It is believed that bookkeeping, forecasting, and planning are not just for startups. If you do this in an ongoing business, you’re going to grow 30% faster, you’re going to be more prosperous, and your statistics will mean more. Being an entrepreneur requires a sense of self-confidence and firm faith in your idea so that you can have the nerve to capitalize on a dream of your own, as opposed to living someone else’s dream in a regular job.
The financial aspect of starting your own company tops the list of elements that need to be considered very cautiously and require proper planning, bookkeeping, and monitoring. There are steps to guide you in better organization of your finances so that you can see your dream to its end without surrendering due to financial issues. Financial ratios are useful and convenient for measuring a company’s performance and financial position. There are many benefits to entrepreneurship. You get to be your boss, work in an industry you’re passionate about, and acquire significant rewards if that business turns into a victory. Unfortunately, entrepreneurship often involves major financial risk; without accurate planning, a failed business can also tank your finances.
Here are seven signs that your company is in good financial health and a few guidelines on setting yourself up to survive the worst-case scenario of your business going under.
Your Income Is Growing
When viewing your profit-and-loss statement, you must see a fairly stable increase in your monthly profits, year after year. It doesn’t have to be an enormous spike in profitability, but even a couple of percent increase shows an upward movement and a strong financial viewpoint.
Your Expenditures Are Remaining Flat
In concurrence with your income growing, you want your costs to stay uniform. If your business experiences a substantial growth spurt, your costs may rise, but, in general, this upsurge should be in line with your increase in revenue.
Your Cash Balance Exhibits Progressive Long-Term Growth
While you may be growing your revenue, if you’re taking that cash and simply financing it back into the business, you might find yourself asset-rich and cash-poor. A low or stagnant cash balance means your business is not maintainable. You want to keep a good quantity of cash in the bank so that if anything emergent comes up, you aren’t in a position to incur more debt to meet an unanticipated expense.
Your Debt Ratios Must Be Low
There are two debt ratios to pay particular attention to: a business’s debt-to-asset ratio and debt-to-equity ratio. For debt-to-asset ratios, maintaining a 2:1 ratio or lower is desirable.
Your Profitability Ratio Is on the Healthy Side
One of the best ratios to calculate is your profit margin. It includes taking your annual net profits and dividing them by your yearly sales. So, while you may be making sales, your profit margin could still be below, depending on your pricing structure, startup costs, or other elements. Your profitability ratio is healthy when it’s on the high side.
You’re Functioning with New Clients and Repeat Customers
The charge to acquire new clients is higher than the cost of repeatedly working with the same customers. A stable stream of new clients and repeat customers exhibits that your business has multiple options for producing revenue. You can help isolate your business from changing attitudes and buying patterns by contacting new customers.
Final Note
Evaluating the health of your business’s finances can be as simple as reviewing a profit-and-loss statement or as complicated as analyzing all the different elements of your business bookkeeping. There is little doubt that fully understanding your business finances is a sure way to remain successful and profitable.
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.
Seamless QuickBooks Time Integration for Effortless Tracking
QuickBooks Time Integration connects your time tracking software directly with QuickBooks accounting systems, automatically syncing employee hours, project data, and billable time to eliminate manual data entry while reducing payroll processing time by up to 75%.
Over my 20 years as CEO of Complete Controller, I’ve witnessed the transformation that happens when businesses finally automate their time tracking processes. The companies we work with typically save 10-15 hours weekly on administrative tasks after implementing QuickBooks Time Integration, and that’s just the beginning. Companies using automated time tracking see productivity gains of more than 40%, according to a Harvard Business Review study, while the time tracking software market is projected to grow from $7.13 billion in 2024 to $29.88 billion by 2033. This article will walk you through everything from basic setup to advanced automation strategies, giving you the practical knowledge needed to streamline your operations and boost profitability.
What is QuickBooks Time Integration and how do you set it up?
QuickBooks Time Integration automatically syncs time tracking data with your QuickBooks accounting system
Setup involves connecting your time tracking platform, mapping employee data, and configuring sync preferences
Integration eliminates manual timesheet entry and reduces payroll processing time by 60-80%
Multiple integration options include native QuickBooks Time, third-party apps, and custom API solutions
Most businesses complete setup in 2-4 hours with proper planning and data preparation
Understanding QuickBooks Time Integration Benefits
QuickBooks Time Integration transforms how businesses manage their workforce data by creating a seamless connection between time tracking and accounting functions. This integration eliminates the traditional disconnect between employee time capture and payroll processing, creating a unified system where data flows automatically from clock-in to final payment.
The integration works by establishing real-time data synchronization between your time tracking platform and QuickBooks accounting software. Employee time entries, project hours, and billable activities automatically transfer to your accounting system, where they populate payroll calculations, client invoices, and project cost reports. This automation reduces errors while providing instant visibility into labor costs and project profitability.
Key features of native integration
Native QuickBooks Time provides direct integration with both QuickBooks Online and QuickBooks Desktop versions. The system automatically imports your existing employee roster, customer list, and service items, creating immediate alignment between platforms. Time entries sync in real-time, meaning approved timesheets instantly appear in your payroll queue without any manual intervention.
The native solution supports multiple time entry methods to accommodate different work environments. Employees can clock in through mobile apps with GPS verification, web browsers for remote workers, or physical time clocks for office locations. Each method feeds into the same centralized system, providing consistent data regardless of how time is captured.
Comparing third-party integration options
Third-party time tracking platforms like Clockify, Buddy Punch, and others offer enhanced features while maintaining strong QuickBooks connectivity. These solutions often provide industry-specific capabilities such as advanced GPS tracking for field service teams, sophisticated project management tools for professional services, or compliance features for healthcare organizations.
Berger Steel, a 70-employee construction subcontracting company, eliminated boxes of paper timesheets by implementing QuickBooks Time integration. The company now saves ‘at least a couple hundred dollars weekly from more accurate time’ and processes payroll with precision ‘literally precise to the dollar’ instead of rounding employee hours. This real-world example demonstrates how the right integration choice can deliver immediate financial benefits while simplifying operations.
Step-by-Step Integration Setup Process
Successfully implementing QuickBooks Time Integration requires careful planning and systematic execution. The process begins with data preparation and extends through employee training, with each phase building upon the previous to create a robust time tracking ecosystem.
Before initiating technical setup, businesses must audit their current processes and clean up existing data. This preparation phase typically reveals inconsistencies in employee records, duplicate customer entries, or outdated project codes that would otherwise cause synchronization errors. Taking time to address these issues upfront prevents complications during and after implementation.
Initial configuration and data mapping
The technical setup starts by establishing the connection between QuickBooks and your chosen time tracking platform. For native QuickBooks Time, this involves activating the service within your QuickBooks account and granting necessary permissions. The system then guides you through mapping critical data fields including employees, customers, service items, and class tracking categories.
Configuration decisions made during this phase significantly impact long-term usability. You’ll determine which data appears on employee timesheets, set approval workflows, and establish overtime rules. These settings should reflect your actual business processes rather than forcing new procedures that might reduce adoption rates.
Employee training and adoption strategies
User adoption determines integration success more than any technical factor. Effective training programs combine initial group sessions covering system basics with ongoing individual support addressing specific questions. Providing quick reference guides and maintaining open communication channels helps employees transition smoothly to the new system.
Training should emphasize benefits employees will personally experience, such as easier time entry, faster approval processes, and more accurate paychecks. When employees understand how the system improves their daily work experience, they become advocates for proper usage rather than resistant to change.
Maximizing Payroll Efficiency Through Integration
Payroll processing represents the most immediate and measurable benefit of QuickBooks Time Integration. Businesses typically see a 75% reduction in timesheet verification time and achieve 100% error-free reporting after implementing automated time tracking systems, with overall payroll processing time reduced by 60%.
The efficiency gains stem from eliminating manual data transfer between systems. Instead of collecting paper timesheets or downloading spreadsheets, payroll administrators work with pre-verified data that’s already formatted for processing. This automation frees up significant time for more strategic activities while reducing costly payroll errors.
Automated overtime and pay rate management
QuickBooks Time Integration automatically calculates complex pay scenarios that would otherwise require manual computation. The system handles regular time, overtime, double-time, and custom pay rules based on your configured parameters. Different rules can apply to different employee groups, accommodating union contracts, state regulations, or company policies.
Multiple pay rates within single pay periods are managed seamlessly. For example, an employee working on different projects with varying bill rates will have their time automatically categorized and calculated at the appropriate rate. This capability proves especially valuable for businesses managing government contracts with prevailing wage requirements.
Streamlining approval workflows
Integration enables sophisticated approval workflows that match your organizational structure. Supervisors receive automatic notifications when timesheets require review, can approve entries from mobile devices, and track approval status in real-time. Multi-level approval chains accommodate complex organizational hierarchies while maintaining audit trails for compliance purposes.
The approval process becomes more efficient when integrated with project management data. Supervisors can verify time entries against project schedules, budgets, and milestone completion, providing context for approval decisions. This integration reduces approval time while improving accuracy in project cost tracking.
Advanced Automation Features for Time Tracking
Modern QuickBooks Time Integration platforms offer sophisticated automation capabilities that extend far beyond basic time capture. These features reduce administrative burden while improving data accuracy and providing valuable business insights.
GPS tracking and geofencing represent powerful automation tools for businesses with mobile workforces. Employees automatically clock in when arriving at job sites and clock out when leaving, eliminating forgotten punches while providing location verification. Manual timesheet systems can affect 10-15% of entries with errors, while professionals lose up to 10% of billable hours due to delayed or inaccurate time tracking. In contrast, modern automated systems have virtually eliminated major timesheet discrepancies and can capture time effortlessly in real-time.
Location-based time tracking
Geofencing technology creates virtual boundaries around work locations, triggering automatic clock-in and clock-out events when employees cross these boundaries. This automation proves particularly valuable for field service businesses, construction companies, and delivery operations where employees work at multiple locations daily.
Location data provides additional benefits beyond time tracking. Managers gain visibility into travel time between jobs, can optimize routing for efficiency, and verify service delivery for customer billing. The data also supports mileage tracking for reimbursement or tax purposes, creating additional value from the same technology investment.
Project management integration benefits
Advanced integration connects time tracking with project management platforms, automatically associating time entries with specific tasks, milestones, or deliverables. This connection eliminates duplicate data entry while providing real-time project cost visibility and profitability analysis.
For every $1 spent on time tracking software, businesses get back almost $4 in return, with professional services firms increasing billable hour capture by 20-30% within 90 days of proper implementation. The automation captures time that might otherwise go unbilled while providing project managers with accurate resource utilization data for better planning and pricing decisions.
Final Thoughts
QuickBooks Time Integration represents a fundamental shift in how businesses manage their most valuable resource—employee time. The combination of automated data flow, intelligent time capture, and seamless payroll processing creates operational efficiencies that directly impact profitability. From reducing payroll processing time by 60% to capturing 20-30% more billable hours, the measurable benefits justify the implementation effort.
Success with QuickBooks Time Integration comes from selecting the right platform for your specific needs, following a structured implementation process, and committing to ongoing optimization. Whether you choose native QuickBooks Time or a third-party solution, the key lies in aligning technology capabilities with your business processes and growth objectives.
The financial services experts at Complete Controller can help you navigate the integration process and maximize your return on investment. Our team has guided hundreds of businesses through successful time tracking implementations, and we’re ready to help you transform your operations. Contact Complete Controller today at to learn more about optimizing your financial systems and achieving the operational efficiency your business deserves.
Frequently Asked Questions About QuickBooks Time Integration
How long does it take to set up QuickBooks Time Integration?
Most businesses complete the technical setup in 2-4 hours, but the full implementation process including data preparation, employee training, and system optimization typically takes 2-4 weeks depending on company size and complexity.
Can QuickBooks Time Integration work with multiple pay rates for the same employee?
Yes, the system automatically handles multiple pay rates within single pay periods, making it ideal for employees who work on different projects, shifts, or locations with varying compensation structures.
What happens to our existing timesheet data when we switch to QuickBooks Time Integration?
You can import historical data into the new system or archive it for reference. Most businesses find starting fresh with the new system while keeping old data accessible provides the cleanest implementation path.
Does QuickBooks Time Integration support both QuickBooks Online and Desktop versions?
Yes, native QuickBooks Time integrates with both versions, though some features and third-party integrations may vary between Online and Desktop implementations.
How much can we expect to save on payroll processing after implementing QuickBooks Time Integration?
Businesses typically see 60-80% reduction in payroll processing time, with many saving 10-15 hours weekly on administrative tasks. The exact savings depend on your current processes and company size.
Sources
Harvard Business Review. “Productivity Gains Through Automated Time Tracking.” 2024. https://hbr.org
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.
Are you going to start a business? Do you already know how much money you want to earn? This is one of the first aspects that you have to consider. To do this, you must familiarize yourself with the concept of net profit margin, which is of significant importance in bookkeeping.
Net Profit Margin
The net profit margin of a product is the difference between the sale price to the final consumer (without value-added tax) and the costs of production or purchase of the said product. According to this, the formula to calculate the net profit margin is:
Net profit margin = (Retail price without value-added tax) – (Production or purchase costs)
Furthermore, it is examined that the net profit margin is similar but different from the “percentage of profit” term by dividing the net profit of the sale into the cost of goods to help examine the sum of profit on the sale of the goods of a company, not the profit of the company. Rarely can the company’s figures (such as income or expenses) mean much about a company’s profitability, and looking at a company’s earnings often does not tell the full story. An increase in profit is a good indication, but it does not mean that it is improving its overall profit margins.
For example, let’s say that Firm A’s revenue in a year is $2 million with accumulated spending of $ 650,000. This will provide a net profit margin of 67.5% ($2M – $0.65M / $2M = 1.35M / $2M = 0.675 = 67.5%). However, suppose that the revenue of the company increased next year to $2.25 million while spending increased to $2.12 million; then the net profit margin would be 11.11% (2.25M – $2M = 0.25M / $2.25M = 0.11 = 11.11%). Despite the increase in revenue, Firm A’s net profit margin decreased as expenses increased more quickly than income.
Likewise, increasing or decreasing a company’s spending does not indicate improving or worsening its net profit margin. Assume that Firm B has revenue and expense of $2 million and $1.5 million, respectively, in one year, with a net profit margin of 25%. However, the following year, the firm restructured by lowering its total revenue and expenditure by lifting a product line. If Firm B’s second-year income and expenses are $1.5 million and $1.2 million, the net profit margin is 20%. Thus, Firm B has significantly lowered its costs, but the net profit margin has fallen because revenue falls faster than spending.
Net Profit Margin Limitations
The net profit margin carries some concomitant limitations. Although, it is a useful and popular rate. Like any financial indicator or rate, it is useful to assess a company’s profitability. However, the net profit margin can effectively compare a company’s performance within the same industry with similar business models. Several companies in the sector tend to have different business models and income sources to have very different net earnings.
This can lead to comparisons which generally do not make sense. For instance, while maintaining a high profit, a company that sells luxury products can have a high percentage of profits, along with a low supply and a relatively low load. On the other hand, the stapler can have a lower snow level and a more extensive stock because of the need to increase the workload and space and a more significant load.
Net Profit Margin Variations
There are several changes in the net profit margin that analysts and investors utilize to determine certain aspects of a firm’s profitability. Such a variation is the net profit margin acquired by dividing the net profit by the earned income. This change has limitations, as management often has too much control over material costs. In such a scenario, the net profit margin is less effective in defining the overall management quality.
Additionally, industries that do not have a manufacturing process have no or low sales costs. The net profit margin is adequate for companies involved in producing certain goods. A specific variation of the net profit margin is the operating profit margin that divides the operating profit into income distributions. Traders and analysts can often use pre-tax profit margins by dividing their pre-tax earnings (revenue without deduction of tax costs) on a revenue basis.
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.
Recent reports by Sageworks, a financial information company, revealed the industries that are most and least profitable over previous years’ studies. According to their research, service-based businesses have low start-up costs, although they require specialized procedures of training and function services, which fare well in today’s market. This includes law offices, real estate brokerages, and accounting/bookkeeping firms.
On the other side of the spectrum, businesses and retailers in the food industry struggle with sales, with farming and grocery stores seeing close to no growth.
Bierman, a business analyst, said, “Because of their volume-based business model and competitive markets, margins tend to be smaller. Grocery stores and manufacturing companies are good examples. Often, their goods may be considered commodities, and charging extra for a loaf bread may drive consumers to a different store over time.”
If you are starting a business or planning to do so, here are some of the most and least profitable businesses in recent years.
Most Profitable Businesses
Tax Preparation, Accounting, Payroll Services and Bookkeeping
Not sure which business to start? If you are good with numbers, an accounting firm will be the ideal option to invest in. Over the previous years, tax preparations, bookkeeping, payroll services, and accounting have seen a remarkable increase of 17.84 percent in sales and are likely to gain profits because their start-up costs are low, and all you have to pay for is your employees, technology, and training. Alongside, it is a service-based business. Therefore, no money has to be spent on inventory. All one has to focus on is obtaining effective employees and building a reputable business name.
Legal Services
Similar to accounting, legal firms are a service-based industry that has seen a positive growth in sales of around 16.89 percent over the past years. They have small start-up costs that mainly include employees holding law degrees. Although an investment is required in special employee training and education, legal firms can generate a good amount of money.
Management of Enterprises and Companies
A 16.75 percent growth was noticed in this business realm. Therefore, it is a wise decision to invest in this industry. Typically, these businesses consist of privately owned banks or holding companies that are supposed to advise and further assist other companies in making essential management, operational, and financial decisions. Although the offices are niche and mostly offer specialized services with skilled employees, these kinds of companies often bring in a considerable profit.
Offices of Brokers and Real Estate Agents
The real estate industry has increased 16.6 percent over the past few years. Although the industry fluctuates, which can be hugely affected by changes in the market, it is wise to invest in this business when positive trends are noticed because real estate agents make good amounts of money when the business start-up is up and roaring.
Least Profitable Businesses
Gas and Oil Extraction
Gas prices were lower in 2017, similar to past years. Firms operating in the gas and oil industry have been noticing a drop in sales of around 4.24 percent. With major fluctuations in the market, competitors, and incredible barriers to entry, this may not be the best business to invest in.
Beverage Manufacturing
According to research, this is not the first time that beverage manufacturing has been on the list of the least profitable businesses to start. Although it covers both alcoholic and non-alcoholic drinks, the latest technology trends have introduced soda fountains and other types of drink dispensaries. Alongside, people are becoming more health conscious due to declining beverage manufacturing. Over the past year, more than a 1.49 percent drop in sales growth was noticed.
Bakeries
Whether it is due to major competition or the high costs of start-ups involving kitchen supplies, equipment, and overhead bakeries that are commercial, bakeries have been on the decline for a while now. According to research, a 0.81 percent drop in sales growth was noticed.
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.
As an entrepreneur, you know that taxes can be a headache. It can be overwhelming to track expenses, file on time, and ensure you’re taking advantage of all the deductions available. But fear not! With the right mindset and a few key strategies, you can make tax season a breeze and keep more of your hard-earned money in your pocket. Here are some tips and tricks for entrepreneurs navigating the tax landscape.
Keep Meticulous Records
The first and most crucial step in preparing for tax season is to keep meticulous records throughout the year. This means tracking every expense, every transaction, and every dollar that comes in and out of your business. Whether using a simple spreadsheet or a more robust accounting software, have a system that allows you to easily categorize and track your expenses. This will not only make tax season easier, but it will also help you keep a better handle on your finances year-round.
Stay Up-to-Date on Tax Laws
Tax laws can change frequently, and staying current on any new regulations or requirements that affect your business is essential. This is especially important if you operate in multiple states or countries, as tax laws vary widely depending on your location. Ensure you’re working with a qualified tax professional who can help you navigate any changes and comply with all applicable laws.
Take Advantage of Deductions
One of the biggest advantages of being an entrepreneur is taking advantage of a wide range of deductions that aren’t available to traditional employees. These can include everything from home office expenses to travel and entertainment costs. Ensure you’re keeping track of all of these expenses throughout the year, and work with your tax professional to ensure you’re maximizing your deductions and saving as much money in your pocket as possible.
Plan for Estimated Taxes
As an entrepreneur, you pay estimated yearly taxes based on your projected income. This can be a tricky balancing act, as you don’t want to overpay and leave money on the table, but you also don’t want to underpay and face penalties come tax time. Work with your tax professional to develop a plan for estimating your taxes throughout the year and ensure you stay on track.
Consider Incorporating
If you’re operating as a sole proprietorship, you may be paying more than you need to. Consider incorporating your business to take advantage of lower tax rates and other benefits. This can be a complex process, so ensure you’re working with a qualified attorney or tax professional to make the right decision for your business.
Don’t Forget About Retirement Savings
As an entrepreneur, you don’t have access to a traditional 401(k) plan, but that doesn’t mean you can’t save for retirement. Consider setting up a self-employed 401(k) or a SEP-IRA to take advantage of tax-deferred savings and ensure you plan your future.
Work with a Qualified Tax Professional
Finally, the most crucial step for navigating the tax landscape as an entrepreneur is to work with a qualified tax professional. This can be a complex and ever-changing landscape, and having an expert on your side can help you navigate any challenges and maximize savings. Look for a tax professional with experience working with entrepreneurs and small business owners, and make sure you’re working with someone you trust and feel comfortable with.
Conclusion
In conclusion, taxes may not be the most exciting part of running a business, but they are necessary. By following these tips and working with a qualified tax professional, you can ensure you’re handling your taxes efficiently and effectively and keep more of your hard-earned money in your pocket. Happy tax season!
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.
Cataloging small businesses’ problems and growth patterns in a systematic way that is useful to entrepreneurs seems, at first glance, a hopeless task. Small businesses differ widely in size and capacity for growth. They are characterized by independence of action, differing organizational structures, and varied management styles. However, on closer inspection, it becomes obvious that they experience common difficulties arising at similar stages in their development.
These comparison points can be organized into a framework that increases our understanding of businesses’ nature, characteristics, and problems, 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, such an understanding can help assess current challenges, for example, the need to upgrade an existing computer system or hire and train second-level managers to maintain planned growth.
Developing a Small Business Framework
Numerous researchers over the years have developed models for examining businesses. Each uses business size as one dimension and company maturity or growth stage as a second dimension. While useful in many respects, these frameworks are inappropriate for small businesses. As great as start-ups can be for macroeconomic development, they can also be chaotic for various 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 ever thought would be required. And, since most fail, the total cumulative cost to launch start-ups that succeed 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 and good for customers. 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 lasted the financial crisis and aftermath did so by establishing exactly what it takes to run their business in the leanest and meanest terms. One of the consequences of this trial by fire is that these firms have emerged in better shape than after significant economic bookkeeping downturns. Here are six reasons:
Fewer start-ups. There has been less price structure disruption since 2008.
The banking industry has confirmed an unparalleled lack of business loan demand, which is ironic because interest rates have never been lower.
Stronger balance sheets. Reduced debt plus methodical retailing, inventory, and supply chain practices that prevent inventory creep improve important financial ratios.
More gross profit. Rigorous expense control relieves pressure on gross profit from flat sales and pricing pressure.
Enhanced capital and cash. The above practices contribute to profitability, which is more likely to be retained in the current environment. Retained incomes push capital and cash toward sustained operations and long-term success.
More creditworthy. 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:
Customer needs do not appear to be evolving rapidly.
Consolidation by leading competitors is reducing economic intensity.
Disruptive innovations and new applicants gradually gain share and top out at relatively low levels.
Marketplace shares of leading contenders have hardened and are changing gradually, if at all.
The price, brand, and channel stratagem have replaced product innovation as key value drivers.
Cash flows progressively turn positive and return to investors rather than market investments.
Final Note
Small businesses play an important 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 is just one reason they are important.
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.
How do you feel seeing your company’s progress and all the profits you receive after much hard work? Let me tell you one thing. Profits are one of the main elements that affect your company’s progress.
To maintain your company’s progress, key performance indicators (KPI) help you assess your business’s success and build strategies to achieve your goals. As a business owner, you must keep track of your KPIs as they affect your company’s progress.
We have listed seven critical KPIs for small business owners to help you identify your business progress.
Gross Profit
The main element for every business is its profit. If your business spends more on suppliers and netting less in customer sales, it is time to change your business strategy. To determine your company’s profit margin, multiply your gross profit by 100 and divide it by your sales.
Keeping track of this KPI is extremely important as it will tell you how much profit you generate, contrary to the amount paid to suppliers. If your business’s profit margin increases, continue with your strategy. However, if you see a decrease, you need to reduce your company’s extra costs like utilities or wages or increase the cost of goods.
Flow In and Flow Out
It is one of the most important key performance indicators for small businesses. Flow in and out helps business owners assess whether their sales and margins are appropriate. The first step is to estimate your sales for each week and month. Once you know your sales history, estimate your payment timings and likely costs. Generally, this process covers 12 months, which is also called Cash Flow Forecast. It also helps in tax preparation, new purchases, or identifying any cash surpluses. For example, if you plan to purchase any business equipment, you add the cost to your forecast. The new statistic will tell you whether purchasing the equipment will help your business make profits.
Revenue Ratio
A company’s revenue depends on the company’s profit or sales growth. If your business income or sale is increasing, it is obvious that the revenue rate is also increasing. To ensure your company is progressing well, check the difference between the current year’s revenue growth rates and the previous year’s.
Inventory Gross
Inventory gross tells the company how much inventory it has sold over time. Keeping track of your inventory is important, as it will help you plan any adjustments if needed.
Funnel Analysis
Funnel analysis lets you see how users move through a series of steps. It is a great way to track where users drop out – known as the funnel drop-off rate. It tracks the number of visitors who left the conversion process (the funnel). The conversion process depends on what type of business you run. Examples of conversion could be a shopping cart, subscriptions, and more. Once you identify where customers are dropping out, make strategies to boost your sales. In this technology age, many businesses rely on the internet as a sales tool, so funnel drop-off rate has become a key performance indicator to track.
Accounts Payable Rate
If you want your business to continue operating, ensure you have paid all your suppliers. Accounts payable measures the cost given to suppliers. It is hard for most business owners to track all their financial transactions. Hiring someone to oversee your bookkeeping will make your life easier and ensure no errors in your company’s accounts. This key performance indicator will help you identify whether you have to reduce the spending on suppliers to boost future profits.
Market Share
This KPI assesses a company’s success and position in the market. How is your business performing compared to your competitors? It is the only KPI that needs regular tracking. If you do not know how your company’s progress looks compared to others, changing its strategies and policies is impossible.
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.
In today’s world, the term “entrepreneur” has more meaning to it than it ever had before. For some, it’s all about accumulating millions of dollars. For others, it’s more about establishing new bonds and breathing the new life they always dreamed about.
A few years ago, it was not in our wildest imagination that we would call ourselves entrepreneurs someday. Let alone speaking at seminars, discussing freelance projects, and guiding new entrepreneurs. What motivated us? What do we know that you should also know about modern entrepreneurship? We’ve highlighted a few key points below that will help and motivate you to become a better entrepreneur.
You Don’t Need to Invest Big to Get Started
In the entrepreneurial world, money is not the ultimate game changer! However, some people frame it as the most important thing. You can rest assured that far more significant things must be considered to make your business successful than money.
The two top things that other experienced entrepreneurs and we consider important are ideas and ambition. You’ll face many ups and downs when you begin your journey as a novice entrepreneur. It requires a lot of persistence to be able to brace all of those valleys and mountaintops. You might’ve already heard a lot about downfalls and challenging times, but what is interesting about modern entrepreneurship is that its ups (successes) also possess the same challenges. Modern entrepreneurship is a double-edged sword.
The most problematic stage for beginner entrepreneurs is the early stage of business, where they receive no appreciation, little to no monetary benefits, and much criticism. However, if you’re ambitious enough and eager to learn, you’ll get through all the difficult times. The key is determination!
Create Value Through Knowledge
It is often said, “The simpler the advice is, the better it is.” A straightforward piece of advice that we would like to pass on is to focus on creating value. You may ask, what do you mean by creating value? Simply put, creating value is leaving things better than they were previously. If your product is not creating value, it’s useless. A good value addition always inclines with the natural demand.
To create value, you need to learn something new every day. The best habit you can adopt is reading. Things are changing daily in modern entrepreneurship, and it’s difficult to keep track of all the changes. However, if you read, you’ll better understand the fundamentals of change. Once you’ve got a firm grasp on fundamentals, you can predict changes yourself. Knowledge is power!
Make Use of Technology
Don’t wait to be recognized – make the world see you. Modern entrepreneurship is all about making yourself visible to the right audience. You’ll find people you look up to in no time will contact you only if you know how to present yourself and are eager to learn from your mistakes. Making yourself noticed is far easier than it used to be. Many entrepreneurs use websites, blogs, and other social media platforms to showcase their talent. Don’t focus a lot on advertising. Instead, focus on generating value. If your content is good, you will get the right audience. Don’t aim to cover all of the mediums.
Stay focused. As an entrepreneur, you’ll be bombarded with many things diverting you from your business priorities. Make things simple and focus only on what matters. Even after you have become successful, focus on the important things. Build interpersonal relationships through the effective use of digital media. Focus on creating relations with your content.
Don’t only post and update your online presence instead focus on building relations. Last but not least, use ‘DATA.’ There is a reason we have written it in all caps. Data helps you in bookkeeping and improving efficiency. Data will allow you to identify early trends and make adjustments accordingly. The best thing about technology is that it provides consistent, reliable data. Make sure to use it wisely.
Conclusion
The good thing about modern entrepreneurship is that you set your own pace. Your success is directly proportional to your hunger for success. The sooner you decide what you want to do with your life and how much energy you want to put into your business – the better the results will be. And you don’t have to wait another 2-3 years before you make a decision. Do it now and take baby steps towards a future you’ve always imagined.
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.
If you are an entrepreneur running your own business, you likely have a crucial role in your business’s growth and success. You are leading your business and playing the role of a salesperson, customer representative manager, developer, and project manager. Although you can hire employees or outsource specific roles, you need to maintain a check on all of these positions yourself.
Even if you are working as an owner of a very small business, you will never be free from following the law’s liability. Every registered business has to abide by the registering state’s law irrespective of its size. Even if you have started a small-scale business or are currently establishing one, you must know how to handle legal issues. You don’t need to hire a lawyer at an initial level. However, it would be best to acquire all of the business law knowledge. Here are five ways that will help you in protecting your small business against any legal fallout.
Always Make Agreements in Writing
Trusting your clients and other business stakeholders is important because you are new to the business industry. However, many owners are ditched or manipulated later on, as no contract or written agreement was signed at the initial level. Whenever you start working with another agent, whether they are a service provider, client, business partner, or an employee, it is recommended that you sign a written contract that includes all of the terms and conditions. Doing so will resolve all upcoming disputes, as everything will be mentioned in the contracts.
Keep All Paperwork Updated
Once you finish all the contracts and paperwork, the next crucial task is to file and assemble your papers carefully. A business needs to have a proper bookkeeping system that updates all of the data whenever policy changes occur. Outdated paperwork is useless for a business as missing data creates confusion. For example, your company has paid and documented all the tax documents. However, you must update the previous document and records every time you pay your business taxes. This can be a troublesome and lengthy process, so one can hire an accountant or bookkeeper if they have enough resources.
Research and Learn about the Prevailing Laws
You may not be a professional lawyer; therefore, at times, you may make legal mistakes that you are often unaware of. Hiring a permanent lawyer for your small business is not a necessity. However, an entrepreneur can enhance their legal knowledge regarding their business industry and size. Plenty of information is available on multiple legal business websites, such as the US Small Business Administration domain.
According to the Small Business Administration website of the United States, we have mentioned a few essential points that every small business owner should know below.
Registering Intellectual Property, Copyrights, and Trademarks
Financial laws
Employment and Labor laws
Marketing and Advertising laws
Register your Intellectual Property
Intellectual property is fundamental if your business has an online existence or your business type is e-commerce. The reach of an online business is far better than a local business’s. By registering your intellectual property, it would be best to protect your business identities, such as logos, design, and ideas. There is a fine line between developing creative content and plagiarizing another person’s content. It is likely that if you have not registered your business trademark and have not reserved the copyrights of your business, another individual can copy your content, register it in their business name, and file a case against you.
Get Professional Legal Advice
When setting up your business’s legal formalities, nothing is more important than this. Suppose you are confused about setting up your business’s legal contract and are unaware of your business’s essential terms and conditions. In that case, you should enlist the help of a professional lawyer. The lawyer will not only read your business’s situation but also protect your business interest while giving you needed legal advice.
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.
Beginnings are tough for start-ups, especially those trying to make their presence felt on social media platforms. While it is a fact that social marketing can help fast-track the growth of your start-up, damaging your online reputation is easy if you don’t do it correctly. If you are trying to get your start-up company off the ground, marketing is one of the things you need to invest your time and money into, apart from developing a great service or product.
If you plan to use social media to take your start-up to new heights, here are ten mistakes you should avoid at all costs.
Not Having a Plan
Social marketing is not about getting online and posting all you can about yourself and your start-up. Before you make your attendance felt online, it is imperious for you to have a social media strategic plan in place. Your social media efforts need a solid foundation and a strategic plan that outlines your objectives and details your services. Contact your lead sales and marketing members and identify your target audience.
Not Being Devoted to the Plan
If you’re not dedicated to your social marketing plan, your social media accounts will end up being inactive, which will, in turn, create a bad impression. Your social marketing plan is not a sprint; think of it as a marathon. If the results make you impatient, tweak your performance by analyzingmetrics, adapting to audience behaviors, and tracking competition.
Selecting Random Platforms
Given the rise in social media platforms, you might think it necessary to market your brand everywhere. However, all social media platforms have a different purpose and set of users. Consequently, each platform has a different social media marketing plan. The key to marketing effectively on social media platforms is outlining your target customers.
Being All Over the Place
As mentioned, all social media platforms have a different purpose and, as such, require different marketing plans. You might not have the time and energy to come up with appealing content for several platforms being a start-up. Furthermore, you don’t need to post on platforms that won’t get your desired results.
Posting at Inappropriate Times
Simply knowing who your target customers are isn’t enough; you also need to know what time zones they live in and what time they are most active. Remember the adage, “Timing is everything,” when posting. Depending on the audience you are trying to reach, the best times to post are 6 am to 10 am ET to reach an international audience and 7 pm to 10 pm ET to capture the primetime audience.
Posting Too Often
While not posting can be bad for your business, posting too frequently can also be a deal-breaker. Get the balance right: posting something once or twice a month can cause your brand to become invisible, and sharing a dozen posts a day is way too much. Find out what works for your brand and stick to it.
Boring Your Audience
It is possible to bore your target audience without knowing it, so be cautious of what you’re posting at all times. Please talk with your spectators, engage them in conversation, attract eyeballs, use humor, ask genuine questions, and give intelligent answers.
Self-Promoting
People will unfollow you if you only talk about yourself and your company. Instead of spotlighting your start-up, focus on your target audience. Talk about things that interest your end-users, and you’ll engage them in interesting conversations.
Giving Users a Reason to Laugh
The worst thing you can do for your brand is to give your target audience a reason to laugh at you. Avoid blunders by thinking about your posts and taking the time to analyze probable outcomes.
Not Understanding Your Marketplace
You must understand your marketplace before spending your first dollar creating an ad. Thoroughly analyze your customer demographics or buyer persona’s psycho-graphics.
Conclusion
Social marketing mistakes have the potential to put a company out of business. As a start-up owner, you can never be too cautious about what you post online. So, put adequate thought into your social marketing plans and ensure you don’t make the abovementioned mistakes.
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.
Your Income Is Growing
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.
