Jennifer Brazer | Complete Controller

Why Is Bank Reconciliation Important?

Posted on March 13, 2019November 26, 2023 by Jennifer Brazer

Bank reconciliation predominantly refers to matching your records against the bank registers. A monthly reconciliation ensures that you know any sporadic transactions, which may take place without your consent. The best way to reconcile the accounts is by going through each record individually and matching it with your bank statement. This ensures that you have not missed anything and everything has been accounted for. You may see minor differences in the ending balances due to certain outstanding checks or other reasons. Therefore, consider them so that you do not see them as errors.

Why Bank Reconciliation is Important

Reconciling your bank accounts regularly keeps you out of trouble in many ways. You can identify the problems before it is too late as you are constantly monitoring cash flows. It is thought that business accounts do not have the same amount of protection that consumer accounts do. Therefore, you are advised to keep a close eye on these accounts yourself. Here are some reasons that may persuade you to consider reconciliation from time to time.

Catch Fraudulent Activities

One of the key purposes of reconciling your accounts is to catch potential frauds. If you have issued any legitimate checks, you need to ensure that they are used exactly as you thought they were to be used and that there are no duplications or alterations. If there has been unauthorized access to your account, you need to know before something harms you.

Prevent Complications

The bank reconciliation process is also useful in identifying any potential hazards or problems in time. Sometimes, your cash flows are down, or you are having trouble recovering the accounts receivables. In such situations, reconciling everything can guide you in the right direction by identifying the problem source. Once the problem is identified, you can take measures to fix it and, along with that, fix your cash flows and receivables. It also helps you develop a bookkeeping system that is free of errors and more efficient.

Along with assisting you in identifying the balances in all of your accounts, bank reconciliation helps you to avoid bank fees due to insufficient funds. It saves you from opening too many lines of credit when you don’t need them. You can keep track of outstanding checks and see if any payments by your customers have bounced.

When Should You Reconcile?

There is no fixed time to reconcile your bank accounts as you can do it anytime you want, depending on your preference. However, it is recommended to reconcile all of your accounts at least once a month so that you have an accurate picture of your current standing as a business or individual. Some high volume businesses even reconcile weekly as they are involved in many transactions daily and can pile up if they wait an entire month.

You can also use Positive Pay for bank reconciliation. This means that any payment in or out of your account must be notified to them in advance. This helps save you from any fraudulent activities.

How to Reconcile

It does not matter whether you take a formal or informal approach to reconciliation as the main purpose is to match each transaction with your account balances. You will have to closely inspect your records and the bank records and compare the balances at the end of a self-defined accounting period.

Your bookkeeping system is important in this regard because, if it’s properly managed, you will be able to match everything without much hindrance. However, bank reconciliation can turn into an arduous task if you do not have a well-maintained accounting system. Automating and integrating your accounting system with the bank can ease the whole process as you can have access to updated records at all times.

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.

Generational Financial Mistakes

Posted on March 12, 2019November 25, 2023 by Jennifer Brazer

There is no specific age to fall into financial folly. With every new monetary milestone, financial goal, and responsibility comes a whole new perspective of how you manage your finances or mess it all up. If you find yourself guilty of a spoiled personal financial viewpoint, you are not alone in this matter. Every generation reveals many significant mishaps, poor choices, and financial mistakes that its members often make. The smartest way to avoid making or repeating such blunders is recognizing and understanding such issues before it is too late. Keeping that in mind, here are five of the most common money mistakes that each generation seems to make.

Individuals in Their 20’s – Must Overcome the Fear of Investment

Young individuals need to invest significantly in growth stocks. Though they accompany some risk, they offer the immense potential for greater returns over time. Sadly, too many people in their 20’s are too afraid to take risks or are extreme risk-haters that avoid investing. Rather, their portfolios are inclining heavily on their assets and very little on stocks.

According to experts, one of the financial mistakes of risk aversion stems from financial illiteracy and a terrible generational fear of failure. Also, they believe today’s young generation is more skittish due to unpredictable events they have witnessed in their lifetimes, such as the financial meltdown and the 9-11 attack. To date, mutual funds are one of the most practical ways to ease the angst about investments as they begin with riskier growth assets and, over time, slowly transition to more conservative holdings.

Individuals in Their 30’s – Too Much Expectation and Information

Today, more and more Americans are waiting until their 30’s to begin a family or purchase a house, marking this age as a chaotic time. Although these young adults most often think that they must be living the way their elders did, it takes considerable time to build and maintain that level of financial status and comfort. Attempting to live that ideal lifestyle by shrinking credit card debt and purchasing a big house will eventually make it more difficult to fulfill their long-term financial goals.

Making poor investments is one of the most common financial mistakes that today’s 30’s generation makes due to a lack of financial knowledge of the several potential opportunities and available options. Young investors lacking the willingness to educate themselves might consider approaching financial professionals and bookkeeping experts for smart decision making.

Individuals in Their 40’s – Baring Family Expenses All Alone

The ’40s is the midlife period that brings the toughest expenses of all – raising kids, buying homes, maintaining a family, baring their children’s education expenses, and possibly even caring for an aging parent. Such burdens have to be managed proactively to prevent both short and long-term difficulties. Baring all of the financial burden alone is one of the biggest financial mistakes that the 40’s generation makes today. Rather, they must encourage sharing the financial burden among other family members and encourage their children to be financially independent by working a part-time job or applying for scholarships. Also, they should start living within their means and build an emergency fund as soon as possible.

Individuals in Their 50’s – Trying To Catch Up

Too many people reach their fifties and realize that they have nothing saved for their retirement. Such financial mistakes can be avoided if individuals start saving for their retirement far earlier in life. With the hope of building a business to support their retirement years, an increasing number of Baby Boomers in their 50’s are turning towards entrepreneurship. However, it can render a risky proposition with both immensely significant upsides and downsides.

Although retirement feels hard and uncomfortable when one has to prioritize saving, work a side job for necessary income, and downsize a home and lifestyle, it defeats the fear of an under-funded retirement.

Individuals in Their 60’s and Beyond – Fail to Ask For Help

According to financial experts, today’s older Americans are comparatively less mature than elderly citizens of older generations. However, age inescapably lowers the brain’s analytic abilities, making it hard to avoid financial mistakes. Hence, every person must have people they can rely on for financial assistance and decision making matters in their late years. These people could be your family members, friends, financial advisers, or a mix of all of these.

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Dream Business Barriers

Posted on March 12, 2019November 25, 2023 by Jennifer Brazer

Starting a personal business is one of the financial dreams that many people wish could come true. Although most people think it is the lack of resources, a complex market situation, or some other significant factor that stops them from initiating their own company, the most potent element is themselves and their resistance to entrepreneurship. In essence, the only thing that can hinder you from starting your business is YOU!

This is because entrepreneurship begins with taking calculated risks, accepting responsibility, and striving for turning the idea into reality. Until and unless you do not take a smart risk, you cannot initiate a business.

There is no perfect or ideal time for starting your business. Rather, you have to find the time to start it regardless. You don’t need permission from anyone. You are the only obstacle standing between your idea and its fulfillment. And you are the only person who can turn your idea into reality and build a business you have always desired.

Consequently, there is no reason to wait for someone else to start your business, such as a digital agency, bookkeeping, a taxation firm, a bookstore, a real-estate company, and a photo studio. Here are the five most common yet biggest fears most people face that you must overcome to effectively land on the road to entrepreneurship.

Fear of Failure

According to psychologists and mind experts, the fear of failure is more bitter and unbearable than the loss of autonomy and the fear of separation. It is one of the leading factors stopping you from starting your business.

To overcome this fear, you have to redefine the meaning of success. You have to realize that a decent job with handsome pay and so-called financial security with employment is not the definition of success. Rather, chasing your dreams and achieving your goals is a real success. Once you realize it, you will begin working towards your dream instantly.

Inadequacy

There may be a voice in your head repeatedly telling you that no one would take your idea seriously. Rather, your idea is a poor thought that can barely produce fruitful results. The voice may also be reassuring you that your current job is a necessity, at least for now.

To conquer the fear of inadequacy, spend time with entrepreneurs who are naturally confident and go through their past and present successful biography, telling you how they transcended their fear. You will know that successful entrepreneurs think of success, networking, and confidence instead of inadequacy, insecurity, and unworthiness, common with others who only dream of having a business. Once you realize the truth, your fear of inadequacy will diminish, thus starting your business will become easier for you.

Humiliation

The fear of ridicule and rejection can be more damaging than the fear of failure. Being anxious about what others will think and how you could be embarrassed is another factor stopping you from starting your business.

Once you start taking steps towards initiating your business, you will be surprised to see that people will incredibly encourage and support you. They will appreciate your idea and efforts instead of criticizing you for your bold step. Also, many people will rally to join your venture.

Poverty

Poverty is another big fear stopping you from starting your business, especially with individuals who have grown up in a low-income family and worry that they would stay poor if they do not have a secure job. For them, compromising on the job is like inviting poverty into their life.

To overcome the fear of poverty, you must realize that you have to sacrifice something to ‘gain’ something. A closed fist cannot hold anything. It would be best if you opened your palm to get anything special.

Separation

The self-contemplated sense of separation from your resources and even very close relationships for working towards your dreams is another factor stopping you from becoming an entrepreneur. On the contrary, starting your business begins with taking the first step alone, and then you will find many others following your footsteps.

Remember, even if your first attempt to fulfill your dream fails, you will know who your real friends are and see the true face of life. Once you know who is always with you, equally in your good times and bad times, it will certainly help you fulfill your dream. With that in mind, take the first step!

Build A Strong Manufacturing Ecosystem

Posted on March 12, 2019September 1, 2025 by Jennifer Brazer

Building a Strong Manufacturing Ecosystem: Key Strategies & Benefits

A manufacturing ecosystem connects diverse stakeholders, technologies, and processes to create value through collaboration and innovation. This interconnected network transforms traditional production models by breaking down silos between suppliers, manufacturers, distributors, and customers, ultimately driving efficiency and competitive advantage.

I’ve spent over two decades working with manufacturing clients at Complete Controller, and one truth stands out: companies that build strong ecosystems outperform isolated competitors by up to 30%. According to McKinsey, manufacturers leveraging industrial data reduce downtime by 30-50% while increasing productivity by 30%. In this article, I’ll share proven strategies to build your own robust manufacturing ecosystem, from stakeholder alignment to technology integration, with actionable steps you can implement immediately.

What is a manufacturing ecosystem, and how do you build one?

A manufacturing ecosystem is a collaborative network of stakeholders, technologies, and processes that optimize production and create shared value
It includes manufacturers, suppliers, distributors, customers, consultants, and educational institutions working together to solve challenges
Strong ecosystems require intentional collaboration strategies and technological integration
Benefits include supply chain resilience, accelerated innovation, and significant competitive advantages
Building one requires breaking down organizational silos and establishing shared data platforms

Understanding the Modern Manufacturing Ecosystem

The manufacturing ecosystem represents far more than just production facilities. It encompasses an interconnected web of suppliers, distributors, technology providers, educational institutions, and customers working collaboratively to solve challenges and create value.

According to data from Coherent Market Insights, the global manufacturing market is projected to grow from $14.85 trillion in 2025 to $20.76 trillion by 2032, driven largely by ecosystem-based approaches that leverage Industry 4.0 technologies. This growth demonstrates how interconnected systems are becoming the standard, not the exception.

Key stakeholders and their roles

The strength of any manufacturing ecosystem comes from the diverse expertise of its participants:

Manufacturers: Provide production capabilities and innovation leadership
Suppliers: Ensure material quality and supply chain stability
Distributors: Connect manufacturers with end markets efficiently
Customers: Offer valuable feedback that drives product improvements
Educational institutions: Develop skilled workforce and research
Technology providers: Deliver tools for process optimization
Government agencies: Shape regulatory frameworks and funding

When these stakeholders align around shared goals, the ecosystem becomes greater than the sum of its parts, creating exponential value through collaboration.

Strategic Foundations for Building Your Ecosystem

Creating a resilient manufacturing ecosystem requires intentional planning and clear strategic priorities. The following approaches provide a framework for successful ecosystem development.

Foster collaborative relationships

True collaboration starts with organizational culture and extends through every stakeholder relationship. Successful ecosystems break down departmental silos and establish trust through:

Regular cross-functional team meetings to align production and design
Shared data platforms for real-time information exchange
Joint problem-solving sessions with suppliers and customers
Industry consortia membership to establish best practices

Since 2000, U.S. manufacturing employment has fallen by 27%, but output has risen by 7%, highlighting how collaborative approaches and technological integration have transformed productivity even with workforce reductions.

Invest in technology integration

Modern manufacturing ecosystems rely on technology to connect stakeholders and optimize processes. The digital twin market alone is expected to grow from $10.1 billion in 2023 to $101.1 billion by 2028, with 15% of manufacturers already planning investments in this technology.

Effective technology integration strategies include:

Implementing cloud-based collaboration platforms
Deploying IoT sensors for real-time production monitoring
Creating digital twins of production processes for optimization
Establishing data standards across the ecosystem
Building APIs for system interoperability

Siemens provides an excellent case study in technology integration. Their Lean Digital Factory initiative connected 30+ plants via the MindSphere platform, creating a centralized data ecosystem that dramatically improved real-time decision-making capabilities across their global operations.

Develop workforce excellence

The human element remains critical in even the most technologically advanced manufacturing ecosystems. Successful workforce development strategies include:

Partnerships with technical colleges for specialized training
Apprenticeship programs that blend classroom and hands-on learning
Internal mentorship initiatives to transfer institutional knowledge
Cross-training employees across multiple ecosystem functions
Regular skill assessments to identify development opportunities

These investments in human capital ensure your ecosystem has the expertise needed to maximize the value of technological investments.

Unlocking the Benefits of Strong Manufacturing Ecosystems

Manufacturing ecosystems deliver multifaceted advantages that isolated production models simply cannot match. These benefits extend beyond operational efficiency to create sustainable competitive advantages.

Enhanced innovation and agility

Ecosystems accelerate innovation by combining diverse perspectives and capabilities. Organizations that effectively leverage their ecosystem relationships experience:

Reduced product development cycles by 20-30%
More successful product launches (60% higher success rate)
Faster adaptation to market changes and customer needs
Increased patent generation and intellectual property development
Access to emerging technologies through partner relationships

Tesla’s Gigafactories exemplify this innovation advantage. Their Fremont Factory produced 560,000 vehicles in 2023 by tightly integrating production processes with battery innovation, demonstrating how centralized manufacturing hubs can drive technological advancement throughout a global supply chain.

Operational excellence and cost efficiency

Properly structured ecosystems create operational efficiencies through:

Shared resources that reduce capital expenditure requirements
Optimized inventory management across the supply chain
Reduced waste through coordinated production planning
Lower transportation costs through geographic clustering
Improved quality through standardized processes and feedback loops

McKinsey research shows that manufacturers using advanced manufacturing techniques within integrated ecosystems reduce downtime by 30-50% while simultaneously increasing productivity by up to 30%.

Enhanced market responsiveness

Manufacturing ecosystems provide unparalleled flexibility to respond to changing market conditions:

Rapid production scaling during demand spikes
Faster introduction of product variations
More accurate demand forecasting through customer data integration
Simplified product customization
Reduced time-to-market for new offerings

These capabilities transform manufacturing from a potential bottleneck into a strategic advantage in fast-moving markets.

Implementing Your Ecosystem Strategy: Practical Steps

Transforming theoretical ecosystem concepts into practical reality requires concrete implementation steps.

Start with clear objectives

Successful ecosystem development begins with well-defined goals:

Identify specific pain points your ecosystem should address
Establish measurable objectives for improvement
Define key performance indicators to track progress
Create a phased implementation roadmap
Secure executive sponsorship and stakeholder buy-in

These foundational elements ensure your ecosystem development efforts remain focused on delivering tangible business value.

Build from your core strengths

Effective ecosystems build outward from existing organizational strengths:

Identify your current competitive advantages
Determine which partners complement these strengths
Focus initial ecosystem development on high-impact areas
Establish pilot projects to demonstrate value
Use successful pilots to expand ecosystem scope

This approach creates momentum through early wins while building toward more comprehensive ecosystem integration.

Overcome common implementation challenges

Manufacturing ecosystem development inevitably faces obstacles:

Data silos and incompatible systems: Overcome through standardized data formats and integration layers
Organizational resistance: Address through clear communication and change management
Resource constraints: Manage through prioritization and phased implementation
Trust barriers between partners: Build gradually through successful collaboration on smaller projects
Regulatory compliance concerns: Navigate with clear data governance and privacy frameworks

Addressing these challenges proactively prevents them from derailing your ecosystem development efforts.

Future Directions in Manufacturing Ecosystems

The manufacturing economy continues to evolve, with several emerging trends reshaping ecosystem development:

Sustainability integration

Environmental considerations are becoming central to manufacturing ecosystem design:

Circular economy principles that minimize waste
Carbon footprint reduction across the supply chain
Renewable energy integration in production facilities
Design for disassembly and recycling
Ecosystem-wide sustainability metrics and reporting

These practices not only reduce environmental impact but often deliver cost savings and market advantages as well.

Distributed manufacturing models

Geographic distribution is transforming traditional production approaches:

Microfactories closer to end customers
Local production hubs reducing logistics costs
Additive manufacturing enabling point-of-use production
Virtual integration of physically dispersed facilities
Resilience through geographic diversification

These distributed models maintain ecosystem cohesion while reducing vulnerabilities to regional disruptions.

Advanced technology adoption

Emerging technologies continue to reshape manufacturing capabilities:

AI-driven production optimization
Autonomous mobile robots for material movement
Blockchain for supply chain transparency
Extended reality (XR) for remote collaboration
Quantum computing for complex simulation

Early adoption of these technologies within ecosystem frameworks creates significant competitive advantages.

My Experience: Building Manufacturing Ecosystems That Last

In my years leading Complete Controller, I’ve witnessed the transformative power of manufacturing ecosystems firsthand. One of our manufacturing clients struggled with inconsistent quality and high production costs until we helped them implement a comprehensive ecosystem strategy.

By connecting their ERP system with supplier and distributor platforms, establishing shared quality standards, and creating collaborative forecasting processes, they reduced lead times by 35% and cut quality issues by over 60%. Their story demonstrates that lean manufacturing principles work best when applied across ecosystem boundaries rather than just within a single organization.

The most successful manufacturing leaders recognize that competitive advantage no longer comes from tightly controlled, closed systems. Instead, it emerges from collaborative manufacturing ecosystems that leverage the strengths of diverse partners while maintaining strategic focus.

Final Thoughts: Your Ecosystem Journey

Building a robust manufacturing ecosystem requires vision, persistence, and systematic execution. The path begins with understanding your current capabilities and limitations, then strategically expanding connections to create value that isolated operations simply cannot achieve.

The manufacturers who thrive in the coming decade will be those who master digital transformation in manufacturing while simultaneously building human relationships and organizational structures that maximize collective intelligence.

I encourage you to assess your current ecosystem development and identify one area where stronger connections could create immediate value. Start there, demonstrate success, and build momentum toward a comprehensive ecosystem approach. The Complete Controller team and I are available to help you navigate this journey with our manufacturing accounting expertise.

FAQ

What exactly makes up a manufacturing ecosystem?

A manufacturing ecosystem encompasses the entire network of entities involved in production processes, including manufacturers, suppliers, distributors, technology providers, educational institutions, and customers. Unlike traditional supply chains, ecosystems emphasize collaborative problem-solving, shared resources, and mutual value creation across organizational boundaries.

How can small manufacturers participate in larger ecosystems?

Small manufacturers can join larger ecosystems by identifying specific value they provide that larger entities need, such as specialized capabilities, agility, or innovation. Start by participating in industry associations, attending manufacturing conferences, and identifying potential partnership opportunities with complementary businesses. Digital platforms increasingly enable smaller players to connect with ecosystem participants regardless of size.

What technologies are most critical for ecosystem integration?

Cloud-based collaboration platforms, IoT sensors for real-time data collection, standardized APIs for system integration, and analytics tools for shared insights are foundational technologies for ecosystem integration. Digital twins and simulation tools that model production processes can dramatically enhance ecosystem optimization, while blockchain may provide future solutions for supply chain transparency.

How do you measure the ROI of ecosystem investments?

ROI for ecosystem investments should be measured through multiple lenses: operational metrics (reduced lead times, improved quality, lower costs), innovation metrics (faster development cycles, successful product launches), market metrics (customer satisfaction, market share growth), and financial metrics (revenue growth, margin improvement). Track these metrics before and after ecosystem initiatives to quantify benefits.

What are the biggest risks in building a manufacturing ecosystem?

The primary risks include intellectual property protection challenges, dependency on partners who may underperform, cybersecurity vulnerabilities from increased connectivity, organizational resistance to new collaboration models, and potential loss of control over key processes. Mitigate these risks through clear agreements, careful partner selection, robust security measures, change management, and maintaining core competencies in-house.

Sources

Automation World. “Making the Case for the Smart Manufacturing Ecosystem.” www.automationworld.com/factory/iiot/blog/13742899/making-the-case-for-the-smart-manufacturing-ecosystem
Coherent Market Insights. (2025). “Global Manufacturing Market Share & Opportunities 2025-2032.” www.coherentmarketinsights.com/industry-reports/global-manufacturing-market
Complete Controller. “How to Use Content to Set Yourself Up as a Thought Leader.” www.completecontroller.com/how-to-use-content-to-set-yourself-up-as-a-thought-leader/
Complete Controller. “IoT Trends That Could Shape Manufacturing in 2021.” www.completecontroller.com/iot-trends-that-could-shape-manufacturing-in-2021/
Complete Controller. “Cut Custom Assembly Costs: 5 Ways.” www.completecontroller.com/cut-custom-assembly-costs-5-ways/
Goldbeck. “The Benefits of Teamwork: Utilizing Manufacturing Ecosystems.” goldbeck.com/blog/the-benefits-of-teamwork-utilizing-manufacturing-ecosystems/
Journal of Economic Perspectives. (2023). “The Transformation of Manufacturing and the Decline in US Employment.” www.journals.uchicago.edu/doi/full/10.1086/700896
LitsLink. (2025, March 24). “What is Digital Twin in Manufacturing? 10 Inspiring Industry Examples.” litslink.com/blog/what-is-digital-twin-in-manufacturing-inspiring-industry-examples
LogicBay. “Executing an Ecosystem Strategy for the Manufacturing Industry.” www.logicbay.com/blog/executing-an-ecosystem-strategy-for-the-manufacturing-industry-five-questions-to-ask-to-ensure-success
LogicBay. “Manufacturing Ecosystem and a New Definition to Support Inclusive Equitable Community Development.” mfgren.org/manufacturing-ecosystem-and-a-new-definition-to-support-inclusive-equitable-community-development/
McKinsey & Company. “Unlock Data to Modernize Manufacturing Operations.” www.smartmanufacturingexperience.com/event/news/McKinsey-unlock-data-to-modernize-manufacturing-operations/
National Institute of Standards and Technology. “Manufacturing Topics.” www.nist.gov/topics/manufacturing
The Future Factory. (2019, July 30). “Siemens Case Study: Lean Digital Factory Project.” www.thefuturefactory.com/blog/32
Trade.gov. “Manufacturing in America.” www.trade.gov/manufacturing
Wikipedia. “Digital Transformation.” en.wikipedia.org/wiki/Digital_transformation
Automotive Manufacturing Solutions. (2024, July 16). “Tesla’s EV Battery Production and Global Gigafactory Network.” www.automotivemanufacturingsolutions.com/ev-battery-production/teslas-ev-battery-production-and-global-gigafactory-network/45873.article

Jennifer Brazer Founder/CEO

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

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Tax Tips for Relief

Posted on March 12, 2019November 25, 2023 by Jennifer Brazer

It is never a good idea to owe taxes to the government and, even worse, if you don’t have the resources to pay your tax bill. The first plan of action in such a situation should be to look for payment plans and file the tax returns before the deadline to avoid the 5% penalty each month on the balance. The interest will be added every four months at a rate depending on that year’s tax regulations. At this point, your aim must be to minimize the damage, and the only way to do that is to find a plan that will put you out of tax misery.

To discuss payment plans with the IRS, you can call them at 1-800-829-1040, and they will help you work out a payment plan you can afford. Apart from that, you have plenty of other options to reduce your tax bill by hiring professional consulting services and following the advice below.

Pay as Much as You Can

Even though you may not be able to pay the whole amount at one time, it is important to pay as much as you can in the first installment. This will significantly reduce the interest and penalty because of the lower remaining balance. Also, there is a possibility that the IRS may offer better payment plans to individuals having less than a certain amount in the remaining balance.

Request an Extension of the Tax Bill

Requesting a payment extension is one of your options if you cannot pay the tax in due time. Typically, you would get 120 days to pay the tax returns after submitting the forms. The IRS would ask you in case you want to request a payment extension. Those individuals who have not previously applied for extensions are eligible to avail of this facility.

Installment Payment Plans

Experts advise that installments are a viable payment plan if you owe less than $50,000 and need more than the allotted 120 days to pay off the tax bill. An online payment agreement form needs to be submitted, which will set you up for an installment plan of as much as six years. A one-time setup fee will be charged, depending on the amount you owe, and is usually $30 – $250. The fee can be significantly reduced further for individuals who can set up direct payment plans from their bank accounts.

Another benefit associated with opting for an installment plan is reducing penalty charges for failing to pay the installment. You will be charged an interest of .33% for failing to pay the installment on your tax bill, rather than paying .5% for a general plan. However, only one time filers get this privilege.

Apply for Leniency Payment Plans due to Adversity

To ask for a leniency payment plan from the IRS, you will need to authenticate that making this payment would leave you in dire circumstances. You may even lose your home and may have to offer other financial sacrifices because of the ongoing crisis. If the IRS approves a leniency plan for your tax bill, that would be the best scenario for you. You will be given more time to make the payment, and any penalty is also waived.

There is an “Application for Extension of Time for Payment of Tax due to Undue Hardship” that needs to be filed and submitted to become eligible. There is a thorough investigation into your claims before you are offered the remunerations, so ensure that the leniency payment plans are only sought for in case of eligibility.

Personal Loan

A personal loan can be your best bet against the IRS, considering a family or friend may be willing to help. Some people in your life trust you, and you trust them equally in return. You would not have to worry about interest payments in such an agreement. However, it is still recommended to at least notarize the deal and discuss a payment plan to avoid any inconvenience for both parties. While it may not be one of the most suitable payment plans for most people, it can certainly offer some tax bill relief.

Creating A Workable Family Budget

Posted on March 11, 2019August 30, 2024 by Jennifer Brazer

In simplest terms, a family budget is a plan or statement that reveals how much income is generated and expended by an entire family. From the necessities of life to comforts and from luxuries to bare essentials, a budget includes regular and irregular usage items. Usually, parents are responsible for making a family budget since they have a wider experience in managing household finances. A household budget is necessary to help keep you and your household living within your means.

Though having a family budget is vital, many families don’t have a budget, or if they do, it is not well kept, and recording income and expenditures falls by the wayside. While it is true that most families have busy lifestyles between work, school, household chores, and all the extra-curricular activities and errands, you should still make time to take care of the family budget.

Strategic Significance of Creating a Family Budget

Families have difficulty living within their means because they don’t make a family budget. Without a budget to keep close track of your income and spending, it isn’t easy to have a savings plan. According to studies, more than 70% of people in America do not have household budgets. This statistic shows that more people need to have and stick to them. Though you may have to make a few sacrifices to make a family budget, you must create one.

Having a family budget will allow you and your family to set goals for putting some of your household income into savings. Usually, parents are responsible for making a family budget, but it is also great to get the whole family involved in creating a budget. It is also great to get the whole family involved in creating it. This involvement will teach kids about money management and get the entire family thinking about the importance of watching what you spend and living within your means. If you have everyone involved, it gives each family member a sense of accomplishment.

Tips That Can Help You Build a Workable Family Budget

Get organized and choose your budget style

Before making a weekly or monthly household budget, you must know precisely how much money you can afford to spend in a particular month. One thing that has to be kept in mind before making your household budget is that you must set aside enough time to make it accurate. You might make a mistake or leave out important details if you rush. Moreover, you must choose your budgeting style—whether you will use software or apply the traditional paper and pen approach. However, it’s a lot more efficient to use electronic budgeting software instead of recording every transaction manually when making a family budget.

Evaluate your priorities and set benchmarks

Necessities will always be your priority on your family budget. Necessities include rent, utilities, transportation, and food. After your necessities, you can bring in expenses that are still important, like phone, insurance, savings, and other expenses towards what you need each month. After you get all those expenses recorded, you can move on to those expenses that are not necessities, such as entertainment and subscriptions. You also need to add items that are specific to your family, such as pet expenses.

Opt for simplicity

After you prioritize your expenses, you should be able to see areas where you can cut to put more toward savings. Opting for a simple lifestyle will give you greater control over the family budget. Whatever you save for each month will increase your bank balance, which means your future will be more secure and healthier than ever. You can also save towards a home, car, or family vacation.

Conclusion

Making a family budget may seem daunting at first. But, once you step into making one, it will become easier than you think. Fortunately, we live in an age with so many advanced electronic tools, software, and guides to make creating a household budget easy. By recording, monitoring, and tracking your family budget, you can determine where you can cut costs, save money for future needs, and get the whole family involved.

Connecting Bookkeepers And Bots

Posted on March 11, 2019November 25, 2023 by Jennifer Brazer

Businessmen and women need to be aware of the technological advances in every field, including accounting. Bots are increasingly being used and, hence, their awkward office love affair with bookkeepers was inevitable. These are not actual robots. They are apps and lines of codes with unique skills to interpret information and inform you of what it means. The coding allows the bots to process data at a rapid speed, which is not humanly possible. The critical aspect is finding common ground between the human element and technology to attain maximum efficiency.

The way bookkeepers normally perform their functions is likely to change with the emergence of new technologies. AI (Artificial Intelligence) and machine learning have already enabled accountants and bookkeepers to interact with bots just as they would with their associates. Tools that can record entire transactions independently without the need for a long trial and records have already surfaced and are slowly being trusted by more and more businesses.

What’s with the Awkward Office Love Affair?

Bookkeepers are pivotal for many organizations as they keep a record and track the flow of transactions. With bots handling and tracking this information, most of the commonly allocated tasks to accountants become redundant, leading to the need for defining a new JD for them. The future accountants must be able to look beyond the obvious and think of ways to integrate and use technology to their benefit, improve operational strategies, and make sense out of the given information.

Companies must train key people for this specific purpose and encourage them to consider AI their friend rather than an adversary. This is the right approach that should turn the awkward office love affair of bots and bookkeepers into something productive. However, the question remains, do we have the people with the right mindset and skills for taking on such kind of an accounting role?

Business analytics professionals are obvious candidates as they have the expertise to make sense of big data that large companies rely on. Finding and holding these skilled professionals will be the key for businesses to succeed in this competitive marketplace. Here are some ways to do exactly that.

Know Yourself – Find Skilled Bookkeepers

Identifying strengths and weaknesses should be the priority of any business. However, it is important to assess yourself without any bias. Research shows that a lack of skilled labor is responsible for sluggish growth in about 40% of the cases. That’s a huge percentage, which has made way for the need to use bots for tasks that are hindering growth. With everyone else adapting to AI, you are bound to indulge your business in this office love affair to stay competitive and for your benefit.

Identify the skills that are most vital to your organization and recruit the right people for the task. Hire bookkeepers based on their understanding of the shifting trends and their ability to deal with them effectively. Don’t hire someone because a friend recommended them because, eventually, that person can be a burden for your business if they aren’t the right fit.

Go Beyond the Usual Stuff

Your preference should be to look beyond the candidate’s ability to save you from a tax burden or record-keeping skills; instead, ask them about the latest AI developments in the accounting industry. Cloud accounting and the impact of other technologies on the accounting front are the areas to understand if someone desires to work for your organization. It is not to diminish the importance of other hiring traits, just reaffirming the need to adapt and change your strategies to compete in the coming times.

Develop the Bookkeepers and Customize

Bots are surely going to bring about a change in your traditional workspace. However, there are always people in your company that are valuable and have proven to be so. You will have to develop these people for their new roles to avoid any awkward office love affair between bots and accountants. Advanced training is conducted in multinational organizations to support their employees to handle AI better to achieve success for the business. It’s significant to invest in the employees to reap the benefits. It also serves as a great opportunity for bookkeepers to learn and grow their skill set, which will motivate them to indulge enthusiastically.

Though bots can process data faster and facilitate your accounting operations, they cannot do everything. Professionals will always be required to critically analyze the data and make decisions after considering all the other variables. Also, every business has some special requirements to think creatively and customize the processes according to your ease. Striking the right balance will determine if your business can make a mark in the future.

Legal Tips for Small Business

Posted on March 8, 2019November 25, 2023 by Jennifer Brazer

If you are an entrepreneur and running your own business, you will likely have a crucial role to play 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 tiny business, you will never be free from the liability of following the law. Every business officially launched has to abide by the law of the registering state, irrespective of the business 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 help if you acquired all of the knowledge regarding business laws.

Here are five ways that will help you protect your small business against any legal fallout.

Always Make Agreements in Writing

Trusting your clients and other business stakeholders is essential 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 allow you to 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 any kind of changes are made in the policies. 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. It 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, which pertains to 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 significant for you 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, and you need to protect all of your business identities, such as logos, design, and ideas, by registering your intellectual property. There is a fine line between developing creative content and plagiarizing another person’s content.

Unfortunately, it is likely that if you have not registered your business trademark and have not reserved copyrights of your business, another individual can copy your content, write it in their business name, and file a case against you.

Get Professional Legal Advice

When setting up legal formalities of your business, nothing is more important than this. Suppose you are confused about setting up the legal contract for your business and unaware of the essential terms and conditions. In that case, you should enlist the help of a professional lawyer. The lawyer will read your business situation and protect your interest while giving you needed legal advice.

Top Inventory Management Software

Posted on March 8, 2019November 25, 2023 by Jennifer Brazer

Operating a small business is stressful and time-consuming. Also, maintaining the inventory can become a troublesome task. Keeping track of how much you have in stock of any particular product and knowing when you need to order more can help prevent situations like having to oversell or urgently needing to order an item. A good quality inventory management software can make the tedious task of tracking your inventory a whole lot easier.

An inventory management software can help you focus on other more important aspects of your business. The inventory software should be able to:

Give you an alert when any particular product is low
Track sales and adjust the number of products in stock
Record and display customer information in an organized manner
Update any product requirements upon the receipt of new orders
Provide sales and purchase data that can be used for bookkeeping purposes

When choosing the right inventory software, many things need to be kept in mind. When it comes to utilizing a particular software’s services in your business, trial and error aren’t always feasible. The many aspects used in selecting the right inventory management software can be related to User Interface, Accessibility, Data Representation, etc.

The basic criteria for our top 5 list below are accuracy and efficiency. Any inventory management software should be able to report your inventory accurately. Furthermore, it should have a good enough user interface to allow the user to utilize its services and features with ease. The basic purpose of inventory management software is to track your inventory easier, and it would serve no purpose if it complicates the process altogether.

Another aspect of inventory management software is Product Importing. A good inventory software makes adding new products to the stock an easy process with accurate results. One of the most common ways to import products into the system is via a bar code. Still, recent innovations in product logistics require software to have the ability to import through CSV files and other methods.

Finally, the decision as to which inventory management software you should use for your business depends on your business’s requirements. Warehouses and stores each have different requirements when it comes to inventory software. Similarly, the way you sell your products also impacts what you may need from your inventory management software.

The Final Verdict – Top 5 Inventory Management Software

Fishbowl Warehouse (FBW)

Fishbowl Warehouse (FBW) offers advanced inventory management features to help your business manage multiple warehouses. It also tracks parts using various criteria and helps set up auto reorder points to prevent stockouts, generate barcodes and use scanners, and a lot more. Automate order creation with our EDI, CRM, and e-commerce integrations. Control the flow of your inventory and know where everything is in real-time. Fishbowl helps you be proactive with your inventory, not just reactive.

inFlow

inFlow has proven to be the most reliable, user-friendly, and cost-saving software tool to manage our inventory, sales, and purchases altogether. inFlow has streamlined a manual purchasing and inventory system into an automated one with ease.

QuickBooks Commerce

Perfect for businesses who sell wholesale and direct to consumer to automate operational processes and focus on growth. QuickBooks Commerce’s inventory management system enables easy control over your inventory, orders, and customers from a single platform.

Odoo

Odoo is an open-source inventory software that helps you better organize your warehouse with the smart double entry inventory system. Get the most efficient stocking method and improve all your internal operations. Odoo’s double-entry inventory has no stock input, output, or transformation. Instead, all operations are stock moves between locations.

Inventoria

Inventoria is professional inventory stock management software for Windows that allows you to manage inventory in one or several locations. Manage your stock levels by categories, locations, and vendors.

Shift Change Procedures In Retail

Posted on March 8, 2019November 25, 2023 by Jennifer Brazer

In recent years, internet start-ups have changed how employees work, offering flexible schedules, and taking in remote employees. While all of this may be quite simple for an internet start-up, it is not easy for retail outlets. They need to have a well-disciplined shift system. However, it proves to be tricky. The requirements of a strict shift system make retail jobs relatively undesirable compared to online companies that, as said before, offer their employees flexibility.

Bloomberg states that employee retention is one of the biggest problems in the retail sector in today’s world. However, if you take up certain practices to improve the quality of work in retail, there is a solution to producing happy and productive employees.

Be Predictable

It is estimated that 17% of retail employees have unstable work schedules, which leads to difficulties for employees. To avoid your employees facing such problems, it is important to inform them about your shift needs and the times you will require your employees to be on the floor. Come up with a suitable shift calendar, share it with your employees, and do your best to adhere to what you publish in that shift calendar.

Plan in Advance

In certain states, shift scheduling problems have led to lawsuits. The main practice highlighted in the lawsuits was on-call shift scheduling. This on-call practice puts employees under immense pressure, forcing them to be available during the times they are off. It can also violate the labor laws in many states.

It is much better to work with a streamlined schedule posted well in advance for employees to see. You can work with a good strategy. For example, have at least one experienced and well-performing employee on the floor at all times.

Be Transparent

Making on-paper schedules is not a thing of the past. Current technology allows you to construct and share shift schedules with your employees. Transparency will improve the relations you have with your employees and help your business in following labor laws more efficiently.

Improvement of relations with employees also means that they will be happier, and this work kind of work environment will yield higher productivity.

Encourage Communication

Managers often get pressured by shift change and vacation requests. You can streamline this practice by encouraging your employees to communicate and coordinate all of their needs through scheduling software. Given the autonomy, your employees will plan a shift schedule for themselves, which can later be approved by the scheduling manager. This will improve teamwork, shift the burden of rescheduling everyone for a one day leave, and help avoid the uncomfortable situation of telling a particular employee that they might have to work extra shifts.

Accept Feedback

Encourage employees to give you feedback on the shift schedule by making yourself available. Remember that the feedback process is always helpful.

Feedback will help build a positive employee/owner relationship, raising the happiness and productivity of employees. To avoid any accusation of favoritism, set up a feedback framework such as an anonymous questionnaire or survey. This will also help if you put some of their suggestions into action to let the employees know that their feedback and suggestions are not being ignored.

Data-Driven Decisions

Employee satisfaction is one of the primary objectives that your business wishes to achieve. However, it shouldn’t let you go off-track of your main goal to sell your products.

Note and mark the times when your retail store is filled with customers and assign shifts so that more employees are available at that time. Similarly, keep lesser employees on the floor at times when there are only a few customers around. This will balance the workload that each employee has and will also derail any grievance that employees might have related to them being more burdened as compared to their co-workers.

Work Incentives

Retail stores rarely offer their employees a clear road to promotion and growth. The most they might get is an advance to a managerial position. Due to this, temporary or even permanent employees might not be productive, and employee retention can become a serious issue. Giving incentives, such as role-based training from someone experienced, can help enhance the quality of customer service and productivity of your workers.

Acknowledgment of achievements through a proper recognition framework can help a lot in boosting your employees’ performance. You can also choose to provide bonuses. Providing respect to your employees can help you build manager-employee relationships. Assigning extra tasks, such as bookkeeping, to one of your qualified permanent employees can give them a fulfilled sense of accomplishment that will boost their overall work performance.