Author: Complete Controller

Cloud Computing

Cloud computing is services over the internet, such as servers, software, databases, networking, storage, server development platforms, etc. Often referred to as ‘the cloud,’ which means the delivery of on-demand computing resources. Companies that offer these computing services are predominantly known as ‘cloud providers’ that charge their customers based on usage and storage. Gone are the days when cloud computing and business process outsourcing were mere concepts. Now, they have been embraced by businesses of all scales, from small entrepreneurial business ventures to global corporations. The top reasons companies have embraced them include cost-effectiveness, minimal management efforts, and elastic resources.

Business Process Outsourcing

BPO, also referred to as information technology-enabled services (ITES), is the subset or type of outsourcing that involves contracting the specific crucial task to a third-party computing vendor or service provider. It includes back-office operations and responsibilities such as payroll, HR (human resources), accounting, etc.  It can also handle front-office (tech support) to third-party vendors so that businesses can invest more time in core business activities.  BPO, together with cloud computing, has achieved immense popularity since its inception, and they both have become more of a need that ensures enormous organizational growth and success. In short, it’s all about bolstering the competition and enhancing value chain engagement to achieve business process speed and efficiency.

A Need for Modern Times

Cloud computing and business process outsourcing has evolved beyond an imaginable scale over the past decade. The cloud, which was considered a mere concept not so long ago, is making waves in the industry today. Small businesses are the ones who have benefited the most, as they now have access to larger computing resources and high-performance infrastructure, which they could never dare to afford before. Since the high demand for the ‘cloud’ has led to numerous innovations, organizations, no matter what scale, are prioritizing to acquire superior cloud-based services and computing resources for increasing business process speed and efficiency.

Cloud Computing and Business Process Outsourcing—Done Right!

Finding the right strategic fit has become an intimidating task, especially for entrepreneurial start-up ventures. Small-scale businesses usually lack market knowledge, skills, proper information, and experience, which restricts them in finding a suitable computing service provider. As a rule of thumb, the better the service, the higher the expectations, the higher the results. This means that acquiring the right service is necessary if you expect to achieve significant results in terms of improved business processes and value chain engagement.

Three Impacts of Cloud Computing on Business Process Outsourcing

Ease of Access and Use

Cloud computing is an innovative technology that allows greater flexibility to businesses. What businesses can do is they can outsource their operations and responsibilities to third-party vendors who are responsible and accountable for your back-office (billings) and front-office (tech support). All you need to do is hire the right strategic fit that would manage and control things on your behalf, allowing you to focus on core business affairs. There are predominantly two goals that companies, small or large, always strive to achieve: speed and efficiency. Therefore, cloud computing has not only provided businesses an innovative technology to boost performance and productivity, but it has also made things convenient and far more efficient than ever.

Quick and Accurate Reporting

The cloud may be perceived differently by people, but those who know it well, know its strategic significance. For elevating the performance and productivity of the business, the cloud has made things working for every company. The data operators or web service providers with innovative computing techniques and defined processes allow you to focus on core aspects of the business. At the same time, they take care of the rest. Moreover, business process outsourcing provides you with quick results, which means they can be monitored or tracked on a real-time schedule. Plus, you would be surprised to know that cloud computing and its results are accurate, which makes it the biggest motivation for businesses to embrace and integrate it into their business.

Speed and Efficiency

No matter how much one may argue, BPO allows you greater command and control over the entire process. The world is moving to newer and more improved processes. You can only expect to survive if your business processes are beautifully created, supported, and executed in their right order. With cloud computing, which provides speed and efficiency, you can be on top of your business!

Summary

Businesses can only expect to sustain their competitive advantage if they integrate technology into their business operations. Undoubtedly, cloud computing has changed the entire dynamic of the web world and has eased businesses up to an unimaginable scale. Now, you can use business process outsourcing techniques to increase business efficiency, speed, performance, and, hence, overall productivity.

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.

Why are Growth Strategies Important for Tech Companies?

Tech start-ups are dependent on sustainable growth strategies that allow them to expand their business by acquisition or natural growth. By judging the progress of the business, an expert will give start-ups advice. This advice may include increasing business needs through proper planning and implementation of growth strategies, specifically for tech start-ups.

Growth Hacking in Start-Ups

The increase in tech start-ups striving for quick expansion has led to the term “Growth Hacking.” The term is a popular word that most entrepreneurs are familiar with in the start-up universe. “Growth Hacking” defines rapid research and trails across different marketing channels. The majority of the start-ups in the industry today are ready to try “out of the box” concepts and ideas to make their mark in the industry that is worth millions of dollars.

One of the most influential growth strategies employed by start-ups is by PayPal. There was a time when PayPal was not as big a company as today. The company used large growth hacking as its primary growth strategy. PayPal paid $20 to those who signed up and another $20 when the user brought in a referral. Initially, it cost the company millions, but the strategy paid off and established PayPal as the primary company for handling online payments.

Deciding What the Start-up Needs

Apart from PayPal, another company has taken the start-up universe by storm by tapping into the niche market. MonDevices was successful in establishing itself as a leading company within a few years by effective growth strategies. The company was initially launched in 2015 through Kickstarter. Today, Mon Device is a start-up that produces one of the best and cost-effective sleep monitors. The monitor features a rollover the monitor and smart breathing monitor that gives new parents peace of mind along with much needed sound sleep. The rollover monitor is useful and could save a baby from injury by alerting parents. A monitor like this was much needed, but MonDevices was the only company that was able to succeed with effective growth strategies for tech companies trying to gain market share.

Get a Team that Carries Your Vision

For any tech company trying to expand, one of the most essential foundations of growth strategies is needed, which is to have a team that shares your vision and passion for the company. Align your teams and the organizational goals of your start-up to have a potent combination for guaranteed success. Every team member will strive to achieve their professional goals by being more productive.

Transparent Working Environment as an Essential Part of Growth Strategies

For a tech company trying to succeed in a competitive environment, it needs to rely on imposing a seamless working environment where all employees feel comfortable with each other. Their goals and objectives for professional development must be aligned with the mission and the strategy of the tech start-up. The start-up world is not for everyone! The employees who need to be told what and how to do things usually do not last long in a modern tech start-up. For this reason, having a transparent working environment empowers employees, motivating them to give their ideas. Initiatives and innovative ideas from all teams will help the tech start-up trying to achieve a high market share.

Bootstrapping with Slow and Steady Growth for Start-ups

Growth strategies for a start-up indicate having sufficient funds through bootstrapping that will help the company gain a better market share. Slow and steady growth is significant for a tech company trying to launch a prototype. Bootstrapping allows start-ups like MonDevice to have enough capital to help introduce a prototype into the market. Once the prototype is successful, it will create a steady stream of revenue.

Perfecting the Product at Every Stage

An essential aspect of the growth strategies implemented by MonDevices is to concentrate on how to improve the product. According to the philosophy of MonDevices, there will be news about how the rival product is superior and better than your product.

For tech companies trying to be as successful as MonDevice, it is essential to consider information about competing products. Grzhonko, Founder and CEO of MonDevices, explains that instead of concentrating on the white noise, focus on the product and the process used to manufacture your product. It is essential to focus on future needs and technological advancements. It will help your product become future proof.

Conclusion

The growth strategies by MonDevices have helped a struggling tech company trying to increase its sales and market share to achieve its goals. Today, the tech start-up is gaining momentum in the market, and the company is providing high-quality sleep monitors that help parents and children alike.

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

Time-Tested Retail Sales Promotions

A sales promotion is an indispensable part of the promotion mix. It bears importance in the retail industry as it has the power to clear out stocks, drive foot traffic, and lift sales temporarily. It allows customers to buy their favorite products at cheaper rates than before.

 Retailers use media and non-media resources to predict and fuel customer demand and improve product availability. Examples of sales promotions include coupons, contests, product samples, promotional discounts, exclusive prizes, freebies, etc.

Build Loyalty

It is valued in terms of creating positive feelings towards a brand. This positive vibe triggers positive emotions that help customers to revisit their favorite retail shop or brand to purchase products over and over again. As loyal customers keep on revisiting the retail store, they not only help increase the foot traffic themselves but also encourage others to pay a visit, especially in malls or shopping junctions. Moreover, WOM (word of mouth) marketing or a sales buzz is a big plus for the brand. Increasing foot traffic through effective or time-tested retail sales promotions is ideal for businesses to lift their sales profitability.

Sales Promotions–In the Light of Seasonal Demand or Shopping Frenzy

Attracting shoppers to brick-and-mortar stores and converting the influx of traffic into sales profitability is necessary for maintaining the financial health of retailers. With shifting industry dynamics and changing consumer buying patterns, it has become extremely challenging for stores to drive traffic, build loyalty, and lift sales. It wouldn’t be wrong to say that online stores or e-commerce giants, such as Amazon and eBay, have eaten up a significant portion of sales profitability from retailers all around the globe. This has happened because retailers have started to use and capitalize on time-tested retail sales promotions for growing their sales profitability.

Here are two time-tested retail sales promotion techniques that can guarantee a surge in sales volume (if implemented effectively).

Promotional Pricing Will Help Build Loyalty

Marketers and retailers use psychological tactics to increase foot traffic in their stores by creating a favorable environment or atmosphere for shoppers to purchase store items or products. Undoubtedly, promotional pricing on different items is an ideal way to attract new customers, clear out stocks or inventories, and bring privileged customers back to your retail store. This way, you would not only create a point of interaction with clients but also build loyalty. Promotional pricing has proven to be one of the best time-tested retail sales promotions for ensuring guaranteed results. Some of the promotional pricing options include:

Markdowns: A complete cut of the entire stock is all that customers prefer to avail. Flat sales on the whole stock, for instance, “50% off of the entire stock until…” is a perfect promotional pricing tactic that will increase foot traffic of both new and regular customers. However, you need to keep in mind that large markdown sales must be backed by well-crafted and properly positioned advertising or promotional campaigns.

Bundle Pricing: This is the pricing tactic mostly used by cellular companies or internet providers. For example: ‘buy one get one free’, ‘use this much bandwidth, and this much is free’, etc. This great psychological selling point helps customers feel good about the offer.

Loss Leaders: Certain products are always in demand. Such items are sold at discounts, and new customers usually find them attractive and feel good about buying them. So, promotional pricing is a major contributor and a time-tested retail sales promotions option that can be used to lift sales volume and, hence, sales profitability.

POP Displays

POP (point of purchase) displays are one of the most effective, yet clever ways that are used by retailers and marketing experts to encourage impulse buying. They subconsciously trigger customers to purchase without them realizing it. According to a study, 55% of purchase-related decisions made by customers are due to POP displays strategically placed in the retail store.

Free Samples: It is an ideal way to introduce new items, which you may have recently added to your retail store, to your customers, especially the first-timers. This is probably the best time-tested retail sales promotions tactic that can be used by stores to drive foot traffic and build loyalty.

Speed Bumps: The proper placement of products, probably at an eye-level, can draw instant sales. When the purchasing journey is closer to an end, you must strategically place items so that they could get the attention of prospective customers. Attractive promotional or sales offers and signposts are considered ideal for stimulating unwanted desires.

What Else Can You Do?

For bringing customers to your retail store or driving foot traffic, you don’t just need to sit idle—you must get to work! Here are some suggestions:

• Send promotional messages or emails to your privileged clients.
• Acquire VAS (value-added services) from cellular companies for sending promotional messages.
• Take your store and featured products on social media networking sites to create awareness.
• Hire brand ambassadors or store influencers.
• Write a blog post to let people know about your sales promotions.

This way, you will surely notice significant results as these crucial tips are time-tested retail sales promotions techniques that are widely used by retailers across the globe. Lastly, by employing rightful sales and promotional techniques, you can expect to witness more foot traffic and increased sales profitability, which will ultimately build loyalty.

Summary

For producing desired results, you must encourage customers to visit your retail store. Once they pay a visit, then you must convert their visit into sales. By employing time-tested retail store sales promotions, you can expect to increase the influx of customers and, hence, sales. To build loyalty, you must give certain offers to clients, which will encourage them to revisit your store at their next time of need.

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.

To establish a successful business that produces goods and services at minimum cost, numerous techniques are used. One of the most common tools used to drive the financial management of a company is budgeting which ultimately requires bookkeeping.

Bookkeeping allows the record-keeping of all transactions that taken place or are planned by stakeholders in a business. The following are bookkeeping techniques used in budgeting that lead to success.

Sketch an Outline of Costly and Unexpected Expenses

Costly expenses are the ones that are not necessarily planned. They can even be accidental, but they can cause hazardous damages to the business once they appear. Therefore, an entrepreneur must take care of such expenses by allotting a specific budget to this section in a strategic plan.

No matter what business you’re in, unexpected business costs always seem to crop up. Sometimes even seemingly inexpensive surprises can throw a monkey wrench into the works because finding the cash to repair a plumbing problem, replace broken equipment, or tackle some other emergency can be challenging if you’re not prepared for it. Here are some of the expenses you need to budget:

1. Equipment Breakdowns
2. Utility Problems
3. Growth Costs
4. Unexpected Opportunities

Preparing for these expenses by budgeting will help prevent these costs from sinking your business or causing you to take out costly loans.

Installation of Bookkeeping Software

Bookkeeping is itself a hectic task that requires financial experts for its completion. Still, to avoid any mistakes, several of the bookkeeping software have been designed by engineers to make this task easier and error-free. Some of this software are the following:

1. QuickBooks
2. GnuCash
3. Moneydance
4. Quicken

This software is user-friendly and easily operated, but business owners are still advised to keep financial experts who have complete knowledge of terminologies for data entry to avoid any haphazard or error in the results.

Taxes Should Not Be Ignored

Business owners should be vigilant about their paid taxes as well as the upcoming ones. Financial experts and bookkeepers, while planning a budget, must allot a particular amount of funds available for paying future taxes (the taxes can be allocated depending upon the previous taxes paid).

Taxes should be allocated within the budget strategy and set aside an account that will not be touched during the year. You can use previous tax filings with the IRS to know how much to budget and hold back.

Though a tax bracket can change from year to year, you can pay your tax budget using your previous year’s tax debt as a guideline. If you can afford a tax expert or accountant, ideally, they would handle your tax allotment.

Advantages of Effective Bookkeeping

Ensures Economic and Financial Health of an Organization

Finance plays an optimistic role in terms of providing a solid backbone to an organization. It helps ensure its economic and financial health as it tends to provide optimal allotting of all funds a company has to operate its strategic plan.

To sustain the stance of a business inclusive of its targeted operations, its sound financial health is of substantial significance, acquired through intelligent budgeting. Therefore, entrepreneurs are advised to be vigilant while planning the budget for their business organization.

Identifies Major Apertures of an Organization

Budgeting is considered one of the essential pillars of an organization as it provides a bigger picture of what has happened or what will happen in the future. It identifies significant apertures or errors made in the past while dealing with the finances of an office, ultimately enabling business owners to make future decisions in a better manner. This helps in making business operations smooth with fewer obstacles.

Conclusion

Effective budgeting is the cornerstone of a thriving business, as it is pivotal in driving successful operations. A well-crafted budget serves as a roadmap for financial decision-making, enabling the business accountant to meticulously manage the current finances while preserving a comprehensive history of past financial performance.

Budgeting and bookkeeping are deeply interconnected components of a business’s financial ecosystem, and their synergy is paramount for maintaining financial health and achieving long-term success.

In essence, effective budgeting is the compass that guides a business toward its financial objectives, while bookkeeping is the diligent scribe that faithfully records the journey. Together, they form the foundation of financial stability and pave the way for the prosperity and growth of the business.

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

Budgeting is essential to the success of any company. Each business needs to have a competitive advantage to get an edge on their competitors by lowering the prices of the product, providing added services, and a great location. For this, the foremost need is to analyze your competitor’s business thoroughly so that project management can be handled more resourcefully. A comparison with your competitor is important at the start-up of the business and also when you think of expanding your business. Get ready to offer the market something unique and more innovative than your competition.

Factors that should be considered when Creating a Budget

The Age of Company as well as the Product

The actual budget depends on the initial funding of the company. The budget range can be from 1% to 10% of the revenue. A well-established company will have greater revenue from sales, which can be set aside for marketing. At the same time, a business start-up will prefer to invest the money into improving the quality of their product. A brand company with a large and loyal consumer base will have to focus more on the quality of the product with marketing.

The Objective of the Company

Marketing campaigns are chosen according to the intention of the companies. This is also referred to as target-based budgeting. Hence, each marketing campaign is different due to the budget required, which is also different. The common objectives of a specific business will be building a brand and spreading awareness in addition to trying to break into the existing market. The marketing budget is allocated according to the specific goals.

Budgets of Competitor

The analysis of the competitor’s budget is also important. We need to consider a competitor’s financial plan that is being spent on the customers to market their products. Nowadays, the average budget resources for both established companies and start-ups have been clearly defined. On average, 1% of sales revenue is usually allocated for marketing commitments. This also varies in the industrial sector business and sales from one business to another business. Yet, businesses with higher profit percentages like pharmaceuticals spend more than 20% for new product marketing, ensuring sales among the customers. Remember, the budget is always considered according to the sales benefit and the specific objective aim of the company.

Targeted Audience

The business should have complete information about product use in the population age group as well as the region. With this, they can plan their budget and advertising and product release according to these factors. Businesses can better target their audience, optimize their resources, and increase the chances of a successful product launch and advertising campaign. Always remember that knowing your target audience is an ongoing process, and continuous evaluation and adjustment are key to long-term success.

Medium of Marketing

The interaction of the consumer with the market is most important. New businesses should learn the trade and invest in the analysis of observing the competitor’s sales graph and marketing medium they are using for the promotion of their product. This helps in determining the amount of capital needed for targeting a certain customer population. For example, companies might spend time and money on promoting the product on social media. Still, the product has a greater demand through the old era e-commerce method, and a radio or newspaper advertisement would be and easier and cheaper method to increase sales and connect the buyer with the product.

 Complete Analysis of the Competitor

Strategic and marketing management is the study of the weakness and strengths of the potential and current competitors during the process of budgeting. The detailed analysis provides defensive as well as an offensive strategy to deal with threats. Creating profiles proves to be an organized method for a complete analysis of the market as well as the product as it contains the efficient implementation of marketing strategies.

Conclusion

For a successful business start-up to be profitable, detailed, and organized, competitive analysis is the most important task. Create profiles with in-depth details given in the article above, including the financial status observed, workforce, and advertising strategies. Budgeting is a powerful financial tool that can help individuals and organizations achieve financial stability, reduce financial stress, and work towards their financial goals. It provides a structured framework for managing income and expenses, making informed financial decisions, and securing a better financial 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-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, managing your finances should be your priority on your to-do list. You have to focus on inventory, manage accounting and bookkeeping, and other financial tasks in front of you. But all these functions require clarity in your financial statements and bookkeeping records.

Delayed or missed entries in business bookkeeping can pave the way to financial disaster and business failure. Building a clear picture of your financial health will contribute to business growth. If a business is ready to audit, it attracts investors.

Accounting Problems that can Sink your Funding

1. You do not use an accounting software

Manual work is always the hardest and is at risk of errors. A small accounting error can lead to considerable losses in the business. An accounting software, according to your business size, is as essential as funding your business. Small business owners can also get specific software to meet their needs.

Working on a spreadsheet is not like working in accounting software. Be sure to research and find the appropriate accounting software to make your business bookkeeping run smoothly.

2. Financials are incorrect

Incorrect financials are a threatening accounting problem in your business. If your finances are wrong, it may sink your funding round in your business.

Any error in financial statements leads to considerable losses. Business bookkeeping and other business operations will be messy if you do not keep your financial data current. Your accounting statements must be clear and transparent. Income and expense statements must be clear and related to cash flow and balance sheets. Delayed data entry is a significant risk for fraud and theft.

3. There are projections for revenue, but there is no financial data

You cannot have a clear picture of how much revenue your business has generated unless you know the expenses and purchases you have made. Your sales have increased, but is that according to the profitability of your business? Investors want to get a clear and transparent presentation of your financial data to invest their money. A business loan cannot be achieved from banks unless a clear, transparent financial record of your company is present. 

4. Financials are not produced monthly

In a small business, it is often thought that it is appropriate to produce finances on a quarterly or bi-annual basis. However, monthly financials show investors that you are closely monitoring your business.

If you do not produce monthly financial statements, it can lead to a negative balance if expenses are made but no income statement is updated. Invoices that need to be paid by the company may go unnoticed, which can put a bad reputation on a company. It can end terms with the suppliers. Business growth is halted or significantly reduced.

5. Your personal and business accounts are all mixed up

Business owners often mix their personal finances with business expenses. Keeping these two finances separate is of utmost importance. If these two finances (personal and business) are not segregated, then it cannot be known what was intended for business and what was used personally. The amount of profit that was generated out of your invested capital cannot be estimated correctly.

Your funding will sink if you do not keep a separate business account. 

Conclusion

As a small business owner, you have the drive to grow your business at lightning speed! However, it’s important to keep in mind that accurate financial records are essential to success. Don’t overlook accounting issues during the initial stages of your business. If you do, it could negatively impact your funding prospects and harm your ability to secure funding. Stay on top of your finances and watch your business grow with confidence!

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

The best way to combat fraud is through awareness and prevention. The most effective prevention measures are the regular inspection of procedures and employee screening. Practical fraud prevention strategies should always be part of the company’s manual. Employees should know these fraud prevention methods in their orientation and conduct periodic awareness programs.

Dishonest Employees

Owners may have implemented fraud prevention strategies, but they also need to remember that every employee may not be honest and loyal. Employees may be involved in unethical accounting practices, inventory pilferage, and other financial losses.

Checking Service Records Before Hiring an Employee

The very first measure is employee screening before hiring. To avoid fraud, an employee’s past service record, educational certificates, and legal antiquity should be screened carefully. Employees are the most essential asset for fighting against fraud, but hiring the wrong person can result in employee fraud. Fair employment practices should be adopted as a preventive measure against fraud happenings.

Awareness Program for the Prevention and Detection of Fraud

Training and educating staff to report suspicious activity is of vital importance. Employees should know they will face strict disciplinary action if they commit fraud in your company. In case of involvement in fraudulent activity, they should know that your organization has a zero-tolerance policy for fraud. Everyone in the company should have an orientation of the fraud policy, know the types of fraud, and to whom any suspects should be reported. An awareness program often emphasizes that it’s the responsibility of all employees to play the role of fraud prevention. Ethical training and education of employees are scheduled under this program.

Segregation of Job Descriptions

People should know their responsibilities, limitations, and what they are held accountable for. Policies and procedures should be written. All workers should have orientations and frequent training regarding these policies. A clear organizational structure should exist. Segregation of duties and rotation of staff in altered areas can also aid in the detection and prevention of workplace fraud. Make everyone accountable for their actions, and not only will they take pride in their roles, but they will also be less likely to commit fraud.

Strict Monitoring

Loopholes in your policies and procedures only compel workers to commit fraud. Identify risk areas under your control where a breach of trust is most likely to occur. Recognize the elements that encourage people to involve themselves in fraudulent doings. Access to inventory storage areas, sensitive data, and financial statements should be highly restricted. Managers should set an example by doing the right things and having zero tolerance for any suspicious activities. Often, the most “trusted” people become scammers when there is an oversight of internal controls.

Surprise inventory checkups of the financial statements should be done periodically. Employees should feel the continuous pressure of being monitored.

Documentation is crucial for internal controls to prevent fraud. Consecutive numbering of all receipts, purchase orders, and receipts should be done. Deliveries should match purchase orders. No stock should be stored without records. All receipts should carry signatures and stamps of more than one person. Prevent accounting fraud by hiring account managers and experts.

Reporting System for Fraud

Honest people often hesitate and are reluctant to report wary and suspicious activity. An anonymous reporting system should be introduced to workers. An open-door policy is also helpful for fraud risk management. Employees should interact with management and raise their concerns without fearing penalization or repercussions.

Fraud Detection

The best deterrent against fraud is the existence and visibility of a fraud detection strategy. Hiring certified fraud examiners can help prevent fraud in the long run. They provide consultancy, continuous monitoring, and develop measures to prevent fraud.

Conclusion

Investigations of fraudulent cases have revealed that people commit fraud only when they find it easy and get an opportunity. Continuous monitoring and evaluation of an effective fraud policy is an integral part of measures to prevent fraud.

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.

Virtually every business faces fraud, and it has cost companies an estimated 5% of their annual profits. Businesses that lack preemptive fraud prevention measures are the most at risk. Fraud itself can be a civil wrong or a criminal wrong, and in some cases, it may cause no loss of money, property, or legal right but can still be an element of another civil or criminal wrong. Traditional in-house controls can be ineffective in averting fraud. The most important thing to do is to discover what steps can be adopted by individuals to protect their businesses from fraud.

Types of Frauds

There are several techniques to commit fraud, as criminals use their imagination to find new methods daily as the world progresses. Some of the most generally committed types of fraud include:

1. Check Fraud: Check fraud happens when an individual deliberately pays for something with a check and knows that there is not sufficient cash in the account to cover the cost or when a person fakes or forges a check stolen from someone else.
2. Internet Sales: Internet frauds are becoming more widespread since the world depends severely on technology. This type of fraud comprises of selling fake or forged items or taking fees with no intention to ship or deliver the item.
3. Website Misdirection: This happens when hackers copycat respectable establishments such as Amazon, eBay, or PayPal, transmitting customers to another website where they enter their credit card information. The criminal then uses this information to make personal acquisitions.
4. Charities Fraud: For several years, felons have benefited because Americans generously give to praiseworthy causes. Convicts implore individuals to make contributions to different foundations that do not exist.
5. Work-from-Home Scams: Operating from home sounds like a dream come true to many people, so it is not astounding that many individuals fall for this sort of fraud each year. Criminals promise a salary to people who sign up for their fabricated work-from-home job, often demanding that money be paid upfront with the promise of a significant settlement in a short amount of time.
6. Identity Theft: One of the most frequently executed types of fraud in this age, identity theft mugs victims of their money, credit rating, and personal identity. Impostors obtain credit cards, bank accounts, and other personal information, using them for personal gain.
7. Credit Card Fraud: In today’s environment of automated transactions, credit card fraud has become a dominant crime. By gaining people’s credit card information through various resources, the criminal can rapidly make a large amount of purchases before the consumer even comprehends what is happening. Credit card fraud is categorized as identity theft, identity assumption, or a fraud spree, depending on the particulars of the criminality.
8. Insurance Fraud: Insurance fraud is committed every day by people who otherwise would not consider themselves to be lawbreakers. Incorrect or inflated insurance claims for automobile damages, health care expenditures, and homeowners or renters insurance are deemed insurance fraud. They may be charged as crimes, depending on the circumstances and volume of the fraud.

Fraud Prevention and Warning Signs

To avoid becoming victims of fraud, people need to protect themselves by learning the warning signs of fraud:

• Phone calls in which the caller asks for money to be sent in exchange for an offer.
• Phone calls in which the caller asks for a social security number (even if they only request the last four digits).
• Phone calls in which the caller asks for personal information, including a bank account or credit card number.
• Receiving unsolicited mail or emails requesting the person send money with the threat that he may lose their credit card or driver’s license if they do not obey.

 

Possibly, the most significant personal policy to protect yourself against fraud is to never provide personal information over the phone, mail, or email. A respectable bill collector, bank, or loan company never demands money upfront. Suppose a person receives an offer or a demand for payment. In that case, they should look up the corporation’s contact information, contact the establishment directly, and check with the Better Business Bureau in their state to ensure the company is authentic. When retailing an item of significant value, an individual should also appeal a cash payment to avoid check or wire fraud.

Final Note

Keeping these warning signs in mind, individuals can prevent fraud by detecting fraudulent activities.

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.

Corporate fraud is something that has affected almost every business at one time or another. It is a sad price of doing business. Corporate fraud can be any fraud that is committed against a specific company. Corporate fraud cases are complex, private, and can include financial scandals or evasions of fiscal responsibilities. It can also come as theft of physical assets, confidential information, or cash. Also, misappropriate use of business accounts, fraud of payroll, extortion, credit and banking-related frauds, specified insurance fraud, and much more.

Types of Organizations Affected by Corporate Fraud

Now, the question is how can we measure the extent of corporate fraud and what steps can we take to eradicate this obnoxious scam from our organizations? Everyone faces this issue, and it doesn’t depend on the organization’s size, industry, net worth, or location. Fraud does not discriminate. You cannot plan to squelch white-collar crime without discouraging healthy business growth that benefits the consumer. The government vigorously tries to avoid fraud with different policies, rules, and techniques designed to help law enforcement detect schemes before they blow up.

 

According to recent studies by the American Institute of Certified Public Accountants (AICPA), small businesses are greater targets of fraud. Small and midsize companies undergo a more significant part of fraud damages than do larger companies. The reason is apparent: small companies don’t have the resources to implement proper fraud prevention protocols. Also, even if implemented, the protocol is often taken lightly by company employees.

Fraud Prevention Program

Specialists estimate that businesses lose 5-6% of their yearly profits due to white-collar fraud. A complete fraud prevention program is required if you do not want to become a part of these statistics. This consists of three things:

• Training/education
• Exploration/investigation
• Preemptive prevention

Training/Education

It is the responsibility of the stakeholders to give every employee complete training on identifying the signs and symptoms of a fake business con and how to report these scams efficiently. Even if someone in the business has recognized the fraud, they often hesitate to come forward because it may be hard for that individual to explain the situation, and they fear losing their position in the company based on what they have found. The most important thing for a company owner to tell all employees is that they have their complete trust, rely on their actions, and that they should come forward without any hesitation in case they find something. Whether it is a small or large organization, employees are most likely to report suspicious activity when they have the essential knowledge to help the company as an integral part of the fraud prevention program. Almost 90% of the time, corporate frauds are committed within the organization, so while fraud avoidance efforts are designed to stop employee fraud, inspections of suspected fraud should discourage other employees from committing fraud.

Exploration/Investigation

Secondly, once the fraud has been identified, proper and thorough interrogation and an investigation is a must. Identifying and inspecting signs of fraudulent doings should never be overvalued or taken too superficially. All employers must remember the influence on the company’s reputation and internal atmosphere of setting the wrong person under exploration.

Preemptive Prevention

Thirdly, and the most critical factor in a fraud prevention program, is to carry out specific preventative measures to see the general picture and know the background of fraud, categories of fraud, and detection techniques applicable to fraud in a corporate setting. Decide what action should be penalized to the culprit or guilty party based on the investigation results. There should be a structured report according to the elements of proof for the relevant offenses. The action taken will undoubtedly set an example in front of everyone in case of any future corporate mishaps.

Final Note

The one sure thing for almost all business owners to know is that we can never completely eradicate fraud in our businesses. Still, we can take preventive measures and be more efficient with keeping a strict eye on all things related to corporate fraud by properly educating everyone working in the corporation.

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

In business, focus improvement means that your systems are improved by gradually removing restraints and improving the system as a whole. To focus on the growth of a business, it is essential not to waste time dealing with the system’s constraints. By doing so, the focus of the people associated with the company will be on the business functions.

Focus Improvement

Operating a business is not an easy task, no matter how experienced you are. A business needs your investment, your time, your energy, and your complete focus. If you are distracted, you will not be able to give attention to business operations wholeheartedly. No matter how efficient the tools and software you are using to manage business functions are or how highly qualified the staff you hired to run your entrepreneurship may be, the business still demands your focus wholeheartedly.

Business bookkeeping and accounting is a difficult task. As an entrepreneur, you also must know the value of making the right decisions at the right time, along with the consultation of accountants. Reading financial statements, matching accounting statements, and discussing finances with your accountants all need your focus and attention. Keeping a check and balance on your bookkeeping is not an easy task, and if your mind is already not focused on the work, you cannot interpret whether the expenses are going in the right direction, much less anything else. A small mistake in business or a slight delay in business-related decisions can slow the growth of a company, leading to a period of recession if you are not entirely focused.

Similarly, suppose you are dealing with clients in a service business or having a meeting with other entrepreneurs. If your mind is not focused or you are not fully prepared for the meeting, it will leave a bad impression on your clients and/or investors. You must be aware of your environment. What is going on in the market? When can you reach other markets? What strategies can you adapt to increase business financing? How do you increase the market share of your products?

How to Become More Focused

Understanding the importance of focus is one thing, but how to become more focused is another. Here are some ways to focus efficiently on your business and its operations.

Make a daily to-do list. Paste it on your wall or computer table so you will be reminded and stay focused on the tasks you need to accomplish in a day. Then, divide your day into daily tasks and select one task at a time to tackle. Plan out how to precisely achieve that task and create deadlines to finish it in the allotted time. When you finish that task, allow yourself to feel accomplished before focusing on the next task. Follow this simple procedure to accomplish your task list.

 

Also, try taking small breaks in between the tasks on your list. These breaks can take 5 to 15 minutes, so long as they allow your mind to refresh. Grab a cup of coffee or tea to mentally relax before working on the next item on your task list.

When taking a break or working on your tasks, keep your mind away from other interruptions and thoughts. It is crucial to avoid unnecessary things such as checking your inbox or social media frequently. Likewise, close any unnecessary browser windows on your computer to minimize distractions.

Office work should be kept in the office, if possible. When out of the office, try improving your focusing skills by practicing yoga and meditation. Proper sleep, hygiene, and eating are as important to stay focused and alert at the office just like task lists, taking breaks, and minimizing distractions.

Conclusion

Becoming more focused is important for everyone in today’s fast-paced world. Entrepreneurs, essentially, need to be more focused as it affects their day-to-day tasks and meetings. This, in the long run, results in successful business growth.