Time is money. This fact is simple and very accurate. We have heard that phrase over and over. However, this phrase reaches a much more detailed and specific level for professionals, such as HR executives and business owners. Some companies cater to such needs. They provide software that tracks time and gives more than an auxiliary attendance sheet. An employee’s punctuality is essential. Nonetheless, the organization is a completely integrated system of methods that must be more than a single dimension think-tank. The good news is that software analytics and processes help track time and details differently.
Technology and Time Tracking
There are many ways to track time and all relevant task details for billing purposes. Solutions vary according to needs and markets that are immensely diverse. Due to technological breakthroughs, every solution is customized, and no two may be alike. Starting with paper is a great way to track details for a start. However, there is now software that can speed up the process by using spreadsheets with filters. Usually, trust is not a reliable asset, nor is hope a reliable plan. Using technology to create an accurate environment and enhance the authenticity of data received has vastly increased.
Using timekeeping tools can be instrumental but not always completely reliable. This software tracks time by start and stop points and is almost entirely automated. It records the moment it is embedded into an iOS or Android phone. Every minute on the device can be tracked. But the problem is, it is not accurate enough. Slugging at a task or wasting minutes away cannot be differentiated, as more details are needed. Twitter, for example, can contribute to promoting a blog or post or maybe just wasting time. There is no way to record that with single-standing apps such as Rescue Time or Chromate.
Streamlining Time Tracking for Business Success
For advanced features that project management professionals often require, apps and other essential software can help with seamlessly tracking time on each task, especially client billing. It can be a great way to ascertain precise details of hours spent that are straightforward. If working in a team, many factors of the apps are beneficial as coordination is improved, and there is a more focused and productive use of time.
One of the main contributors to the expansion and development of any business is the happy and satisfied clientele. Culprits that can hurt the business are overstaffing, rent, ineffective work methods or flows, non-quantification of marketing efforts, and late client payments. Other things may be servicing the business does not need but still has. It is imperative to use smart and goal-oriented methods that do not burden the business to track time.
As it is commonly known, human beings have no receptors for time perception and rely on signs or tools. Tasks and assignments under key tracking systems are much more productive and efficient, leading to a business’s general uprising. The best methods, including timely notification and alerts, prompt staff to execute or expedite orders that help process billing. The business needs to thrive. The biggest failure that weakens a business is the failure to track time and the loss of billing information. With a loyal clientele, your business has a steady stream of success and income. This is the goal!
Conclusion
You will need to track time for multiple reasons. With the current technology offered to us, we have the resources to stay informed in the areas we need most. With the information given above, you are now ready to begin tracking time.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Accounting informationis the collected and stored particulars of a business’s financial and accounting data. It is used and processed by the internal users. An accounting system generally uses computer-based data. Accounting data comprises much more than financial statements, balance sheets, and cash flow charts. It contains dataonrevenue, expenses, bookkeeping, customer information, data related to tax paid and due, and employee information. It also includes sales orders, purchase receipts, requisitions, invoices, ledgers, and financial statements.
Inventory is up to date in an accounting information system. Check registers previously made on old-fashioned paper registers are now maintained in computerizedsystems by installing special accounting data using specific software. Using this software makes data interpretation much easier to access and report.
This accounting data is for company use only and consists of customer and employee information and other sensitive data, so they are highly secured. Security checks are maintained in the accounting information system, and hackers and other external sources are prevented from accessing the data.
The accounting information data is very important and must be interpreted correctly. In the case of wrong interpretation, the company can suffer losses. Because of this, entrepreneurs must know the basics of accounting data and its elements. They must fully understand their financial statements. While they can segregate the job to accountants and other personnel, entrepreneurs must still understand the accounting information on their own. They should be able to access, interpret, and account for the information in both internal meetings and with outside sources.
Financial mistakes pose an adverse risk to business growth, and they can damage the reputation of the customers and suppliers.
Common Mistakes Made in Interpretation of Accounting Information and How to Avoid Them
Business owners often mix their finances with business expenses. Keeping these two finances separate is of utmost importance. If these two finances (personal and business) are not segregated, knowing what was intended for business and what was used personally is impossible. The amount of profit generated from invested capital cannot be correctly estimated if the two are intertwined.
Entries are not done in time. Getting behind in bookkeeping and submitting entries of expenses or sales will not yield an up-to-date picture of the business and will not allow you to make timely decisions. It can lead to a negative balance if the expenses are entered but the income statement is not updated. Invoices to be paid by the company may go unnoticed and can lead to a bad reputation. It can even end terms with suppliers. Business growth is halted or significantly reduced when you do not enter data in a proper amount of time.
Not setting up the proper software the company needs leads to faulty decision-making. Furthermore, installing the wrong software (more complicated than required or lacking crucial functions) can lead to inappropriate data entry. Sound decisions are hard to make when your company lacks the proper accounting software that it needs.
Failure to double-check the reports and statements and, instead, just relying on checking the amount of net profit may lead to many errors or malfunctions in business. Accounting information software is just a tool to use. Decisions must be made after completely checking the reports and interpreting the data. Data is interpreted by comparing financial statements with the cash flow statements and the balance sheets.
Keeping all receipts until all taxes are paid and an audit is conducted is necessary. Even after that period, receipts are very important for matching data entries in registers or software.
After a long day of work, mathematical or data entry mistakes are more likely. Stay focused. One mistake can lead to big errors.
Entrepreneurs and business owners must focus on the long-term consequences of their decisions after getting a full picture of their accounting information. Short-term decisions after interpreting account data do not set the business up for long-term benefits. Always focus on the future and the bigger picture.
Conclusion
Correct interpretation of accounting information is the backbone of any business. Specifically, focus on accurate bookkeeping practices and pay attention to every little detail so that you can take that information and make wise decisions for your company.
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.
Essential Small Business KPIs to Drive Success and Growth
Small business KPIs are measurable indicators that track financial health, customer relationships, and operational efficiency to guide strategic decisions and fuel growth. These metrics transform gut feelings into data-driven insights, helping entrepreneurs identify which activities generate profit and which drain resources. Without proper KPIs, businesses operate blindly—with them, owners gain X-ray vision into their company’s true performance.
I learned this lesson the hard way when my first venture hemorrhaged cash despite “strong” sales. After 20 years leading Complete Controller and partnering with over 500 small businesses, I’ve discovered that companies tracking the right KPIs grow 2.5 times faster than those relying on instinct alone. This guide reveals the exact metrics that separate thriving businesses from struggling ones, plus implementation strategies that take just hours to set up but deliver years of competitive advantage.
What are essential small business KPIs and how do they drive success?
Small business KPIs are quantifiable metrics measuring financial performance, customer satisfaction, operational efficiency, and employee productivity to inform strategic decisions
Financial KPIs like cash flow and profit margins reveal sustainability issues 3-6 months before crisis hits
Customer KPIs including retention rate and lifetime value predict revenue stability better than sales volume
Operational KPIs such as inventory turnover expose hidden profit drains costing thousands monthly
Implementation requires selecting 5-7 core metrics aligned with your specific business model and growth stage
Understanding KPIs as Your Business Navigation System
KPIs function like dashboard instruments in your car—each metric provides critical information about your business engine’s performance. Just as you wouldn’t drive cross-country watching only the speedometer, running a business requires monitoring multiple indicators simultaneously.
Since 2012, 65.1% of small businesses have failed by their tenth year according to the U.S. Bureau of Labor Statistics—a rate unchanged from the previous decade. The common thread among survivors? Systematic KPI tracking that catches problems early. Businesses monitoring weekly KPIs spot revenue drops 45 days faster than monthly reviewers, providing crucial runway for course corrections.
Selecting KPIs that match your business DNA
Different business models demand different metrics. A coffee shop tracking software-style monthly recurring revenue wastes precious time, while a SaaS company ignoring churn rate courts disaster. The selection process starts with three questions:
What drives my revenue? (transaction volume, contract value, repeat purchases)
Where do I lose money? (returns, waste, inefficiency, bad debt)
What creates competitive advantage? (speed, quality, innovation, service)
Your answers determine which KPIs deserve dashboard space versus occasional review.
Financial KPIs: Your Business Vital Signs
Cash flow—The oxygen of business
Operating cash flow measures actual money movement, calculated as Net Income + Non-Cash Expenses ± Working Capital Changes. This metric saved Complete Controller three times when profit looked healthy but cash dwindled dangerously low.
According to PYMNTS research, 82% of small business failures stem from cash flow problems, with 45% of owners skipping paychecks to cover expenses. Track this weekly using accounting software that flags when cash reserves drop below 90 days of operating expenses. One bakery client discovered their profitable wholesale division actually drained cash due to 120-day payment terms—switching to net-30 terms restored positive flow within two months.
Net profit margin—True profitability revealed
Calculate net profit margin as (Net Profit ÷ Total Revenue) × 100 to see what percentage of sales becomes actual profit. Industry averages vary wildly—restaurants operate around 3-5% while consulting firms achieve 15-20%—but trending matters more than absolutes.
A landscape company I advised showed 8% margins until we separated residential from commercial work. Residential jobs yielded 18% margins while commercial contracts scraped by at 2%. Dropping low-margin commercial work and doubling residential marketing lifted overall margins to 14% within six months.
Customer acquisition cost (CAC)—Growth economics
CAC equals Total Sales/Marketing Spend ÷ New Customers Acquired. Sustainable businesses maintain CAC below 33% of customer lifetime value. A $5,000 monthly marketing budget generating 25 new customers creates a $200 CAC—profitable only if those customers spend $600+ over their lifetime.
Customer KPIs: Relationship Health Indicators
Customer lifetime value (CLV)—The growth multiplier
CLV = Average Purchase × Purchase Frequency × Customer Lifespan. A fitness studio charging $150 monthly with 18-month average retention has $2,700 CLV. Boosting retention to 24 months adds $900 per customer without acquiring anyone new.
Net promoter score (NPS)—Loyalty quantified
NPS surveys ask one question: “How likely are you to recommend us?” on a 0-10 scale. Subtract detractor percentage (0-6 ratings) from promoter percentage (9-10 ratings) for your score. CustomerGauge research shows each 10-point NPS increase correlates with 3.2% revenue growth.
INAP utilized NPS feedback to reduce customer churn by 50% over two years. They linked survey responses to support tickets, identified common frustrations, and redesigned their onboarding process. The result? Retention improved from 72% to 89%, adding millions in recurring revenue.
Operational KPIs: Efficiency Unleashed
Inventory turnover—Trapped capital finder
Calculate as Cost of Goods Sold ÷ Average Inventory Value. Unleashed Software reports retail businesses average 11.32 turns annually, while manufacturers achieve just 2.67. Low turnover signals overstocking or obsolete inventory, tying up cash.
A boutique clothing store discovered their 3.8 turnover lagged the 5.2 industry standard. Analysis revealed 40% of inventory sat unsold over six months. Implementing smaller, more frequent orders and clearance pricing freed $75,000 in working capital while turnover jumped to 5.5.
Employee productivity rate—Output optimizer
Measure productivity as Revenue per Employee or Units Produced per Hour. Mercer’s research shows tech companies lose 60% of employees annually compared to banking’s 19.8%. High turnover destroys productivity through constant training cycles.
Track productivity by department—sales teams measure revenue per rep, while service businesses monitor the billable hours percentage. One agency improved designer productivity 27% simply by blocking morning meetings, creating uninterrupted creative time.
Implementation Blueprint: From Data to Decisions
Building your KPI dashboard
Start with these five universal small business KPIs:
Weekly cash flow (survival)
Monthly recurring revenue or sales (growth)
Customer acquisition cost (efficiency)
Customer retention rate (stability)
Gross profit margin (profitability)
Modern tools automate tracking—QuickBooks handles financial KPIs while HubSpot manages customer metrics. Google Data Studio consolidates everything into visual dashboards accessible anywhere. Budget 4-6 hours for initial setup, then 30 minutes weekly for review.
Creating accountability systems
Assign each KPI an owner responsible for monitoring and improvement. The CFO tracks cash flow, sales managers own CAC, and operations leads handle inventory turnover. Public dashboards create positive peer pressure—one client’s sales team increased conversions by 22% simply by displaying real-time leaderboards.
Set review cadences based on metric volatility. Cash flow needs weekly attention, customer satisfaction merits monthly analysis, and strategic KPIs like market share warrant quarterly deep dives. Document insights and actions taken—patterns emerge over time that sporadic checking misses.
Final Thoughts
After two decades helping businesses scale, I’ve learned that KPIs transform overwhelmed owners into confident CEOs. The magic happens when metrics become habits—checking cash flow becomes as routine as checking email, and decision-making shifts from reactive to proactive.
Start with three financial KPIs this week. Add customer metrics next month. By quarter’s end, you’ll wonder how you ever operated without this clarity. For personalized KPI selection and implementation support tailored to your industry, visit Complete Controller where our team helps entrepreneurs build measurement systems that drive sustainable growth.
Frequently Asked Questions About Small Business KPIs
What are the 5 most important KPIs for a small business?
The five essential KPIs are: 1) Operating cash flow (predicts survival), 2) Customer acquisition cost (measures marketing efficiency), 3) Gross profit margin (reveals true profitability), 4) Customer retention rate (indicates satisfaction), and 5) Revenue growth rate (tracks momentum). These metrics provide a comprehensive view of financial health, customer relationships, and business trajectory.
How often should I review my business KPIs?
Review frequency depends on metric volatility and business impact. Check cash flow and daily sales weekly, analyze customer satisfaction and employee productivity monthly, and evaluate strategic metrics like market share quarterly. Financial KPIs facing rapid change need more frequent monitoring than stable operational metrics.
Do KPIs differ by industry?
Yes, industry-specific KPIs reflect unique business models. Restaurants track table turnover and food cost percentage while SaaS companies monitor monthly recurring revenue and churn rate. However, universal metrics like cash flow and customer satisfaction apply across all industries. Choose KPIs matching your revenue model and competitive factors.
What tools can I use to track KPIs effectively?
QuickBooks automates financial KPI tracking, including cash flow, profit margins, and accounts receivable aging. HubSpot manages customer-focused metrics like acquisition cost and lifetime value. Google Data Studio creates unified dashboards pulling data from multiple sources. Industry-specific tools like restaurant POS systems or project management software offer specialized KPI tracking.
Can KPIs really improve my team’s performance?
Absolutely. Publishing transparent KPIs increases accountability and motivation through healthy competition. A logistics company sharing daily shipping accuracy rates improved performance 18% in two months. KPIs also identify training needs—low sales conversion rates might reveal product knowledge gaps rather than effort issues.
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.
Jennifer BrazerFounder/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.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
For businesses that regularly work in development, contracting, manufacturing, and consultancy, job costing is an essential piece of their bookkeeping capability. It enables them to track and predict costs for distinct jobs, ensuring their profitability and timely delivery. Moreover, it empowers solid project management – from quoting for a new business directly through in-life management to wrapping up the project.
Getting the Job Costing Statement Right
Sales and winning new business are basic goals for every business. As common as the goal is, each company faces problems when pricing its product. Businesses strive to offer their product at a price that customers are willing to pay.
Many companies use a job order cost system. This bookkeeping system helps calculate the materials or components used to develop the final statement. While this sounds generally simple, there are risks involved, and if a project is complex, managing these risks is the ideal approach to guarantee the projected profit margin is achieved with job costing. The ideal approach to this, particularly when the projected profit margins are not huge, is to utilize conduct job costing in the business.
Importance of Job Costing in Business
Controlling business activities without proper bookkeeping is troublesome. It implies that the accounting for every business activity needs more sections, from Work in Progress (WIP) to Cost of Goods Sold statements. It’s not always generally clear when such issues related to costing emerge. Along these lines, there may be the absence of a proper system for cost control, increasing the risk of over-runs and extra costs that jeopardize the possibility of helping the business reach its target margin.
There is a chance to have more than one job ongoing or coexisting at that point; there is a major chance of the wrong assignment of costs and not identifying issues in costing as they occur.
The Benefits of Precise Job Costing
Without a fully detailed cost report, organizations are moving away from accounting programs like QuickBooks for bookkeeping. The setup and execution of a job cost system can appear to be dreary and useless. When done using accounting software, the entire process requires you to do everything correctly for the desired results, or else it will be invaluable to your organization’s financial performance. Job costing is immensely valuable and supportive of an organization in the following territories:
Financial Stability for the Company
Companies must maintain a certain level of credibility regarding financial lenders. When it comes to bonding operators and customers, the organization must have the capacity to oversee and forecast the results of their projects efficiently. Organizations that can’t do this with certainty will find it increasingly hard to accomplish their performance effectively.
Job Management
With information from job costing reports, business administrators and management can better assess the progress and productivity of their business operations. This way, they can better persuade staff to decrease costs and increase returns.
Support for Claims
Job costing can offer help for legally binding claims. The reports must give points of interest of the genuine cost of recognized varieties, and a foundation for such claims highlights the importance of job costing in business.
Improves Future Work
Cost reports can give important information that helps estimators bid or price out relative work. These reports feature and separate those variablecosts that require unique circumspection.
Faster Invoicing
The costs should be accommodated to a specific project and invoicing during or towards the end of a project. At that point, being ready to invoice means a speedier installment if there are differences in the profits.
Better Control Over Business Operations
Companies have exact spending plans against costs when using job costing for effective bookkeeping. This shows inconsistencies rapidly and enables them to be amended. Each project is kept independent from other projects. Job costing maintains all irregularities and helps locate the mistakes corrected on time.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The biggest misconceptions about household budgeting are spending less, compromising your superfluity 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 critical items. Staying on top of your hard-earned money is essential 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 a lot of money for hard times if they properly budget their monthly paycheck(s). 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 an intimidating task 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 financiallysecure and healthy lifestyle. The need to manage your paycheck(s) has become more intense than before, meaning the 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.
Hire a budgeting partner
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 that can deliver you the best results and budgeting plan 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 an 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.
Hire an accounting professional
Use accounting software.
Accounting Software Or Household Budgeting Software—Is There A Difference?
Yes, accounting and household budgeting software are completely different, but both serve the right needs of their respective domains! Accounting software helps business owners reduce costly errors, minimize tax bills and repayments of debt(s), and, hence, help businesses of every scale know the exact status of their finances for making financial projections. On the other hand, household budgeting software helps families manage their monthly paycheck(s) and allocate their hard-earned income wisely.
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 also offer a discounted bundle of services or packages that can be cost-effective and reliable.
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.
Protecting your financial information is an obligation for every business, big or small. The stakeholders in a company must understand the security procedures necessary for the cause. Events of identity theft and hacking have increased tenfold over the last six to seven years. Hackers have been able to obtain critical information like personal details, email information, and financial information. To make matters worse, people didn’t even know about the theft most of the time.
Therefore, following these tips is essential to protect your crucial information.
Use Strong Passwords and Keep them Private
A weak password offers a hacker a walk in the park. Ensure you use strong passwords that involve numbers, symbols, and other variable patterns to make your accounts impenetrable. Avoid using standard names of things and places. Do not write down your passwords on digital platforms; write them down and store them securely. Alter the passwords regularly if you are keeping critical financial information or something else of importance. And, by no means should you share your passwords with anyone. Please keep them private and secure at all times.
Secure Your Devices
Firewall and security software are necessary if you engage in frequent financial transactions. As a business, installing the latest security features must be your utmost priority because your survival depends on protecting your financial information. Update the software regularly; use the auto-update feature if available. There are many hardware devices that are available on the market for additional security. However, their use is recommended for highly classified information. It is harder to secure a mobile device than a PC. Therefore, avoid using it for financial matters unless there is no way around it.
Establish Two-Factor Authentication
Most cloud storage services ask customers to create a two-factor authentication to access their accounts. This provides an added layer of security to your account. Whenever an unknown device attempts to access your account, you must approve it via another secured access point, which has been determined beforehand. Two-factor authentication is great for protecting your financial information. The efficiency is also excellent, as you will receive an immediate notification on your cell phone or any other registered device. You will be notified immediately of any suspicious activity.
Be Prudent when using Unknown WiFi Connections
Unsecured WiFi connections are highly vulnerable to malicious attacks. Public WiFi is the most susceptible as their security settings are at a minimum level to allow everyone access to the internet. This makes these networks a lucrative target for hackers. At times, while traveling, individuals tend to use airport or hotel WiFi services. They should be careful not to send or receive financial information using the unsecured network. Update your local network security settings for maximum protection of your financial information.
Take the Utmost Care when Downloading
The device assigned to secure the financial information should be used when downloading. Viruses and bugs often come in small patches downloaded along with the requested file without you even noticing. Before clicking any download link, ensure the website runs on a secured (https) platform. Most hacks and data losses take place because people are careless or uninformed when it comes to downloading. It should be company policy that employees should take extreme care when downloading online material to protect their financial information.
Never Respond to Emails Seeking Personal Information
Emails are another area of vulnerability as they have forged the way for many past scams, frauds, and hacks. Any email that seeks personal information should never be responded to. Call the companies on their authentic numbers given on their website if you receive something of the sort. Don’t even open emails that look suspicious from unknown senders.
Conclusion
Protecting your financial information is a top concern for many organizations in this day and age. With all the uncertainty about data protection and safety because of the incidents involving Facebook and Cambridge Analytica, you must take timely, proactive steps to secure your data and personal information.
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 stock of materials and products is intermediate between the original raw material and the finished product. This inventory includes the value of the raw material plus the work invested, supporting documents, electricity, supervision, and other direct expenses.
Here is how a company can effectively calculate its work-in-progress inventory to include in its bookkeeping.
Manage the Inventory Size
Product inventory size in the production process stems from the nature of the production, length of the production line, and planning and technological means available to the firm. Since this category can include products of any degree of processing, the extent to which the product inventory is processed should be defined in the process and evaluated for practical calculation of work in progress.
Two methods estimate the inventory of products in the process. The first method works by conducting calculations from the bottom according to the cost of the raw material plus costs incurred by the firm until its processing stages. The second method is to calculate the selling price minus gross profit and completion expenses up to the condition of a final product.
Effective in Managing Raw Materials Needed in Production
Work in progress (WIP) refers to halfway finished goods that are still in the production procedure. The work in progress does not include raw materials or finished goods. Work in progress typically involves estimating the raw materials required for an item. As the raw materials are included in an initial stage of the production process, they are automatically included in the cost of extra processing as each unit progresses through the different manufacturingsteps.
Estimation of Finished Goods for an Accounting Period
Work in progress helps estimate the finished goods throughout an accounting period. The estimation helps the company determine a valuation to measure the inventory of items currently held within the production lines for practical calculation of work in progress. Work in progress is one of the three inventory types that includes raw materials and finished goods in bookkeepingrecords.
Work in progress might be accounted for on the balance sheet for each accounting period. It is difficult to calculate the exact cost of a work-in-progress inventory as many products may be considered work-in-progress in different production phases towards the end of the period.
Quickly Transferring Goods from Work in Progress to Finished Goods
To make the bookkeeping process less demanding, some organizations finish all their work-in-progress inventory and move them into finished goods inventory before closing the books. This type of bookkeeping is helpful because it means there is no work-in-progress inventory to represent. An option is to allow a standard level of function for every task related to the work-in-progress inventory. The theory is that a healthy level of finishing products will be around redress when the products arrive at the midpoint.
It is conceivable to gauge the measure of ending work in progress. However, the outcome can be inaccurate because of varieties caused by genuine piece levels, rework, and deterioration. The count of ending work in progress is:
Beginning WIP + Manufacturing costs = Cost of Goods Manufactured
Reducing Measures of Work in Progress Inventory
From a traditional viewpoint, businesses are increasingly focusing on reducing the measure of work-in-progress units in the manufacturing process at any one time. By lowering work in progress, they need to reduce the manufacturing processes that lead to damaged goods in the production line to calculate work in progress effectively. Minimal work-in-progress investment is a basis for just-in-time manufacturing. An inventory structure is required before a product is sent into production to guarantee an even stream of goods.
From a borrowing point of view, some banks will enable work in progress to be utilized as insurance for advances since incompletely finished inventory is troublesome for them to offer in case the borrower defaults on their loan unless it is near fruition.
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.
Bookkeeping is a subset of accounting in which financial transactions are recorded, analyzed, transmitted, and reviewed to make critical business and financial decisions for a stipulated period. The transactions include sales of goods, purchases of business machinery and equipment, vendor invoices, receipts, and payments by an individual or company.
The person who records, handles, and performs day-to-day bookkeeping activities is generally known as a bookkeeper. All cash and credit transactions are recorded and ensured by a bookkeeper responsible for keeping all business transactions in order.
Bookkeeping for Start-Ups
Most medium to large-scale businesses have employees who manage the accounts payable and receivables, payroll, vendor invoices, bills, and other similar day-to-day transactions. They are often supervised by higher authorities or accounting professionals who can predict the company’s fate by making financial assumptions and projections.
Bookkeeping is one of the most critical aspects of every business. For start-ups, the need for a professional bookkeeper to run and manage the day-to-day operations becomes even more crucial. From the beginning, start-ups need to record all business transactions to allow their accountants to sketch a clear picture of the business’s finances.
Why Do Most Start-Ups Fail?
Entrepreneurs who fail to administer their financial records, cash flow, and other essential business areas create trouble that is hard to resolve. Start-ups that fail to task their employees with work, at the later stages, regret when they are out of the competitive race. Since making financial projections and assumptions depends on how well you extract financialdata from your bookkeeping records, you need to hire competent employees who will take responsibility for maintaining and managing the business books, otherwise known as bookkeeping.
Bookkeeping for Start-Ups: Four Key Steps
Gather all records of financial transactions, including deposits, vendor invoices, bank statements, purchase receipts, and sales invoices.
Enter the data into journal ledgers or accounts.
Balance the accounts and remove discrepancies.
Close the books for the accounting period.
Cash Account
Small to medium-sized businesses most often witness cash transactions, meaning business transactions will go through a cash account. The transactions will either be debited or credited to your account. At the end of the defined period, ideally a month, the bank account must be reconciled for any outstanding transactions or errors. It is important to note that closing all discrepancies within the given month is ideal to prevent any confusion or stress later down the road.
Accounts Receivable
The money due from your customers must be tracked properly to receive and ensure timely payments. This can be done manually by a bookkeeper, or you can also incorporate bookkeeping software to know the current status of your transactions.
Inventory
To know the status of your business’s inventory – raw goods, work-in-progress, or ready-to-sell – you must ensure that the actual inventory on hand agrees with your accounting records. Industry veterans recommend conducting physical inventory counts to understand your inventory records clearly. Any discrepancies or variations found in the records can result from inaccurate tracking or, unfortunately, employee fraud or theft.
Expenses Accounts
All expenses incurred by the business for a brief period, ideally a month, must be recorded to know your company’s current expense status. Some expenses may include rent, office, petty expenses, insurance, marketing, cost of goods sold, etc.
Payroll Expenses
Undeniably, payroll expenses are one of the most significant expenses for companies. This includes disbursing salaries, bonuses, and other fringe benefits in bookkeepingrecords that fall under the payroll expense column.
Conclusion
In conclusion, business financial management’s backbone, regardless of scale, is bookkeeping. The meticulous recording, analysis, and organization of financial transactions provide the foundation for sound decision-making and sustainable growth. Maintaining accurate and up-to-date books is imperative for survival and success, particularly for start-ups where every penny counts.
Failure to do so can lead to many challenges, including cash flow issues, mismanagement of resources, and, ultimately, business failure. By following the key steps outlined and paying close attention to critical areas such as cash accounts, accounts receivable, inventory, expenses, and payroll, start-ups can confidently establish a solid financial footing and navigate the complexities of entrepreneurship.
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.
Every year, thousands of college students graduate from college, most of whom begin the job hunt. It is time to enter the workforce.
Graduates begin their job search believing they will get a specific salary immediately. This is often not the case. It is an unrealistic expectation, as only a few are offered their ideal salary. A candidate usually asks for what they expect, and the employer cannot match their request.
At some point in the interview process, salary negotiations begin. This is a critical part of any interview and can be pretty nerve-wracking. If handled well, increasing the number that the employer starts within the negotiation process is possible. The following tips can help interviewees have the upper hand when negotiating a higher salary during an interview.
Provide Proof
Demanding a higher salary without quality merits is not a wise approach. Before going into an interview, it is best to write down all your unique qualities and achievements. Discussing these will prove to an employer that a candidate has worth and potential.
When asking for a raise at your current job, it is best to highlight the times you have performed phenomenally well. Without significant changes and improvement in your performance standard, asking for a raise is unjustified. The key is to provide proof of your achievements and highlight your exceptional performance. Let them know what you do for their business to help it excel.
Avoid Sharing Your Current Salary
Inquiring about your current salary is a common question in an interview. Many people do not understand that it is part of the salary negotiation. It is most definitely a part of the salary discussion. An employer uses current and expected salaries to quote a close number. It can be a disadvantage to reveal your current salary, as an employer may be planning to offer much higher if they do not know.
Delaying salary negotiations until the candidate has time to make an impact on the employer is beneficial. Also, through salary negotiations, the employer gets an idea of what the candidate has in mind.
Consider Benefits
When interviewing, do not neglect the conversation regarding your benefits. There are cases when an employer is set on a specific salary and unwilling to negotiate. When stuck in that situation, a creative approach brings up the benefit of negotiation. If an employer does not match the number you have in mind for your salary, you could also negotiate benefits such as insurance or vacation days. Although higher benefits may not increase your salary, they could make it worth your consideration.
Do Not Apologize
The “sorry” attitude does no good during a salary negotiation. By revealing this nature, an employer knows the candidate can be convinced to back down. Therefore, do not apologize for asking when negotiating for a high salary. Often, candidates want to avoid “rocking the boat,” so they apologetically ask for a raise or a higher salary. This shows doubt and may put one in a difficult position.
Sure, negotiating can be uncomfortable, but it is not a fight. It is an individual’s right to speak up about their needs. Do not apologize for coming forward if you feel you deserve more.
Do Not Discuss Your Financial Situation
Another common mistake candidates make when negotiating a higher salary is mentioning their financial situation. Many might believe that discussing their financial hardships might melt an employer’s heart, but that is not usually what happens. This discussion has the potential to ruin a salary negotiation completely. Instead of financial hardships being the reason for a raise, it is better to provide proof of your hard work and value. Discussing your financial struggles will only open the door to pity and empathy, but unfortunately, not to higher pay.
Incorporating these tips into your negotiations for a higher salary will give you an edge and confidence. One is right to demand pay, given that the merits prove hard work and high value. Know your worth before going into an interview. Adopt a positive attitude, have confidence, and make the interviewer feel they need you!
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.
Gathering debt may seem like tumbling into a steep ravine and trying to climb out with nothing to hold on to. But there are some resources and methods, along with bookkeeping tools, that you can arm yourself with to take control of (and pay off) your debt. Knowing the different types of debt is essential if you want to be able to pay them off tactically.
They have variable needs and qualities you need to apprehend to deal with them. Before plunging into how to deal with standard kinds of debt, acquaint yourself with the language used to classify debt so that you know what you have.
Classified Debt
Protected debt: utilizes a form of security, such as a house or car.
Unsecured debt: has no collateral, such as credit cards or personal loans.
Fixed interest rate debt: has the same interest rate for the complete loan timeline, such as a mortgage.
Variable interest rate debt: the interest rate may vary over the life of the loan, such as credit cards.
Fixed payment term: the loan is set to be paid off by a definite date, such as a mortgage or student loan.
Variable repayment period: There is no fixed date when the debt, such as credit cards, must be repaid.
Deductible: This loan is used to better your condition and may have tax benefits, such as a mortgage or student loan.
Non-deductible: a loan not used to purchase an appreciating asset or a new skill, such as credit cards or a personal loan.
Types of Debt
There are many kinds of debt individuals can have. However, the Fair Debt Collection Practices Act does not relate to all of them. Debts acquired by a business are not covered under the FDCPA. Also, non-transaction debts, such as fines, traffic tickets, or other municipal fees, are not shielded. The law only shelters “consumer debts.”
Under the FDCPA, consumer debt is commonly personal and concerns a transaction entered between an individual and a merchant. Debts in bookkeeping are demarcated under two different categorizations. One grouping involved is either a secured or unsecured debt. The other grouping consists of a debt being revolving or non-revolving.
Secured vs. Unsecured
The need for collateral describes a secured loan. This provides the moneylender the security that the borrower will pay them, or they risk losing the collateral placed on the line. On the other hand, an unsecured loan is branded by the absence of collateral. The creditor’s security is placed upon the high interest rate that the debtor must pay on top of the principal loan amount.
Revolving vs. Non-Revolving
A revolving debt does not have a fixed amount of payment every month. The alterations are based on the actual balance of the loan. A perfect example is credit card debt. You could be paying more this month than the previous one, mainly if you used your card to make a purchase. On the other hand, a non-revolving debt is a fixed loan type with a fixed payment.
Your payment will remain the same regardless of how high the interest rate index goes. Revolving debt is more dangerous than non-revolving because it has more perspective to grow. A lot of folks who find themselves deep in debt are those who have a lot of revolving debt.
Strengthen Your Debt Recovery Strategies
Cultivate a more focused debt collection strategy to help reduce costs, save time, and maximize resources.
Locate hard-to-find debtors
Collection prioritization and strategy
Monitor unpaid debt
Collections management system
Conclusion
Whenever you decide to borrow money, whether to pay the bills or buy a luxury item, ensure you fully comprehend the contract. Know what type of loan you are getting into and whether it is tied to any of your possessions.
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.
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.
