Author: Jennifer Brazer

Effective collaboration is an influential pathway to success for small business expansion. Collaboration is not restricted to any specific type of business, and any business owner can leverage the advantages of collaborating with other business owners. Entrepreneurs come together, collaborate, and grow their businesses collectively, taking their ventures to the next level.

Inexperienced entrepreneurs might not know the benefits of collaboration. Typically, they want to grow their business independently, with no external input.

Reasons to Collaborate with Other Businesses to Grow

• Collaboration can bring about new ideas and innovative techniques that can help businesses improve. Many entrepreneurs, however, tend to overlook the importance of seeking out new strategies and setting better goals amidst the everyday struggles of running their businesses. They often shy away from trying new things and are reluctant to use unfamiliar tools. While reading blogs and staying updated with the latest news and trends can be helpful, it is only useful if it is put into practice. Regular meetings, collaboration, and sharing experiences among entrepreneurs can lead to the discovery of new techniques and tools that can help small businesses grow.
• Expanding your business network is a crucial factor for business growth. Small business owners typically have a limited client base, but by building your network, you can make new contacts and develop alliances for collaboration building. Though not every collaboration may result in a vast network of contacts, it is a way to continue expanding your network of clients and colleagues.
  
• Collaboration plays a crucial role in the learning process. Most businesses start small and grow into medium-sized or large corporations by using proper resources, funding, business bookkeeping, and accounting management, and making the right decisions at the right time and in the right direction. When businesses collaborate, everyone involved has the opportunity to learn from each other’s experiences. Business owners can apply their techniques, experiences, and learning to their individual businesses, and through collaboration, new opportunities for learning arise in business dealings.
• In many collaborations, expenses are split among firms, the work is sometimes divided, and there is an intellectual contribution from all parties. If a business collaborates with another company for the marketing or promotion of services point of view, revenue can be increased using fewer resources and at reduced costs.
• Any business can face difficulties. Through collaborations, entrepreneurs can utilize other business holders’ expertise and experience to overcome their challenges in business.
• New marketing strategies can be used for business growth. After the collaboration, other companies’ experience is considered for making any business decisions.
• If ever we face problems, we need someone to rely on. In business, too, many problems can be solved by collaborating with other companies.
• Clients can be referred to other firms with whom there is collaboration in business.
• Collaboration is good for entrepreneurs if they are told to use collaboration tools. They must understand when and how collaboration is essential to their small business growth and survival.
• Small business collaboration can be among two entities that offer related products or services.
• During collaborations with businesses, proper agreements are made and signed.

Conclusion

Collaboration is one of the best tools to be used by small to medium-sized business owners to grow their businesses together. Collaboration is a valuable tool for small business growth. Collaboration brings new inspiration for entrepreneurs. Sharing experiences and knowledge among firms who have built the alliance paves the way to a successful business. Small business growth requires collaboration, as small companies do not have considerable capital to manage all expenses internally and hire a huge staff. The collaboration brings knowledge, experience, learning, and motivation for all the business dealers. It can be made possible when all of the participants in collaboration are equally interested in positive outcomes for their businesses.

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.

Entrepreneurship is a dynamic world where small and medium-sized enterprises (SMEs) are constantly on the move. Knowledge of liquidity and its management is vital for SMEs to thrive. Liquidity is more than a financial term; it’s the foundation for a business’s survival, stability, and triumph. In bookkeeping, liquidity refers to a company’s ability to pay off immediate debts. Entrepreneurs must understand the significance of liquidity to secure their business’s longevity and prosperity.

Liquidity Unveiled

At its core, liquidity refers to how easily assets can be converted into cash without affecting their market value. In bookkeeping, it’s the mirror reflecting a company’s ability to meet its short-term obligations, such as paying suppliers, employees, and other immediate expenses. This concept is often encapsulated in various financial ratios, with the most notable being the Current Ratio (current assets divided by current liabilities) and the Quick Ratio (also known as the acid-test ratio, which factors in only those assets that can be quickly converted into cash).

The Importance of Ideal Liquidity

For entrepreneurs, especially those steering the helm of SMEs, understanding and maintaining the ideal liquidity ratio is not just important—it’s imperative. Here’s why:

Ensuring operational efficiency

Adequate liquidity means that a business can meet its short-term obligations without a hitch. This seamless operation fosters trust among suppliers, employees, and customers, contributing to a positive business reputation.

Safeguarding against financial crises

Markets are unpredictable. A business with a healthy liquidity buffer can weather financial downturns more easily, avoiding forced asset sales or excessive borrowing.

Facilitating growth opportunities

Sometimes, opportunities knock unexpectedly. Having readily available cash allows businesses to take advantage of these opportunities, be it a lucrative investment or an advantageous purchase.

Achieving the Ideal Liquidity: Strategies for SMEs

Maintaining the ideal liquidity ratio is a balancing act. Too much liquidity might mean that assets are not being utilized to their full potential, while too little could spell trouble in meeting immediate financial obligations. Here are actionable strategies to ensure ideal liquidity:

Efficient inventory management

Inventory often represents a significant portion of a company’s assets. Efficient management, through just-in-time (JIT) inventory systems or demand forecasting, ensures that capital is not tied up unnecessarily.

Receivables management

 Implementing strict credit control policies and prompt collection strategies can accelerate cash inflows, improving liquidity.

Flexible financing options

Access to lines of credit or arranging for overdraft protections with banks can provide a safety net when cash flows are tight.

Cash flow forecasting

Regularly forecasting cash flows helps anticipate and plan for periods of high expenditure or low income, allowing for adjustments in activities or financing to maintain liquidity.

Statistics and Facts: The Proof in the Pudding

The significance of liquidity is more than just theoretical. A U.S. Bank study found that 82% of businesses fail due to poor cash flow management. Moreover, a QuickBooks report revealed that while 69% of small business owners are kept up at night by concerns over cash flow, those who actively plan for cash flow contingencies are 2.5 times more likely to grow their businesses successfully. These statistics underscore the critical nature of liquidity management for the survival and growth of SMEs.

Conclusion

Understanding and managing liquidity is non-negotiable for entrepreneurs navigating the complex landscape of SMEs. It’s the safeguard against uncertainties, the enabler of smooth operations, and the catalyst for seizing growth opportunities. By embracing efficient inventory and receivables management, ensuring access to flexible financing, and employing meticulous cash flow forecasting, businesses can strike the perfect balance in their liquidity ratios. Remember, in the dynamic realm of business, liquidity isn’t just about surviving the present; it’s about securing a prosperous 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.

Upholding your credit score is the most treasured investment you can make in your financial career. Your credit score will govern whether you are entitled to a student loan, auto loan, mortgage, or business loan. Your credit score is also imperative when applying for insurance, loans, rent, or even a cell phone. The utility of having good credit is seen everywhere, and you will notice it. However, specific measures must be undertaken by an individual or business to improve your credit score.

Track Credit Reports for Precision

Because every creditor links the risk of granting a loan with your credit score, it is vital to check it constantly. Credit reports are engendered for everyone and are widely used to measure financial risk. Three major credit bureaus maintain separate reports for individuals as well as businesses. There is a possibility that each bureau records your credit score, so there might be slight differences. Therefore, checking your credit reports once every few months is suggested to take appropriate measures to improve your score.

Cultivate a Healthy Financial Track Record

Everyone has a financial history and a specific credit score assigned to their name. However, you must institute a healthy and responsible financial track record to develop that. Suppose you have paid off your preceding overheads in time or sustained an old credit card account. In that case, it will add up to improve your credit significantly. Keeping older credit card accounts open is a great way to improve your credit score. It demonstrates financial discipline on your behalf. Also, if you have made regular payments on your credit card, you will be surprised to see your current credit score.

Do Not Open Multiple Credit Cards at One Time

The best way to keep a healthy credit score is to maintain a steady and unwavering financial record without many disparities. Opening or closing multiple credit cards or other accounts simultaneously may result in a hard inquiry on your credit report. Credit bureaus consider this behavior risky and unnatural and would negatively influence your credit score.

Pay Bills and Debt On Time 

Paying off bills in due time is a chief influencer in maintaining a healthy credit score. All categories of utility bills, loan payments, credit payments, and other expenses make up your bill. Fresh payments are weighted more on your credit report. Therefore, even if you have defaulted on past payments, they can be overridden by making current payments on time.
Do not miss a full payment because it can stay on your credit report for up to 7 years. Pay whatever you have now; the rest can be taken care of later. Register for an automatic payment plan with your service provider to improve your credit score and avert missing payments. There are also certain inducements for students to enroll in auto payments by charging a low interest on the balance.

Leave Old Debt on Your Report

Some people believe that old debt on their credit report is bad. As soon as they pay off the debt, they quickly try to remove it from their credit report. Though negative items are stains on a credit report and will automatically get removed after seven years, it might not be a good idea to remove them so soon.
The debt that you have appropriately handled and paid off in full is good debt. This is good for your credit score in the long run. Good debt that has a long history on your report will significantly improve your credit score. Leaving old debt and good accounts on as long as possible is a great way to turn something negative into something positive. Old accounts with a solid repayment order should also not be closed for the same reason.

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.

Cash flow is a lifeline of any business and will be affected if you have not devised a plan for controlling credit. Your debt will eventually turn into bad debt, increasing interest, marginalizing profits, and eventually leading to business closure. Yet, in many businesses, credit is the fact of the matter, and by denying credit, you lose potential customers. By following a few simple measures, you can keep track of your credit, lowering the risk of uncollected payments.

If you are in the manufacturing, wholesale, service, or retail business, and it is indispensable to offer your customers credit, there must be a policy to limit credit losses.

Steps to Controlling Credit

Research the client

We believe that conducting thorough research is key before extending credit to any client. This ensures that we can maintain our high standards and reputation. To make the process as smooth as possible, we kindly request that the client fill out a credit application, which highlights vital information such as the requested credit amount, who can access credit, the credit arbitrator, and other relevant details. We will then carefully analyze all of this information in accordance with our controlling credit policies. Based on our assessment, we will make a confident, thoughtful decision about whether to approve or reject the credit request. Thank you for understanding our commitment to responsible lending!

Approve and invoice promptly

Once credit has been approved for a client, you should not wait. Generate your invoices promptly, along with a credit approval letter. The letter should state all terms and conditions, including due dates, interest, credit amount, and other primary details. This is crucial to ensure prompt payments, as the client must know these critical details in advance.

Maintain updated records

One of the recipes for efficient credit management is to preserve precise and current records. The aging of debtors, which includes the time it will take to pay off the debt, should always be available. If a client has been given special consideration in return for early payments, they must be kept separate for future reference. The way you perform your bookkeeping functions will have a significant impact on the management of your records. Therefore, always use professional services if you are in doubt about your ability to keep everything updated.

Defaulted payments

When running a business, some of your credit offerings will probably default as you are trading with diverse clients. Don’t panic, as this is normal in companies that deal with credit. Nevertheless, you are still required to formulate a policy that will accommodate all concerns related to outstanding payments. Typically, a phone call to your client will solve the issue. However, if that doesn’t work, you need to have a backup plan. Just like offering discounts for early payments, late payments should be met with fines or penalties so that the borrower will make a real effort to make the payment on time. Controlling credit requires you to set your penalties at an optimum level so that it does not lose customers or money.

Talk to the right people

In every business, some people are responsible for making decisions and setting the direction. When dealing with other companies, it is crucial to ensure that you are in contact with the right person who has the authority to make decisions. You should avoid making credit deals with low-level employees who do not have much say in decision-making. To prevent such scenarios, it is recommended to hold at least one face-to-face meeting with the client to confirm who you are dealing with. This should be a part of your credit control policy to ensure that credit is only offered to authorized personnel.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

As a business owner, understanding the cost of goods sold is crucial. By figuring out the value of inventory sold and items remaining, you’ll have the information necessary for tax returns and reducing your business income. With a positive outlook, you can increase the cost of goods sold within legal limits to save money on taxes. This process is universal for all businesses and is a great way to optimize your finances. I’m excited to share this knowledge with you because it can make a huge difference in your bottom line. Let’s work together to make sure you’re getting the most out of your business.

How to Calculate the Cost of Goods Sold

• Gather the information needed for this calculation. You will need to know the valuation method, beginning and ending inventory, and the cost of labor and purchases.
• It would help if you were doing the calculation, starting with the beginning inventory, adding in the cost of materials, labor, and other expenses during the end, and finally calculating the ending inventory.

Calculating the cost of goods sold accurately is vital for businesses, as it determines the tax deductions they can claim. By including this value, businesses can avoid inflated income and higher taxes. This is why tax returns rely heavily on the precise determination of product costs. Rest assured, with careful consideration and attention to detail, businesses can confidently claim the deductions they deserve. Let’s work together to ensure your business thrives!

Consider the Following Information

• Valuation Method: Designate whether inventory is valued equally to the cost of the market, lower than the cost of the market, or other. If you use the cash accounting method, ensure you value inventory at cost. Ensure that your tax preparer is constantly checked, especially if you have changed your method of determining quantities, values, or expenses. It would help if you included any changes to make the tax preparer and your employees aware.
• Beginning Inventory: This is the total cost of all products in your inventory at the beginning of any year. Most of the time, this should be the same as the inventory at the end of the year. If it is not the same, you must explain.
• Cost of Purchasing: You should be able to get a total of all the products you purchased during the year and those you placed in the inventory to sell. You should subtract any products that you took out for your personal use. If you are a manufacturer, you must include the total cost of all the raw materials and parts you purchased during that year. It does not matter if they were assembled or not.
• Cost of Labor: This is the cost of your business employees who directly make products from raw materials and parts. It does not include expenses for administrators or employees in sales, marketing, finance, or other business areas.
• Costs of Materials and Supplies: These costs should directly concern making the product.
• Other Costs: These include your shipping costs, freight-in on materials and supplies, and the overhead expenses for rent, heat, light, etc., for the area where the products are being manufactured, produced, or assembled.
• Ending Inventory: Calculate and determine the total value of all inventory items at the end of the year.

You need everything to calculate the cost of goods sold using a tax software program or to give to the tax preparer you have employed. Always ensure you can provide records verifying the costs of goods sold.

Summary of How to Calculate the Cost of Goods Sold

• Add up beginning inventory, purchases, and all the other costs.
• Getting costs of the goods sold.
• Subtract the inventory at the end of the year.

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.

Almost every type of business considers a business loan sooner or later to meet their unique financial needs. People you have hired to take care of bookkeeping for your business will often suggest applying for business loans instead of reinvesting your money. There are several reasons why you should consider business loans. However, not all companies can obtain financing from banks and other options.

Whether you want to expand, hire new talent, or build up your inventory, a loan will help you manage it. However, if you are not convinced to take this leap while not having enough capital to meet your business’s financial demands on your own – here are six smart reasons why you, as a business owner, should consider business loans.

You are in Favor of Expanding Your Location

Sometimes, businesses must grow and expand to succeed and overtake their competitors. The old saying ‘you have to spend money to make money’ applies here whether you are a small business or a start-up. You might have to set up a kitchen or make new cubicles to fit everyone. Growing a business means more people will be joining your team. Regardless of the need, a business loan can help you cover the finances if you favor expanding your location.

You start your business with a dream that it will boom one day, and when that day arrives, expanding is imperative. However, many people are ignorant about this, resulting in a lost opportunity primarily because of insufficient funds.

Some business loans exist only to finance your short- and long-term plans.

You are Improving Your Credit Score for the Future

Loans for businesses help you improve your credit score for the future. As a business, it is essential to build strong business credit. Small companies and start-ups usually cannot qualify for a bank loan due to lower credit scores and revenue. These companies typically do not have a strong credit history; thus, a business loan can improve your credit score if you plan for long-term financing. It works well if you take out a smaller loan and make regular and timely payments to build your future credit.

You Require Equipment for Your Business

When you buy new equipment for your business, it improves your offerings. You must always have enough capital to purchase new equipment and upgrade the older ones to stay ahead of the curve. There are types of business loans, such as equipment financing that people prefer to make equipment and machinery purchases. In this type of loan, the equipment will itself serve as collateral, so you do not have to worry about offering your personal or business assets to be approved for a loan.

However, before opting for equipment financing, you must clearly understand your bottom line to know what you need.

You Want to Invest in Your Inventory

One of the most significant expenses of any business is purchasing and bulking up inventory. Financing for inventory is similar to equipment financing, as it has to be done so that you have all the latest and high-quality options available. If you do not have sufficient funds to replenish your inventory, consider loans for businesses to cover your financial needs.

Yout Have Discovered a Business Opportunity with Fewer Risks

As a business owner, you will have several opportunities on your plate that are too good to pass up. These opportunities happen now and then – for instance, the needed equipment is available at a mega discount, or the inventory is available at a reasonable price in bulk. Thus, it is essential to capitalize on such instances as an excellent opportunity does not knock twice. In addition to this, such discovered business opportunities have fewer risks.

Your Business Requires New Talent

Whether a start-up or a large enterprise, you have to wear many hats as a business owner. Regardless, it is impossible to take care of bookkeeping, marketing, fundraising, and all other things on your own for a long time. You will require talented people to help you run your business efficiently. Going for a business loan will help you cover the salaries of new talent you will hire without compromising on the quality.

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.

While accounting software has made bookkeeping and accounting less stressful for businesses, it has also caused accounting mistakes to be much more common — erroneously classifying a transaction to doing all of the accounting yourself. Some errors are minor, immaterial, and easy to correct without harmful consequences. However, some more severe mistakes could significantly affect your business’s financial position. Over time, lean accounting practices can garble the authenticity of your company’s fiscal position. In more severe cases, recurrent mistakes and bad accounting practices can lead your business toward insolvency or liquidation. Below are some of the most common errors that companies make while handling their accounting.

Common Accounting Mistakes

Assuming that profits mean cash flow

Positive cash flow is essential for the survival of any business, and they try hard to maintain the flow of cash in and out of business. While the purpose of a company is to make profits, which ultimately results in positive cash flow, it is a mistake to assume that the profits will result in cash flow. Your business may have taken a project that costs you around $10,000, while the estimated profits are $25,000, and the completion time is two months. If everything goes according to plan, you will generate positive cash flow. However, any delays in the project can cost you more than the estimates. Therefore, assuming the positive relation of profits with cash flows can be one of your biggest accounting mistakes.

Disorganized bookkeeping practices

Effectively managing your accounting needs requires recording everything, from small petty cash expenses to significant business transactions. This record-keeping will ensure that you have an account of every financial detail of your business. It doesn’t matter if your business is small or large; taking accounting will ensure that you have updated and accurate records and a reorganized picture of your company’s financial position, which will eventually help you in better decision-making. From classifying various assets and liabilities correctly to accomplishing a monthly check of your books, launching a severe accounting system for your business is the key to keeping it financially secure and avoiding accounting mistakes.

Managing all of your accounting needs in-house

It can be tempting for small businesses to handle all of their accounting needs to save costs because of limited budgets. However, if you are not efficient or a pro at it, you might be costing your business some valuable cash instead of saving it. Outsourcing your accounting to professionals can ensure that the bookkeeping needs are catered professionally. You might think this is costing you more than if you had taken it upon yourself to do the job. However, this might save you more in the form of well-managed books without any accounting mistakes.

Specific tasks, such as filing tax returns and other business needs, require professional competency and failing to realize the importance of handling these tasks can have severe consequences. A mistake in filing your taxes can result in fines and bad credit scores, which you must avoid.

Poor communication

Often, the downfall of businesses is a lack of communication between the bookkeeper and owner. Poor communication can cause mistakes in reconciling the statements, filing reports, and inaccurate financial information. Your bookkeeper’s job is to guide you in making critical decisions about your company’s future, and for that, you need to develop a healthy relationship with the individual. Even with the efficient use of technology, some accounting mistakes cannot be avoided because of the “garbage in, garbage out” rule. Whatever is entered into the accounting software will come out eventually in the form of information. So, if someone has inaccurately entered the data, the technology cannot help you in any way possible. You and your bookkeeper will ensure that everything entered into the accounting tool is accurate and thoroughly discussed without any communication gaps.

Conclusion

Avoiding these accounting mistakes is critical to the success of your business and maintaining a solid reputation. 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.

Improving your credit score is among the most valuable investments you can make in your financial career. Your credit score will determine your eligibility for a student loan, auto loan, mortgage, or business loan. Your credit score is also essential when applying for insurance, rent, or even purchasing a cell phone. You can see the utility of having a good credit score almost everywhere. However, to improve your credit, you must take specific measures.

Track Credit Reports for Accuracy

Due to every lender associating the risk of lending a loan with a credit score, you must keep a close eye on yours. Credit reports are generated separately for each individual and are used as a common way to measure risk. Three major credit bureaus maintain three separate statements for your credit score. Your credit score from one bureau may differ from another, and there may be some inaccuracies. Check all credit reports at least once a year to file for discrepancies if there are any.

Develop a Financial Track Record to Improve Your Credit

You have a financial history and a specific credit score assigned to your name. However, you must establish a reliable and responsible financial track record to improve upon this. Whether you have paid off previous payments on time or maintained an old credit card account, all these factors will improve your credit. Older credit card accounts are usually a good sign as they demonstrate financial discipline on your behalf, and if you have made all payments in due time, your credit score will already be on the higher side.

Do Not Open Multiple Credit Cards at One Time

Maintaining a stable and consistent track record without anomalies is one way to keep a good credit score. Opening or closing multiple credit cards or other accounts may result in a hard inquiry on your credit report. This kind of behavior is not considered standard. The point is to avoid making impulsive financial decisions, which can make it hard for you to improve your credit further.

Pay Bills on Time

Paying off your bills in due time significantly contributes to a positive credit score. Utility bills, loan payments, and student loans should make up most of your bills. Recent payments are weighed more on your credit score. Even if you have missed a payment in the past, you can override it by making your most recent payments. Never miss a complete payment because it can stay on your credit report for seven years. Even if you have a small amount at hand, make sure you contribute something.

Enroll in an automatic payment plan with your service provider to improve your credit and prevent missing payments. Additionally, there are specific incentives for students to enroll in auto payments to pay a lower interest rate on their balance.

Avoid Constantly Switching Employers

Justifiably, this is not always possible. However, if you have the option and ability to retain a specific job, it is wise to seek good credit. Lenders like to see consistency in employment since a steady income means that you have a higher chance of succeeding with a payment. Retaining the same employer for five or more years will significantly improve your chances with lenders. Of course, this does not mean staying at a job you are unhappy at just to improve your credit. However, it is essential to remember that stable employment increases your credibility among lenders and reflects positively on your credit report.

Frequent residential changes and having judgments filed against you in court can seriously harm your credit score. For businesses, maintaining comprehensive bookkeeping records also improves your credit score.

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.

IT managers and Business CIOs must consider various cloud computing aspects when adopting cloud services within their corporate infrastructure. Security, performance, cost, availability, accessibility, and reliability are some of the critical areas to consider. Cloud elasticity and cloud scalability are criteria that have recently been added to this list of essential factors that influence your decisions. They are as impactful to cloud computing as bookkeeping is to financial reports.

Although many have been using these technical terms interchangeably, there are several contrasting differences between elasticity and scalability. Interpreting such distinctions is imperative to ensure your business needs are optimally met.

Elasticity vs. Scalability

Elasticity is used to match the resources that have been allocated with the actual resource amounts required at a given instance. On the other hand, scalability tackles an application’s varying requirements within the infrastructure’s parameters by removing or adding resources statically to fulfill applications’ needs whenever demanded. This phenomenon is handled, in most cases, by vertical scaling (scaling up) and horizontal scaling (scaling out). Regarding sizing, elasticity is less targeted and powered in nature than scalability.

Cloud elasticity is a game-changer for businesses that experience fluctuating infrastructure needs, like those in mobile, SaaS, DevOps, e-commerce, and retail industries. If your organization can showcase a consistent workload with reliable performance and capacity planning and can forecast growth or maintain a stable workload, then you are poised to reap the rewards of cloud scalability. We firmly believe that cloud scalability can save you money and bring you greater benefits. We are excited to work with you to help you leverage these benefits and take your business to the next level.

Cloud Elasticity

Typically, elasticity is a system’s ability to shrink or expand infrastructure resources potentially as required to adjust to workload variations in an autonomic way, ensuring resource efficiencies. You need to know that everyone cannot take advantage of elastic services. Environments not experiencing cyclical or sudden variations in requirements may not make the most cost-saving benefits that elastic services can offer. Application of ‘Elastic Services’ usually means that each resource available in the system infrastructure has to be flexible. Such resources include software, hardware, connectivity, QoS, and other matters utilized in inelastic applications. Thus, it may be a negative trait where specific applications’ performances should have guaranteed performance.

Cloud elasticity is a well-renowned feature related to horizontal scaling or scale-out solutions that allows system resources to be added or removed dynamically whenever required. Flexibility is generally featured in pay-as-you-expand or pay-per-use services and is commonly related to public cloud resources.

Cloud Scalability

More often, scalability includes the system’s ability to grow workload sizes within pre-existing hardware, software, and other related infrastructure without impacting performance. All of these resources that need to support the workload are often pre-planned capacity featuring a headroom’s certain amount built in to tackle peak requirements. In some cases, even without a hard limit, the ability to grow with extra infrastructure resources also comes under scalability. It can either be horizontal or vertical. Thus, applications must have enough room to scale out or scale up to prevent performance hindrances due to a lack of resourcefulness. In several cases, a company’s IT manager knows there is no further need for resources and will subsequently scale down the infrastructure to support a smaller new environment.

Where Scalability and Elasticity Cross Paths

You should know that some cloud services are accounted for adaptable solutions with incredible services where both elasticity and scalability are offered. Each of them allows the IT department of an organization to contract or expand its services or resources per their needs while also providing the benefits of pay-as-you-grow to scale for output and resource requirements to fulfill SLAs. Effective incorporation of these potential capabilities is paramount for an organization’s IT manager whose system infrastructure is persistently fluctuating without any pause.

We’re excited to offer a pay-as-you-expand model for our supplementary infrastructure. This model allows for extra support during unexpected sales activities throughout the year. Don’t worry – the infrastructure will “shrink” back to a reduced volume for the remainder of the year without any impact on system availability or performance. We’re committed to providing the best service possible and this infrastructure ensures we can meet your needs whenever they arise.

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.

I’m thrilled to share that the modern era has brought new concepts and technologies that have made a tremendous impact on countless lives. One such innovation is cloud computing software, a game-changer that can take a business’s productivity to new heights by improving collaboration and communication. These aspects are critical for any business to thrive, as they enable the team to achieve more in less time. By leveraging the cloud’s benefits, businesses can attract new clients and enhance their overall performance. It’s clear that the cloud offers numerous advantages, making it an essential technology for any business looking to succeed in today’s fast-paced world.

Cloud for Remote Working and Communication

Hello! As a supply chain specialist for an oil and gas company, you play an important role in identifying potential prospects in remote locations. It’s key that you maintain regular communication with headquarters to ensure that all demands and inquiries are addressed promptly, as any delays could cause setbacks in fieldwork. Have you considered implementing a cloud network? This technology has the potential to greatly benefit your work by enabling real-time updates and more accurate coordination between field engineers, headquarters, and all involved parties. By streamlining your communication and processes, a cloud network could help your business achieve more in less time. Let’s explore this option further!
As more employees are willing to work from home, cloud technology can help facilitate communication of tasks, schedules, assignments, and input. This can be a complete solution for remote workers to provide their work while contributing positively to the business’s operations. This option is widely popular, as it allows the company to run 24/7, regardless of the location of its staff. Remote workers are in high demand and can help lower a business’s expenditures, making this a cost-effective and practical solution to implement.

Decentralization and Outsourcing

Employees with relevant skills are warranted to meet specified tasks. Therefore, hiring those employees with up-to-date and qualified credentials who are familiar with using the cloud for communication helps kill outsourcing and provides a steady employment base for many. Also, the decentralization of resources will allow employees to work out of the office. This leads to decreased costs in terms of expenditures, such as electricity, utilities, rent, etc. All these expenses may be reduced or mitigated.

Everyone Understands the Collective Aim

Every department in all businesses can easily benefit from effective inter-collaboration between various business sections. With the ease of sharing and receiving vital information pertaining to assigned tasks, for example, accounting and HR duties, using the cloud for communication and collaboration will enhance a business’ output by allowing employees to collectively strive towards a shared and mutually agreed upon goal. Visible change can be seen in employee responses and department functionality demonstrated by smooth operations. Above all, this improved efficiency is ultimately a growth factor that contributes to overall enhancement.

Go Global with Your Business Using Cloud

In the past, businesses could not reach out to their community. Due to technological wizardry that was previously only reserved for larger corporations, going global is easier than ever before by utilizing the cloud for communication. Research and development into modern technology have made it possible to procure at a far cheaper rate than fifteen years ago. Even small businesses are given equal opportunities to invest in their own IT systems to enhance or upgrade themselves so that they may better handle customer relations and enlarge their clientele threshold. Additionally, the cloud can be used for more than one purpose, and some systems can perform multiple duties simultaneously. Geographically located all over the world, clientele and employees can enjoy the benefits of enhanced operations, which allows for more business success.

Conclusion 

In conclusion, the advent of cloud computing is a transformative force in the modern era, offering businesses unprecedented opportunities for efficiency and growth. Cloud networks can revolutionize communication and coordination between remote locations and headquarters for supply chain specialists, ensuring real-time updates. The cloud facilitates the widespread adoption of remote work, proving to be a cost-effective solution and fostering collaborative efforts across departments. Beyond the immediate benefits, decentralization, and outsourcing tasks to cloud-savvy individuals contribute to operational efficiency and cost reduction. Moreover, the cloud enables businesses of all sizes to go global, revolutionizing customer relations and expanding clientele. Embracing cloud technology is not just a technological choice but a strategic imperative for businesses seeking sustained success and growth in today’s interconnected world.

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.