Author: Jennifer Brazer

Closing Your Books – Year-End Checklist

Closing your books at the end of the year is a routine task, and a sound bookkeeping system makes the process pretty basic. Subjecting to your company, the closing process comprises the year’s transactions, ensuring that they are all appropriately categorized. Adjusting entries for company activities must be done and searching for errors or missing information in the data.

New businesses closing their first year often face significant challenges at the time of closing because of their inexperience. However, adhering to the basics of the closing process will ensure that everything works out smoothly. More prominently, closing your books allows you to precisely account for your company’s financial doings from the year. These highlight balances will carry forward to the upcoming year and create the outline for the next year’s financial reports. Here are a few basics that will help you close out at the year-end.

Reconcile Your Bank Account

The balance on all of your books should be equal to your year-end statements. Mainly, if you have been entering all of your numbers by hand, it must be ensured that all bank statements, credit cards, and money accounts are accurately reconciled. Even if you use bookkeeping software, double-check all of the numbers. The best way to ensure that your bank accounts are reconciled properly is to hire an adept team of experts to make the entire process easier and eliminate the possibility of costly mistakes.

Review Payroll Expenses and Income Statements

When closing your books, you must ensure that your monthly and year-end payroll expenses match each other. You will need to approve this before filing the annual IRS Form 940 and reconcile the year’s expenses. You must be very careful with handling payroll expenses as it is the government’s money that you are assigned to hold until the year-end when taxes are filed. You could land in serious trouble with the IRS if your payroll expenses are not handled correctly. Outside of issues with the IRS, improperly reported expenses and incorrect statements could put you or your business in a financial bind that will be challenging to overcome.

Furthermore, your income statements need to be carefully studied to guarantee that everything is categorized fittingly. If the classification is troubling you or unsure about your payroll taxes, it is best to seek professional help as they have the right team with a voracious approach towards this task.

Evaluate Accounts Receivable and Invoices

Guarantee that you have cleared your year-end invoices and make sure that all sent invoices have been reimbursed. It can be easy for an invoice to go unnoticed among so many year-end tasks, resulting in an over or understatement of accounts and cause strain at the last minute. Therefore, it’s essential to keep track of all of the small details without any negligence. Also, ensure that all of your revenues are recorded in the defined period.

 Fixed Assets and Depreciation Expenses

If you have made any big fixed asset purchases this past year, they must be accounted for in your balance sheets. Check your current fixed asset inventory and look into the minutiae of sales, disposal, or depreciation as fitting. Tackling issues related to depreciation when closing your books can be a tricky task and require professional services.

You will also have to run a taxable sales report to confirm that you have paid all of your sales taxes. Ensure that you do not neglect any of the above-mentioned basic tasks because it can land you in serious trouble with the IRS.

Conclusion

Closing out the year for a business can be stressful. Multiple tasks need to be performed to ensure everything is prepared for the next year. Bookkeeping will ensure that from a financial standpoint, your business functioning at the highest level possible.

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 the 1960s, self-storage development started with pioneers, who identified the increasing demand for commercial and residential storage. They were the real estate developers who produced the stage for the self-storage industry.

The self-storage industry is not much different from industries that deal with demand and supply economics. Commercial and residential storage have increased the facilities that supply them. The increased growth of the industry has contributed to increased public awareness of the product’s personal and economic advantages. The continuous increase in demand is always teamed with excellent potential, and it has made self-storage one of the leading growth industries since 1978.

The importance of the self-storage industry cannot be denied. Commercial development of the industry started back in the 1960s. Real estate will always be one of the significant assets for households, governments, and businesses. They are affected by the economic law of supply and demand. However, opening a self-storage business is never guaranteed.

Key Factors of a Self-Storage Business

The critical factors that must be considered in a self-storage business model include the following:

Cash Flow Analysis

A cash flow analysis helps determine the business’s total profit, which is an integral part of any business. Various factors must be considered. They include a considerable amount of leasable space, projected percentage of occupancy, loss due to vacancy collection problems, and gross annual rental income.

Development Costs

Developmental costs must be obtained before entering into any business, and the total costs must be considered before making any significant decisions. Bookkeeping can be used to keep track of any information that is related to the considerable costs related to the business. The area of the purchased land should not reflect the full amount of the leasable space upon completion. 
In addition to this, the significant factors that help determine the leasable coverage include the utilities, easements, building codes, and physical land features. The figures that are linked to the construction costs are entirely dependent on the type of facility. Almost 67% of the development budget goes towards construction and comprises equipment, labor costs, and many other items. Self-storage businesses require more than half of the developmental costs of multifamily properties, including co-housing properties and apartments.

Financial Analysis

Financial analysis is an essential part of a self-storage business. A cash flow analysis helps in the determination of the ROI just after the development costs. The target occupancy percentage must be developed and is usually around 90%. Other than the target occupancy percentage, the break-even occupancy must be identified to cover the debt services and operational costs.

Self-storage businesses believe that the occupancy rate should be between 60%-72%. A low break-even percentage is always ideal for investors because it provides an extra cushion for fluctuations in the market.

End Users of the Self-Storage Business

An increase in business-minded individuals mainly powers the self-storage industry. These are the parts of every typical start-up and require a mobile workspace and temporary storage. Companies like e-commerce stores make use of self-storage units as a vital part of their inventory facilities. Other than the commercial market, many people move into new homes and avail self-storage units to store their belongings, whether it be short or long term.

The market developed rental rates for many different types of self-storage consumers, and they operate within these rates. This is the key to competitive sales of self-storage units. A self-storage business is beneficial as it is one of the most significant investments compared to other prominent real estate developments. The growth of online businesses and start-ups is expected to help expand the number of self-storage businesses and the industry. 

Rents

Rents are an essential part of a self-storage business. The average annual rent charges for real estate were surveyed in a large number of studies. Self-storage units are similar to multifamily and real estate properties regarding rent prices. The rents and prices of storage services are as follows:

• Multi-family: $7.5 to $12 per square foot
• Offices: $14 to $24 per square foot
• Retail: $16 to $20 per square foot
• Self-storage: $6.5 to $12 per square foot

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

When interest rates stay low for an extended period, it’s a sign that they will rise sharply. This usually happens when the economy is coming out of recession. Fixed-income investors are bound to miss out on an easy chance to raise their income levels. Therefore, you must always prepare in advance and keep a keen eye on the rates. We will explore how rates work across multiple investment options and help you make an informed decision about investing your hard-earned money.

Pay off your Loans

With any loan that goes up at a prime rate, you should consider paying it off immediately. If you can’t do that, you must at least convert it into a fixed-rate loan. Mortgages, auto businesses, and all sorts of personal loans work on variable rates susceptible to increment at any time. It best to pay them off as soon as possible.

Bond Interest Rates

The bond market is worse affected by rising rates. Anyone who has invested in bonds would lose money in such a scenario. The trend usually continues as rates go up, so it is wise to keep bonds off-limit. However, a bond ladder is something at which you can try your hand.

A bond ladder represents a sequence of bonds that mature after regular intervals. The intervals are usually 3, 6, 9, or 12 months. As the interest rates continue to go up, you continue reinvesting these bonds at a higher rate. In the end, you are going to end up with a considerable return on investment.

Certificate of Deposits (CDs)

A certificate of deposits allows you to lock money in at a higher return rate, resulting in not being able to access it for a specific duration of time. There is a risk with this investment, your money is locked, and you never know when the rates will jump. The same bond ladder principle can also be applied to CDs, which is often a good investment option. There is a penalty on withdrawals, and, usually, it’s pretty high. Ensure to check for penalties before locking the money up.

Interest rates on Saving Accounts

Saving accounts respond directly to rising interest rates. Staying afloat in times of inflation is hard for savers, and rising rates can feel like a cold breeze after a humid day.

Don’t Forget the Dollar

People holding up foreign currencies may reconsider beefing up their dollar stacks as rates start to go up. Higher rates mean more foreign capital into investment instruments, which eventually raise the value of the dollar. People most favor Government-owned financial instruments as they are more secure and give away consistent yields.

Be Cautious of Inflation Hedges

Gold and other tangible assets do well when the interest rates are low, and inflation is rising. Rising rates also affect your investments, which are hedged against inflation; rising interest rates mean a decline in inflation. Other natural resources, such as oil, are also affected by rising rates, and investors should shift their focus to investing in stocks rather than commodities.

Credit Card Debt

Credit card interest rates usually remain high throughout and tend to rise even more when other rates go up. It is never an excellent option to miss a payment on your credit card loan even when the rates are not high. It is one of the smartest money moves you could make to pay off your credit card debt promptly.

Credit History

High-quality credit history is always good, but it is vital to have a clean slate when the rates are high. Any kind of auto loan, mortgage, and personal loan is hard to get with a red flag on your credit report. Keep your credit report stainless with a steady payment plan.

Invest in Stocks

Invest in stocks of significant consumers that use large volumes of raw material. The raw materials prices usually tend to stay the same or decline when the interest rates go up. Using natural materials will see a significant decrease in their costs, and their profit margins rise. They can act as your hedge against rising rates.

The real estate sector also sees growth when the rates are up, and the same is the case with beef and poultry industries. Their demand can significantly rise due to the increased spending on low-cost goods. Higher interest rates bring opportunities for those who act quickly and can wreak havoc for underprepared people.

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 the world of internet security, virtualization of services such as storage for cloud computing is set as a high priority. Cloud computing, itself, for an IT infrastructure, is the ability to use, for example, computing power and storage like databases or network assets. While it is a highly versatile solution offering almost-limitless benefits, it is, at the same time, a complicated and highly complex affair of business. The cloud can primarily refer to the browser-based SaaS applications in which users have to pay for the services. This has led to technological advancement by breaking traditional models of proactive technology.

The best database for your organization is deployed for cloud computing assistance, and many options are available. With so much out there, it can get confusing as all solutions are based on enterprise scenarios. Security, performance, and compliance are the top three most critical keys to focusing on all centrally prioritized organizations. The best practices are essentially required to manage the priorities of the database strategy for the enterprise model. Without implementing this, even the best database for your organization would not provide the optimum functionality level.

Private Cloud Solution

Due to the customization ease towards business-specific needs, a private cloud solution allows more control over the enterprise environment. It is also a part of the IT infrastructure that has enhanced security, which boosts confidence in the solution’s security, as the IT system owns it. Due to the geographical position, latency is an issue as the legacy application is impacted due to the data and user relatively located. Especially when using mobile devices is yielding the remarkably poor experience of users.

The company offering the data, if remotely located, would also contribute to an incredibly frustrating usage of the service. Your organization’s best database cannot let users shed tears over the poor performance critical for their assigned tasks.  Other concerns are industry-specific regulations compliance issues that are severely strict. Some countries have set implementation policies and regulations which do not always match the business in other countries, creating a policy nightmare.

Hybrid Cloud Solution

Hybrid cloud solutions are very flexible and more customizable than the previous solution. This solution allows managers to select and opt for elements needed from private or public clouds if the need arises. Cloud bursting is the most considerable benefit of this solution that helps when more users suddenly show up and request services.

The burst can help handle the system’s intake of extra users without downing the system. Its self-managing features allow more flexibility to be able to handle workloads according to business requirements. The cons are that it’s highly complex; integration can take long periods, and connecting with public clouds increases potential security threats. It also may lead to overuse of services, whereas users are scarce, a result of auto-management.

Public Cloud Solutions

The scalability of public cloud solutions is phenomenal. The cost models let users’ select pay-as-you-go benefits that are an added advantage. With faster performance capability and new application induction into services offered, using legacy applications is challenging. Sprawling here is also a significant issue like hybrid and lead to advanced security threats. Without strategizing for proper management and control, costs sometimes rocket, resulting in negated savings and the system’s lower efficiency.

Another shortcoming is data visibility, where the location is hard to determine where it resides once inducted into the database cloud. By its nature, the public cloud solution is homogeneous in that it works on different enterprise needs. Latency can be an issue depending on the enterprise architecture and how it is implemented, deployed, and utilized. To choose the best database for your organization, dependability is a significant concern.

Appliance Database

The data center takes care of an appliance database management, which is either self or vendor based. There are thousands of vendors out there who provide this solution, but the performance and support facilitation is more significant if selected for the whole set up.

It can be disadvantageous to use a single vendor creating a limiting monopoly, while application databases can become niche and seldom used. This solution is also expensive but can be cost-effective with the right settings over some time.

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

Like it or not, accounting is the main focus for companies of any size. Thanks to the wide variety of bookkeeping applications obtainable for today’s small and medium-sized businesses, it’s easier than ever to keep a precise record of where your company’s money is going. Though accounting software has made bookkeeping easier for small businesses, it’s also made errors and accounting mistakes—from inaccurately classifying a transaction to doing all accounting yourself, which is much more common.

Some accounting mistakes are slight, inconsequential, and easy to correct when someone within your business unsurprisingly detects them. But others are more severe and could have a substantial consequence on your company’s financial health. Over time, poor accounting practices can falsify the genuineness of your business’s economic health. In severe circumstances, recurrent bookkeeping mistakes and bad accounting practices can lead your business to bankruptcy or company failure.

Here, we will discuss the most typical small business accounting errors that can produce problems, both small and essential, for your business.

Data Entry Errors

Some accounting methods are more trustworthy than others – you could use:

1. a)   An elaborate automated database
2. b)   An Excel worksheet
3. c) A handwritten record book

No matter what method you use, attention to detail is vital. The most typical data entry error is caused by transposition: keying in 85 instead of 58. Less common are transcription errors or simply striking the wrong key by fault. These mistakes often go unobserved because the individual entering the numbers is in haste. Consecrating adequate, distraction-free time on the job will lower the prospect for costly blunders.

Not Taking Accounting Seriously Enough

The key to operational accounting is recording everything. From small transactions to considerable expenses for customers and clients, it’s essential to ensure that everything is logged and classified correctly in your accounts.

No matter how small your business might be, taking bookkeeping seriously gives you a precise, consistent picture of your corporation’s health, allowing you to regulate precisely how well (or poorly) you’ve achieved your goals in a given period.

Managing all of Your Accounting In-House

When you run a small business with limited income, it can be alluring to lower expenses by independently handling your bookkeeping. While taking care of your accounting yourself might seem like a great way to save cash, it could be costing your company money. An accountant will have more significant charges than managing your accounts by yourself and saving you money.

Failing to Reconcile Books with Bank Accounts

Your company must merge its accounts regularly. Reconciling is the procedure of inspecting that an account balance, as listed on your books, is exact and accurate, confirming that it equals your bank account’s real balance.

Forgetting to Record Small Transactions

By keeping a record of small transactions, you’ll be able to easily manage your books as your company grows in size and its number of transactions increases.

Poor Communication with Your Accountant

It’s essential to communicate with your bookkeeper clearly. Keeping a paper record of all transactions, whether the record is digitized or otherwise, makes it easier to monitor all of your income and spending.

Not Allocating Clear Budgets to EachDevelopment

Going into a venture without knowing how much it could end up costing your business is an easy way to end up outlaying far more than you planned. Failing to effectually budget also makes it problematic for you to rein in a venture that has cost you more than it should have. This can cause your business to expand its limited funds on developments that won’t produce a return on investment.

Final Note

The best way to prevent these kinds of errors is to create an organizational system that keeps everything in order. Avoiding accounting errors is nowhere nearly as difficult as it may seem. It merely takes a skilled hand and a careful approach. Double and even triple-checking your work is always a good idea before committing it to your archives.

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.

We learn from our surroundings, and, let’s face it, for a large part of our day, we are surrounded by those we work with. Thankfully, we can learn a lot from our colleagues as they are all from different backgrounds and have different life experiences.
When we talk about household finances, some are better at managing their income. In contrast, others struggle with making sure they efficiently meet all of their financial obligations. What we learn from different people is the techniques of managing various things about life in general. This includes managing our household finances.

How Can Our Colleagues Help with Our Household Budget?

They can help us make a budget

To keep our spending in check, we all know we need to have a budget stating all our expenses and income. Our colleagues can often help us make a list that is easy to maintain and understand. They can give us an outsider’s perspective from someone you trust but are not too close to. We can also look at how they have done their budget and get inspiration from the easiest one.

They can give us financial advice

We know that saving money or part of your income (most suggest 10%) is essential. What’s more important is investing that money rather than leaving it idle. We can talk to our colleagues and discuss the available investment options and which option they have chosen. This way, we will better understand which option is more lucrative and less complicated. Different people will be comfortable with investing terms that match their criteria. This will save us the cost of hiring a fund manager who would advise and manage our money and household finances.

They can help us look for additional income

Along with investing the money you save, it is wise to look for other income sources rather than depend on one income stream. You can ask your colleagues what their additional sources are and how they have gone about initiating them. This could mean looking for part-time job options or jobs that you can do from home to earn a few extra bucks.

They can guide us on how to deal with family

Efficiently managing your household finances without the help and unity of all of your family members is nearly impossible. The entire household needs to be on the same page. Once you realize the importance of managing your money, you can ask your colleagues how they educated their family members about the efficient management of household finances. You may indeed face a little resistance from your family initially. However, by using your colleagues’ tried and tested methods, you can convince them to follow the plan for the betterment of the family unit.

They can become our partners

The number of people choosing to start their own business is on the rise. This fact could be an encouragement for you to begin a little setup of your own. By doing this, you will be your boss and have an additional stream of income. However, you may find managing a business on your own and a job challenging. In such a case, you can partner up with a colleague or two of your own. This can lead to your business’s success as you will already be familiar with working with your colleagues, meaning fewer chances of a clash.

Conclusion

As human beings, we possess an inherent curiosity to acquire knowledge and expand our horizons. Our personal and professional growth and development are heavily influenced by the people in our lives – whether they be family, friends, colleagues, or acquaintances. We must recognize these individuals’ impact on us and take advantage of the opportunities to learn and progress together. We can all reach our full potential and lead fulfilling lives by cultivating a supportive environment that encourages continuous learning and development.

I truly believe that we can benefit greatly from our colleagues’ experiences and their approach to managing household finances. The insightful five points mentioned above provide valuable guidance in effectively managing our income and expenses. With a little bit of effort and the right mindset, we can make our lives easier and less stressful. Let’s take inspiration from our peers and work towards a financially stable future.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Every project kicks off or begins with a research design—a comprehensive plan that describes why the research is being conducted, what it is meant to drive or answer, and look for specific details or material required for contributing to the proposed field of area. Tradesmen worldwide are trying to find newer and more advanced ways to explore new areas and fields through innovative technology and methods. Gone are those days when manual measuring and monitoring were utilized to establish and record the ground facts. Now, technology is mostly being integrated into the processes, especially for gathering field data for knowing the facts from the field.

Growing Use of Technology & Advanced Tools and Techniques

Gathering field data is no joke. Since it is a complicated process that may extend over a certain period, it requires many resources such as time, money, efforts, and energy in establishing actual ground facts. Project managers and their on-site teams who initially used to record data on a piece of paper are now doing it on their cell phones, tablets, and superior custom data apps. This indicates that the growing use of technology for developing on-site plans has made things easier and more convenient than ever for everyone involved in the complicated data collection process.

Project Managers and Their On-Site Data Collection Teams Have to Be Smart

Tradesmen typically hire professional project managers who establish on-site teams that collect and record critical data for further processing. They normally have superior on-site knowledge, skills, experience, and expertise in handling complicated matters related to gathering field data. It wouldn’t be wrong to say that the project manager can either make or break your business game.

So, you must always hire project managers for your project who are credible enough to be trusted with your core project. A trusted partner can make things go in your favor and create a favorable situation for you to reach your business objectives, goals, and strategic objectives. This indicates that the project manager can decide your project’s fate, the better or more skilled the project manager is, the higher the results or intended outcomes are.

Here are two methods that will help tradesmen in gathering field data.

Mobile Devices

The internet has turned the world into a global village. Almost everyone in the entire world is connected through this life-changing invention. Since its inception, the internet has made things easier for every user and provided unlimited opportunities to those looking to earn something for themselves. When it comes to data collection, mobile devices play a predominant role in acquiring, recording, and processing data for further use. Since it requires no substantial hardware investment and almost everyone owns a smartphone, gathering field data and processing and sharing it further down the line has become easier than ever. Once data is recorded, people can monitor and analyze data in real-time, which will save time, money, and energy to an unimaginable extent.

Drones

The growing use of drones for on-site data collection bears testimony that project managers and their on-site teams have established the trust in collecting critical data from the fields through smart or innovative tools and gadgets like drones. They get to know the exact status of difficult terrains that are hard to accomplish on foot. Although drone technology requires hardware investment, trust that such an asset for gathering field data always pays off in the business establishment’s long run. Plus, it can be outsourced, which means it doesn’t necessarily have to cost you a lot. You have to play smart to get things right—the first time. However, most businesses still use images, video, and GPS to gather data as they are more trusted, and people have more developed, long-term faith in them.

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.

Debt is the capital a businessman borrows from an outside source and agrees to return within a particular period and the specific proportion of interest. The debt has a very negative impact on the business, but as a matter of fact, most startup businesses have to borrow finances to begin operation. Even well-established business setups have taken debts. The most common source of debt is banks, other companies, friends, and family. The term “Leverage” is also used for debt.

Companies need to lend money while making massive purchases like equipment and heavy machinery etc. Debt is the real killer for a company. It is a tiger that will eat your company one day if you do not get rid of debts. Your company’s reputation is ruined, suppliers don’t supply you on credit, you may not be able to offer salary increments, bonuses, and insurance. You can have an overall drastic effect on business finances.

Here are a few strategies to get out of these debts.

Free Cash by Cutting Down Unnecessary Costs:

Identify the areas where you are spending unnecessarily and from where you are digging your company into debts. Know the cost of raw material, labor, rent, etc. and how even a single penny can be saved. Cut down expenses by collecting credit from customers as soon as possible, by renting an office at minimum cost, using simple office furniture and phones, etc. The company’s equipment not in use should be sold out. Similarly, scrap should also be sold out instead of dumping.

Analyze whether hiring one individual on more salary is beneficial than giving benefits to two employees.

Re-Examine Your Budgets

An increase in debts means that a company’s budget is ineffective. Reassess your budget and adjust accordingly. Revenue should be more than fixed costs, i.e., utility bills and rent, etc. in the budget. After allocating money to variable costs like manufacturing, etc., allocate a fixed portion of the budget to pay debts to avoid the piling up of loans. Have a detailed discussion on monthly transactions. Bookkeeping will help you to review loss, profit, purchases, and sales.

Manage and Monitor Your Inventory Effectively

Inventory is one of the major elements where a company is spending too much. A few inventory tips should be adopted. Only necessary purchase items. Heavy equipment that can be borrowed on rent should never be purchased. Dead or excess inventory should be avoided. Dead items should be sold out or returned to the supplier, if possible.

Check Interest Rates on Credit Cards

Interest fees on credit cards are a major expense for companies. It would be best if you talked to your credit card issuing authority about low-interest rates. If you are an old customer and pay on time, then a credit card issuer may agree upon fewer rates.

Increase Revenue

Efforts should be made to increase the revenue of the company. Revenue can be increased by using strategies to enhance productivity. These strategies may include capacity building and skill development of staff by training and knowledge, introducing new technologies, new marketing strategies to enhance sales, etc. Profits will be improved, which may be used to pay off debts.

Consolidate Your Debt:

This is one of the quickest ways to minimize interest rates. Instead of paying various loans with different interest rates, consolidate them into one loan with less interest. This will reduce the monthly expenses on loans without affecting credits.

Bring In an Investor:

The investor is not a good option, generally because you have to sacrifice a portion of your future profits. But if you are sinking into debts, then look for an investor to support your business financially.

Conclusion

It is not possible to get out of debt without adopting the strategies mentioned earlier. Debt is a threat to your company, and your company needs to get rid of debts as soon as possible.

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

Accounting is key for small business owners; however, it can be overwhelming and stressful. The easiest way to manage business finances is to utilize the tools available in the market. Accounting software is available that helps you manage cash flow, generates invoices, has an audit-ready business, and makes preparations for tax time. These tools make handling your small business customers and expenses more efficiently.

The following are the eight top-rated small business accounting tools used to manage your finances and bookkeeping functions in the business.

QuickBooks Online

QuickBooks is a bookkeeping and small business accounting tool used to handle accounting operations. QuickBooks is developed and marketed by Intuit. QuickBooks is used to:

• Generate invoices with the logo of your company and with all details required by your customers
• Process payrolls according to HR policies
• Manage all business transactions, including bills from suppliers and vendors
• Manage your inventory
• Track expenses

QuickBooks can be accessed from your laptop from anywhere you want. QuickBooks is used by small business owners to simplify accounting operations and manage finances in a short amount of time. It is affordable and easy to use software that can quickly be learned and used by small business owners with no financial background.

Freshbooks

Freshbooks is a well-known software used by small business owners, freelancers, and entrepreneurial agencies to handle accounting processes. It is a user-friendly tool and is preferable for a service provider.

The following are the features of Freshbooks:

• Generating invoices
• Managing expenses
• Accepting payments from customers
• Generating automatic reminders for payments
• Managing clients of each project with pricing
• Stellar customer services

Xero

Xero is an excellent software with a wide range of small business accounting tools. It is a good choice for online product sales.  Xero is used for:

• Bookkeeping
• Paperless management of expenses
• Payment in 160 or more currencies with the ability to convert and update exchange rates automatically
• Generating invoices and quotations
• Tracking and managing inventory
• Generating purchase orders
• Automatic reconciliation of accounts
• A dashboard with bank balances, expenses, and invoices
• Customized reports required by the small business
• Monitoring cash flow in real-time
• Graphical presentation of data
• Data can be shared and accessible to accountant and others
• Generating customized notifications and reminders to customers
• Scheduling of Payments and returns

Zoho Books

Zoho Books is a good choice for both a product seller and service provider because of having CRM and time-tracking features. Bookkeeping is also available in Zoho Books.

Xporter Data Export Tool

Xporter isn’t specifically an accounting tool. It is used to export stored data to an Excel file. Any required reports can be generated and automatically emailed to desired contacts.

SimplyCost

SimplyCost is an economical and straightforward Shopify app used to create profit reports. It tells you the actual profit you are gaining from the sale of a product. It also keeps track of the worth of inventory.

Profiteer

Profiteer is an app to track the cost of goods sold and variants. It can export a CSV report of the total value of inventory and profits. This app also caters to currency fluctuations, and an accurate report of profit is generated for a specific period.

GoDaddy

GoDaddy is also economical and straightforward to use. Mobile access and time tracking are present. But the payroll option is missing. It estimates quarterly taxes. Live support is also present in this small business accounting tool.

Connector apps are used to connect and integrate accounting software. By integration apps, data can be transferred automatically from one application to another and other partners. This is a time saving and easy to use application and used to export all kinds of data related to tax matters, customers, and expenses on a single click.

These connector applications are for:

• Xero
• QuickBooks
• Zapier
• OneSaaS

Conclusion

While purchasing accounting software, detailed homework of your business needs should be done. Invest wisely in buying a small business accounting tool according to the nature and volume of your business. The more specific business requirements also require efficient and effective accounting software to manage finances and bookkeeping in the business.

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.