Author: Jennifer Brazer

Outsourcing is a fantastic strategy businesses of all sizes and industries use to delegate specific tasks to third-party providers. It’s a great way to help your growing business thrive! While outsourcing can bring many benefits, it’s essential also to be aware of the potential drawbacks. In this article, we’ll explore the undeniable advantages and disadvantages of outsourcing so you can make informed decisions that will positively impact your business. Let’s dive in!

Pros of Outsourcing

Cost savings

Outsourcing can be a cost-effective solution for businesses looking to scale their operations. By outsourcing specific tasks, companies can avoid the costs associated with hiring and training new employees and the costs of providing benefits and office space. Outsourcing can also help businesses save on equipment costs, as they won’t have to invest in expensive equipment and technology.

Access to specialized skills

Outsourcing can give businesses access to specialized skills they may not have in-house. For example, a company may need help with marketing, but they don’t have a marketing department. By outsourcing their marketing efforts to a third-party provider, they can access the expertise of marketing professionals who can help them develop and execute a successful marketing strategy.

Flexibility

Outsourcing can allow businesses to scale their operations up or down as needed. For example, if a business experiences a surge in demand, it can outsource specific tasks to a third-party provider to help them manage the increased workload. They can reduce their outsourcing efforts when demand decreases to save on costs.

Focus on core business activities

Outsourcing can allow businesses to focus on their core business activities rather than getting bogged down in administrative tasks. By outsourcing tasks like payroll, accounting, and IT support, companies can free up their time and resources to focus on what they do best – growing their business.

Cons of Outsourcing

Loss of control

One of the most significant downsides of outsourcing is the loss of control that businesses may experience. When you outsource tasks to a third-party provider, you trust them. This can be a scary prospect for businesses that are used to having complete control over every aspect of their operations.

Communication challenges

Outsourcing can also lead to communication challenges. When working with a third-party provider, you may not have the same level of communication as you would with an in-house team. Miscommunications can lead to delays, mistakes, and other business issues.

Quality concerns

Another potential downside of outsourcing is quality concerns. When you outsource tasks to a third-party provider, you rely on them to deliver high-quality work. If their work doesn’t meet your standards, it can reflect poorly on your business.

Security risks

Outsourcing can also pose security risks for businesses. When working with a third-party provider, you share sensitive data and information with them. If they experience a security breach, your business could be at risk.

The Bottom Line

When it comes to growing a business, outsourcing can provide several benefits to help you achieve your goals. One of the most significant advantages is cost savings, as outsourcing allows you to access specialized skills without hiring and training in-house staff. Moreover, it will enable you to focus on your core activities while the outsourced team handles the rest.

But, as with any business decision, you must carefully weigh the potential drawbacks against the benefits. Outsourcing could lead to losing control over your operations, communication barriers, quality concerns, and potential security risks. Therefore, you must assess your budget, business goals, and risk tolerance before deciding whether outsourcing is right.

Choosing a reputable provider who can help you achieve your business objectives is essential if you decide to outsource. A good outsourcing partner will work closely with you to understand your needs and tailor their services accordingly. With the right approach, outsourcing can be a valuable tool for your business’s success.

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 must understand the security procedures necessary for financial protection, especially when identity theft and hacking have increased tenfold over the last decade. Hackers have been able to obtain key information like personal data, contact information, and financial information largely without victims realizing the theft occurred.

Therefore, following these tips is vital to protect all your key information.

Use Strong Passwords and Keep them Private

A weak password offers a hacker easy access to your accounts. 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 passwords regularly if you are securing critical financial information or other important data. It would help if you did not share your passwords with anyone; always keep them private and secure.

Secure your Devices

Firewalls and security software are essential if you engage in frequent financial transactions. Installing the latest security features as a business must be your utmost priority because your security and reputation depend on protecting your financial information. Update software regularly by using the auto-update feature, if available. Many hardware devices are available for additional protection; however, their use is recommended for highly classified information. It is harder to secure a mobile device than a Personal Computer (PC). Therefore, avoid using it for financial matters unless there is no other option.

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 helpful when protecting your financial information because you will receive an immediate notification of any suspicious activity on your cell phone or another registered device.

Be Prudent When Using Unknown Wi-Fi Connections

Unsecured Wi-Fi connections are highly vulnerable to malicious attacks. Public Wi-Fi connections are the most susceptible, as their security settings are minimal, allowing everyone to access the internet. This makes these networks a lucrative target for hackers. Generally, individuals tend to use airport or hotel Wi-Fi services while traveling. They should be careful not to send or receive financial information using this unsecured network. Update your local network security settings for maximum protection when managing your financial information.

Take the Utmost Care When Downloading

The device to secure your financial information should be used carefully when downloading programs or documents. Viruses and malware often come in small patches that are downloaded along with the requested file without the user noticing. Before clicking any download link, ensure the website runs on a secured (HTTPS) platform. Most hacks and data losses occur because people are careless or uninformed about downloading. To protect your financial information, it should be company policy that employees should take extreme care when downloading online material. 

Never Respond to Emails Seeking Personal Information

Emails are vulnerable as they have forged the way for scams, fraud, and hacks. Any email that seeks personal information should never be responded to. Call the requesting company using authentic numbers from their website if you receive something suspicious to confirm the email is legitimate or to alert them there is a potential scam circulating in their name. It is recommended to avoid opening emails that look suspicious from unknown senders.

Conclusion

Protecting your financial information is a priority for many organizations. With data protection and safety uncertainty, you must take timely, proactive steps to secure your data and financial 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.

Wouldn’t it be awesome always to have enough cash to buy whatever you wanted? Few have the liberty and liquidity to turn this into reality with their efficient use of credit. If used wisely, credit can alter your life in ways you can’t even imagine by allowing you to afford the lifestyle of your choice. It can fund your dream house or help you buy that dream car. You can further renovate your house and spend quality time with friends and family. The possibilities are endless, provided you make wise credit decisions.

Why Efficient Use of Credit is a Very Good Thing

People use credit for different purposes depending on their preferences. The purpose is to fill the affordability gap, ultimately allowing you to live blissfully. Using credit efficiently has far-reaching benefits other than just affordability. Responsible use of credit results in a positive credit history and good credit scores on your credit report.

Having a good credit score means that you will automatically qualify for better insurance rates, open up mobile accounts with smaller security deposits, and help you secure loans for your business or personal use. The responsible use of credit also shows your credibility to your employer, which eventually translates into career growth.

Understanding How Credit Works

Whether you’re asking for a loan or a credit card, asking for credit means that a lender will look at your credit report for information about managing your finances. Even if you want to do business with some other company, they will look at your credit report for clues, along with your bookkeeping records. Your credit report includes your financial history and previous use of credit. Your creditworthiness is determined by your credit report by anyone lending you a loan or looking to do business with you.

Your credit history translates into credit scores, which go up and down depending on your financial decisions. Any missing loan or credit card payment will result in deductions from your credit scores, while timely payments will improve your scores. The scores precisely measure your likelihood of paying back a loan. Therefore, lenders rely on them heavily.

Certain types of credits are revolving, such as credit card payments, and there is no fixed end date for repayment. A credit limit is set for using credit, and you can borrow up to that limit and then pay part of it back every month. A particular interest rate has to be paid along with the payments accrued each month.

How to Improve Your Use of Credit

Because all your financial decisions are converted into scores, all types of credit impact them. Making responsible financial decisions in the early stages of your life will have fruitful consequences in your future. Don’t waste credit on things you can live without; always pay off your debt in time. Once you build up a solid credit history, you will have plenty of opportunities to do what you desire.

To ensure that your use of credit is handled responsibly, review your credit reports and scores regularly. Keeping track of your report will allow you to make informed decisions about your financial life. 

Here are some ways to build up your credit

• Paying off your utility bills and other similar payments on time each month can significantly amplify your creditworthiness. Set up automatic payments for these types of payments so that you don’t miss them.
• Ensure your credit card debts and other revolving loans are regularly paid off. Keeping low credit card balances is always a good idea because unsecured credits are more expensive than secured ones.
• Pay attention to the use of credit for all types of credit. This shows the lender that you can manage different credit types efficiently, creating a responsible image.

A smart use of credit will elevate the standard of your life in all possible ways, and taking steps to improve your credit only leads to improving the quality of your life.

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 an essential business procedure that should be executed appropriately by entrepreneurs. Keeping track of your assets gives you a synopsis of the business cycle and profitability of the company. It aids you in regulating where your cash goes and gives you specific data for potential development and analysis for an increase in the return on your investment. You should have an appropriate method to gather, document, and evaluate financial information to help you estimate how your company is functioning.

Successful corporations know what essential accounting strategies are. The financial health of your business affects expansion or announcements, which makes it critical to have suitable bookkeeping and financial management for your company.

Unfortunately, most small companies do not emphasize their bookkeeping until something has gone wrong. The apprehension that your accounting needs to be appropriately managed typically happens a few days before taxes are due or, even worse, when you notice charges on your bank account for a bounced check. Luckily, you can save yourself all the stress and last-minute defense by initially producing an efficacious accounting strategy.

Accounting Stratagems for Small Businesses

Design your monthly budget prudently

As essential advice, plan your finances monthly to help save you money. Tracing your periodic budget is ideal for efficiently implementing your financial plan. Write down all detailed specifics for your financial transactions. Once you have documented all your expenditures, you can compare them with your income. Examine your budget and eradicate unnecessary financial costs that will not benefit the company.

Organize your financial records

Ensure you have separate bank accounts for your private money and business investments. Your salary should be deposited punctually into your personal bank account. Never make personal transactions using your business account. Your business and personal assets should be detached to avoid misunderstandings and mishandling of finances.

Consider employing a competent and specialized accountant

One of the best things a company can do is hire an experienced accountant to review their financial dealings. Bookkeeping is a critical duty for companies, and calculating your money, tracking expenditures, and coming up with a financial plan can be done skillfully through accounting facilities. The success of your enterprise relies on operational accounting and precise financial management tactics.

Document all business cash flow

Track your records, manage cash flow, and have a precise record of all your business transactions. Documentation is essential to help you recall all expenditures credited for the business. You should preserve all receipts and file forms appropriately. Make specific documentation easy to find when you need to complete or provide an updated financial analysis.

Generate backup archives for your account records

Always backup your bookkeeping files in case an unpredictable system crash, file mishandling, or other security risk occurs. To avoid losing all vital accounting evidence, create backup records of your accounts. Always store at least 2-3 duplicates of your books on different hard drives. Likewise, having a printed copy of your accounting records is ideal to help you compare all your transactions effortlessly.

Use the correct accounting tools

There are many accounting tools that you can use for your financial management. Research and employ accounting tools that will manage your bookkeeping efficiently. Similarly, select billing and backup tools that are user-friendly.

Employing all these strategies will help increase your business success, but do not neglect to factor in your specific industry’s requirements to keep your business afloat.

Final Note

Accounting for small companies does not have to be complex or intimidating. If you use these strategies from the beginning, such as conserving your records and consistently reviewing your financial reports, you will be able to stay on the path to success.

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.

Building credit is not an overnight task since it builds slowly over time. Obtaining a loan, mortgage, or lease requires a good credit score, which highlights that you have behaved responsibly in the past. Good credit reduces risk by telling lenders you will likely make your payments on time. Students and young individuals who will start building a solid credit history must make smart decisions to ensure a safe future. Doing things correctly from the start has advantages; maintaining a good credit score is no exception.

Get Help from Others

Anyone in your network, circle of friends, or family who has a good credit history can advise you and help you start the credit journey. Opening a loan account with a cosigner with a good credit history is a great way to kick-start the process. The cosigner simply guarantees to make the payment if you cannot and should be someone who trusts you. The credit score of a cosigner can suffer if you cannot pay, so before using this option, all terms must be considered to protect both parties.

Obtain a Starter Credit Card

A starter credit card is built explicitly for people starting their financial journey and usually has lower credit limits of $300 – $500. However, the interest rates are significantly higher compared to mature credit cards. Student credit cards allow you to build up your credit gradually and upgrade your cards when you have built credit. People with a bit of credit history can opt for Capital One credit cards with a high approval rate, among starters.

These cards come with no annual fees and offer better rewards if you keep a good history of building credit. Be careful to know the interest rate and the repayment terms for the card before applying for and using it. Not recognizing and adhering to these terms can damage the credit you are trying to build.

Watch Credit Card Balances

Another significant factor in measuring the worthiness of your credit score is how much revolving credit you have versus how much you are actively using. The percentage should be low for a better credit rating, where the optimum percentage is 30% or below. Paying off and keeping your balances low will ensure this percentage stays small. Consolidating your credit card balances with a loan can also help you score valuable credit points. Building credit with credit card issuers accepting multiple monthly payments should be your priority.

Leave Old Debts on the Credit Report

There is a general perception that having debt on your credit report is a bad sign and that you should hurry to remove it as soon as you pay off the loan. While it is true that negative items affect your credit score and generally stay on your report for almost seven years, removing them might not be the best idea.

If you have paid off the debt, you have converted it into good debt, which builds a credit score. Keeping your old accounts open that you have a history of paying on time is recommended by credit-building experts. Therefore, avoid closing accounts that have been paid off on time.

Pay Bills on Time

If you are trying to make a large purchase like a house or car, you must plan for it in advance to avoid failing to pay bills and scrambling for money. A good credit score requires you to invest time by maintaining a steady flow of payments, month after month. Ruining all your effort and diligence by missing a single payment is never recommended because it will take years to build that again. Building credit requires patience and implementing innovative strategies to keep your financial and bookkeeping needs in order.

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 entrepreneur thinks about optimal inventory, but how exactly does one measure how much stock is available and how much is too much? In any business, having stock is essential and depends on the activities necessary to run it. To grow, any company must first cater to the demand for an item and then begin selling. Many businesses need a specific stock level to keep up with demand. 

Each business is unique; however, some examples can give a better picture of the inventory levels for each sector. Enough inventory allows a business to be cost-effective and efficient because planning out budgets, finances, and expenditures is meaningless if the proper stock is not maintained. Without stock, deliveries cease, which translates to business cessation. Below are some examples of businesses that need to keep stock available, supply without delay, and deliver to demand.

Restaurants

If you sell edible products at a restaurant, specific quantities of raw stock and semi-cooked items are essential. For example, a fast-food restaurant with famous burgers must prioritize having a daily stock of buns, sauces, raw veggies, patties, garnishes, etc. This may require the owner to coordinate daily with the bakery, meat market, and vegetable vendor to ensure smooth operations.

If an order of ten burgers is received and you have only six ingredients, the odds are high that the customer will not return since their request cannot be fulfilled. Whatever you are selling, it must be enough to meet expected demands.

Retail Stores

Retail stores require significant organization and maintenance when considering their tight inventory control systems and proper handling of items, complete with model numbers and areas designated to rows of stock. For instance, a t-shirt would usually be kept in four regular sizes, ranging from small to extra-large, and in different colors, which means different codes for each combination.

Similarly, shoes would be kept in sizes for men and women ranging from 6.5 to 10 and have codes corresponding to each combination of size, color, and style. A balanced stock level is to sell and handle customers to their satisfaction.

Pharmacies and Drug Stores

Drug stores often have a particular Point of Sale (POS) software that manages their inventory and stock levels. This software helps them monitor all inventory, especially when controlled and heavily supervised substances are used. When a drugstore is set up, this software is configured with a minimum-level warning system that tells the user what is in stock. 

Costly meds, like cancer treatment prescriptions, are kept in limited stock, while commonly occurring meds, like aspirin or flu-fighters, are stocked in high quantities. Similarly, the pharmaceutical stock should be maintained according to your geographical area and ease of delivery. For example, pharmacies in remote areas might need more stock to supply the public if deliveries are inconsistent.

Considerations for Inventory Management

Trends or Seasons

A growing and thriving business must forecast each year’s sales season and prepare for upcoming fluctuations. To better prepare, inventory must accommodate patrons and regular customers. Preparing for influxes can quickly determine what part of the year is most active and which is the slowest.

This will be helpful in the upcoming year to envision cost-effective methods of stocking whatever you are selling and prepare accordingly. For example, retail stores often see higher sales around the holidays. This allows the owner to predict client needs regarding inventory and better calculate cash flow.

Weekends and Weather

Some businesses thrive during the weekend while they are slow on weekdays. This prediction can help business owners arm their stocks before each weekend hits. Restaurants, bars, clubs, and other weekend leisure venues that experience heavy traffic Friday through Sunday are successful if they plan for clients during that time. 

Similarly, some businesses experience more visitors during the summer than in winter months or even close during inclement weather. Businesses must observe and account for fluctuating attendance based on the weather. Thus, a company will often see success if client demands are met. However, if stocks are not leveled according to predictions, business cash flow and reputation will be negatively affected.

Conclusion

Understanding the type of business you operate and observing customer trends should help you set your need for available stock accordingly.

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.

Systematically cataloging small businesses’ problems and growth patterns may seem hopeless at first glance since many small businesses differ in size and capacity for growth. They are often characterized by independence of action, differing organizational structures, and varying management styles. However, upon closer inspection, it becomes apparent that they experience common difficulties at similar stages in their development.
These points of comparison can be organized into a framework that increases our understanding of the nature, characteristics, and problems of businesses ranging from a corner dry cleaning establishment with two or three minimum-wage employees to a $20-million-a-year computer software company experiencing a 40% annual growth rate. 

For owners and managers of small businesses, understanding these commonalities can aid in assessing current difficulties, like the need to upgrade an existing computer system or hire and train managers to address unplanned growth and appropriately plan for future challenges to those growth benchmarks.

Developing a Small Business Framework

Numerous researchers have developed models for examining businesses, and each one uses business size as one factor and company maturity or the stage of growth as a second factor. While helpful in many respects, these frameworks are inappropriate for small businesses. As beneficial as start-ups can be for macroeconomic development, they can also be chaotic for a couple of reasons:

• The risk for start-ups is extreme, and the total cost can be exorbitant. Founders put in more time, energy, emotion, and capital than they anticipated would be required. Since most start-ups fail, the total cumulative cost to launch and maintain them is enormously underestimated.
• Start-ups disturb the price structure. While trying to get a position in the economy and before they know what it takes to capitalize on business growth, a classic start-up exercise is to enter the market with low prices. This sounds like honest opposition; however, established corporations know what they must charge to sustain their business. Even after a start-up runs out of investment and leaves the marketplace, damage to the price structure remains.

Small businesses that survived the financial crisis did so by establishing what it takes to run their business in the leanest terms. One of the consequences of their trial-by-fire is that these firms have emerged in better shape than after previous significant economic downturns. Here are six reasons for their success:

1. Fewer start-ups. There have been lower price structure disruptions since 2008.
2. The banking industry has confirmed an unparalleled lack of business loan demand, which is ironic since interest rates have never been lower.
3. Stronger balance sheets. Reduced debt plus methodical retailing, inventory, and supply chain practices that prevent inventory creep all improve critical financial ratios.
4. More gross profit. Rigorous expense control relieves pressure on gross profit from flat sales and pricing pressure.
5. Enhanced capital and cash. All the above practices contribute to profitability, which is more likely to be retained in the current environment. Retained income pushes capital and cash toward sustained operations and long-term success.
6. More creditworthiness. Firms that grow beyond organic funding will be more worthy of credit and preferred terms and rates.

Signs that your Start-Up is Maturing into a Small Business:

1. Customer needs do not appear to be evolving rapidly.
2. Consolidation by leading competitors is reducing economic intensity.
3. Disruptive innovations and new applicants gradually gain share and top out at relatively low levels.
4. Marketplace shares of leading contenders have hardened and are changing gradually, if at all.
5. The price, brand, and channel stratagem have replaced product innovation as key value drivers.
6. Cash flows progressively turn positive and return to investors rather than market investments.

Final Note

Small businesses play an essential role in any civilization. When first recognized, they represent how corporate owners test their business ideas in a market. Small businesses that create jobs for labor, in addition to the owner, offer even more economic stability, providing a steady source of income for business owners and employees alike. 

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 is accounting software that allows you to manage and organize various accounting activities, such as bookkeeping, creating financial statements, and much more.

In QuickBooks, accounts can be sorted into different categories according to their nature, i.e., assets, liabilities, income, and expenses. If you want to see the information for a line item in QuickBooks, you must set up a separate account for that particular line item. Similarly, when you need to report financial information on a tax return, you must create an account to collect and report the required data.

Account Creation

In QuickBooks, you must create a new account if you want an expense account assigned to a tax line. To do so, open the “Chart of Accounts” menu and then click on the “Account.” After that, click on the “New” button. This will now open a menu to choose between multiple account types. Choose the “Expense” account option and click “Continue.”

You will be prompted to enter the name used to identify your new account. You will then be given the option to make this account either a sub-account or the main account. After checking the appropriate box, you can click on the button labeled “Patent Account.” With this, you will create the expense account you will later assign to the tax line.

Adding Information

Once you are done creating the expense account, you can record information relevant to that account. For example, suppose you just created an expense account that relates to a particular utility. In that case, you can mention the name of the utility or the service provider, your unique customer number, and any relevant dates, such as the billing dates. Different drop-down menus allow you to enter and sort the information pertinent to the expense account you just created.

Assigning the Expense Account

Select QuickBooks’s “Tax Line Mapping” menu to assign the expense account. Here, you will see a drop-down menu that includes multiple tax lines, allowing you to select the one that is relevant to the expense account you created. Once you have chosen the tax line, you will be given a list of expense accounts. You can choose the account you want to assign to the tax line here.

Alternatively, you might want to assign a preexisting account to a tax line. In QuickBooks, if you want to assign an expense account that exists beforehand, you first need to go to the “Chart of Accounts” menu. Once there, you can right-click the specific expense account you want to assign to a tax line. Once you see the right-click menu, choose the “Edit Account” option. Next, choose to change the “Tax Line Mapping” data. In the drop-down menus, you will see. Next, you can select the relevant tax line and tax form.

Accountant Assistance

Suppose you have given your accountant or bookkeeper access to the data you enter in QuickBooks. In that case, the best possible decision is to let them handle the assignment of any expense account to the respective tax liens. This helps ensure the accuracy and consistency of bookkeeping and account maintenance. 

If you think you need to adjust any expense accounts and their relevant tax line, you recommend that you consult your accountant before making any changes to the mapping in QuickBooks. This prevents future issues where you might need to review and recategorize incorrectly entered or calculated data.

Conclusion

In conclusion, QuickBooks offers comprehensive accounting solutions, from organizing activities to creating financial statements. Efficiently managing accounts, adding relevant information, and assigning expense accounts to tax lines ensures accurate reporting. Whether creating new accounts or assigning existing ones, attention to detail is key.

Consulting with an accountant or bookkeeper enhances accuracy and consistency, safeguarding against future issues. With QuickBooks, meticulous accounting practices pave the way for streamlined financial management.

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 increasing need to abandon manual systems to automate business processes has led businesses to opt for software that streamlines their accounting and bookkeeping processes. One prevalent software system has been POS systems (Point of Sale). The conventional days of using cash and solid-binding registers are long gone. 

Advanced technological innovations have replaced these traditional practices, including POS software. Below are a few ways that a POS system is helping businesses increase efficiency in their accounting processes.

Real-Time Reporting

With the help of a POS system, businesses can get real-time, detailed sales reports, cutting down the time and manual processes required to generate each report. These reports are an essential part of the accounting process since sources and segregation of revenue must be identified to calculate profit or loss for a particular accounting period.

In addition, these sales reports can help identify possible lags, which can then be addressed. Improved strategies may also be established to boost sales and increase efficiency, as the latest sales reports can be accessed on demand and in real time.

Inventory Management

POS systems can also help with the efficient management of business inventory requirements. This inventory management comprises inventory management, reordering quantities, and reordering timelines. Keeping track of inventory has become crucial for all businesses, especially in retail, since low or no stock can negatively impact a business’s reputation. Moreover, product selling patterns may be drafted and reviewed using the POS system, allowing inventory restocking to be done accordingly. Products with higher demands will have a higher. 

Economic Order Quantity (EOQ) relative to those with low demand and sales. This results in increased efficiency as the accounting process will become less complicated, and no paperwork will be involved. Moreover, time savings are another benefit for business accounting that may be actualized from POS implementation.

Better Customer Service

POS systems have positively impacted business accounting because customer satisfaction has improved following their implementation. Accounting procedures have become agile and hassle-free, with lower sales-related discrepancies and accurate pricing details within and among systems. This led to satisfied customers that are a positive source of advertisement by word-of-mouth. In addition to precise pricing and lower sales discrepancies, customers are now provided with various payment options such as debit and credit cards, gift cards, cash, etc. 

Traditional registers could not accommodate paperless payment methods, which relied heavily on manual processes. POS systems and paperless transactions have enabled increased efficiency in processes, which are now automated and streamlined for enhanced performance.

Information Tracking

In addition to the benefits above, POS systems have allowed seamless information tracking for customers and vendors. This includes payroll information, customer billing and shipping details and statuses, vendor listings, quotations, receipts and invoicing, and basic profiling. This valuable information source allows businesses to market to customers and manage vendor contacts effectively and is required for business accounting processes. This ultimately allows for increased efficiency as well as improved resource management.

User-Friendly

POS systems help with business accounting, provided they are easy to learn and use within the organization. Most existing employees resist software implementation within an organization since innovation can take them out of their comfort zones. However, their user-friendly interface makes POS systems easy to install and maintain. 

Likewise, you may train staff on using POS without facing much resistance since some process improvements can make their duties more manageable. Integration may also be achieved slowly through various other applications used within the business. This feature of the POS allows for increased efficiency, not through its use but its acceptance within the organization.

Conclusion

In conclusion, the transition from manual systems to automated business processes, mainly through the adoption of POS systems, has revolutionized accounting and bookkeeping practices for businesses. The advantages range from real-time reporting to streamlined inventory management and enhanced customer service. The ability to access detailed sales reports in real time not only expedites accounting processes but also facilitates the identification of potential inefficiencies, leading to the formulation of targeted strategies for sales improvement. Efficient inventory management, facilitated by POS systems, ensures optimal stock levels and minimizes the risk of stockouts, thereby bolstering business reputation and profitability. Moreover, implementing POS systems has significantly enhanced customer service by reducing sales-related discrepancies and offering diverse payment options, increasing customer satisfaction and loyalty.

Furthermore, the seamless tracking of information related to customers and vendors has facilitated effective marketing strategies and resource management. The user-friendly nature of POS systems has also contributed to their widespread acceptance within organizations, minimizing resistance to change and maximizing efficiency gains. Adopting POS systems is pivotal in optimizing business accounting processes, driving efficiency, and enhancing competitiveness in the dynamic marketplace.

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.

Creditor days calculate the days a company must pay all its creditors. Debtor days measure the average amount of days it will take for a business to obtain all payments for the products or services it has sold, which can also be termed accounts receivable days. Accurate bookkeeping includes sending and receiving payments within these timeframes and is the best way to obtain all the necessary and relevant information from which all your accounting is calculated. 

Creditor Days

Creditor days are a way for a company to show its creditworthiness to its creditors and suppliers and to know how long they will wait for their payments.

Within reason, a higher number of days is better for the company since almost all companies wish to conserve their capital as much as possible. However, a business that is especially slow in paying all its bills (for example, taking 100 days or more) could have trouble generating and retaining cash. Even if the company is having trouble financing its operations with its supplier’s funds, a business whose creditor days are in excess will eventually have trouble obtaining and retaining its supplies. Creditor days must be balanced, allowing a company to maintain capital and preserve creditor and supplier relationships through timely payments.

Debtor Days

Debtor days are a way of indicating a business’s efficiency in collecting all their money owed. In these cases, it is beneficial for the company if their debtor days are lower. When the number of debtor days is high, it reflects the company’s inefficiency in collecting what is owed. This may also indicate the company’s bad debts or doubtful sales figures. If suppliers are not confident in the company, they are less likely to pay due invoices.

Ways to Reduce Creditor and Debtor Days

Negotiate Terms

Do not hesitate to negotiate and discuss payment terms and conditions with suppliers. You pick your suppliers based on your specific needs and requirements, whether based on price, product quality, or delivery speed. In most cases, the payment terms and conditions are the last things considered when selecting suppliers.

If you have built a good relationship and rapport with your suppliers, negotiating better payment terms should not be a problem. Similarly, this can help build a rapport with your suppliers, showing them you intend and want to pay them promptly for their supplies.

Offer Discounts

Consider offering discounts or concessions for prompt or early invoice prepayment. For example, if you use invoice finance in your business, you will often pay 3% for the first 40 days of the invoice, with 4.5% for 80 days. You could offer this discount to your clients for upfront payment instead of delivery. 

Change Payment Conditions