Author: Jennifer Brazer

Businesses operate in a complex and ever-changing industry. Commercial properties are mushrooming in every corner of every city. Unfortunately, not many people know what goes on behind the scenes of a construction company.

Those working for a construction company know the daily challenges they face during their routine jobs. It’s a significant challenge for any construction company to complete a structurally sound commercial building on the designated time and budget. Here are the top five challenges that a construction company faces regularly.

Government Regulations

Construction companies are one of the most regulated ventures. The government keeps these companies under solid scrutiny. Building codes are restrictive, and licensing and permit requirements are challenging to achieve.

Companies must adhere to many regulations, as unsafe buildings are a significant security risk for every city. However, meeting the local and federal government’s strict rules and safety standards is challenging.

Social and Political Pressures

Social and political pressures challenge construction companies to hold ongoing projects for years. Pressure from the local community could delay or cancel a construction project, which could be devastating for a construction company with losses of millions. The political and societal challenges can be overcome by meeting with local communities and concerned parties.

Health and Safety Concerns

Commercial construction is one industry that suffers accidents causing fatal injuries. Every day, thousands of companies with millions of employees work round the clock to meet deadlines. Workers are exposed to hazards from machinery, falling debris, malfunctioning equipment, electrical shocks, falls, and trench and scaffold collapses.

Apart from human suffering, financial constraints hit commercial construction companies hard. Some losses from accidents can cost a company millions in compensation to the workers and loss of equipment. Many of these losses can significantly impact proper bookkeeping within a construction company.

Construction companies can take different measures to eliminate or reduce accidents by meeting health and safety concerns. Maintaining high safety standards can overcome fatal human loss and financial crises.

Shortage of Skilled Labor

The biggest asset of any company is its human resources; commercial construction companies are no different in this regard. They must have the competent, trained, and highly skilled human capital to keep everything in its correct order. The shortage of labor is a primary concern for commercial construction companies.

To overcome this challenge, the construction company must take steps to work toward employee retention. Employee retention is significant for construction companies because not many people are willing to enter the construction business, as construction is physically demanding, challenging, and sometimes dangerous. Paying better wages could help the company keep its employees for a more extended period.

Time Management

Construction is considered one of the most demanding industries because the biggest challenge is effective time management to meet deadlines. Simple time management becomes a significant task in construction. A natural weather calamity can rip the project off the ground, causing substantial delays in meeting deadlines.

Every day a construction site is closed due to bad weather or any other issue, each day costs the commercial construction company suffers significant financial losses recorded in bookkeeping. This is a considerable challenge, particularly to the construction business, and seasonal changes affect it. Access issues, accidents, machinery malfunctions, or breakdowns can cause massive delays.

Companies can improve their time management by checking the weather forecast and managing the delivery dates for necessary raw materials.

Running a commercial construction company is not easy. It is challenging and complicated. Overcoming the challenges above is vital for a company to maintain its operations while managing to complete its due date.

Conclusion

In conclusion, the commercial construction industry operates in a dynamic landscape, navigating regulatory, social, and operational challenges. From stringent government regulations to the perpetual struggle of time management, construction companies face many obstacles in completing projects on time and within budget. Health and safety concerns underscore the importance of maintaining rigorous standards, while the shortage of skilled labor further complicates matters.

Despite these challenges, proactive measures such as community engagement, employee retention strategies, and leveraging technology can help mitigate risks and ensure smoother project execution. Ultimately, successfully overcoming these hurdles is essential for construction companies to thrive in an ever-evolving business environment while delivering quality outcomes.

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.

With the advent of accounting, one of the most prominent words in the business dictionary was bookkeeping. Bookkeeping, in its broadest terms, is the process of keeping a record of all business financial transactions. This process requires drawing up several accounts that contain various transactions taking place within the business.

The bookkeeping process in accounting has been a tedious task since its inception, as it requires drawing up several individual t-accounts to record journal entries for the five major accounting elements – assets, liabilities, capital, expenses, and revenues. An essential and commonly used classification is that of ledgers, general ledgers, and sub-ledgers. To advance the discussion on general ledgers, a brief description regarding the functionality of the ledgers is necessary.

What is a Ledger?

In accounting, a ledger refers to a record of transactions documented in chronological order. These transactions are captured from the journal and are organized by account heads. These ledgers provide a historical and current summary of each transaction related to a specific account. This summary is considered the most reliable source for drawing up the financial statement at the year’s end. For instance, the sales ledger has all the sales-related transactions. The sales return ledger maintains transactions related to sales returns. Therefore, the sales figure displayed in the profit and loss account may be verified directly from the sales ledger.

What is a General Ledger?

As previously identified, cash-related transactions will have their cash ledger, and sales-related transactions will be contained in a sales ledger. The general ledger is one big master account comprising data from these individual ledgers, compiled in a single format. The general ledger is also known as the book of final entry. The general ledger posts information on financial statements, balance sheets, and business profit and loss accounts.

Subledgers are another related accounting and bookkeeping category, sometimes known as subsidiary ledgers. Updating the sub-ledger is similar to updating a general ledger; however, unlike a general Ledger, the sub-ledger comprises just a few accounts.

Format of a General Ledger

In recent times, automation and the use of accounting software have made the traditional form of bookkeeping outdated. Traditionally, a general ledger resembled a register or book, where all the transactional data was kept. Each account would occupy one page in the general ledger, comprising all accounts mentioned in the chart of accounts.

The format of a general ledger included five different columns for each heading. The main headings include date, transaction details, debit, credit, and balance. The header would usually include the name of the account and its given number. An updated general ledger would demonstrate the current balance of each account as of that particular date.

Accounting Software

As given above, a traditional depiction of the general ledger will likely be more comprehensive for all businesses. In the present era, traditional bookkeeping has become obsolete. The introduction of accounting software has made accounting and bookkeeping an automated process where numerous business transactions may be recorded and posted to their respective accounts simultaneously without manually posting entries into the relevant account heads.

This allows for speed, accuracy, and cost savings. Enterprise Resource Planning (ERP) solutions, such as SAP and Oracle, have revolutionized the accounting world at its core. The computer software automatically posts entries onto the general ledger from the respective account ledgers and calculates the current balances according to the specified date. 

Hence, understanding the functionality and structure of a general ledger is crucial to business accounting procedures. The simplest form of its explanation has been provided here.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A business may be forced to downsize to save on labor costs and resources. Sometimes, the downsizing is done by simply terminating employees or giving them early retirement. Downsizing is done with a good purpose for a business, but a company that has decided to downsize should consider if they could face legal challenges or liabilities.

Always do the right thing from the angle of your business, law, and human standpoint. Downsizing can reduce or eliminate business operations, but this term is mainly used to reduce the number of employees working in the business.  

Downsizing, reducing a company’s labor force, lessens the number of employees on the operating payroll. This is supposed to ease tough economic times and improve performance and efficiency. Although downsizing is common, it is also a dreaded situation involving the employees and the employers.

Often, companies downsize, believing a few people can run the business better, but they don’t get the anticipated outcome. A company intending to downsize needs to reflect on different angles before deciding to move forward and should also consider the possibility of failing. Such failures leave a long-term mark on a business, requiring planning to avoid such risks.

Therefore, a company must consider all the obligations needed to help the business succeed. On the other hand, they should never forget the human perspective.

Making the Decision to Downsize

The first step is to analyze the situation and decide if downsizing is necessary and yield positive results. In addition, other temporary options should be evaluated before making the decision. For example, an employer can temporarily downsize and wait for time to pass before rehiring their employees.

Furthermore, this decision will change the company’s structure, and evaluating all possible outcomes becomes necessary. Aside from downsizing, companies can consider employee retraining, reduced hours, shorter workdays, or hiring freezes. Companies can also work with their bookkeeper to see if they can cut costs instead of letting go of employees.

These methods are not as drastic, and employees will understand that they must adjust to facing challenges ahead of them. However, the company should evaluate each possibility before choosing an alternative.

Once the organization has finalized the decision, it should consider legal practice and moral obligations towards employees and the organization itself. Proper planning and necessary fulfillment of obligations can eliminate risks and failures at a later stage. First, a company should evaluate its employees in the transition and final period.

Legal and Ethical Considerations

The transition stage is challenging as people have low morale and uncertainty. They remain under stress and psychologically disturbed throughout this transition time. Many knowledgeable people start exploring other options and leave. This ultimately affects those left behind with less expertise.

During this process, organizations must be aware of the legalities and liabilities. They should avoid activities that can bring charges upon them. One example of this is downsizing as an opportunity to eliminate every person they do not like or firing employees with an adverse history with the administration.

Usually, the cookie-cutter approach is safest legally, but it leaves heavy psychological marks on employees. Therefore, a scheme should be developed to keep the employees’ morale intact and safe legally. However, this approach requires organizations to have an up-to-date, indisputable record. This way, unwanted charges can be effectively avoided and handled.

Managing Employee Departures

The next step is to handle the employees who need to go. Usually, there is a form that departing employees sign. These release forms are designed to protect the company against liabilities. Consequently, companies must know what to put in such forms and how to handle this procedure.

For example, such a waiver must be in writing, understood by the employee, and voluntarily signed. In addition, employees must understand the company’s intent and what rights they are waiving. The company should know that when its procedure is straightforward, it will avoid litigation risk.

Companies should be aware of any acts or laws requiring them to notify all interested parties, including employees, unions, and local governments, about their downsizing. Communication should be the key at every possible level, which can help isolate situations that can lead to legal complications.

Some teams help managers and employees in the process. They assist specifically with the needs of the company. Such teams help in communicating with employees and offer them counseling. They also help employees in finding new jobs. These teams provide interview skills workshops, resume preparation, and information about education and job training opportunities.

Supportive Strategies for Companies

Companies can get help from such teams or have some internal arrangements to ease downsizing. They can offer outplacement services to employees who are leaving. This approach can help two-fold—one by avoiding litigation and second by assisting the employees leaving.

Ultimately, companies should ensure they are ready to face the employees who are still on their team. The remaining employees will have many questions that need satisfactory answers to keep their morale intact. As Barbara H. Patterson, the attorney with Advanced Healthcare, said at a recent National Employment Law Institute conference in Washington, “companies need to keep in mind the law and sound business principles, then communicate, communicate, communicate.”

Conclusion

Downsizing, reducing a company’s labor force, lessens the number of employees on the operating payroll. Before implementing the ‘downsizing’ decision in your company, give it thoughtful consideration. Seek legal advice as well. Sound business principles must be adapted when downsizing.

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.

The cannabis industry, with its complex history and rapid progression, has become a fascinating study of resilience, innovation, and societal change. From its early days of clandestine use to its current status as a booming legal market in various parts of the world, the journey of cannabis is nothing short of remarkable. This article aims to delve into the cannabis industry’s captivating history, its progression, and the intricate dance of navigating a successful marijuana business in today’s landscape.

The Roots of Cannabis Culture

The relationship between humans and cannabis traces back thousands of years, with evidence of its use in ancient civilizations for medicinal, spiritual, and recreational purposes. However, the plant’s story in the modern era is marked by controversy, beginning with its prohibition in the early 20th century in many parts of the world. This period saw cannabis being demonized and linked to criminal activity, creating a stigma that would linger for decades.

Despite the backlash, the 1960s and 1970s witnessed a resurgence of cannabis, especially within counter-culture movements. It became a symbol of rebellion against the establishment, though it remained illegal in most countries, creating a vast underground market.

Turning Over a New Leaf: Legalization and Acceptance

The late 20th and early 21st centuries marked significant turning points for cannabis. The medicinal benefits of marijuana began to gain recognition, leading to its legalization for medical purposes in several regions. California became a trailblazer in 1996 by becoming the first U.S. state to legalize medical cannabis, setting a precedent for others.

The momentum continued, and the past decade has seen an unprecedented shift towards the legalization of cannabis for recreational use. Countries like Canada and Uruguay, along with several U.S. states, have fully legalized cannabis, acknowledging its potential economic benefits and the failure of prohibition policies.

This shift has birthed a burgeoning legal cannabis industry characterized by innovation, entrepreneurship, and regulatory challenges. As of 2023, the global legal cannabis market is valued in the billions, showcasing its significant economic impact.

Navigating the Green Rush: Starting a Cannabis Business

Entering the cannabis industry is akin to navigating a maze, with each turn presenting legal, financial, and operational challenges. Here’s a step-by-step guide to starting a cannabis business:

Understand the legal landscape

The first step is to thoroughly research the laws and regulations in your jurisdiction. Cannabis laws vary widely between countries, states, and even cities, with specific rules governing licensing, production, and sales.

Create a business plan

Like any other business, a comprehensive plan is crucial. This should cover market analysis, financial projections, operations, and a clear strategy to address the unique challenges of the cannabis industry.

Secure licensing and compliance

Obtaining a license is one of the most challenging steps, often lengthy and costly. Compliance with state and local regulations is critical to operate legally and avoid penalties.

Build a reliable supply chain

Establishing relationships with quality suppliers of cannabis plants or seeds is essential for product consistency. For retailers, this means finding reputable growers or wholesalers.

Invest in marketing and branding

The cannabis market is highly competitive, making branding and marketing crucial. However, marketers must navigate strict advertising regulations that vary by region.

Embrace technology and innovation

The cannabis industry is at the forefront of technological innovation, from cultivation methods to product development and sales platforms. Staying ahead of tech trends can provide a competitive edge.

The Path Forward: Trends and Predictions

The future of the cannabis industry is ripe with potential but not without its challenges. As legalization spreads, the market is expected to grow, with projections suggesting a global market worth many more billions by the end of the decade. This growth will likely be accompanied by further consolidation as larger players acquire smaller businesses to expand their footprint.

Another trend is the increasing sophistication of cannabis products, with a focus on health and wellness. Products like CBD oils, edibles, and topicals are gaining popularity among consumers seeking non-intoxicating options.

However, the industry must also navigate challenges such as banking restrictions, high tax rates, and the evolving regulatory landscape. Moreover, the stigma around cannabis, though diminishing, still affects consumer attitudes and policy.

Conclusion

The cannabis industry’s journey from prohibition to legalization and commercialization is a testament to societal change and economic opportunity. As the industry continues to evolve, it offers lessons in resilience, the importance of adaptive regulation, and the potential for innovation in meeting consumer needs. For entrepreneurs, the green rush represents a challenging yet rewarding frontier, one where success demands business acumen and a commitment to navigating the complexities of this unique industry. Whether as a business owner, consumer, or observer, the unfolding story of cannabis is undeniably captivating, marking a significant chapter in the broader narrative of human interaction with this ancient plant.

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.

When the financial crisis took hold on world markets, inflation and the significant increase in new mainstream politics increased. In these times, two major companies plan to open massive vaults in Europe. These locations can safely hold more than 100 million euros (112 million USD) in pure gold. Their customers are offered lower costs and protection from price hikes than exchange-traded products.

Inflation & Political Instability are a Major Risk for Customers

The price hike, technically known as inflation, forces many people to protect their valuable non-cash assets like gold. The thing about having a haven asset is not just the purchase. These assets require specialized storage facilities.

Conditions that could lead to political instability and unrest cause people to keep their assets even safer. Recently, the biggest conditions have been the UK’s decision to leave the European Union and the election of Donald Trump as President of the United States of America. The two incidents, in particular, have greatly influenced the global financial markets.

On the other hand, negative interest rates have been observed across Europe. The negative interest rate has persisted across countries in Europe. Inflation has continued to increase, causing major threats to bond coupon payments. These incidents have significantly led to storing wealth in vaults made of tempered steel.

New Secure Vaults in Construction

Currently, looking at the lucrative market for secured storage facilities, CoinInvest, a major Europe-based gold trader, is negotiating the construction of a massive 100-square-meter vault. The vault will be able to hold more than 100 million euros worth of gold. The weight of the safe is an estimated 82 metric tons. The door alone will weigh about 1.5 tons.

Hike in Gold Storage

BullionVault is one of the largest online portals that deal with physical gold trading. According to the information provided by BullionVault, the company successfully added 3 tons of gold in the past year.

This brings their combined gold holdings to about 38 tons, worth 1.5 billion USD at the current market rate. The company has different secure locations housing high-security storage facilities for gold. The vaults are in New York, Zurich, Switzerland, Singapore, London, and Toronto.

Gold reserves at the Bank of England, the corporation that operates one of the largest commercial vaults in the world, significantly increased. The Bank of England witnessed a 6% increase in its gold reserves in 2016, taking it to about 5,067 tons. The central bank holds gold for the UK Treasury, private banks, and other companies.

Despite the fluctuation in gold prices, companies and banks understand the value and importance of gold. The value of gold will never be zero; this is the main reason for a significant increase in demand for secure vaults for storing gold.

Major companies that provide vaults are reaching their total capacity at a breakneck speed. The demand for secure vaults for gold is causing another gold rush that will likely end soon. Gold worth millions is being traded back and forth as a secured monetary payment. Experts believe that more and more people and companies are willing to save their gold, as the financial future seems volatile.

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.

Small business proprietors tend to be customer retention experts. It’s an excellent way for businesses with a small marketing and bookkeeping budget to maximize ROI, increase profitability, and improve cash flow. Retaining customers is the ultimate goal for any business.

Whether online or offline, they ensure that customers are satisfied, which is critical for long-term success. Hundreds of thousands of similar companies target the customers you’ve worked so hard to earn.

What is Customer Retention?

The customer retention rate is how well a business can maintain an existing customer’s lifespan over time. Companies often fail to understand that it is much easier and more cost-effective to focus on retaining existing customers’ content than attaining new ones.

Set customer expectations

The first step to building better customer retention is to set client expectations early. You can eliminate uncertainty by setting expectations early and at a lower capacity than you can provide. Figure out the level of service you need to offer to ensure your clients are happy.

This clear vision enables your company to build KPIs around specific expectations and ensure you always deliver. Clients always tend to remember negative experiences rather than positive ones.

Be the expert

Small and medium-sized businesses increasingly rely on amenities to run their operation. No matter what business you occupy, you will likely retain more customers if you can be the expert in your field.

Becoming your clients’ trusted adviser will build customer loyalty and reduce customer churn. Becoming a reliable source of all technology, you build a relationship that leads to dependence. Your customers will trust you, rely on you to give the best advice and identify you as an essential part of their corporate success.

Build trust through relationships

Trust is essential in business; building relationships with clientele will harvest that trust. Simply providing a service is no longer sufficient– as opponents enter your market, you must start building shared values with clients.

Implement anticipatory service

An anticipatory service is a preemptive approach to customer service. Instead of waiting for problems, an enterprise implementing anticipatory service can eradicate problems before they happen. It would help if you were looking at ways to prevent glitches by being practical.

Make use of automation

Automation tools allow time-consuming chores requiring manual intervention to be standardized into repeatable processes. Businesses that leverage automation can minimize interruption and keep customers’ networks performing at their best. Companies are typically assured by contracts that pledge their services and make them answerable to clients. 

Companies can better meet their commitments by leveraging automation tools and streamlining repeatable processes. You can increase customer loyalty by standardizing your processes and setting expectations for service levels, improving customer retention rates.

Build KPIs around customer service

A great way to improve customer retention is to improve customer service. Customer service is the number one reason a customer will become a repeat customer or never use your business again. Customer service should be your primary focus when building your KPIs.

Build relationships online

Your clients are online, so let’s start constructing relationships with them while glued to their computer screens. With the rise of social media, linking with your clients through these mediums makes sense. Focus your efforts on building LinkedIn, Twitter, and Facebook social profiles. Most of your clients will have active profiles on at least one of these websites.

Go above and beyond

Often, businesses overlook how important this is. Going the extra mile for your customers is an easy way to build strong relations. As a service business, you have countless prospects to woo your clients and exceed the minimum. By doing this, you can build some long-term faithfulness. If your customers know you are prepared to go above and beyond, they will stick with you when contenders start bashing on their door.

Implement customer feedback surveys

Customer churn can be avoided by simply listening to your customers. Customer feedback surveys are priceless for learning how your service performs concerning your consumers’ expectations. Understanding client feedback allows you to act before it’s too late and make business decisions based on an accurate data-driven response.

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.

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 basic 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 that can 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 for consumers as it would help them develop specifically designed user-centric services. Most of the 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. The provider, the consumer, or other trusted third party can measure this data. A combination of these players to measure accountability is also an option; however, just like other traditional utility services such as gas and electricity, provider-side accountability is also the norm in the cloud services industry. But unlike the consumer-trusted metering for conventional 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 query for calculating billing charges from the service provider programmatically. They will be obliged to respond to the request. Subsequently, a robust customer-centric accounting model will allow the customer or a trusted third party to independently measure the billing charges of cloud services. This will enable consumers to measure their billing charges, which is only fair. It is proposed that the providers should at least 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 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 fundamental example and see if there is room for improvement.

S3 Amazon

We use a simple S3 cloud storage service from Amazon to investigate this notion. It is a fundamental pay-per-use base service. It is marketed as a fast, reliable, and low-cost service. However, upon examination, researchers found a few ambiguities in the model, which cannot be programmatically queried from Amazon. This suggests that even the simplest resource accounting models cannot match the standards of a robust consumer-centric model but are 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 assemble the third party as a measurement service so that customers can easily access and measure their data usage.

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 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 daily, 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.

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.

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

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

The audit of your business tax return is conducted to verify the authenticity of the information you have filed. Questions such as whether you included all of your income and filed only for deductions permitted by the law are looking into. These audits aren’t conducted at random. Returns are likely to have the IRS select some errors through intricate criteria. The audits begin within a year of filling and are completed mostly within that year.

The Returns of Audits are Conducted in 3 Ways

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

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

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

Understanding the Scope of an Audit

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

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

Preparing Responses to Questions Asked by the IRS

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

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

1. Prepare for the meeting session you will have with the IRS agent or officer who will be conducting the audit.
2. Prepare and compile the information that the IRS has already requested.
3. Prepare for any sort of questions that the IRS and the IRS agent or officer might ask.

In simpler words, you must be prepared to answer any question related to your financial activity during the year for which you are being audited. You will also need to recreate documentation for anything that isn’t documented (or if relevant documents have been misplaced). Third-party records or other records must be used to reconstruct such documents.

Respond to any request for documents and information promptly and on time.

• The IRS will increase the number of questions if they think you must change your returns. Suppose you get an IDR (Information Document Request) asking for more financial information. In that case, it is important to respond by the deadline to avoid any suspicion on the IRS side.
• The IRS may tell you that income and deductions have been misreported. If you disagree with their conclusion, you must present your interpretation to the IRS.
• Finally, the audit is closed, with the IRS either recommending adjustments to your returns or accepting them as they are. You would, however, be given a 30-day window to appeal their decision.

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.

QuickBooks has proven useful in accounting and bookkeeping, especially for incumbents and small businesses. Despite the market being flooded by similar accounting software, such as Xero, Wave, FreshBooks, etc., QuickBooks has taken the lead by transcending the competition. It has been the most favorable among small business owners. Several versions cater to multiple business needs that other competing software currently lacks. Its transcendence in the market for serving small businesses is attributed to the following reasons.

Diversity & Flexibility

QuickBooks is available in different versions, allowing for greater diversity in serving small businesses. Small business owners can choose from various versions depending on their unique business needs and specifications. For instance, QuickBooks offers various versions like QuickBooks Pro, QuickBooks Online Plus, QuickBooks Mac, QuickBooks Hosting, QuickBooks Premier Hosting, and more. Each one comes with unique features to enable businesses to choose the one that fits best with their business needs. The various versions may also be purchased according to one’s budget, allowing for even more flexibility. Hence, QuickBooks leads the competition through flexibility in pricing and features.

User Friendly

Another reason for this market transcendence is the user-friendly interface that it comes with, allowing for easy access and use within the business. Employees working on a legacy system are generally more resistant to change. Traditional bookkeeping has been popularly replaced by accounting software, which may be a source of intimidation for employees at work. However, QuickBooks helps with the initial phase of using the software step-by-step and extends the option to seek professional help.

Compatibility

QuickBooks offers a compatible interface that can be integrated with multiple vertical market applications quickly and easily. This superior compatibility helps align and streamline every single process within the organization and allows for cost, time, and effort savings. Automation sounds like a brilliant idea when it comes to accounting, but automation, to this extent, is no less than a miracle for small businesses.

Customization

In addition to the above reasons, QuickBooks has successfully outperformed the competition due to its ability to customize almost everything related to accounting and bookkeeping. One can customize a chart of accounts to their specific business needs and customize invoices, sale receipts, and estimates. You name it, and QuickBooks has it covered! It sure is a one-stop solution for all your tedious accounting hustles.

Simplification of Tasks

QuickBooks has been an innovation in the market to help serve small business needs related to complicated and enervating accounting procedures and activities. It has provided a complete and sorted package for A to Z accounting and helped simplify complex spreadsheets, returns filling, reconciling, invoicing, and financial reporting tasks throughout organizations, especially for small businesses.

Unlimited Features

QuickBooks has also taken over full responsibility for performing all accounting tasks while providing various features. It manages cash flows, invoicing, billing, receivables and payables, employee performance, bank transactions, check printing, online banking, emails, payroll, and financial reporting. Other features include access to its online version from any internet-enabled device. This is particularly useful for small businesses that are operated remotely.

Business Tracking

Another one of the many reasons why QuickBooks has led the market competition is the streamlining and automation that it has facilitated for small businesses. With its use, business owners have been empowered to track every business transaction and workflow hassle-free and seamlessly. This has enabled a transparent work environment for small business owners.

Conclusion

Therefore, based on the numerous reasons identified above, QuickBooks has remained victorious in establishing a position for itself in the market that transcends any competitor serving small businesses.

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.

Undoubtedly, an organization is most interested in how much it can generate gross profits. The profit margin is the total amount a business generates when its revenues generated from the overall sales exceed the total cost. Profit is important for a company for multiple reasons. It is common knowledge that the purpose of every small or big business is to make profits. Without profits, a company does not survive because the employers cannot pay its employees, suppliers, and investors. Even if companies can pay them, they cannot invest in attractive projects because they would not have enough money. Interpreting profit margin is incredibly important for any company because most financial and non-financial decisions depend on its financial prosperity.

Similarly, profit margin measures how successful a firm will profit from each sales dollar.

Understanding Profit Margin Analysis and Bookkeeping in Business

Regardless of their size and operations, most companies rely on sales to track their revenues but knowing the sales revenue alone does not indicate how a company is performing financially. On the other hand, organizations also use bookkeeping to analyze how the company is performing regarding its finances. Generally, companies keep track of their spending and revenue through bookkeeping. The primary benefit of bookkeeping is that it allows you to make a meaningful financial comparison. A well-designed and comprehensive bookkeeping system enables organizations to analyze their overall business spending and revenue. Data can be grouped by years, quarters, months, and weeks for a detailed analysis.

Profit margin is sometimes called “net profit margin,” which displays the big picture of organizational profitability.

The formula to calculate profit margin is dividing the net income by revenues or the net profits by sales. For instance, a company with $400,000 in sales and $10,000 in monthly net income has a net profit margin of 25% = $10,000 / $400,000 = 0.025. This means a company has 25% of net income for every sales dollar. Standalone and comparison analysis are two of the most widely used methods for interpreting profit margins.

Standalone Analysis

Managers and accountants analyze all the profits generated by a single firm, usually their firm, when determining standalone profits. In other words, only those values are generated from organizational operations. The major benefit of analyzing profit margins from the standalone method is that it allows finance managers to evaluate the independent value of the organization. The analysis provides an explicit image of the earning power of a business entity by incorporating its costs and revenues linked with the business. The standalone method of interpreting profit margins enables organizations to observe their complete financial health as if it constitutes a chain of totally independent organizational activities. 

Comparison Analysis

Several companies use percentages more frequently than raw facts and figures when discussing profitability from a broader perspective. In the hyper-competitive business environment, you cannot rely only on a standalone analysis because you must know about the external business environment and its performance. Organizations frequently use percentages to gain a better understanding because it enables you to compare several companies.

While it is beneficial to use profit margins to compare the financial performance of different companies, all the companies being compared must operate in a common industry and incorporate similar business models. The simple reason behind this logic is that organizations operating in diverse industries have implemented different business models with unique revenue streams. Therefore, companies may have considerable differences in profit margins, which will be meaningless.

The analysis will allow you to interpret the business’s current financial health in both cases. When an organization can get an accurate idea of its profitability, it will be able to discover ways to cut back on expenditures and enhance profitability. Additionally, when an organization can improve its profit margin, there will be less pressure and a better environment.

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.