Author: Jennifer Brazer

Over-capitalization in a company occurs when the total capital (debt & equity of the stockholders) of a company surpasses the actual value of its assets. Corporations must produce more in earnings than the money invested in increasing the capital invested by stockholders and other funding sources. Otherwise, there will be no monetary profit.

 

A successful business increases its rate of return by developing policies on the invested capital, using profits, and overcoming debts. Investors look at how the returned amount of business can be used to maximize the rate of return. For example, a corporation deals with the import and distribution business. The stakeholder will look at debts, the rate of returns, and bookkeeping but also will effectively plan to increase the capital amount by adding some percent from the profit previously gained.

Indicators of Over-Capitalization

1. The money invested in the business is much greater than the actual value of its fixed assets.
2. The rate of return is too low as compared to investment.
3. Part of the investment capital is invested in assets that are not being utilized to gain profit.

Suppose a company has any one of the above indicators. In that case, the company might go to a state of over-capitalization without coming to the notice of stakeholders at the start. Stakeholders must keep a thoughtful eye on the debts, equity, rate of return, and balance sheets of the business. Bookkeeping must also be monitored and vigilantly followed to check if the transactions were precise. This will lead the company in the right direction.

The following are the other causes of over-capitalization and effective management to avoid these causes as much as possible

Over-Capitalization May Also Happen Due to Many Other Factors

1. Assets were purchased when their value/price was at the peak. After some time, the actual cost of those assets decreased down to its minimal range. In that case, the investment capital will become more significant than the actual cost of its assets.
2. A lot of money was spent on the promotion of the business. Though the rise increased the rate of return, it was not enough to compensate for the promotional costs.
3. The board of directors of the company gained a handsome rate of return; they invested a plentiful amount of this profit into the business. However, the business assets do not have as much value in the market as the invested capital. In that case, the share or rate of return per asset would be decreased significantly. More investment and lesser profit lead to over-capitalization.
4. The company follows a liberal policy on the division of profit gained to its stakeholders. Thus not keeping a sufficient amount of profit gained for further self-financing in the company. Such kind of management may lead to over-capitalization in the near future of the company.
5. Inefficient management is also a cause of over-capitalization. Management must keep a thoughtful eye on all bookkeeping aspects. Keep a routine check and balance over the purposes (like for promotion and other offers) for which a transaction was recorded and the amount of return is generated.

Remedies for Over-Capitalization

Over-capitalization of firms leads to an unhealthy business, or it may cause the complete end of a business. The company must be restructured to avoid the situation of the company going downhill quickly.

Other solutions for over-capitalization involve the following :

1. Decrease the burden of debt by effectively utilizing the profit for earlier debt payments.
2.  Effectively negotiate with lenders to reduce interest rates in debt.
3. Develop a scheme of capital reduction to gain more profit per asset.
4. A company with over-capitalization can merge with high-profit companies with a better management system, which is willing to take over other companies.

Conclusion

Making proper estimates and with better management, a company with over-capitalization can be made profitable and prosperous again.

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.

What comes to mind when we think of a home-based business? The thought of no commute, not having to dress up, more time with family, and relaxing breaks. When you compare it to the stress of traveling to work and hours away from home, it sounds appealing to work from home. It can also be economical as it saves on gas and the overhead of leasing space. Despite these apparent pluses to working from a home-based business, a better choice may be to have an office or store space. There are factors to consider before deciding whether to work from home or lease a space.

Consider This

If you just have started a micro-level business and it will grow slowly, you can start it from home. But, in deciding to stay home or go for leased office space, ask yourself these questions:

• Can you bear the interruptions if you are working from home?
• Can you manage the isolation during working hours if you live in an independent suite not shared by any of your family members or friends?
• Do you mind your clients coming to your address? Do you want to mix your clients with your environment?

Are you planning to grow your business and hire more people? This will also require more space and furnishing according to the requirements of an office.

If your business is growing already and more space is required for the employees, storage, and equipment, you need a leased office space now.

Leased Office Space

Leasing an office is a good option if it is in an area with low rent and near your home. Leasing an office means the property is not yours, and you are not tied up to the place. If you are not getting good business in the area, you can easily lease space in another area with more business growth options and potential customers.

The cons of leasing an office will leave you bearing an additional payment for rent as well as possible rent increases that you cannot control.  Also, the leased office space will not be considered equity to your business.

Working From Home

The best thing about a home-based office is that you are not going to pay for an additional place for your newly started small business; that has to prove, yet it’s worth it. You do not have to pay monthly or annual rent for a leased office space.
Your business is new, and customers may take up to 30-90 days to pay you. Meanwhile, you will need to get a loan for the rent of leased office space if you choose to go that route.

A home-based office means low overhead costs. You can outsource service providers for your business without hiring them. For new companies, there’s another tax-driven advantage of starting in your home. The IRS allows home-based small business owners to deduct a proportionate part of home expenses from their taxes.

Conclusion

Staying home and running a home-based office is not only beneficial in terms of having tea or coffee breaks in your own backyard. It has many potential benefits for new small business owners. Knowing the advantages and disadvantages will help any business owner decide whether to lease office space or build and grow their business from their home. Though most of the reasons are favorable for a home-based business, specifically speaking about cost savings, there are still some drawbacks such as easy distractions, others not respecting your work time or space, and the lack of interaction with co-workers. However, working in your pajamas may be the only plus you need to choose to work at home over leasing a space.

 

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.

Personal banking refers to the banking services used by customers unrelated to business. Personal banking is processed through local branches of banks. Some personal banking services include opening different types of bank accounts, credit card accounts, mortgages, personal loans, and lines of credit. Other benefits are provided, such as ATMs, online banking, transfers, and many others.

There are reasons many business owners might be tempted to keep the business accounts merged with personal bank accounts. However, this can lead to issues as the business grows. Therefore, it is best to separate the company and your personal bank accounts as soon as you start your business.

How Small-Business and Personal Banking are Mingled

When an entrepreneur mixes their personal account with a business account, adverse results may occur. Business bookkeeping will also become mingled with personal banking and bookkeeping, which can complicate finances for both. Entrepreneurs have to face a lot of challenges when starting a small business.

Business owners, especially new ones,  have to figure out how to run business operations. Operations include managing finances, production, employees, and where the business will be located. While making these decisions, the entrepreneur often uses their own account to invest money into the business as initial capital.

From the business owner’s point of view, it seems logical to use their personal bank account to fund the business. When starting a business, if there are no investors outside of yourself, the temptation is to do business financial transactions directly from your personal account.

Using this account can have long-term consequences on the financial health and stability of the business. Before starting your business, you should open a business account using the funds you saved or have received from investors. This establishment of a business account should be a priority and take place in concert with the creation of your business plan.

Adverse Effects of Mingling Small-Business and Personal Banking

• Small business owners who mix personal banking with business operations often do not balance accounting statements. They do not interpret cash flow statements and financial statements with the balance sheets in a productive way.
• Business bank accounts are helpful for business owners. In a time of need, they can get immediate loans and financial services. Credit card and debit card payments are made more accessible along with cash and check services. Customers use these facilities and come back to the same business when they are made convenient.
• If the income generated is separately given to individual salary accounts of the small business owner, then there is less percent of tax charged. Tax deductions can be made accurate. But if the personal banking account is mingled with the business account, then tax will be charged at a higher percentage.
• Tax is paid on time through business accounts. Cash flow statements must only refer to business operations, not personal banking. Thus bookkeeping functions are made more accessible.
• An audit is for business accounting, but the income and expenses are misreported when both personal and business accounts are intertwined. This mingling of the accounts affects the audit process as well.
• All business operations records must be kept if a personal credit card is used for any business operations. This record-keeping is a time-consuming and challenging task to do. It should be error-free as well. Mingling personal banking and business bookkeeping makes it challenging to track the records.
• As the business grows, financial needs will increase, and it will eventually need a separate business account. A separate business account gives a clear picture of business functions, and the business’s credit history will be clear.

Conclusion

A separate business account prevents mishaps in the interpretation of accounting statements. It increases the credibility of the business. When the business grows from a small investment, eventually, a separate account will be a requirement.

It is best to start your business with separate personal and business accounts from the beginning. Also, you should set up your business to protect yourself personally against liability issues and other issues that can arise from being connected to your personal account.

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.

Small businesses face “too much, too soon” conditions when proliferating. A well-executed business plan can handle rapid growth. For small businesses, rapid growth can be challenging in different ways, such as in bookkeeping, budgeting, and technological aspects, and it can increase financial risk management (FRM). New business challenges are increased; it experiences early success. When companies become developed, they often have to deal with problems beyond their capability and experience. It could be hazardous to your business if you are unaware of the challenges that may arise from rapid growth. We will discuss some of those challenges below.

A Cash Flow Crisis

Managing a rapidly growing business can be exhilarating! However, it can also present challenges, especially when cash availability is limited. But don’t worry – with the right strategies in place, a cash flow crisis can be avoided. As a finance company owner, you may need to rely on loans to generate profits, but there’s a better way. By creating a thoughtfully crafted reinvestment plan, you can generate income for your business without taking on additional debt. This will not only help you control cash flow crises but also set you up for long-term success.

Growth May Not Be on Solid Ground

A rapidly expanded business is usually based on impulse rather than solid financial evaluation, economic analysis, or market study. In many cases, the rapid growth of the small business is a consequence of the proprietor’s desire and personal satisfaction rather than an actual understanding of the business’s capabilities. Consequently, impulsive companies tend to charge higher and take advantage of quick opportunities even though they don’t have the needed capital for the task. Hence, less capitalization leads to their downfall.   

Difficulty in Serving Loans

Loans attained for expansion are much larger, so much so that servicing them endangers the firm’s earlier-developed cash flow. Moreover, many rising businesses experience budgeting challenges despite significant sales growth. The financial suffering could then bleed the business dry.

 Negative Feedback

Hopefully, complaints from customers are infrequent. However, when you receive a swarm of negative feedback from customers, this suggests that you are not fulfilling the criteria of your client’s expectations. It can happen when little interaction with the client or your staff may not be large enough to meet every buyer’s demands. Satisfied clients give positive feedback and come to you again and again. Negative customer reviews show you cannot meet the market’s expectations. Instead, please make it a habit of checking your feedback system daily, continue to monitor your social media accounts, and make a flexible plan to deal with negative and positive feedback.  

Internal Systems and Procedures May Not Catch Up

Bureaucracy backs its head in the shape of meetings, buck-passing, and memos – more compounded by flawed information and monitoring systems. Rising businesses must achieve information (competition, internal costs, budget, cash flow, inventory controls, bookkeeping tasks, sales growth, etc.) well-timed, organized, and competently.

Your Employees are Overworked

A flexible working environment leads to productive work efficiency. But, when a comfortable working atmosphere is not given, there is a severe risk of losing trusted and trained employees. You must pay attention to engage and enhance your working culture as the business grows. Arrange staff meetings to discuss their issues, give positive feedback, and get on the same page.

Your Ability to Lead and Manage Falters

As the company grows, the creators ultimately evolve in leadership, eventually assigning work decisions and duties to someone else. However, rapid growth can drop your focus from essential functions and make many tasks sub-par. This will lead to irritation within your firm and dissatisfaction among your customers.  

Conclusion

Rapid growth in an organization is possible when all its aspects are working harmoniously. To lead all departments efficiently, you must train your employees through certifications and courses designed to improve your company’s health. Moreover, budgeting is an effective tool for organizing all priorities to generate higher profits.

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.

What Does it Mean for a Business to be “Audit-Ready”?

 

• Financial reports and other reports are prepared
• Files for audit work papers are prepared
• Models for unit pricing are developed and reviewed
• Establishment of a process for risk management and already conducting a risk assessment
• Issues of accounting, audit, and taxation strategies are prepared
• Provision of values for financial reports
• Provision of technical opinions for new standards and changes in accounting and financial reporting

Audit-Ready Bookkeeping Defined:

Being ready for an audit requires skills and knowledge. A mixture of tax laws, accounting values, an understanding of requirements for CRA audit, and an understanding of the best categorization for an expense is required for bookkeeping to be ready to be audited.

Why is it Necessary to Have Audit-Ready Bookkeeping? 

A conventional accounting system follows GAAP (Generally Accepted Accounting Principle). The major drawback of this system is that it is not audit-ready. Businesses are placed into an end turn at audit time. CRA has an engraved and dehydrated audit process. Accounting should be done in a suitable mode, which is audit-ready. We have acknowledged that the limits of bookkeeping software and simply the training of accountants are not how to have the books ready for an audit.

The most sensible method of bookkeeping is to make it ready for audit. When bookkeeping reflects the exact figure of the tax return, which is stable and justified by an auditor and owner, it shows that each step is transparent. A company that is not afraid of audits because they are always ready for one is known to be an honest and transparent organization. If records are well maintained and organized, then bookkeeping is more straightforward and prepared for an audit, tax time, and to provide feedback to its owner.

Steps in Auditing

Categorization of expenses

The critical step in audit-ready bookkeeping is the categorization of expenses.

• Direct expenses
• Capital expenses that have lasting benefits

Organized documentation

All source documents, slips, deposits, invoices, and records are well organized. Documents of all business dealings and transactions are gathered. This data justifies an auditor. All kinds of business events affect a business financially. A bookkeeper knows the relevant information and its financial effect on business transactions. A company is either worse off or better off due to its dealings. The bookkeeping procedures identify the financial and business aspects of the relevant information regarding each transaction.

Tracking number

A tracking or item number is assigned to all financial transactions. This number is critical for an audit as it is used to trace the trail of all transactions.

Financial statements

Business statements should justify expenses. At times, all expenses are not justifiable. A few can be inappropriate and not appropriately allocated. These expenses result in loss and huge costs for the business. Auditors make assumptions about expenses and critically evaluate them. All of these steps are critical in maintaining up-to-date records, preparation, and management of accounting reports, government audits, tax returns, and audit-ready bookkeeping—poor bookkeeping results in loss of money for the business and its owners.

An audit-ready business

• Enhances the compliance of the business with internal revenue service regulations.
• Enhances the company’s credibility with the public, investors, and other stockholders.
• Prevents fraudulent cases and business losses by detecting discrepancies in early
• Improves accounting processes and internal controls.
• All the above advantages guarantee high-level investments to audit-ready businesses because it declares that it is transparent and safe for investment.
• Investors know they will not face losses or fraud in an audit-ready business.

Conclusion

An audit-ready business attracts investors to make high-level investments because of the guaranteed profits and the minimized chance of loss and risk to their money.

2017 is on its way out the door, and the holiday season is in full swing. The public is planning for holidays, Christmas, New Year celebrations, and how to enjoy their vacations more with the family. However, entrepreneurs have different plans in their minds. They are planning for their business growth and expanding across their market. They are compiling the current year’s financial statements and other business data to help their company enter the New Year with a new plan, hoping to be better than the last.

Before starting a new business plan, refer to the original business plan. Look at the initial goals and compare them to what goals have been achieved. If any targets have not been reached, you need to evaluate how this impacts the business and if it can still be accomplished in the upcoming year. You will need to do this with each year’s business plan to sort out the deficiencies, the steps you have taken, and the impacts of those steps. To prepare the new business plan, you need to ask yourself questions. Is the business going as planned? Is the business running successfully in terms of goals achieved? What sort of business operations are carried out? Their results must be included in next year’s business plan.

Tips to Make a New Year Business Plan

1. First of all, check the position and standing of your company. What is the current financial status of your company? How many liabilities are in your company? Is the income that you are bringing in exceeding that of the expenses? Is your business bookkeeping being appropriately monitored?
2. Have a look at your environment. What is the market trend, and where is it going? Is there a period of upsurge, or is there a period of decline in businesses around you?
3. Take a look at how your competitors are doing. Is their market share of products or services they offer to increase? What steps have they taken to raise their market share? Did they introduce new products to the market? Or has the packaging of their products been refreshed? Are there any promotional offers or other kinds of marketing techniques they have adopted?
4. Scan through your business bookkeeping. Have unnecessary transactions been made?  Are you caught up in terms of a balanced book?  What areas can you improve on in this important aspect of your company?
5. Is your business audit-ready? An audit-ready business is ready to capture market share. Having an audit-ready business means everything is clear in business finances and accounting. No liabilities are postponed. An audit-ready business means that all accounting statements are up to date, and, in turn, being up to date in business ensures rapid success. It makes making decisions regarding business operations financing and other tasks far easier.
6. Plan out new targets and goals for your business. Also, plan to achieve those targets and goals in the coming year.
7. Business planning includes the steps taken in business to promote its growth and remove the debts and liabilities if any exist. If all of the obligations or liabilities cannot be removed all at once, plan to eradicate them as soon as possible.
8. Make a road map to reaching your business plan goals. Which path will be followed to grow the business? If business financing is needed, how will it be managed? What about debts, equity financing, attracting foreign investors, and personal funding in business?
9. Always take into consideration that situations may change, and the environment is not always feasible. How will you survive your business as an entrepreneur?
10. Make a rigorous plan for reaching markets other than the one you currently operate in. You are already selling your products and services, so why not reach more people?
11. Plan methods to attract more customers for your business growth.  Use your creativity to attract a larger client base.
12. Always keep a budget and resources on hand in case the business plan does not work as expected.  I hope for the best and plan for the worst.

Conclusion

Business planning is essential for entrepreneurs. As the year ends, they must seek out the results of the previous year’s business plans. Entrepreneurs must research the reasons behind why the previous plan was not up to the mark or why it happened to thrive. If the previous year’s plan was successful, then how can the next year’s business plan be made to achieve targets again?

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.

Payroll is a term that indicates the number of employees in a company to be paid monthly. The company needs money to pay salaries to its employees. Small business owners should strategically manage the funding and keep wiggle room in the company’s payroll.

Ways to Find Wiggle Room in your Payroll

Payroll problems are a common issue in small businesses. If not carefully planned, the credibility of a business becomes uncertain due to payroll funding problems. Small business owners should strategically manage payroll funding by avoiding common mistakes. If you continually face a payroll shortfall, you should review your payroll schedule.

• Be on time with your payroll processing

  • Late and incorrect processing

Payroll should be done correctly and punctually to evade discontent among employees. One of the most common mistakes with payroll is improper processing, resulting in the employee’s salary being greater or lesser than what it should be. These errors generate interruptions since they will need a redraft, which is time-consuming. This causes delays, and it is crucial to be on time for payroll processing.

• • Inexperienced Staff

If you have an internal payroll department, you must give precise training so that your team can understand the intricacies of payroll processing. It is in your best interest to train your team so that any possible mistakes and chances of delay are reduced.

• • Utilize the Services of a Payroll Company

If you continually face payroll issues and don’t have a payroll department, you may need to take your payroll outside of the company to solve these issues. A payroll company can free you from a lot of managerial loads and ensure accuracy and payroll deadlines. You will have to weigh the payroll issues against the cost of hiring a company to handle them before deciding to employ one.

• Direct deposit vs. physical checks

The main motive for small businesses that pay their employees through direct deposit is to streamline the payment process for both employees and business owners. Direct deposit may be more complicated for some companies, and they may still opt to issue physical checks to your staff on payday.

Paper checks also buy time in some cases. You can give checks at the end of the day, and banks are usually closing at that time. Your employee cannot cash the check on the same day. This strategy can create a little wiggle room in your payroll, as money will be withdrawn from your account on the following day. Some employees will not deposit checks for many days. But if your employees deposit the checks through ATMs or smartphone banking, then this trick will not help create wiggle room. Many banks provide the facility for ATM check deposits.

• Delay other expenses

The payroll should be on time. Delays in paying salaries to your employees will create issues for you and your employees – not only temporary issues, but it will also cause long-term effects with employees’ dissatisfaction in your business. It can damage a good relationship between you and your employees.

So, it is better to delay other expenses in your business, which can be dealt with later, than delay payroll. For this, plan out in advance to check which payments can be made later. If you have made purchases and have days to pay for them, you can delay this payment. This will create a little wiggle room on your payroll.

Conclusion

Small business owners can have a contract with payroll companies to ease their administrative work in payroll. They can also give a physical check to their employees. Certain expenses can also be delayed, making a wiggle room in payroll.  While good bookkeeping will prevent you from having to even think about this, there are always options if you are willing to get a little creative.

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.

With every end of the year, the promise of the next year offers hope for advancement and growth. Small businesses face challenges in getting proper funding and competing against larger rivals. These smaller businesses tend to be responsive and innovative so that they can respond to new prospects, high-tech developments, customer needs, and other market forces. Listed below are nine trends that small businesses should keep an eye out for in 2018 and some methods to prepare for them.

A Bubble Somewhere Will Pop

There’s a bubble out there, but no one is exactly sure what this means or where it is. Stocks have ascended to crazy heights with price-to-earnings ratios well above their “normal” ranges. 2018 seems to be pushing hard for a burst bubble.

The Millennials Will Get Their Say

One of the reasons individuals might be amassing their bookkeeping economic leaps for joy could be that many of the people getting richer are the millennials, a disreputably anxious and cautious market group.

IoT, AI, and ML Will be Ongoing Buzzwords of 2018

The internet of things (IoT), artificial intelligence (AI), and machine learning (ML)— were the buzzwords that Big Tech couldn’t stop chatting about in the previous year. Expect more of the same in 2018.

“Made in America” Will Make its Return

Okay, “Made in America” hasn’t gone anywhere, but it has been a smaller movement in recent years. This year, American products and jobs have often been a focus of the Trump Administration, leading to a reassessment of U.S. trade agreements and tariffs. While it’s simmering as a social dispute right now, in 2018, American-made will be a big deal.

You Will Get Hacked

In 2018, you’re going to get hacked. Maybe it’ll be personal; maybe it’ll be your business. One way or another, you’re going to have to put up with someone getting their hands on something you’d rather they didn’t. With nothing to lose for market indolence, large companies will continue letting standards slide, which means you and your customers are going to have to deal with the repercussions.

Scheduling Laws are Going to Change the Local Landscape

Within a few weeks, New York City’s new scheduling bookkeeping laws will take effect for fast food and retail employees. These laws have a lot of insinuations, with the largest surrounding changing employee working patterns.

Hyper-Local Advertising Will Hit the Uncanny Valley

Your phone now knows where you are at all times, which means that every app you’ve distractedly installed and permitted location access knows where you are, too. The uncanny valley is just around the corner, though. Soon, you’ll open your phone and get an ad from the store you’re in proposing a substitute for something you searched for on your laptop. That’ll give even the most enthusiastic tech adopters among us an instant of pause.

Remote Workers are on the Rise

While the future won’t be office-free, that’s a number that’s only going to rise in 2018. Employees and employers both get something out of remote work, though the overall benefit hasn’t been proven. Remote workers get to work from the comfort of their own homes, while managers need to buy fewer desks and less office space.

Customers Will Fight to Control Their Personal Data

We all know that trusting random online businesses is a bad choice. In 2018, that will start changing. In part, it’s going to be a function of privacy concerns. A larger part will be driven by a handful of businesses that see the dual value in retailing a product that doesn’t rely on personal information but does rely on edge computing power.

Conclusion

In 2018, we’ll see a little more of the same, some new directions here and there, and consumers realizing the power they exert. As we move into 2018, some of this momentum will remain, some will get lost, and—hopefully—we’ll pick up some new steam as well.

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.

Most businesses face sales downturns during the summer months. Families might love summer because it means time off from school and long holidays at the beach. Small business owners are less appreciative of this time of year. Summer is infamous in the marketing world because it tends to correspond with a severe sales slump. Here are eight proven marketing strategies to help you bring in more customers during months of slow business and combat seasonal income fluctuations. 

1. Free giveaways

Does your product or service have particular use during the summer months? If so, it’s a perfect reason to engage face-to-face with loyal and potential customers with a branded street team. It could be situated in high-traffic areas, giving samples and distributing key messaging. If not, there are plenty of summer-related goods you can give away: consider water bottles, coolers, Frisbees, etc., to distribute to your target audience.

 

2. Partner with a non-competing business

Think about another business with a similar customer base but not directly competing with your consumer needs. Build a tactical partnership and put together a customer-pleasing summer sales package. Create a unique offer in which both businesses offer a special promotion while assuming shared accountability.

 

3. Sponsor or participate in a local event

Summer kicks off various outdoor events—concerts in the park, little league baseball games, and endless marathons. Habitually, these events require sponsors to help pull them off, which provides a great prospect. Your business can highlight its local involvement with the community and boost customer awareness. Investigate local sponsorship prospects and heighten your brand perception with signage to advertise your company name and brand. Outdoor events generally include booths where you can distribute brochures, flyers, business cards, product giveaways, etc.

4. Host a sidewalk sale

It’s summer — individuals are out and about. For retail productions, hosting a sidewalk sale is pretty much a no-brainer. Display your merchandise and provide helpful information about your services. Also, consider integrating seating and refreshments to encourage spectators to engage and relax. Remember your target audience; for example, balloons and games always attract kids.

5. Offer military discounts

On summer occasions like Memorial Day and the Fourth of July on everyone’s calendar, consider offering a special military discount to veterans and their families. Inspire followers on your social media networks to talk about the meaning of these holidays and recognize the sacrifices military personnel make for our country. It will help humanize your brand, associate with your audience, and instill goodwill.

6. Take your best customers to lunch

If the pace of business slows slightly during the summer, take the opportunity to treat your best customers to lunch. This provides precious face time to people who mean the most to your business.

7. Redouble your social media efforts

When business is brisk, and there are orders to fill, delaying social media activity is easy until you have some breathing room. Though, your clients haven’t stopped posting photos on Facebook, uploading vacation videos on YouTube, and sharing tidbits about adventure travel on Twitter. Think about holding a social media contest, inviting customers to share exciting stories or intriguing photographs around a summer theme, and offering a “grand prize” to the best entry. You’ll get individuals talking about your business while collecting contact information from contest participants. Be sure to classify prospective customers whom you can reach out to later.

8. Build on your summer momentum

Don’t let the thrust of summer marketing campaigns fade away in the fall and winter. If you’ve conscientiously added new names to your customer database, continue reaching out with newsletters, special offers, promotional discounts, and other activities. This way, your small business stays fixed in the minds of your target audience year-round.

Conclusion

Your clients don’t disappear during the off-season, but often, they are financially focused on other financial head-turners. Summer sales figures might be historically low, but that doesn’t mean your small business profits also have to suffer. Follow the above marketing strategies to keep your sales numbers up, no matter how high the mercury soars.

 

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.

Management of Business Credit Lines

Once you get a credit card for your business, the best thing to do is avoid using it, except for emergencies. Credit cards for business should be used with great responsibility. When you use the company card, pay the balance in full immediately. The other consideration should be that usage will increase revenues. Cash flow should be managed, and proper records should be created. Using cash advances or company credit cards should be the last resort.

Don’t Mix Personal and Business Expenses

The most challenging thing to manage by a business credit card holder is to mix personal and business expenses. Mistakes can happen if you combine both costs; the business payments may be missed, and business purchases may exceed the limit of credit cards. This mismanagement may ruin your personal credit scores as well as decrease your business card rating. When you use business credit cards responsibly, your rating is improved, and you can get more credit. IRS and creditors expect that you use the business’s credit card to pay for business expenses if you are serious about your business.

Keep Yourself Updated by Checking Email Regularly

The CARD Act in 2009 is basically for consumers and has less impact on the business credit cardholders. The creditors are often changing the policies and updating the credit card holders via email. So, keep checking your emails to update yourself on these changes.

Creditor’s new policies may compel you to switch to your business credit cards because it will affect your business adversely. There may be fees that you don’t want to pay. “There are many nuances to small business credit cards,” says Molly Brogan, a spokeswoman for the National Small Business Association, the oldest and largest non-partisan citizen advocacy group representing over 150,000 small businesses. “You need first to understand what protections your card does offer as a small business, and then you’ll understand more clearly what it doesn’t.”

Regular Monthly Reports

Monthly financial statements are critical to know the exact financial status of your business. Monthly financial statements tell the amount of capital and credit you are left with. You remain updated by reviewing financial statements often and knowing whether you can pay debts.

Avail Rewards Offered by Creditors

You can get maximum benefits from your business credit card by availing of the rewards the creditors offer. Creditors often suggest tips according to the specifications of your business and interests. Keep yourself updated by researching and comparing different cards to see what is best for you and your company. Select the card which gives you maximum rewards and benefits.

Similarly, a credit card protection card protects you against credit card fraud. 

Cash Flow Management

The best way to increase profit margin is to manage cash flow. Make a business plan and formulate the budget. Analyze the month’s cash flow and ask your creditors to recharge your credit cards when a considerable cash flow is expected.

This responsible use of a credit card prevents you from many adverse situations. You can make payrolls timely. You don’t need to offer discounts to vendors for quick payments. Good cash flow management increases your credit card ratings.

Avoid Taking Debts

Debt is the tiger that can kill your business. Debt decreases your rating, and you may be unable to obtain credit when needed. Avoid debt and avail it as the last option left. Taking debt just for making new purchases for a well-established business is not a good idea.

Debt can be taken only to increase revenues. For example, suppose your company hires new staff, shifts to another profitable location, or purchases upgraded equipment. In that case, these are situations when you may need to use a business credit card. 

Conclusion

Responsible use of business credit cards is a part of business management and makes you credible in front of creditors, customers, and suppliers.

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.