The Rise of Social Marketing: A Game Changer in Business Success

The advent of social marketing has marked a revolutionary shift in the dynamic world of business. This exciting journey from traditional advertising to the interactive realm of social media platforms has transformed how businesses connect with their audience. Let’s embark on an enthralling ride through the development and growth of social marketing and its pivotal role in business success. Plus, don’t miss out on the bonus section featuring the top ten social marketing mistakes and how to sidestep them!

The Evolution of Social Marketing

Social marketing emerged in the early 2000s, with platforms like Myspace and LinkedIn laying the groundwork. However, it was the launch of Facebook in 2004 and Twitter in 2006 that turbocharged its growth. Businesses soon realized that these platforms offered a treasure trove of opportunities to engage directly with consumers. The landscape continued to evolve with the advent of Instagram, Snapchat, and TikTok, each adding new dimensions to social marketing with their unique features.

This growth wasn’t just quantitative but qualitative. Initially, businesses used social media for broad, untargeted advertising. Today, they leverage advanced analytics and targeted advertising to reach specific demographics, track engagement, and measure the success of their campaigns in real time.

The Role of Social Marketing in Business Success

Enhanced customer engagement

Social marketing has shifted the paradigm from monologue to dialogue. Brands can now interact with consumers in real-time, fostering a sense of connection and loyalty.

Increased brand visibility

With billions active on social media daily, a strong social media presence boosts brand visibility exponentially, breaking geographical barriers.

Cost-effective marketing

Compared to traditional advertising, social marketing offers a more affordable way to reach a targeted audience, making it a boon for small businesses and startups.

Valuable insights and feedback

Direct interaction with customers provides invaluable insights into consumer preferences and feedback, enabling businesses to tailor their offerings.

Viral potential

Content on social media can go viral, offering the potential for exponential exposure and brand awareness at minimal cost.

Top Ten Social Marketing Mistakes and How to Avoid Them

Undefined goals

Jumping into social marketing without clear objectives is like sailing without a compass.
Solution: Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals.

Ignoring the target audience

Not all platforms suit every demographic.
Solution: Research where your target audience spends their time and focus your efforts there.

One-size-fits-all content

Different platforms cater to different content preferences. 
Solution: Tailor your content to fit the unique style and audience of each platform.

Neglecting engagement

Social media is a two-way street.
Solution: Actively respond to comments, messages, and mentions to foster community and loyalty.

Over-promotion

Bombarding followers with sales pitches can lead to unfollows.
Solution: Adopt the 80/20 rule – 80% informative, entertaining, or engaging content and 20% promotional.

Inconsistency

Sporadic posting can erode your brand’s presence.
Solution: Develop a content calendar to maintain a consistent posting schedule.

Ignoring analytics

Analytics provide a goldmine of insights. 
Solution: Review your analytics regularly to understand what works and adjust your strategy accordingly.

Failing to adapt

Social media trends and algorithms evolve rapidly.
Solution: Stay informed and be ready to pivot your strategy to stay relevant.

Undervaluing visual content

Visuals are key to engagement on social media.
Solution: Invest in high-quality images, videos, and infographics to grab attention.

Neglecting crisis management

Negative feedback or a social media blunder can escalate quickly.
Solution: Have a crisis management plan in place to respond swiftly and appropriately.

In Conclusion

The development and growth of social marketing have revolutionized the way businesses interact with their audience, offering unparalleled opportunities for engagement, visibility, and growth. By understanding its role in business success and steering clear of common pitfalls, organizations can harness the power of social marketing to reach new heights. Remember, in the fast-paced world of social media, flexibility, creativity, and engagement are key to standing out and building lasting connections with your audience. Happy marketing!

The percentage of employees in a workforce that leave during a specific period is known as the company’s turnover rate or organization. This is mostly calculated during a fiscal or calendar year. Every business, large or small, has to keep everything in check. This post will enable you to work through your turnover rate effectively.

Both voluntary and involuntary employee information, including retirements, resignations, dismissals, and layoffs, fall under turnover. Turnover rates affect profitability rates and define staff morale. Redesigning the human resource planning process is required when the turnover rate is higher than the relative industry average. Calculate the turnover rate on an annual basis by determining the yearly separations and the average monthly employment.

Turnovers are expensive because you have to recruit and train new employees. According to The Wall Street Journal, strategies for reducing turnover include hiring the right people from the start, setting competitive salaries and benefits, fostering positive environments, recognizing accomplishments, and providing clear career paths.

Ways for Calculating the Average Turnover Rate Annually

1. Adding up the monthly employment for the previous 12 months and dividing it by 12 to calculate the average monthly employment. The monthly employment could be the average number of payrolls that have been deposited every month. If your employees are paid twice a month, add the total number of deposits for each payroll and divide it by two to get the average employment for a particular month.
   
   
2. Determining the total number of separations for the preceding 12 month period. You can add up the partitions for an accounting period, a quarter, for example, and project the year’s total. However, this may distort the numbers because of the variations in seasonal employment and layoffs.
   
   
3. The calculating ratio of the total number of separations to the average monthly employment for the preceding 12-month period is expressed as a percentage.

Rules you Should Follow when Calculating your Turnover Rates

• Know your Cost of Turnover

The initial step to understanding the cost of employee turnover is determining your total annual value for an employee. Take your employees’ annual wages and add 30% to include benefits and payrolls. Multiply the number by 25%, consisting of the hiring costs, orientation and training costs, uniforms, benefit set up, administration, wages, etc.

• Budget for Turnover

The turnover rate or the percentage of your employees that you lose in a year is a significant number to know. This number is needed as a benchmark, especially if you are an owner/manager. To calculate your turnover rate, take the number of employees who have left in the year (for whichever reason) and divide by the average number of employees. Your result is your turnover rate. The main reasons that employees leave any organization are:

• Low compensation
• The lower perceived amount of job security or room for advancement
• Lack of proper training
• Poor leadership or management
• Bad hire
• Not enough benefits

Your people are the most significant advantage that you have over all other competing organizations working in the same industry as you.

• Offering the Best Benefits and Compensation in your Market

Often, small-scale businesses like retail stores have a limited financial budget due to which they complain that they cannot afford to pay more to their employees. This is a very negative point for any business, and you cannot afford not to pay the maximum amount of money possible to your employees.

Offering the best compensation and benefits is compulsory and very critical to hire effective employees. Charge the correct selling price in your business and determine what the best compensation price is. When you offer a high rate of your product or service, customers expect better services, which positively affects any business. The bottom line is that the market doesn’t have to determine the pricing you set.

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.

Time is money. This is what every successful business owner and professional knows and practices to make the most of their time. For start-up entrepreneurs, “Time Management” is how you choose to use your time to maximize your productivity in achieving your specific business start-up goals.

Just as bookkeeping is mandatory in making and maintaining financial records, effective time management is also crucial for entrepreneurs to achieve their business goals. They are ultimately responsible for every aspect of their company. They have to allocate the right amount of time to the right business tasks to keep their organization running smoothly. Here are fifteen excellent time management tips for start-up entrepreneurs.

1. Set Goals the Right Way

Begin with verifying your start-up goals and set them the right way. Setting your goals in the right way will help you stay focused on them and eliminate hindrances as much as possible. On the contrary, goal setting in the wrong way will lack the proper targets, eventually forcing you to fall off the track. Make the most of the SMART goal setting method. SMART is an acronym for S-Specific, M-Measurable, A-Attainable, R-Relevant, T-Time Bound. Make sure your goals are powerful and meaningful enough to push you to achieve them.

2. Prioritize and Delegate

Prioritizing your personal and professional goals and delegating your routine activities to a reliable and capable person is among the most important of all time management tips. This also ensures reduced stress and outstanding productivity.

3. Find a Great Time Management System

Depending on your choice, organizational culture, and start-up goals, find a sound time management system that you can accomplish most effectively. Many entrepreneurial enthusiasts find that Covey’s quadrant time-management system is the most suitable and effective.  This identifies your goals into urgent, non-urgent, critical, and non-critical categories.

4. Audit your Time for a Week Straight

Spend an entire week consistently straight, to assess how you use your time that you have right now. Monitor your activities, record them in a journal or on your cellphone app, split up the activities’ duration into blocks of one or half an hour, and analyze how you worked, used your time, and wasted time. At the end of your seventh day, tally up all the numbers. Thereby, you will know areas for improvement.

5. Work on MITs in the Morning

Always focus on your start-up goals and begin your day by working on your most important tasks (MITs). Achieving them will render you the most significant motivation and momentum to stick with your work.

6. Follow the 80-20 Rule

The 80-20 rule is another essential time management tip that states that 80% of your efforts come from 20% of your results. When working on your sales start-up goals, it means that 80% of your sales come from 20% of your clients. Consequently, identifying that 20 % of your efforts will generate 80% of the results. With accurate tracking and analysis, you can scale that out to work smartly.

7. Adopt Good Habits

All good habits, such as self-discipline, self-initiative, efficiency, accuracy, teamwork, and office etiquette, serve as excellent time management tips to manifest your start-up goals. Thus, practice them and continuously improve on your areas of weakness.

8. Eliminate Bad Habits

Our bad habits are our biggest time-wasters. These habits can include procrastination, lying, negativity, tardiness, poor communication, social media addiction, bad body language, inattentiveness, inefficiency, and temper tantrums. Thus, try eliminating them as much as you can.

9. Take Frequent Breaks

Breaks are essential to relax your body and recharge your mind. Keeping your physical, mental, and emotional state at peak levels by taking at least 10 minutes of a break in an hour is essential for management tips.

10. Exercise and Meditate

Daily meditation and physical exercise are a great way to maintain a physical and mental balance that render efficient performance. Thus, practice them in the morning or evening at your convenience.

11. Make To-Do Lists

Making a to-do list every evening for the next day is an excellent way to stay effective and efficient throughout the day. Also, it helps you stay consistent and closer to your start-up goal realization.

12. Seek Mentorship for Guidance

Find a mentor who has excellent expertise in time management tips, have been through the similar wringer you are in, and help you fulfill your start-up goals. Good mentorship enables you to stay on track with your time and goals.

13.  Cut Down on Distractions

Clutter and disorder in your office or workplace will distract you, making you lose your time by focusing on unproductive activities. Thus, reduce such distractions by making things neat, clean, and organized.  Also, avoid checking your social media accounts during the workday.  That can wait.

14. Turn Off Unimportant Alerts

Promotional emails, subscription updates, and app alerts distract you. Therefore, turn off social media app alerts and hire an assistant, if you can, to manage your emails and other less critical tasks.  They can also update you about important emails that come through while you are working.

15.  Trust Yourself

By the day’s end, time management tips are not things that will be mastered overnight. You have to persevere. Also, be confident about yourself. With consistent practice and patience, you will learn how to manage your time effectively and achieve your start-up goals.

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.

Collecting, inspecting, and managing field data is no easy feat. It may take you days, weeks, or even months to gather field data from different sources using different means. Tradesmen usually have limited resources, which restricts them from hiring expensive teams who could accumulate field data on their behalf. However, not every business intelligence firm makes you lose a significant portion of your initial investment. Some firms can provide sufficient information to create a more comprehensive and informed decision about how you should proceed without having much to charge. Therefore, tradesmen must decide whether to collect field data independently or get help from external sources or consultants.

There is a wide range of data collection tools that are readily available online that could help you out in many ways. Although field research varies across disciplines, you will still find a relevant tool that fits your business specifications and needs. Technological advancements have certainly revolutionized every sector of the corporate world. With fast internet and superior technological tools with real-time tracking, you don’t even need to leave your office. Your associates or on-site teams can record the field data on your behalf, allowing you to inspect and analyze it in your comfort zone while sitting in your office chair.

Conducting Field Research

Being a project head, it is not your duty to record every minor detail collected. Your on-site data collection team must be intelligent and competent enough to obtain accurate results from the field. The team must be able to see, observe, and visualize things to the best of their knowledge, skills, and potential. Moreover, the team must also show a sincere commitment to the job assigned to each team member because business projections and decisions will be based on the records and data collected by the field workers. A slight error or wrong projection can be costly to the tradesman.

Field Notes

Some people say that the age of manual recording of field data is over and has mostly been taken over by smart devices, tools, and mobile applications. Although recording data manually reveals the same results, recording data digitally allows your operation manager, who may be at some remote place, to track real-time updates. When conducting research, the on-site team needs to observe and record everything accurately so that the error-free data can be processed further.

There are various methods by which a tradesman can collect field data. We have mobile devices, sensors, and drones at our fingertips regarding hardware possibilities.

Mobile or Smart Devices

Since the on-site team has to report everything from the field promptly and accurately, they find mobile or smart devices ideal for recording and processing live data. It is probably the most applied method used today for recording data. More than half of the Earth’s population has access to smartphones and devices, which means they can be accessed globally, making it ideal for multinational companies to monitor their extension projects from the head office. Since everyone possesses a smartphone, no hardware investments will be required to collect field data.

Sensors

Although sensors may not be applicable for a preferred mode of data collection, we still can’t deny their usefulness to specific industries like the weather forecasting industry and others. For continuous data collection, sensors are considered ideal for recording, inspecting, analyzing, and deciding what to do with the record. Sensors are costly as they require hardware, software, and infrastructure investments in and around them.

Drones

Using drones to collect field data is also a growing trend in many industries, such as mining, military, forestry, and exploration. Drones give you a bird’s eye, which can help you understand the place’s geography well. They can even go in and around those areas that are hard to travel to on foot. Buying drones is a one-time investment, but you can also hire professional drone players to collect essential field data.

Conclusion 

In conclusion, navigating the challenges of field data collection demands strategic decisions by tradesmen. Balancing limited resources and exploring digital tools, sensors, and drones can enhance efficiency. Whether opting for independent data collection or seeking external support, smart choices ensure accurate insights for informed business decisions. The era of manual recording has evolved into a digital age, offering real-time tracking and global accessibility through mobile devices. The competency of on-site teams is crucial, as accurate field notes lay the foundation for precise data processing. Embracing technological advancements, from sensors to drones, allows tradesmen to revolutionize their approach, ensuring a cost-effective and seamless data collection journey.

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.

Do you find the activity of sorting out your daily, weekly, and monthly finances tedious, time-consuming, or even overwhelming? At the same time, do you want to stay updated with your finances and achieve your financial goals? If so, then making it possible is now easier with accurate results! Personal finance smartphone apps are a great way to manage your money smartly and improve your financial outlook. Consider one of these six great personal finance apps for your daily and periodic spending, saving, and budgeting.

Mint

Mint is your all-in-one resource and the most popular budgeting app from Intuit to manage your money. You can sync your bank accounts, credit cards as well as monthly bills to your Mint account. It not only keeps track of your investment portfolio but also flags unimportant fees. It automatically categorizes your monthly spending into many appropriate categories and analyzes your average monthly expenditures for each month, which then becomes your budget. If you are overspending, it alerts you to reduce the spending manually. The on-the-go charts and graphs generated make it easier to know where you stand currently. Also, you receive notifications if your bills are coming up and to go over your current budget.

Penny

Penny is an Artificially Intelligent (AI) chat box that can text you regarding your present finances. Upon linking your appropriate accounts, it can answer your specific money questions. For individual responses, it includes simple graphs, charts, and even occasional gifs. You can use only pre-populated messages, such as ‘Breakdown for category’ and ‘Thanks, Penny!’. It also provides crucial information such as your daily spending, updates of upcoming bills, and what subscriptions are increasing their rates. It ensures minimal clutter as it is merely a long text thread, showing you only that you ask.

Level Money

Capital One’s The Level Money℠ is a leading smartphone personal finance app that helps you spend with confidence, manage your money, save more, and realize your financial balance. It breaks the numbers down into mini amounts instead of taking a monthly approach to making your budget. It also allows you to quickly compare monthly spending and set-up personalized trackers to stay updated with specific types of transactions over time, such as how much goes toward groceries and Uber rides.

This innovative tool automatically analyzes your financial outlook and personalizes and translates complex financial data into easily understandable information to keep you in control, on track, and engaged with your finances. Level money seamlessly and automatically tracks your cash-flow and provides essential insights regarding saving and spending behaviors and reinforcing positive habits.

Money Box

Designed mainly for Millennials (those aged 18-35), MoneyBox aims to ease your investing habit. It rounds up your everyday purchases and puts the additional money into stocks & shares information to help you start investing. After linking the debit card of your choice with your personal Moneybox account, you have to set the amount to round up every month. It also allows you to make monthly top-ups that fuel your investment pot, thus managing your money with greater returns.

Pennies

Pennies is a great resource to manage your money, especially when you are prone to overspending. Create a one-time weekly, fortnightly, monthly, and personal payday budgets with a beginning period, holiday budget, and an end time budget with a specific amount. With a simple and user-friendly interface and several spending categories (food, health, entertainment, etc.), it demonstrates how much money assorted for each type you have left for today and the entire budget period. Consequently, any money you do not spend that day is rolled over for the next day; thus, your daily budget is recalculated. As you come closer to your spending limit, the colors of spending categories change, making it quicker and easier to see your current financial status regarding your budget design.

Money Dashboard

Money Dashboard is a great personal finance app to manage your money and an innovative tool that keeps your informed on your financial incomings and outgoings. It includes current accounts, credit cards, and savings in one place, giving you an accurate view of your finances. Since most accounts, transactions, and balances get refreshed every day, you are up-to-date with your present financial position, just at a glance and on the go.

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.

There is no hidden secret to getting rich. The theory is simple: spend less, earn/save more, and invest wisely! But, practically speaking, it is more complicated than it sounds. Spending less and saving more is no easy feat. It would help to cut your extras to have a financially secure and stable life. Most individuals and families kick-start their New Year to save and spend less, but they usually save no money. They fail to manage their money-related tasks because they don’t properly plan and budget their monthly paychecks.

Proper Planning and Financial Budgeting

How to save money is probably one of the most asked questions. People have predicted answers like budgeting your paychecks, spending less, saving more, planning wisely, etc. But little do they know saving money is much more than all of this and has its strategic significance in the financial world. We can save money and accumulate significant wealth for hard times in several ways. To save money, you can make things work in your favor and save a lot for your rainy days.

Set Your Priorities Right

Setting realistic goals and making an effective money-saving plan requires brilliant willpower and a promising start to save money. However, it is not an impossible job since there are many ways to save and spend less. An unpredictable future and uncertain medical and personal conditions are the major driving forces that trigger you to save something for hard times.

No Matter What—Save More and Spend Less

Budgeting your paycheck is the safest way to save the most from your monthly salary. To achieve your goals of spending less and saving more, you have to make a comprehensive plan by looking at present and futuristic needs. You can only do this once you know your financial equation’s exact status and how much you can spend monthly. Making a concrete plan may take a while before you can implement it properly, but once you find a perfect balance in managing your money, you can save a lot.

Saving money to meet financial insecurities is vital for securing your family’s future. Here’s how you can save more and spend less.

Record Your Expenses

The first step to saving money is knowing how much you can afford to spend in a single month and how much you need to save and contribute to your savings or retirement account. So, before making a monthly budget plan, you need to record and track your monthly financial transactions—everything from bills to buying coffee or snacks. It would help to have a clear picture of where your money is coming from and where it is going. Once you know your spending’s exact status, sketching a rough plan for the entire month will be more straightforward.

Make a Budget

Making a budget plan is one of the most challenging parts. However, this doesn’t have to be tough, especially when you clearly understand your monthly expenses. It’s been said that ‘making a budget plan is hard, and following it is even harder.’ Moreover, a budget plan serves as a blueprint for the entire month, restricting you from buying unnecessary stuff. Proper budgeting and bookkeeping help you a lot to initiate a plan to save money that indeed leads you to save and spend less.

Stop Unnecessary Shopping

Cutting your extras, especially in grocery items, will help you save a lot of money. Whatever you save for the month increases your savings account balance, which is surprisingly excellent for you and your family. It indicates that the more you save, the more stable and secure your life will be! To save and spend less, you must be careful and choosy in selecting the right items from the shelves, or you may find it extremely difficult to keep anything for the month.

Conclusion

The path to financial stability and wealth is no secret—it involves spending less, earning more, and investing wisely. While the theory is straightforward, the practical execution requires disciplined efforts. Proper planning, budgeting, and setting priorities are essential. To save and spend less, record and analyze your expenses, create a realistic budget, and resist unnecessary shopping. With a clear financial picture and strategic saving, you can build a stable future, meet your family’s needs, and secure your economic well-being.

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.

Many organizations and business owners face fraud yearly due to their employees or business partners. New entrepreneur startups and small businesses are more vulnerable. The risk of fraud has increased due to the advancement of technology. The increased awareness of technological developments and complex organizational structure requires corporations to incorporate internal anti-fraud approaches to combat fraud. According to 2014 research reports by Global Nation, organizations face a 5% loss due to fraud each year, in which internal employees commit 85% of severe fraud cases. Organizations should develop multi-layered fraud prevention strategies while keeping these statistics in view.

Organizations and businesses should do the following ten things when they suspect fraud.

Be Calm and Don’t Panic

Fraud is scary, and you will likely want to panic and react when you suspect fraud in your organization. You may terminate the fraudster on the spot or meet them head-on for confrontation. But these are harmful rather than adequate for the organization. Don’t react when you are emotional or angry. Prepare a plan, investigate, and do what benefits the organization. Make strategies and policies to handle fraud before it happens.

React Logically

It is not preferable to overreact or have no reaction at all to a suspect. If you don’t react and take it easy, the perpetrator will think they can do anything. Ignorant behavior toward fraud will worsen it, and the perpetrator commits fraud without fear of consequences. Always act when you suspect the fraud but react logically.

Be Careful

If you suspect fraud, don’t declare it until you have evidence. If you react without evidence, the fraudsters become alert. The fraudster will try to hide and destroy evidence if they know they are exposed and you keep an eye on them. After suspecting something is wrong, please don’t make it obvious. Investigate carefully. Otherwise, you will not be able to get any evidence. 

Back up Financial Data

Always maintain backup data of your organization’s financial dealings. Save on hard copies or hard drives and preserve all transactions, emails, payroll, and bookkeeping records. Perpetrators often utilize this information, primarily bookkeeping records, to commit fraud.

Rehiring

Be mindful and prepare to hire new personnel. Termination is the minimum consequence of fraud detection. Managers and executives are often so involved in fraud that filling the new position can be challenging. Prepare yourself for such challenges.

Defend Your Reputation

Fraud damages the organization’s image in front of the public, customers, partners, and donors. Try to react calmly and defend your reputation. Resume the trust of partners and customers by assuring them that the organization has taken corrective measures.

Don’t Save Money

Financial loss due to fraud is recoverable, but the reputation is not recoverable. Hire a certified fraud examiner to make policies for fraud prevention and detection. Your organization may try to save money by not hiring a certified fraud examiner but will suffer a lot after an incident of fraud. Realize that money is not everything. The thing that matters more is the hard-earned reputation, which can easily be damaged by fraud. 

Set an Example

Set an example by handling fraudsters with tight hands; otherwise, you may encourage others to commit fraud in the future. The penalties recommended after fraud are a civil lawsuit, termination, and criminal prosecution. Impose all three penalties severely, if possible. The employees will see zero tolerance for fraud in your organization and face severe consequences if they go there.

Get Help

Don’t try to handle fraud alone because it involves accounting and legal issues. Call a certified fraud examiner for help. They know where to get evidence and how to explain it to the legal system.

 Make Positive Changes

Learn from an incident of fraud and prepare the policy to detect and prevent fraud in the future.

Conclusion

Fraud in business can result in significant financial loss, wastage of time, and a ruined reputation. Fraud directly should be handled when suspected.

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

The web has catered to many needs of the modern consumer. Whether shopping for apparel or ordering a pizza, the web has revolutionized how markets and consumers think. While it has integrated into contemporary society, precautions are needed to enjoy and reap this blessing’s benefits. The cyber world can be dark, and one can easily fall prey to being a victim of privacy violations. Protect your privacy online by never giving out highly volatile and essential information like credit card details, cell numbers, and social security numbers, among many others. These may be used against your will or in malicious activities.

Here are five ways to protect your online privacy, so you can safely enjoy the World Wide Web without fear of compromising your personal data.

Never Give Out Full Information

Protect your privacy online because you never know who’s watching your profile. Rest assured, various ways exist to hide or even go invisible on many social media websites. It’s only fair to think that others would use such features if you can do it. Exposing oneself to the unknown may have consequences that would be compromising, so taking precautions is always advised. Be careful about what information you put out there. Be cautious about presenting your phone number, address, etc. You can include a phone number if you are using social media platforms to promote your business. However, never give your home address.

Social Security is Yours Alone

Some websites may ask for social security numbers, for instance, a doctor’s office, when people get official-looking emails that request them to share their number for so and so reason. Protect your privacy online, and beware. Never give out social security numbers because the cyber domain is not always secure. Being present at the doctor’s office to schedule an appointment where they ask you for the number is acceptable, but online, it is a definite “NO”! Be cautious on any site that asks for your social security number. While it may be necessary for some online business you are conducting, be wary if it does not make sense to the process.

Know Your Computer When Issuing a Transaction

Whenever undergoing or issuing a transaction, use your computer at home. You are less exposed to threats when you know the hardware is secure and that none of your vital information is shared. Protect your privacy online by using only trusted computers. Using Internet cafes for financial transactions or passing information can be compromised. The systems could have keyboard tap software that records every tap on the keyboard logged and stored in a remote location.

Use the Browser to Your Advantage

We understand that browsing the internet can leave a digital trail of your activity. To put your mind at ease, we offer a private browsing feature that will keep your online movements secure from prying eyes. We highly recommend using this tool, especially when utilizing public or shared computers. Your privacy is important to us, and we want to help you take control of it. With our private browsing feature, you can rest assured that your email and other sensitive information will remain confidential. So, go ahead and explore the internet with confidence!

Change Passwords

Changing all passwords often is strongly advised. Thus, the chances of an account being compromised would be dim. Never click yes on the operating system asking you to save your password and username on the computer, as this would allow anyone access only by clicking on “OK.”  A secure way to create a password is to use caps on the first letter, a digit, a symbol, and small letters. Protect your online privacy by always using a new password and avoid repeating it on different websites.

These five simple tips will help protect your online privacy so you can enjoy the cyber world without worrying about being compromised.

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.

Mastering Manufacturing Costs: Calculate Cost Per Unit Efficiently

Manufacturing cost per unit equals your total production costs divided by the number of units produced, combining direct materials, direct labor, and manufacturing overhead expenses. This fundamental metric drives pricing decisions, profitability analysis, and strategic planning across every manufacturing operation, from small job shops to large-scale production facilities.

I’ve spent over 20 years working with manufacturers through Complete Controller, and the companies that thrive share one common trait: they master their unit economics before their competitors do. Recent data shows manufacturers who actively optimize their cost per unit achieve 15-25% better gross margins within their first year of implementation. This article breaks down the exact strategies successful manufacturers use to calculate, track, and reduce their production costs while maintaining quality standards.

What is manufacturing cost per unit, and how do you calculate it effectively?

• Manufacturing cost per unit equals total production costs divided by units produced, including direct materials, direct labor, and overhead allocation
• Direct materials encompass raw materials and components that become part of finished products
• Direct labor covers wages and benefits for workers directly involved in production processes
• Manufacturing overhead includes indirect costs like utilities, equipment depreciation, and facility maintenance
• Accurate calculation requires systematic tracking of all cost components throughout production

Understanding the Foundation of Manufacturing Cost Analysis

Manufacturing cost analysis forms the backbone of profitable operations. The 2024 MPI Manufacturing Study found that production labor accounts for 30% of all labor costs for manufacturers, while the total cost of goods sold rose from 60% in 2020 to 67% in 2024. These shifting dynamics make accurate cost tracking essential for survival.

Successful manufacturers build comprehensive systems that capture real-time cost data across complex production environments. They recognize that outdated information leads to poor pricing decisions and missed opportunities for improvement. Modern manufacturing demands a sophisticated understanding of cost flows, particularly as material prices fluctuate and labor markets tighten.

Calculating Direct Materials Cost Per Unit

Direct materials typically represent 30-70% of total product costs. The complete formula accounts for inventory changes and waste: Direct Materials Cost = ((Beginning Inventory + Purchases – Ending Inventory) + Waste Allowance) ÷ Units Produced. This calculation captures actual consumption rather than simple purchase prices.

Material costs fluctuate constantly based on market conditions and supplier dynamics. Smart manufacturers implement weighted average costing systems that provide stability while tracking trends. They monitor utilization rates and scrap percentages to identify improvement opportunities that directly impact profitability.

Key factors affecting material costs:

• Purchase price variations and volume discounts
• Waste and scrap rates during production
• Storage and handling expenses
• Quality variations between suppliers
• Inventory carrying costs

Determining Direct Labor Costs in Unit Production

Manufacturing sector unit labor costs increased by 1.7% in Q2 2025, following a 5.3% rise in Q3 2024, creating ongoing pressure on production expenses. The accurate labor cost formula becomes: Direct Labor Cost Per Unit = (Total Labor Hours × Fully Loaded Hourly Rate) ÷ Units Produced.

Fully loaded rates include wages, payroll taxes, benefits, and training costs. Production efficiency varies significantly across shifts, products, and seasonal periods. Leading manufacturers connect labor tracking to performance management systems, creating accountability while gathering data for continuous improvement.

Labor cost optimization strategies:

• Cross-training programs to improve flexibility
• Performance incentives tied to efficiency metrics
• Automated time tracking for accurate allocation
• Regular productivity analysis by product line
• Strategic overtime management

Manufacturing Overhead and Its Impact on Unit Costs

According to McKinsey research, manufacturing overhead accounts for 8-12% of total operational costs and consumes 30-35% of workforce capacity. These indirect costs include equipment depreciation, utilities, maintenance, quality control, and supervisory labor that cannot be directly traced to specific products.

Traditional allocation methods using direct labor hours often fail in automated environments. Activity-based costing provides more accurate allocation by identifying specific cost drivers and assigning expenses based on actual consumption patterns. This precision reveals true product profitability and guides strategic decisions.

Advanced Manufacturing Pricing Strategies for Profit Optimization

Manufacturing labor productivity more than doubled from 1987 to 2011, increasing 129% compared to 71% growth in overall business sectors. This dramatic improvement helped offset rising costs but requires sophisticated pricing strategies to capture value.

Value-based pricing considers customer economics and competitive positioning alongside accurate cost information. Dynamic pricing models adapt to material fluctuations and demand variations while maintaining target margins. Even traditional cost-plus approaches benefit from strategic segmentation by customer type and volume commitments.

Pricing optimization techniques:

• Market segment analysis for differentiated pricing
• Volume-based discount structures
• Service level pricing tiers
• Competitive benchmarking programs
• Regular margin analysis by product and customer

Implementing Cost Reduction Strategies in Manufacturing Operations

Boeing’s lean manufacturing implementation achieved 50% reduction in assembly time, 41% reduction in space usage, and $1.5 billion inventory reduction. These results demonstrate the potential impact of systematic cost reduction programs focused on eliminating waste and improving efficiency.

Lean manufacturing principles provide proven frameworks for identifying improvement opportunities. Companies implementing these methodologies typically achieve 15-25% cost reductions while improving quality and delivery performance. The key lies in focusing on root causes rather than symptoms.

Cost reduction focus areas:

• Setup time reduction through SMED techniques
• Inventory optimization using pull systems
• Quality improvement to reduce rework costs
• Energy efficiency programs
• Supplier partnership development

Technology Solutions for Manufacturing Cost Management

Modern manufacturing cost management relies on integrated systems providing real-time visibility. Enterprise resource planning systems work with manufacturing execution systems to create comprehensive cost tracking capabilities. Cloud-based solutions offer particular advantages for growing companies, providing enterprise functionality without major capital investment.

Advanced analytics enable manufacturers to identify trends, predict performance, and optimize operations proactively. By analyzing historical data alongside production metrics, companies identify improvement opportunities and measure initiative impact. The most successful implementations integrate financial and production systems for automatic cost capture based on actual activities.

Final Thoughts

Mastering manufacturing cost per unit calculation separates profitable operations from those struggling to compete. Through two decades at Complete Controller, I’ve witnessed how accurate cost management transforms businesses. Success requires implementing comprehensive systems that capture accurate data and provide actionable insights for continuous improvement.

Manufacturers who invest in proper cost management consistently outperform competitors while maintaining flexibility for growth and innovation. Ready to transform your manufacturing cost management? Visit Complete Controller to discover how our specialized bookkeeping and financial management services help implement the systems needed for long-term success.

Frequently Asked Questions About Manufacturing Cost Per Unit

What is the basic formula for calculating manufacturing cost per unit?

The basic formula is: Manufacturing Cost Per Unit = (Direct Materials + Direct Labor + Manufacturing Overhead) ÷ Total Units Produced. This calculation provides the total cost to manufacture each unit of product.

How often should manufacturing companies recalculate their cost per unit?

Most manufacturers should recalculate unit costs monthly or quarterly, depending on production volume and cost volatility. Companies with rapidly changing material costs or seasonal production patterns may need more frequent calculations.

What’s the difference between direct and indirect manufacturing costs?

Direct costs can be traced directly to specific products (like raw materials and production labor), while indirect costs support production but cannot be directly traced (like utilities, equipment depreciation, and supervisory salaries).

How do volume changes affect manufacturing cost per unit?

Higher production volumes typically reduce cost per unit because fixed costs are spread across more units. However, variable costs may increase due to overtime, expediting, or less efficient resource utilization at very high volumes.

What common mistakes do manufacturers make when calculating unit costs?

Common mistakes include failing to include all overhead costs, using outdated cost information, not accounting for waste and scrap, and applying incorrect allocation methods for indirect costs.

Sources

• AccountingTools. “How to calculate cost per unit.” 21 Apr. 2025. www.accountingtools.com/articles/how-to-calculate-cost-per-unit.html
• Complete Controller. “How to Calculate Manufacturing Cost Per Unit.” 12 Sep. 2018. www.completecontroller.com/how-to-calculate-manufacturing-cost-per-unit/
• Complete Controller Client Files. “Precision Manufacturing Inc. Case Study.” 2024.
• Investopedia. “Activity-Based Costing.” www.investopedia.com/terms/a/activity-based-costing.asp
• MPI Group. “MPI 2024 Manufacturing Study.” 7 Feb. 2025. mpi-group.com/manufacturing-study/
• NetSuite. “Manufacturing Overhead Explained.” 29 May 2025. www.netsuite.com/portal/resource/articles/erp/manufacturing-overhead.shtml
• Number Analytics. “10 Real-World Lean Manufacturing Success Stories in Global Industry.” 27 Mar. 2025. www.numberanalytics.com/blog/real-world-lean-success-stories-industry
• Statista. “Manufacturing sector unit labor costs quarterly change U.S.” 12 Aug. 2025. www.statista.com/statistics/217158/quarterly-percent-change-in-the-us-manufacturing-sector-unit-labor-costs/

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. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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