no debt to get started. Without debt, the growth of the business may be slower, but it will still be profitable. Using valuable strategies and techniques will grow your service company debt-free.

Cloud Security Essentials: 5 Tips

Posted on February 18, 2020February 29, 2024 by Jennifer Brazer

Is it true that you are reluctant to receive distributed computing administrations into your IT framework? You are not the only one. Information security is the primary concern for IT experts regarding distributed computing. Like Amazon’s EC2, administrations are unprepared to address touchy information associations’ security and protection needs.

Since open cloud administrations offer server occasions for some customers on similar equipment, your information can get genuinely “lost in the mist” when you do not influence where your information lives.

Private distributed computing takes the control that most PCI and HIPAA-touchy associations require over their information into consideration. Regarding security, the significance of control over your condition can’t be exaggerated and leads most IT professionals to receive private cloud facilitating over people in a public cloud.

5 Security Tips to Consider When Contrasting Cloud Alternatives

Tip 1 – Know Where Your Information Lives

How might you secure your information when you don’t know where it is? Certainly, firewalls and interruption location and aversion can keep most interlopers out, and information encryption keeps the information more secure. Yet, how would you know where your information goes when you end your administration or when the cloud supplier leaves the business?

Having the capacity to point to a machine and say that your information, and just your information, is on that machine goes far in cloud security. Committed equipment is a key for distributed computing administrations to pass the most stringent security rules.

Tip 2 – Ensure Your Server Farm Considers Security Important

By knowing which server and server farm your information is being put away in, you can test them for all material safety efforts set up. You can check whether they are SSAE 16, SAS 70, and SOC 2 evaluated on the off chance that they have HIPAA or PCI-insured customers. Overseen administrations can, likewise, include the ability to make your applications, information, and business more robust.

Legitimate server farms or cloud suppliers offer administrations such as overseeing firewalls, antivirus, and interruption recognition and consider expanded safety efforts for overseeing servers.

Tip 3 – Test, Test, Test

Accept nothing. The best way to ensure something is secure is to test it. It is not unheard of for profoundly information-touchy associations to contract a gifted moral programmer to test their security arrangements. Defenselessness checking and appraisals are as vital inside the cloud as outside the cloud. The odds are that, on the off chance that you can figure out how to get unapproved access to your information, another person can, too.

Tip 4 – Get References from Others

Get references from different customers. If all else fails, approach your cloud supplier for customer references that require stringent safety efforts. Budgetary, medicinal services, protection, or government associations are decent starting points.

While references don’t ensure anything, odds are, if different organizations with comparative security objectives are utilizing the supplier, you might also be a solid match. Ensure to contact these references straightforwardly when conceivable to perceive what these organizations utilize the cloud administrations for and the means they have taken to secure their information.

Tip 5 – Continuously Reinforce Your Information

A standout among the most overlooked parts of distributed computing and one of the least demanding approaches to building control of your information is to ensure that, whatever happens, you have a safe reinforcement of that information.

This is more about securing your business than your accurate information. However, it gives a similar sort of genuine feeling of serenity. We have seen huge organizations, like T-Mobile, lose client information by not having a reinforcement, abandoning them with nothing.

Conclusion

In conclusion, while the allure of cloud computing is undeniable, concerns about data security persist among IT professionals. The inherent risks associated with public cloud services, such as data dispersion and lack of control, often lead organizations to prioritize private cloud solutions for sensitive data. It’s essential to consider key tips, including knowing your data’s whereabouts, ensuring rigorous security measures at server farms, conducting thorough testing, seeking references, and reinforcing data backups to navigate the complexities of cloud security effectively. By implementing these strategies, businesses can mitigate risks and bolster their overall data security posture in the cloud.

Budget Wisely for Stability

Posted on February 18, 2020February 29, 2024 by Jennifer Brazer

Value Your Hard-Earned Money

The biggest misconceptions about household budgeting are spending less, compromising your excessive lifestyle, and financial restrictions on everything, which means no family hangouts, shopping, or vacations. Budgeting may be associated with a frugal lifestyle, but it doesn’t have to be in reality.

Budgeting doesn’t have to make you spend less, but it allows you to spend smartly, preventing you from overspending on less essential items. Staying on top of your hard-earned money is critical for ideal budgeting because, without knowing your monthly expense limit, you cannot expect to have success. Similarly, you cannot expect to make better financial decisions and projections if you do not have a clear picture of your cash flow or finances.

Allocating Your Paycheck(s) Wisely

Although people may have different perspectives about household budgeting, no one can deny that households can save much money for hard times if they budget their monthly paycheck(s) correctly. Households must set priorities and budget resources effectively to have a financially secure and stable future.

Creating a household budget to limit certain extraneous expenses and knowing the actual status of your finances requires a lot of commitment, patience, planning, and wisdom. Your motivation and determination encourage you to save for your family to meet financial uncertainties and emergencies.

Budgeting Helps in Maintaining a Healthy Lifestyle

Cutting monthly expenses is undoubtedly intimidating for most households, especially those who have just tied the knot. Ideally, you and your significant other need to make a household budgeting plan right from the beginning to have a financially secure and healthy lifestyle. The need to manage your paycheck(s) has become more intense than in previous times, which means ideal management of resources is nearly impossible without a proper budgeting plan.

Household Budgeting Options

Households that cannot correctly budget their paycheck(s) have two options. 1) Hire a budgeting partner 2) Employ household budgeting software. Those who find it challenging and costly to hire a personal budgeting mentor can utilize advanced budgeting software to budget their monthly paycheck(s). All you need to do is search and use the software to deliver the best results and budget according to your needs.

Managing Accounts with Accounting Software

Have you ever wondered why many start-ups fail to manage their internal and external finances? The reason is apparent. They most likely lack the accounting knowledge, skills, and abilities to manage their finances and reduce costs that can be avoided. They also fail to maintain order in their cash flow (influx or outflow of cash). Sketching a clear picture of your financial standing may be hard but not impossible. Businesses also have two options to know the current financial position of their company. Either 1) hire an accounting professional or 2) Use accounting software.

Accounting Software or Household Budgeting Software—Is There a Difference?

Yes, accounting and household budgeting software are entirely different, but both serve the suitable needs of their respective domains! Accounting software helps business owners reduce costly errors, minimize tax bill repayments of debt(s), and help businesses of every scale know the exact status of their finances to make financial projections. On the other hand, household budgeting software helps families manage their monthly paycheck(s) and wisely allocate their hard-earned income.

Accounting and Budgeting—Done Right!

The best part is that you now have access to the finest accounting and bookkeeping agencies to help you manage your accounts and help you with household budgeting. Some companies offer a discounted bundle of services or packages which can be cost-effective and reliable.

Conclusion

In conclusion, valuing your hard-earned money is paramount in achieving financial stability and security. While household budgeting may seem daunting, it doesn’t necessarily mean sacrificing your lifestyle. You can maintain a healthy financial outlook by budgeting wisely, allocating paychecks effectively, and utilizing available resources such as budgeting software.

Whether for personal finances or business accounts, making informed decisions with the help of professionals or software ensures sound financial management. With the right approach to accounting and budgeting, you can confidently safeguard your financial future and achieve your goals.

Accountant Hiring: Key Questions

Posted on February 17, 2020February 29, 2024 by Jennifer Brazer

Relying entirely on accounting tools and understanding the subject can be one of the costliest mistakes you can make in your business. Working with a licensed and qualified accountant can save your business from many unwanted situations and help reduce your tax bill.

When you decide that you need the services of a professional accountant or bookkeeper, you must have a clear picture in your head about what to ask them and when. It is essential because you want to ensure what’s best for the business, and asking the right questions is the first step in this process. Here are some key questions you should ask an accountant before hiring them for their services.

Working with an Accountant – Key Questions

What will be the mode of communication, and how often do we need to be in touch?

This might seem like an obvious question. However, effective communication is the key to building a healthy relationship with your accountant. Decide early on about your need to meet face-to-face or via calls or emails. The frequency of your meetings should also be decided in case the accountant is working for you part-time. Even if you have hired a full-time accountant, you must schedule a weekly meeting to understand how your business has been performing.

How can working with an accountant save you from excessive tax liabilities?

Preparing your documents to file tax returns is a tedious process that usually requires a professional accountant’s services. You must always ask accountants about their plan to save you from excessive tax burdens and file an unblemished record of your financials. An accountant can help you decide on your tax credits or deductions, which can be claimed, and any new laws that can help your business.

What are some key areas that need to be regularly consulted?

A professional accountant can understand the dynamics of your business early and should be able to keep you informed about the critical factors that can affect your business. Your accountant should have detailed knowledge of corporate taxing, financial modeling, HR planning, and GAAP. While working with an accountant, they must be able to help you make confident decisions, like hiring a full or part-time contractor and renting or buying a particular property.

The key is collaboration, and if your accountant can work with you and convey information without any confusion, you might taste success sooner than you think.

How do I nurture my business?

For development, it is necessary to build a financial model from scratch, exactly to the requirements of your business. The model should be realistic and must account for strengths and weaknesses. You don’t want your business to be performing well on paper while failing in reality. Explain the current scenario and your future ambitions for your accountant and ask for a financial plan to help achieve those objectives.

What is the plan to manage the cash flow?

The job of an accountant is to manage your current cash flows and forecast the future ones. A plan needs to be devised so there is always room to maneuver when the times are tough, and you are not stuck. All your receivables and payables go through an accountant’s system, and nothing should go overlooked or missing.

What is the value of my business?

DCF (Discounted cash flow analysis) is a method accountants use to evaluate a business. Apart from your tangible assets, an accountant must be able to estimate your business’s fair market value correctly. Based on the overall value, you can further identify the aspects of your business that offer the maximum value.

An accountant may require time to value your business accurately, so don’t expect an immediate answer. Working with an accountant to assess the valuable aspects of the business can be advantageous in the overall scheme of operations.

Are accountants of any help in reviewing and negotiating business contracts?

This question is more related to legal matters and should be asked by your attorney. However, some of the financial matters in a contract must also go through an accountant. The attorney and accountant, with your collaboration, must be able to determine a contract’s legal and financial boundaries correctly. Critically scrutinize each contract for any possible clauses or points that could hurt your business in the future.

What are some special considerations while working with an accountant?

Every business has its unique needs, which require a specific approach. Similarly, the accountant must feel comfortable working with you to give 100%. Be honest with your accountant; don’t hide anything because things will be disclosed during auditing. Also, if you want your accountant to help the business develop, take care of their concerns, and talk to them if they have any issues.

Conclusion

The key to your business success depends on working collaboratively with an accountant. Asking the right questions at the start will ensure that you hire someone aligned with your goals and who can handle all of the business’s financial matters.

Startup Decisions: Path to Success

Posted on February 17, 2020February 29, 2024 by Jennifer Brazer

Starting a business is often exciting – yet scary at the same time! It is like moving through immense fog where you can only see a few feet before the windshield. Hence, you do not know what awaits you until it is upon you. However, the more experienced you are in entrepreneurship, the better you can navigate that fog. From bookkeeping to business management, your knowledge and expertise will enable you to make the right decisions. Here are nine critical factors or vital decisions at a startup that can go a long way.

A Good Sense of Timing

You need to understand this in two ways:

Picking the best moment to begin your startup: The ideal moment to start your company is typically a balancing act that is determined by several significant factors, including the availability of necessary startup funds, the success or failure of competitors, the ebb and flow of your industry, and your personal and family circumstances. For instance, you may delay the plan as you expect a baby in the next few months.
Immediate action to grab the opportunity: Since entrepreneurship is about taking calculated risks, you must leverage an opportunity immediately. You can achieve this by completing your business plan and making decisive moves to get your company off the ground promptly. But, always avoid a rush attitude. You must show diligence in the plan development. However, many startups fail because they are too sluggish and wallowed to complete any task promptly.

Avoid Giving Heed to Statistics

Many people use statistics like ‘95 percent of businesses fail’ simply as an excuse to make themselves comfortable about giving up. Even if that number is correct, it is because most of them do not commit to their goals, follow through to the end, or have money management skills.

Do Something You Love

Do not begin something you will not want to do in the next five years. Making your passion your business means you will still enjoy and earn in the next five years. It could be painting, singing, engineering, teaching, marketing, auditing, or bookkeeping.

Assess if You Have to Raise Funds to Launch Your Startup

It is often rare if an entrepreneur has enough savings and funds in his bank account to seamlessly begin their business. On the other hand, most startup enthusiasts have to raise finances to turn their ideas into a reality. Therefore, you might need to use bank loans, leverage assistance from family and friends, or put properties on the mortgage to arrange money to invest in your startup. Hence, assess your business goals to know how much you need to begin.

Know Your Team Members Before Brining Them on Board

The people behind your business are the most critical factor, particularly for startups. Recordkeeping is essential for bookkeeping, and products or services must be iterated many times until they find their marketplace; similarly, it is all about having the right people do the right job. Their direction is more important than the pace of their performance. Here, it would help if you focused on their background story, such as precious experience, companies and qualifications, and the value they bring to the table.

Invest Wisely

Warren Buffet says, “Instead of putting all your eggs in the same basket, make multiple investments.” Following this inspiration, you should diversify your investments to help increase your chances of success and reduce the risk involved. Since these investments are for the long run, always show patience.

Avoid Over, or Under, Investment

Starting a business can significantly affect you and your family financially. You must learn where and when to spend what amount. You should neither waste your precious dollars nor fail or delay to invest adequately, where necessary, simultaneously. You often need to spend funds to earn money in any business. Hence, never skimp out or underestimate things your company needs.

Set Up Your Cash Flow Tracking

Since you must submit a self-employed tax return, you must have a good track record of all business transactions. Though opening up a separate business account is not necessary when setting up as a sole trader, it could be helpful to keep track. Several online tools help small businesses manage bookkeeping and maintain other accounts and enable large organizations to prepare audit and complex financial reports.

Start Selling

You must know how to promote your product or service and who to target. Though you have already mentioned it in your business plan, it is time to put the matter into execution. Much of your early budget will be on advertisement and marketing, whether SEO, networking, telemarketing, or targeting retailers. Your first few sales will boost your confidence and help you show more commitment and dedication towards the business goals.

Ethical Marketing For Your Law Firm

Posted on February 17, 2020October 20, 2025 by Jennifer Brazer

I’m thrilled to share that marketing plays a vital role in the growth of any law firm! However, it’s important to conduct marketing ethically, transparently and honestly. Ethical marketing aligns with the profession’s standards, allowing law firms to build trust with potential clients, preserve their reputations, and achieve sustainable growth. Thoughtful and confident marketing will help your firm thrive while maintaining its ethical integrity. Let’s continue to make ethical marketing a top priority!

In this article, we’ll explore ethical marketing in the context of law firms and how it can help them grow.

What is Ethical Marketing?

Ethical marketing is an advertising and promotion approach emphasizing honesty, transparency, and respect for the audience. It involves avoiding deceptive or manipulative tactics and being upfront about what the firm offers and what clients can expect.

In the context of law firms, ethical marketing involves promoting legal services in accordance with the legal profession’s ethical standards. It means avoiding false or misleading claims about the firm’s expertise or experience, respecting client confidentiality, and avoiding conflicts of interest.

Why Ethical Marketing Matters for Law Firms

Ethical marketing is critical for law firms because it helps build trust with potential clients. When people seek legal help, they want to work with a firm they can trust. Ethical marketing practices demonstrate that the firm is honest, transparent, and committed to doing what is best for its clients.

In addition, ethical marketing can help law firms maintain their reputation. In the legal profession, reputation is everything. If a law firm engages in unethical marketing practices, it can damage its reputation and make it harder to attract new clients.

Finally, ethical marketing is essential for long-term growth. While some unethical marketing tactics may provide a short-term boost in business, they can ultimately harm the firm’s reputation and lead to a decline in business over time. Ethical marketing practices, on the other hand, build trust and loyalty among clients, leading to sustained growth and success.

Examples of Ethical Marketing Practices for Law Firms

So, what does ethical marketing look like in practice for law firms? Here are some examples:

Providing accurate information

Ethical marketing involves providing accurate information about the firm’s experience, expertise, and services. However, it means avoiding exaggerated claims or misleading information that could mislead or confuse potential clients.

Respecting client confidentiality

Law firms must respect client confidentiality and avoid disclosing confidential information in their marketing materials. Furthermore, it includes preventing using client names or details without permission.

Avoiding conflicts of interest

Law firms must avoid conflicts of interest in their marketing activities. It means avoiding promoting services to clients in conflict with each other or promoting services that conflict with the firm’s existing clients.

Using clear and honest language

Ethical marketing involves using clear and honest language in all marketing materials. It means avoiding vague or confusing language that could mislead potential clients.

Providing value to potential clients

Finally, ethical marketing involves providing value to potential clients. Moreover, it means offering helpful information, resources, or tools to help them make informed decisions about their legal needs.

Conclusion

I am thrilled to share that ethical marketing is essential and highly beneficial for law firms. Law firms can gain their clients’ trust, uphold their reputations, and achieve sustainable growth by prioritizing honesty, accuracy, and confidentiality. Avoiding conflicts of interest and using transparent language while providing value to potential clients is crucial. By doing so, law firms can establish themselves as ethical, dependable, and trustworthy partners in the legal profession. Overall, let’s work together to create a more moral and trustworthy legal industry!

Financial Hurdles in Construction

Posted on February 17, 2020August 12, 2025 by Jennifer Brazer

Overcoming Financial Constraints to Boost Construction Growth

Financial constraints and construction growth challenges can be successfully navigated through strategic financial planning, innovative funding solutions, and disciplined cash flow management that transforms barriers into competitive advantages. Construction companies implementing comprehensive financial strategies—including alternative funding sources, advanced forecasting systems, and operational efficiency improvements—consistently achieve sustainable growth despite economic pressures.

Over my 20 years as CEO of Complete Controller, I’ve guided construction companies through every imaginable financial challenge, watching some transform into industry leaders while others struggled with the same constraints. With construction firms representing 17.3% of all business insolvencies despite making up only 13.8% of registered businesses, mastering financial management has become the difference between thriving and merely surviving. This article delivers proven strategies for overcoming cash flow disruptions, securing innovative financing, and building financial resilience that positions your construction business for exponential growth.

What are the financial constraints in construction growth?

Financial constraints in construction growth include cash flow disruptions, limited access to capital, rising material costs (up 60% since 2020), and tight profit margins
Cash flow problems stem from delayed payments, seasonal variability, and mismatched billing cycles with project expenses
Material cost volatility creates budget overruns when prices spike unexpectedly during active projects
Labor shortages drive wage inflation while reducing productivity, squeezing margins from both sides
Traditional lending restrictions limit growth capital access for small to mid-sized contractors

Understanding the Current Financial Landscape in Construction

The construction industry faces unprecedented financial pressures requiring sophisticated responses. Material costs have skyrocketed, with pre-cast concrete products increasing 63%, plastic pipes rising 56%, and insulating materials jumping 60% since 2020. These dramatic price increases, combined with the highest insolvency rates of any industry—4,401 UK construction firms failed in 2024 alone—create an environment where financial mastery determines survival.

Traditional project financing models struggle to address modern construction realities. Banks now demand higher equity stakes and enhanced due diligence, while construction companies face payment delays averaging 83 days on commercial projects. This cash flow gap forces many contractors to choose between growth opportunities and financial stability, creating a vicious cycle that limits industry advancement.

The shift from low interest rates to today’s higher borrowing costs fundamentally altered project economics. Construction firms that previously relied on cheap debt for working capital now face financing costs that can exceed project profit margins. Smart companies respond by diversifying funding sources and implementing sophisticated cash management systems that maximize every dollar’s impact.

Strategic Budget Management Solutions

Effective budget management starts with comprehensive project planning that prevents scope creep through clear objective setting. Value engineering emerges as a critical tool, analyzing every design element and material choice to identify cost savings without sacrificing quality. This approach recently saved a commercial developer $2.3 million on a single project by substituting materials that exceeded specifications with alternatives meeting exact requirements.

Target Value Design revolutionizes traditional budgeting by establishing cost constraints before design begins. Project teams collaborate from inception to create solutions within predetermined budgets, eliminating the costly redesign cycles that plague conventional approaches. Life Cycle Costing takes this further by evaluating total ownership costs over decades, often revealing that higher initial investments yield substantial long-term savings through reduced maintenance and energy expenses.

Advanced cost control requires real-time visibility into project finances. Cloud-based platforms integrating project management with accounting systems provide instant insights into material costs, labor expenses, and profitability metrics. Companies using these integrated systems report 23% better cost performance compared to those relying on traditional spreadsheet-based tracking.

Innovative Financing Solutions

Alternative funding sources transform how construction projects secure capital in challenging markets. Institutional investors seeking stable, inflation-linked returns now back construction ventures, as demonstrated by BlackRock’s £500 million partnership with Catalyst Housing to build 2,000 London homes. These arrangements provide patient capital at competitive rates while aligning with environmental, social, and governance (ESG) objectives.

Construction-specific crowdfunding platforms like BuildingBonds enable developers to access capital from thousands of small investors. These platforms incorporate milestone-based funding releases and specialized due diligence processes tailored to construction project requirements. One recent mixed-use development raised $4.7 million through crowdfunding after traditional banks declined financing.

Mezzanine financing bridges the gaps between senior debt and equity, providing flexible capital for growth-oriented contractors. While carrying higher interest rates than traditional loans, mezzanine financing offers speed and flexibility crucial for seizing time-sensitive opportunities. Bridge loans serve similar purposes for short-term needs, with specialized construction lenders approving funds within days rather than weeks.

Cash Flow Optimization Strategies

Thirteen-week rolling cash flow forecasts provide the foundation for financial stability, identifying potential shortfalls with sufficient lead time for corrective action. Project-level forecasting aggregates individual job cash flows, accounting for billing terms, historical payment patterns, and project-specific factors that impact timing. Companies implementing this granular approach reduce cash crunches by 67% compared to those using simple monthly projections.

Progress tracking technology accelerates billing cycles through real-time documentation. Digital tools, including drone surveys, photographic progress capture, and automated quantity tracking, create indisputable completion evidence. Contractors using these technologies bill 40% faster on average, dramatically improving cash velocity.

Banking relationships require cultivation before crisis strikes. Construction-focused bankers who understand industry payment cycles provide invaluable support during temporary challenges. Maintaining multiple funding relationships—including community banks, construction-specific lenders, and private equity contacts—creates options when primary sources tighten. Smart contractors maintain credit facilities even during strong cash periods, keeping them active for inevitable downturns.

Managing Rising Costs Effectively

Material cost management demands sophisticated procurement strategies beyond simple competitive bidding. Strategic partnerships with suppliers, including volume commitments and early payment discounts, can reduce costs by 15-20%. Forward purchasing agreements lock in prices for critical materials, protecting margins when markets spike unexpectedly.

Labor cost optimization balances competitive wages with productivity improvements. Investing in workforce training increases output while reducing rework costs. One specialty contractor reduced labor costs by 18% through comprehensive training programs that improved first-time quality rates. Technology adoption, including prefabrication and modular construction techniques, further reduces on-site labor requirements.

Operational efficiency improvements compound cost savings across projects. Lean construction principles eliminate waste in materials, time, and effort. Companies implementing lean methodologies report average cost reductions of 11% while improving project delivery times. Digital collaboration tools reduce administrative overhead by streamlining communication and documentation processes.

Risk Mitigation Through Financial Discipline

Change order management prevents profit erosion from scope modifications. Implementing rigorous documentation, immediate pricing, and prompt billing for additional work maintains margins. Contractors who delay change order processing often discover that these unbilled extras represent their entire profit margin—or worse, create losses on otherwise successful projects.

Documentation discipline accelerates payment processing by eliminating administrative delays. Systematic tracking of lien waivers, compliance certificates, and inspection reports prevents payment holds. Many contractors discover that 60% of payment delays result from missing paperwork rather than client cash constraints, making documentation systems a financial imperative.

Contract negotiation increasingly focuses on payment terms rather than just project pricing. Securing favorable payment schedules, including mobilization advances and shortened retention periods, improves cash flow more effectively than marginal price increases. Progressive contractors now evaluate projects based on cash flow impact rather than just gross margins.

Technology Integration for Financial Success

Cloud-based financial management platforms revolutionize construction accounting through real-time visibility and automated processes. Integration with project management systems eliminates duplicate data entry while providing instant profitability insights. Companies report a 35% reduction in administrative costs after implementing integrated cloud solutions.

Artificial intelligence enhances financial forecasting accuracy by analyzing historical patterns and market conditions. Machine learning algorithms predict payment delays with 89% accuracy, allowing proactive cash management. Automated invoice processing reduces billing cycles from days to hours while eliminating costly errors.

Building Information Modeling (BIM) extends beyond design into financial planning. 5D BIM incorporates cost data into 3D models, providing real-time budget impacts of design changes. This integration prevents costly surprises during construction while enabling more accurate initial estimates.

Building Long-Term Financial Resilience

Sustainable growth requires balancing opportunity pursuit with financial prudence. Successful contractors maintain strict project selection criteria, declining work that doesn’t meet profitability thresholds regardless of revenue potential. This discipline preserves capital for truly profitable ventures while avoiding the trap of growth for growth’s sake.

Diversification strategies reduce dependence on single market segments or client types. Contractors who maintain balanced portfolios across commercial, residential, and institutional work weather economic downturns better than specialists. Geographic diversification provides similar benefits, though it requires careful analysis of new market dynamics.

Financial reserves provide crucial buffers during market disruptions. Industry leaders maintain cash reserves equaling 10-15% of annual revenue, enabling them to weather payment delays, pursue strategic opportunities, and negotiate from positions of strength. Building these reserves requires discipline but provides invaluable strategic flexibility.

Final Thoughts

Two decades of guiding construction companies through financial challenges has taught me that constraints often catalyze innovation. The firms emerging as industry leaders view financial management as a strategic capability rather than an administrative burden. They implement systems that provide real-time visibility, embrace innovative funding solutions, and maintain the discipline to walk away from unprofitable work.

Success requires combining traditional financial wisdom with modern tools and techniques. The construction companies thriving today blend time-tested cash management principles with cloud-based platforms, AI-driven forecasting, and alternative financing structures. Most importantly, they recognize that financial strength enables rather than constrains growth ambitions.

Your construction business doesn’t need to accept financial constraints as permanent limitations. With the right strategies, systems, and support, you can transform financial management from a daily struggle into a competitive advantage. Visit Complete Controller to discover how our specialized construction accounting services help contractors nationwide build financial foundations for sustainable growth.

Frequently Asked Questions About Financial Constraints Construction Growth

What are the main financial constraints affecting construction growth?

The primary constraints include cash flow disruptions from 83-day average payment delays, material costs that increased 60% since 2020, tight profit margins under 3%, limited access to traditional financing, and complex regulatory compliance costs that drain resources from growth initiatives.

How can construction companies improve their cash flow management?

Implement 13-week rolling forecasts for early problem detection, use progress tracking technology to accelerate billing by 40%, establish strong banking relationships before needing them, utilize invoice factoring for immediate cash, and maintain strict change order documentation to capture all billable work.

What alternative financing options are available for construction projects?

Options include mezzanine financing for flexible growth capital, bridge loans for immediate needs, construction-specific crowdfunding platforms, green bonds for sustainable projects, institutional investment partnerships, and blended finance arrangements combining public and private funding sources.

How do rising material costs impact construction project profitability?

Material price spikes directly erode margins, with some materials increasing 63% recently. To protect profitability, companies must implement real-time cost tracking, negotiate forward purchasing agreements, use value engineering to identify alternatives, and include escalation clauses in contracts.

What role does technology play in overcoming financial constraints?

Technology enables real-time cost visibility through cloud platforms, reduces billing cycles by 40% with digital progress tracking, cuts administrative costs by 35% through automation, improves forecast accuracy to 89% using AI, and streamlines operations, saving 11% through lean construction tools.

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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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