Author: Stephen Huck

Over the past few years, the latest technologies and advanced tools have transformed every aspect of business management, including marketing, web designing, and HR management. It is effortless to consider accounting and bookkeeping, but with the emergence of versatile technologies, accounting has become an industry ready for disruption. 

Sweeping disruption in the accounting industry is forthcoming. Massive technological alterations and transmitting customer trends demand a better approach to how the industry produces client value. Some of the services are more exposed to disruption than others. For instance, essential transactional services have already been highly automated (though adoption has diversified significantly across the kinds of small businesses). Acceptance will be highly automatic, and limited advisory services will follow the trend. 

Before exploring the specifics of the accounting industry and the forthcoming disruption, let us review some of the most common drivers behind the general uproar. 

Complacency

When a business basks in past successes and opts to rest on its laurels, it serves as a glaring signal that disruption is on the horizon. Competitors seize the opportunity, identify entry points, and stake their claims in the market.

Lack of Automation

In today’s landscape, customers exhibit high expectations and demand more sophisticated offerings. Customers will likely explore alternatives if prevailing accounting practices fail to meet these demands and rely heavily on manual processes. Manual tasks, often time-consuming, can lead to customer frustration.

Innovation

The dynamism of many small businesses exerts pressure on established firms to reevaluate and adapt their approaches. Such compelling innovation from smaller players can potentially drive disruption across industries.

When a confluence of these drivers is observed, disruption becomes not just a possibility but a near certainty. Examining the financial sector, it becomes evident that all three drivers are actively at play, signaling an impending disruption. In simpler terms, the landscape is ripe for transformative changes, and disruption is on the horizon.

Let us dig deeper into the trends and analyze the major trends driving disruption. 

Clients Demand Better Connectivity

Examine any service-based industry; they all are opting for practices with better connectivity and services. With the advent of advanced tools and cloud technology, accountants have researched effective ways to connect with clients, which creates a cordial relationship between both parties. With the help of rapid connectivity, business strategies are discussed practically, and problems get solved as soon as they arrive. Presently, both service providers and clients have access to relevant information. 

Big Data

New technologies based on business intelligence, big data, and analytics are approaching every aspect of the business. Big data allows business owners to access exceptional information and analytical tools to make better financial decisions. 

Currently, accounting professionals are utilizing these tools for data entry and maintaining records. Big data allows one to look at business strategies better and predict their potential clients’ future requirements. 

Demand for Customization

We observe everywhere that businesses are getting a taste of customization, and now they expect it in every product and service they utilize. Customization is an influential factor in creating disruption, as clients only wish to see the products that suit their needs.
In business accounting, entrepreneurs only want to pay for the required services and diminish the unnecessary services as there is a rapid increase in the demand for customized products rather than bundled packages. If a company wants to hire a professional accountant, he must oblige. 

Growth of the DIY Approach

Another trend that we have been observing is the growth of accounting software, and now that cloud solutions have been launched, we have seen many small businesses implementing the DIY approach. Fortunately, tools like YouTube videos, web tutorials, and search engines now allow businesses to learn to handle their company’s accounting procedures. 

Automation of Data Entries

Automation is a significant driving factor in accounting disruption. Specifically, we are experiencing the disappearance of manual data entries. Tools like e-documents, automatic imports, and software solutions are emerging as a new norm. With Automation, businesses have become more efficient and can use their capital better. Additionally, Automation has also reduced the cost of human resources. 

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.

Maintaining a streamlined cash flow is paramount for the success of any business. While many companies in the retail sector operate on credit lines, it is essential to meticulously schedule repayments to prevent disruptions to the credit line that could adversely impact the business’s overall health. Effective scheduling is a crucial reason business owners implement robust credit control systems to maintain a tight grip on their credit lines. This strategic approach not only safeguards the business’s financial stability but also fosters a proactive and disciplined approach to credit management.

What is a Credit Control System?

A credit control system is a strategic framework designed to ensure the smooth management of customer services or products. This system categorizes debtors based on creditworthiness, assigning varying payment timelines accordingly. Strong emphasis is placed on providing customers with a positive credit history and an extended period for settling payments. In contrast, those with a weaker credit history are encouraged to make prompt payments. Credit control is synonymous with terms like credit policy and credit management.

The significance of credit control lies in its pivotal role in the success of a business. While high sales are essential, they do not guarantee immediate cash inflow. Without effective credit control, credit sales can transform into irrecoverable bad debts. By implementing credit control measures, businesses can maintain positive or balanced cash flow, ensuring that accounts and finances remain well-managed. This proactive approach reduces the risk of failure and alleviates the stress associated with managing accounts receivable.

The responsibilities of a credit controller encompass managing and collecting debts from company debtors, establishing credit terms and conditions, processing payments, reconciling invoices, and ensuring the timely settlement of debts. The role of a credit controller is inherently challenging, requiring adept handling of obstacles such as dealing with customers who may be untruthful or situations that may spiral out of control. Despite the complexities, effective credit control is indispensable for a business’s financial health and sustainability.

Here are five essential tips to control credit effectively.

Tip #1 – Streamline Your Credit Control Process with Organized Record-Keeping

Establishing a foundation for success begins with maintaining meticulous and well-organized records. Effectively managing credit involves creating a timetable encompassing essential details such as debtor information, sale timelines, and the agreed-upon period for customers to settle payments for your products or services. Ensure you include comprehensive debtor contact details to facilitate seamless communication during the payment process and minimize potential concerns or uncertainties. Keeping your credit control process organized sets the stage for a smoother and more efficient financial workflow.

Tip #2 – Enforce Robust Credit Control Policies Consistently

When implementing a credit control system within your business, it’s crucial to establish clear and strict policies and procedures. Develop a comprehensive policy document outlining the guidelines for credit management and ensure consistent adherence to these protocols. Having a well-defined credit control system aids in fostering familiarity among longstanding customers, minimizing confusion and potential misunderstandings. By consistently applying and reinforcing your credit control policies, you create a transparent and reliable framework that contributes to the overall financial health of your business.

Tip #3 – Assess Customer Credit History Before Committing to Deals

Prioritize due diligence by examining your potential customers’ credit histories before entering agreements. For customers with a strong and reliable credit profile, consider offering extended payment periods as a testament to their creditworthiness. Conversely, it may be prudent to impose shorter payment windows to mitigate potential risks for customers with a less favorable credit history.

To incentivize timely payments, explore offering discounts for early settlements. This strategy encourages prompt payment and establishes a positive rapport with customers. By proactively assessing and tailoring payment terms based on credit history, you enhance the financial stability of your business while fostering a mutually beneficial relationship with your clientele.

Tip #4 – Foster Transparent Communication with Your Clients

Initiate open and honest communication by gathering comprehensive contact information for your customers, ensuring they are well informed about your terms and conditions. Schedule regular calls to keep customers updated on account matters and serve as reminders for upcoming payments. Take the opportunity to share information about current offers and incentives for early payments, reinforcing your commitment to a transparent and collaborative relationship.

Furthermore, it provides insights into your credit history and any relevant financial information that may impact your business relationship. Transparent communication builds trust and understanding, creating a positive and enduring partnership with your clients.

Tip #5 – Optimize Invoicing Efficiency through Email Communication

Embrace the efficiency of email communication for invoicing, a modern approach that reduces costs associated with ink and paper and streamlines management processes. Electronic invoices are environmentally friendly and reach your customers swiftly, enhancing the overall efficiency of your financial transactions.

Incorporate comprehensive details about your policies within the email, ensuring that customers are well-informed and aligned with your terms. This proactive communication can help minimize the likelihood of delinquent payments by fostering clarity and understanding.

Moreover, the transition to electronic invoicing contributes positively to your cash flows, offering a more agile and organized means of financial management. Embracing email communication for invoicing is a strategic move that aligns with contemporary business practices, benefiting both your operational efficiency and environmental responsibility.

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.

5G, the buzz around has been heating up lately! And yet another step forward in the transformation. It is here, but still, it is not here! The current information related to this technology is incoming every other day.

The widespread 5G networks are promising. Studies say by 2025, 5G subscriptions will reach 2.61 billion. 

Every US carrier has launched a 5G network for its clients. In addition to this, European countries also joined the race. So, the question that comes here is! What is precisely 5G technology? Why should we care? Why should Business owners be aware of this technology? Are you a business owner? 

Here are important factors you must know about the 5G technology.

Swift Connections for Your Web Business

E-commerce entrepreneurs can rejoice in the promising development that 5G technology is accelerating online enterprises’ connectivity and operational dynamics. The need for a swifter and more efficient web experience finds its solution in the capabilities of 5G.

Armed with 5G, business owners can cultivate a quicker and more responsive service for their clients, employees, and themselves. This heightened connectivity doesn’t just promise speed; it translates into tangible business growth.

The speed of 5G is set to astound. The results are poised to be nothing short of remarkable, offering a transformative leap in the landscape of online business operations. According to several industry experts and online web testing services, 5G will be one hundred times faster than 4G.

Enabling More Options for the Internet of Things

The advent of 5G heralds a new era of possibilities for small and large businesses. According to industry experts, introducing 5G will empower small enterprises with broader options, particularly in integrating Internet of Things (IoT) devices. These devices range from alarms and printers to inventory control tools and shipping trackers.

The transformative impact extends beyond mere connectivity; integrating IoT into stores and offices promises exponential growth in connectivity. It opens avenues for efficiency and sets the stage for tangible benefits. Businesses leveraging this advanced networking for their operations stand to achieve utility savings and streamline their supply networks, marking a significant leap in operational effectiveness.

Highlighting News to Write and Cover

The year 2020 witnessed an intense focus on 5G, captivating the curiosity of billions worldwide. People actively sought up-to-date information and news on this burgeoning technology.

For businesses, delving into the heated discourse around 5G offers a captivating and in-demand topic to cover. Digital content producers immerse themselves in a high-intensity subject, providing ample material to explore and write about.

The surge in interest in 5G benefits news agencies and presents an opportunity for digital marketers. Improving connectivity amplifies the site traffic experience, creating a fertile ground for disseminating information and engaging audiences in the ever-evolving landscape of 5G.

Better Safety and Security for Businesses

Safety and profits for businesses are promising with 5G technology. By having 5G technology installed, businesses would surely experience enhanced processes and a boost in cybersecurity.

The perplexing question is, how would 5G be a security source? The answer is simple: it allows businesses to have and utilize the Internet of Things and other networking applications to work and analyze data more effectively. You would reduce data threats, and user-end cybersecurity tends to increase.

Benefits Concerning Industries

Industries such as healthcare, financial services, manufacturing, transportation, and retail would rise with the 5G technology. Innovation and digitization would seem promising with 5G. Let us have a look at how.

• Hospitals and other health providers would indeed be meeting the ever-increasing growing demands.
• Financial services such as banks and other finance companies are likely more efficient and innovative in providing secure data, quick transfers, and swift financial recommendations through software with the assistance of artificial intelligence.
• The manufacturing industry would fill with sensors that help them monitor working conditions.
• 5G technology has potential growth, which provides better control and excellent visibility for the transportation system.

Improved Customer Service

Making the customer experience exceptional is a critical business. 5G technology promises to build industry-specific solutions and take the customer service experience to a new level. According to American Express, 90% of Americans prioritize customer service when deciding whether to do business with a company.

Improved customer service tends to generate more sales and potential leads. So, update yourself with the game-changing proportions of 5G technology.

The Ultimate Thoughts

The advent of 5G technology may demand patience, with its widespread implementation expected in the coming years. However, enterprises can proactively embark on preparations for this transformative shift today.

Undoubtedly, embracing change poses challenges, particularly regarding upgrading devices and associated costs. Yet, beyond the hurdles lies a realm of untapped opportunities accompanying the acceleration in speed brought about by 5G. Have you considered the full spectrum of possibilities that this shift might unlock?

As we contemplate the future, it’s evident that companies poised to harness the power of 5G will undoubtedly unlock a trove of exceptional benefits.

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.

As an aspiring entrepreneur, it is inevitable to get caught up in the most exciting elements of launching a company, such as designing the brand, choosing a name, inaugurating new products or services, and getting all the creative and exciting stuff done.

While each is essential and deserves your time and attention, entrepreneurs must wear multiple hats. You may also have to dedicate a portion of your valuable time to some of the less glamorous aspects of the business, including finance and accounting.

Utilizing money in purchasing supplies and attracting investors is often just as significant as executing your business plan, especially in the primary stages of your business.

Here is a list of strategies that every entrepreneur should be familiar with to build a successful business empire.

Managing the Cash Flow

For many businesses, the saying that states “cash is king” becomes a reality. Cash is one of the most valuable assets in new companies, with limited credit lines, and financing is a bit hard. It works as fuel to your company’s engine. Without cash, you cannot pay the suppliers and will find it hard to establish inventory, approach customers, and grow the business.

Projecting and understanding the mechanism of cash flow permit companies to create a plan and ensure they keep enough money to run the business smoothly, even in the most crucial situations. Monitoring the cash inflows and outflows allows the entrepreneur to plan accordingly, prevent any unwanted cash shortages, and utilize excess cash productively to grow the company.

Keeping a Balance Sheet

The balance sheet represents a survey of a company’s financial well-being. The act allows interested buyers to determine the company’s available resources and how efficiently those resources were financed and shows both the liabilities and assets. Moreover, it highlights the company’s market value and debts.Entrepreneurs can utilize the balance sheet to keep the business in check. While sales might be enhancing exponentially, keeping an eye on the company’s liabilities and the balance sheet is also necessary for the business’s long-term success. Although investors care about the growth potential, the balance sheet clearly shows the business’s current position.

Follow the Path to Profitability

Profitability is often defined as how much money is left from each penny of sales after the subtraction of expenditures. Fresh entrepreneurs might prioritize it while starting a business, but sometimes, it fades away during the primary years of the startup.

Furthermore, it is essential to bear a loss at some point to reach a targeted market, increase visibility, and accumulate clients. However, it cannot be a long-term strategy. Entrepreneurs must recognize a path to profitability to attract buyers and succeed over time.

Easy Communication

Solid communication skills are essential for every aspect of a business, but they are particularly crucial when dealing with accounting and finance. As an entrepreneur, you must be able to comfortably discuss the cash elements with the investors, employees, or other stakeholders.

Clear communication, especially regarding the scope of the work and terms of payment, allows you to ensure that every party is aligned correctly, protecting you and your company from miscommunication and assumptions.

Similarly, putting the proper protocols in place for everything related to payment can protect your business while working with vendors, purchase orders, multiple invoices, and tax accounts.

Forecasting the Future of Your Business

For many entrepreneurs, growth is a keystone for motivation. Some entrepreneurs are satisfied being the business’s sole owner, while others want to maximize their revenue by adding more employees. An entrepreneur must be able to predict the future of the business, regardless of the growth goals to grow successfully and responsibly,

The financial status of a company is the examiner for its marginal profits, which assures the economic well-being of a business so that it can effortlessly go to future investments and debt repayments. Therefore, these strategies play a prominent role in promoting a startup optimistically by providing it sustenance through complicated terms.

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.

Investments and bank loans are convenient ways to pull your business out of debt or expand your business towards horizons where your investment might never take you. If you face cash flow problems, you might want to apply for a bank loan to resolve the issue. Several types of loans can help you get your hands on some cash, but some of them are for small businesses. Their financing system differs from that of the more prominent companies; therefore, an average bank loan would not suit them.

You must be careful with the type of loan you pick depending on your business because the loan’s purpose usually differs according to business size and style. You might need money to boost your start-up, buy inventory, or solve liquidity problems as a small business. The sum is also not usually considerable, and the interest should be practically payable depending on the company. 

However, it isn’t all so straightforward. Banks often reject loans for small businesses because of credit analysis principles. 

Most banks and investors follow the rule of the 5Cs of credit analysis, including Capacity, Capital, Condition, Character, and collateral. While these five Cs are not a part of some internationally acclaimed strategy, bankers worldwide consider these to sanction or disapprove loans for small businesses.

Here are the five reasons explained why banks reject loans for small businesses. 

Not Having a Hopeful Cash Flow Balance

Cash flow statements are imperative for applying for a bank loan. For an investor to approve loans, there must be cash-flow statements from the past and present and those based on future projections. These cash flow statements provide a clear insight into the business performance in recent history, areas of strength and weaknesses, and the potential for growth in the coming years.

Investors and lenders usually require a cash-flow projection of at least three years to lend money to the business. It is imperative to have updated financial statements, including cash flow, income, and balance sheets, to convince lenders of your business’ capacity. 

Not Having Enough Capital to Cover the Debt

It accounts for the total amount of personal investment, earnings retained, and any other controlled assets under the business owner’s name. The capital is primarily viewed as an alternate source of making money, either by liquidating these assets or using them as guarantees. Usually, banks measure the capital as a percentage of the total investment cost. It is more of the lender’s security: the higher the capital, the higher the chances for banks to sanction the loan. 

Unfavorable Economic Conditions

These refer to the conditions of the loan sanction itself. They account for economic fluctuation, changes in currency rates, deflation and inflation, and any other factors contributing to the loan deal’s monetary aspects. In addition to these economically dependent conditions, lenders consider interest rates, repayment schedules, and span, as well as principal amounts. The requirements make a formal part of the agreement once the loan is approved. 

A Poor or Defaulting Credit History

The borrower’s previous credit history and track record with loans, debts, and payments. The character directly reflects on the borrower’s reputation in financial dealings and speaks for reliability and honesty. This assessment can be both qualitative and quantitative. In quantitative measures, the character can conveniently be judged by the repayment schedule as promised in previous credit records and credit history score through third-party analysis.

Qualitatively, this includes the borrower’s connections and reputation among the business circles. Banks put a lot of weight on the previous credit history and character. If, by any chance, the borrower has filed for bankruptcy or was unable to make repayments as per the schedule, he is less likely to get the loan sanctioned from the bank. 

Having No Collateral or Asset to Guarantee

It includes any personal guarantees or assets nominated by the borrower in the deal. You can consist of savings or any other investments for individuals. For businesses, collateral includes equipment or assets owned within the premises and any receivable payments in the business accounts. The ease of liquidation by banks usually measures collateral. 

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.

Using software to manage your finances and accounts is a smart way to have accurate results and transactions, preventing human errors. Investing in accounting software or tools helps you save costs in the long run, as your business will not need accountants. The accounting tools are accurate, time-saving, and easy to use. 

Some of the best-suggested accounting tools by experts are Slick Pie, QuickBooks Online, Xero, Intuit QuickBooks Online, Sage 50cloud, and Wave. You should invest in accounting tools to guarantee a smooth and hassle-free bookkeeping process. 

A few benefits of introducing accounting tools into your small business are listed below.

Time-Saving

Accounting tools save a lot of time for small business owners who always find ways to make the best use of their time. The transactions between a buyer and seller are quicker than ever, the three significant statements are swift, and budgets are effortless.

Cost Saving

An investment in an accounting tool will be costly, but it will save your costs in the long term. An accounting tool will mean you will no longer need an accountant to perform all the bookkeeping. As the accounting tools are time-saving, that means that the staff in the finance department will be able to focus on different things other than bookkeeping. An accounting tool also creates a detailed cash flow that will allow you to better look at your income and expenditure to determine your unnecessary cost expenditure. 

Accuracy of Data

When bookkeeping is performed manually, there are always chances of human errors, which result in severe problems while making final decisions. A wrong calculation can cost the business a considerable loss. But when a company uses accounting tools, then the problems of inaccuracy are canceled. Whether the measures are lengthy & complicated or straightforward, the software will smoothly perform all calculations with significantly fewer chances of errors. Unless the data in the software is recorded incorrectly, The software will make no mistakes.

Convenient Tax Filing

Keeping track of all the invoices and receipts to calculate the tax can be a massive challenge for a business, as well as following all the complicated rules and regulations for the calculations. Even if a tiny mistake is made while calculating taxes, the firm must face heavy penalties and losses.

But accounting tools make this task easy, too! It keeps track of all your invoices and receipts, making it more convenient. If you use an advanced version of the accounting tool, it also formats your invoices and receipts and does all the work. 

Easy Access

Investing in software means that it is not only present at the business premises but is available anywhere at any time. Most of the software is cloud-based, and you can have access to your accounts all the time. This feature is excellent for owners who must travel a lot and cannot always be present at the business. The owner can make or receive payments, create reports and financial statements, and keep a check on the bookkeeping.

Ensures Data Security

Software creators now make accounting tools that are protected with various layers of security to avoid cyber-attacks. The data is now stored in the cloud to ensure you do not lose any data to viruses and malfunctions. The data is constantly syncing, so the chances of having old data on the cloud cancel out. They provide an option to give access only to authorities, too.

Conclusion 

Accounting tools are one of the best investments for small businesses to make the owners’ tasks easier and use an intelligent system in the industry. It has many benefits, like ease of use, time-saving, and convenience. You can design it for your business to make ideas low in time-saving rules according to your preference. It would help if you looked for cheaper or free accounting tools for start-up businesses to avoid extra spending when the costs and budgets are already tight. It works great as a cost saver and is one of the reasons for your business’ success. 

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.

Entrepreneurs must wear multiple hats, and they contain tons of financial information regarding the business inside their heads, from generating strategies to implementing them and following up to organizing meetings.

There is no shortage of constructive criticism when you have just started a business venture. You will have to deal with accounting tasks simultaneously, including tracking revenues and expenditures and generating profits. However, you might be able to sneak out of the bookkeeping chores at the beginning, but with the growth of your business and the impending arrival of taxes, you will feel utterly screwed. The amount of business and payroll taxes can be huge yet daunting, and while avoiding the financial tasks, you would not have noticed it. 

Accounting is a mandatory part of every business; it helps you manage operations smoothly and make payroll taxes paid to the Internal Revenue Service (IRS) promptly. 

You might want to keep the accounting tasks at the bottom of your priority list, but wise decisions at the proper times can set your company up for success. Follow these proven business accounting tips to keep moving towards your permanent business’s objectives and enhanced profits. 

Separate Personal and Business Accounts 

When starting a business venture, every business owner must initiate by getting a business bank account for financial purposes rather than utilizing a personal one. Having a committed business bank account for cash transactions is pretty feasible, and it saves you valuable time when it is time to review deductible business expenditures. Record the documentation if you are making an additional investment out of your assets. 

You cannot subtract personal expenditures from a business tax return. If you are using private property for business purposes, you utilize the property for the business portion of the time. 

Tracking Expenses

Another great tip is to categorize and label every expense and track your cash flow internally and externally to ensure you will rapidly clear off the taxes and debts. Otherwise, the interest rate will add up instantly, and you can run out of money efficiently. Avail your business credit cards for all purchases to avoid a rack of cash transaction receipts. Additionally, you can opt for accounting software to file digital copies of receipts. 

Record Income Accurately

Among all the other diversified tasks, business owners can quickly lose track of approaching loans, sales, and other cash infusions, but you must follow all your incoming cash flow. If you fail to do so, you will end up underpaying your business taxes, leading to inescapable IRS penalties. As for expenses, your accounting methods will anticipate when to record income. 

Consider Professional Accounting

Hiring a professional accountant or bookkeeper to manage your business’s finances can make an enormous difference. The job of an accountant and bookkeeper is slightly identical, though a bookkeeper is chiefly concerned with classifying and recording income and expenditures. However, an accountant must handle additional tasks, including business taxes, and help you with strategic planning. 

A professional financer will keep the records updated and orderly, and an expert is better equipped to acknowledge potential fees or additional tax reductions for which you might be eligible. Comprehending various IRS requirements and provisions can help you get tax benefits and save valuable time. 

Accounting Software for Efficient Financial Management

Accounting software is a feasible tool for managing financial operations, and you can utilize it on your own or provide access to your accountant or bookkeeper. QuickBooks and FreshBooks are the best-known accounting software, though there are also various smaller competitors. You must be able to connect your bank account or credit card to any worthy accounting software. The software will then track your revenue and expenses, categorize them, and allow you to pay and receive invoices and generate reports. 

Finance is the backbone of any stage of business, so the above-evaluated accounting tips and pointers play a vital role in making a business successful. Business owners can easily accomplish their financial goals by following these tips and tricks.

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

Accounting is a comprehensive and systematic recording of financial operations within a business. However, it does not just include maintaining books for taxes. But it is also essential for saving money and recognizing waste and fraud. 

While accounting software has made bookkeeping operations easier, there’s always room for corrections for occasional errors. Accounting errors happen regularly or occasionally, but You can avoid them with proper strategies and implementation. Indeed, it takes more time to correct a mistake than to make it. Surprisingly, it is also cheaper to identify and resolve errors in accounting functions rather than delay them.

As an entrepreneur, if you treat your business like a successful project, then you might want to be initiative-taking by acknowledging common accounting errors and resolving them, which will not only save you valuable time but also provide a more competitive benefit in the marketplace with well-structured operations and better client satisfaction. 

By evaluating the following accounting mistakes, we hope to prevent their existence by showing you how to identify and fix them. 

Conflicting Reconciliations

Business owners must wear multiple hats simultaneously, often making terrible accounting errors. Accounting requires careful evaluation, and there is no way errors can occur naturally. One of these errors is the incorrect listing of cash transactions. 

When accounts adjust, you verify that the cash transactions on your balance sheet complement the transactions listed in the general ledger or account receivables sheet. It might seem like a piece of cake, but many companies do not apply this regularly. Some businesses will adjust their accounts at the end of every month and review income statements, but a significant reason you should incorporate account reconciliation into your business’s daily routine is 

To avoid this, you need to constantly compare the ledger to the cash deposits in the bank. It helps to trace errors sooner than later and prohibits glitches in the cash flow.

Inaccurate Data Entry 

Financial professionals oversee maintaining your accounts both internally and externally. Usually, they opt for online accounting software for data entry purposes. Whenever a cash deposit is done manually, the risk of errors increases. Indeed, entrepreneurs are human, and they can mistakenly create delusions. Still, a single blunder can throw the accounts utterly off-balance. 

What happens when your accountant is absent and cannot make the data entry accurately? Frustration takes over, and data entries. Running behind in submitting expenditures and sales data entries will not yield an updated business image. The income statement remains outdated. 

Inconsistent Statements and Late Reporting

Every moment you are oblivious to the current state of your finances is an additional moment towards your company’s failure. In financial operations, your business will develop a higher solvency risk if the bookkeeping is not maintained by a particular day each month or if you get incorrect statements and late reports. 

Having practical management reporting is vital for making proper expenditures and operational decisions. Also, you will need to trust the numbers and reports, or else, what is the point? Business is like a project; being strategic is all about possessing virtuous knowledge to have confidence in your decisions. 

Lack of Standardized Procedures 

Does your bookkeeper follow an evaluated process and leverage the features inside of accounting software? Are utility bills paid in a timely? Standardizing procedures in accounting software is essential to eliminate errors and enhance efficiency and consistency. 

Standardizing processes eliminates unimportant issues, mistakes you could have ignored, and roadblocks that might influence business growth. Growing a company takes clarity and the ability to outline and follow through with your vision with unrelenting confidence. Being a business owner, you cannot precede it with dreams and aspirations because you will require standardization to achieve scalability. 

If you thoroughly consider these errors and practices in your accounting processes, you will likely eliminate the occasional financial errors. However, it would be wise to hire a professional accountant or bookkeeper to avoid uncertainties and bring integration within the monetary mechanism of your 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.

Starting a company is an exciting adventure and a lesson in pragmatism and economic realism. These lessons are often learned when investments or fundraisers are required to develop or launch a business. Fortunately, there are different types of business financing, whether your goal is to establish, design, or acquire a business. Below are six different ways to finance your business.

Business Angel 

A business angel is a person who invests a portion of his wealth in a company with potential. Additionally, the business angel will make his skills, his experience, his network, and a part of his time available to the entrepreneur. Indeed, they can accompany and advise entrepreneurs, primarily through their network, and the entrepreneur does not have to reimburse the business angel if the project fails. However, in this financing option, a Business angel is a shareholder so he will be highly involved in the project and interested in the capital and success of the business.

Professional Credit 

Professional credit is a type of loan intended to finance the foundation of a business, the acquisition of a business, or any other need related to a business. This loan, especially from banks, can be used to make investments such as purchasing a vehicle, technology, equipment, etc., but it cannot be used for personal purposes. Professional credit is also used to finance a business’s purchase or improve your cash flow. Whether you are employed or self-employed, you are entitled to this type of financing.

The advantages of this type of financing are that it is a loan with flexibility for repayment while you keep your shares and decision-making power. The disadvantages of this type of financing are that there needs to be personalized support from the lender, and there will be financing interest to repay.

Personal Funds

The best way to finance your business is to use your own money. Those who have been able to save can invest in their start-up without relying on someone else. The main advantages of this type of financing are that the entrepreneur does not have to borrow money, forfeit shares or equity, or involve others in decision-making. However, this solution presents certain risks, especially in case of emergency, that can significantly impact the entrepreneur’s livelihood or financial security.

Crowd-funding

A crowd-funding site can be an innovative and effective way to raise money for a low-cost creative project. Crowd-funding campaigns are based on creativity and knowing how to read the current market. The crowd-funding helps finance its business through the internet by linking investors, individuals, and entrepreneurs. Unknown people who believe in your project agree to make a small contribution toward a financial goal you have set over a contribution period. The amount raised can be essential but know that crowd-funding platforms often take around 8% of the goal as commission.

Bank Loans

The bank is an obvious financing solution for young entrepreneurs, but it may not be a simple approval process. A well-developed business plan is essential for individuals to convince a bank to invest. Entrepreneurs may face many rejections since their business is not presently generating revenue. Likewise, it is impossible to offer banking institutions shares in the company as security for the loan. However, by opting for an online banking loan, individuals may enjoy benefits in companion banking products such as a credit card, relatively low bank fees, etc.

Personal loans

Resorting to the support of friends and family is a widespread way for entrepreneurs to secure their first financing round. Entrepreneurs already have a close relationship with their network, and there is an element of confidence in the business that other financing methods do not inherently have. Personal investors will not be as demanding as capital companies or private investors, but disadvantages exist. Often, personal investors cannot offer the range of money individuals could receive from private investors or banks. Also, be cautious to identify when personal life and business should not mix; establish clear rules and not break them.

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

Is the Stock Market Considered Gambling?

Is stock market gambling? Should people think trading in the stock market is a method of Gambling? The answer to these queries is clear – No! Investing in the stock market is considered Gambling, and beginner investors must not think of it.

Comparing the stock market to Gambling is a myth that people on the television and internet have continued for many years. And it is simply not true.

While Gambling and investing have some of the same characteristics, they are much different. Suppose the investor does not take buying or sharing of mutual funds or trading stock seriously and links it to Gambling. In that case, they are in curial jeopardy of missing out on gains and losing money from the stock market they utilize in retirement.

Why Stock Trading is Not Gambling

Stock is ownership

Investors should remember that they are purchasing ownership in an organization when purchasing common stock shares. Investors own a minimal percentage of the organization.

Purchasing an organization’s stock is equivalent to containing a claim on the debts, assets, and, more significantly, a small part of the organization’s profit whose stocks you purchase. Far too often, investors search to buy shares of the organization simply as trading stocks. They overlook that they are now the owner of the organization, too.

To develop a benefit and profit from your share trading, investors should try to gauge the organization and its performance. Incorrectly counting versions in the short and, more significantly, share prices vary over the long period of stock exchanges.

The income outlook for business is constantly varying, and investors are utilizing news, stock charts, fundamental analysis, rumors, and company metrics to estimate the future earnings of an organization and, subsequently, the worth of its share in the future.

The worth of a company

Trying to control the value of an organization’s stock price and where it is going in the future is not easy. Many variables move the short-term value of a company’s stock. Determining the value of a company’s stock price and where it’s going in the future isn’t easy. There are a lot of different variables that move the short-term price of a company’s stock. They often appear to be random, but they’re not really. They often seem to be spontaneous, but they are not really.

Over the long haul, an organization’s share is the present worth of all the organization’s income. An organization’s stock price is much more volatile in the short term. An organization can trade stocks even without payment or profit because investors think they will have upcoming earnings. But, eventually, an organization’s share price will display the company’s true worth.

Similarities in Investing and Gambling Strategies

Risk

Both Gambling and investing contain risk. You have to jeopardy capital in the way to attain worth in both the casino and stock market. The danger gamblers and investors take on provides them the right to gain more than they wagered.

However, gamblers and investors should know how much danger they can bear. Each speculator and investor has some risk tolerance that they are eager to lose. You should know your risk tolerance before you initiate Gambling and investing. They do not know when to stop or sell, making you susceptible to potentially losing more than you planned.

The Difference Between Gambling and Investing Strategies

Limits to investing losses

Investors can often restrict their losses to get out of a trade if they lose money. Stock investors can maintain a trading order called a stop loss with their broker or online brokerage company to control their losses. Your shuls place a stop-loss order after buying stocks 10% lower than the purchase price if a selling frenzy hits the company before you can get it to sell stocks.

The time horizon for trading and Gambling

Time horizons are another difference between Gambling and investing. They are apart from Gambling, even if you are day trading, simply purchasing and holding, or swing trading your investments. Most Gambling is a time-based event with a set end date or time when you discover whether you have won or lost your bet. Investing can continue forever in some cases.

Bottom line

Investing and Gambling have a lot of similarities. But they are also different. Investing in the stock market is not Gambling.

Comparing the stock market to Gambling is a myth that is not true. Both involve danger and each possible way to maximize profit, but investing is not Gambling and vice versa. Each plays a different role in society, but investors must not confuse where the similarities end and make each one different.

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.