Risk Tolerance - Complete Controller

Risk can be defined differently depending on the investor and what is most important to them. For some investors, the potential loss does not outweigh the possibility of gain by not investing. If the risk of loss is high for other investors, the possible gains will not entice them to invest in a high-risk venture. An investor must use risk tolerance and risk capacity to determine where they fall.

Risk tolerance and risk capacity are two concepts that sound the same but are not. These concepts need to be understood before making investments. Used together, risk tolerance and risk capacity can help an investor determine the amount of risk that can be taken in their investments. Once the risk is identified and the investor sets a target of how much money they want the investment to earn, an investment plan can be constructed. Here are the differences between risk tolerance and risk capacity and their importance for an investor. Check out America's Best Bookkeepers

Risk Tolerance

Risk tolerance is the amount of risk that an investor is comfortable taking. It is also the degree of uncertainty that an investor can tolerate (thus the name.) Risk tolerance varies depending on many factors, such as age, income, and the financial goals of the business owner. Risk tolerance should be taken seriously when making financial investment decisions. If you don’t have millions to spare, your tolerance may be lower than someone who won’t feel the loss. Many methods can be used to determine an investor’s risk tolerance that will help them make riskier investments with the lowest amount of stress possible. Here are some of those methods.

  • Self-administered risk tolerance questionnaire
  • An online risk tolerance calculator
  • Hiring a professional financial advisor
  • Videos and other learning tools Check out America's Best Bookkeepers

Risk Capacity

In contrast to risk tolerance, risk capacity is the amount of risk that the investor needs to take to reach their financial goals. Examining goal time frames and the income required to achieve the financial goals is necessary to determine return estimates. Then, the rate of return estimate is used to help the investor decide the investments in which to invest and the level of risk they will hold. The primary key to determining risk capacity is the income goal.

Balancing the Two

Risk tolerance and risk capacity work together to determine the amount of risk and what type of investments to make. Risk tolerance depends on the investor’s financial plans, job, income, and age. In comparison, risk capacity has more to do with income and financial resources.

The two concepts have to be balanced for the investor to benefit financially from the level of investment they choose. If the amount of income necessary to reach the goals exceeds the investor’s risk tolerance, there will be a shortfall in achieving financial goals. Those with a higher risk tolerance are generally investors who aren’t concerned with losses. Conservative investors have a lower tolerance. Though they are low risk, low reward, they do fairly well with steady returns. Patience is the key for these investments.  Check out America's Best Bookkeepers

Conclusion

Risk is a part of life in many aspects. When it comes to investing, risks range from imperceptible to losing it all. Using risk tolerance and risk capacity will help investors use their income and tolerance to reach their financial goals while managing the risks (and stress) that investing holds. To get the best assessment of both risk tolerance and risk capacity, do your research but also hire a professional financial advisor to assist in your investment decisions. A professional financial advisor will be able to better inform you of your best investment options. 

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Successful Budgeting - Complete Controller

Creating a budget can be a satisfying process if done correctly. When you make one, you will get a feeling of relief that you have finally gained control of your finances. But making a budget is not as important as handling your money effectively; the key to successful budgeting is to stick to the plan you have created. Here are seven keys to successful budgeting. Check out America's Best Bookkeepers

Set A Realistic Budget

Handling budgets can be a tricky thing, so create one that you are easy in managing. Use your new knowledge from tracking your expenses to your spending habits. Map out your expense categories such as bills, rent, grocery, mortgage, loans, entertainment, etc. Look out for categories where you think you could reduce the amount and increase the money to go into your savings or investment.

Get Family Buy-In

Being the person who enforces the family budget can be difficult, particularly when it comes to activities like eating out. The whole idea of eating out when you are tired and do not feel like cooking seems great. So, give your kids a budget for eating out and let them choose their meal that fits in that amount. Will make your job less a hassle and give the kids a new activity. Check out America's Best Bookkeepers

Long-Term and Short-Term Goals

Planning month to month is important if you want to maintain a budget. However, preparing for a rainy day or emergencies is a must in budgeting. Consider dividing your paychecks into multiple accounts so that you make sure you are keeping money aside for the long run.

Track Spending

Keeping track of your spending for some weeks is a great way to check that your money is going where you want it is spent.  Writing down every single expense is tiring, but if you are used to spending cash instead of debiting or credit card, you will not track where your money is going.

Additionally, many people find it interesting to maintain a money tracking diary to focus on their spending. Someway, knowing that you must write it down, can act as a discouragement if you are about to binge on something you can live without.

Find Other Sources of Income

Earn a few extra bucks in your wallet by searching for new ways to make money. There are many interesting jobs you can do online or side gigs you can find to earn extra cash. This extra money making can be utilized in saving or in meeting extra expenses. Check out America's Best Bookkeepers

Using Apps and Software

Managing a household budget is just like managing the finance of a business. Working within the budget is especially important. To remain within the budget, tracking down expenses and identifying irregular expenditures is particularly important. There are many apps and software that make budgeting and tracking down expenses easy. Some apps are free and user-friendly, in which incorporating details is easy.

Traditional Budgeting Methods

There were days when people used traditional methods to plan a budget.  Some of those methods are still used frequently, and they are as reliable as using modern software and apps. Some frequently used traditional methods are as follows:

The Notebook method: This is the most traditional budgeting method, and it does not cost anything. It is about simply jotting down each detail of expenses and then calculating the figures at the end of the month.

The Excel Spreadsheet: Using an excel sheet is an easy way to create a monthly budget and update every detail of the expenditure. It is much easier and less time consuming as there are several formulae available that make calculation tasks simple.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Rental Property - Complete Controller

Real estate agents are a great resource when looking for a rental property or an owner looking to rent out your home. They search for a suitable house for you as the client according to your needs and charge a fee for doing so. While this is an extra expense, an agent can save you a great deal of time finding the right property. People looking to renting out their property contact the agents who then provide the details to potential renters, so keep in mind that real estate agents are also working for these properties’ landlords. Check out America's Best Bookkeepers

Agents are most helpful because they know the real estate market of the area and will be best suited to find the perfect home for the customer and show them options that best fit their needs. Agents familiar with the area will know details like the schools, sewer charges, public transportation, and other concerns related to the area the customer is looking to know before renting.

The Agents Role

People who are renting out their property list their houses with a real estate agent. If the house is rented within a given time, the agent is paid a commission. These agents will often showcase the houses for rent or run ads for their rental listings and show the rentals to potential renters.

How to Find a Real Estate Agent

The first step is to determine where in the city you will be renting your home. Once you determine what part of town you want to reside in. It would be best if you looked for an agent in that area as they will have great insight into the things that will be important to you as a renter. Check out America's Best Bookkeepers

Here are some ways to find yourself the right real estate agent:

  • Try to meet the real estate agents that are going to open houses
  • Utilize the internet and search for agents
  • Consult friends or family in the area are and get recommendations
  • Search and contact those agencies that are advertising houses in the area

Once you find an agent you are comfortable with, you should stay with that agent through the entire process even if you look in other areas.

What to Look for in a Rental

Here are some suggestions of things you should look for when choosing a rental property:

  • The average rent in the area
  • The neighborhood requirements
  • The distance and travel time to your job
  • The schools that are in the area if you have children
  • The various shopping malls and outlets in the area
  • The pharmacies, hospitals, and clinics located in the area

More Ways to Rent a Property Check out America's Best Bookkeepers

Here are some ways that real estate agents make renting a property easy:

  • If in case any legal issues occur, the estate agent takes full responsibility
  • You save your time and money that has to be invested in searching the rental property
  • Real estate agents act as assets when negotiations have to be done with property owners
  • Agents sort through the details, including the state laws, conditions of the market, and the qualification required to qualify as a renter

If you pay your real estate agent the desired fee, they will make your home searching easier along with providing you a wide range of options to choose from. Although, you have to keep in mind that it is recommended to check the houses yourself and make sure that it does not have any legal paperwork, technical issues, or societal issues.

While real estate agents can help find you a good rental property, you will also need to be proactive in your searches. Real estate agents will often be the homeowner’s agent and don’t gain much commission from rental properties, so doing your searches and research will be essential to finding yourself the perfect rental property.

 

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Small Business Restaurant - Complete Controller

The small business restaurant is one of the more challenging businesses to own. Chain restaurants have the advantage of national or global ad campaigns that benefit franchise owners, but the small business restaurant must use creative strategies to get enough business to succeed. These strategies also need to be low to no-cost to help the business while not eating away profits. Here are marketing strategies that will get people ordering, eating, sharing, and returning, that won’t break the bank. Check out America's Best Bookkeepers

Promotions and Coupons

While the taste and quality of the food served will be the biggest draw for a restaurant, customers will be equally concerned with cost. Offering coupons on the next meal or running specials and promotions will keep them returning as much as the excellent food. Even higher-end restaurants can benefit from promotions and coupons. While exclusivity can take a restaurant far, there are certain points in a restaurant’s life when the business takes a dip. All restaurants can be creative in how they make offers to their clients while keeping with the brand’s reputation.

Website

Having a business website featuring your menu and information is a must for a restaurant. The website should be inviting and include pictures of mouth-watering food, and the warm atmosphere customers can expect when they visit. An added attraction that could bring your restaurant more business through the website is to have an online ordering feature. This feature will allow take-out customers to peruse your menu longer, often resulting in added items they may not add if ordering over the phone. Check out America's Best Bookkeepers

Social Media

The most effective social media platforms for small business restaurants are Facebook, Instagram, and Twitter. All of these platforms allow the restaurant to interact directly with both regular and potential customers. Posts on social media should focus on the restaurant, the food, information, and engagement. The goal is to increase your online presence to help potential customers find your restaurant.
 

Reviews

Don’t be afraid to ask customers to review your restaurant. Many potential customers use search engines to find new restaurants to try in their area. When deciding to try something new, online reviews play a significant role in driving your restaurant’s traffic. Giving special offers, discounts, or free food or drinks in exchange for a review is a low-cost way to drive significant traffic to your restaurant.
 

Blogging

Adding a blog to your already engaging website can bring more traffic to discovering your restaurant. The content needs to be keyword-heavy, simple, and engaging. Use your website analytics to discover what search words bring traffic to your site and make sure every blog includes those words. Using humor and including community interests, and featuring food and restaurant staff will have people want to try you out. Check out America's Best Bookkeepers

 

Recipes and Cooking Classes

Believe it or not, though many people love eating out, so they don’t have to cook when they cook at home, they like to duplicate some of their restaurant favorites. A way to get more customers in the door is to offer your top chefs cooking demos while not giving away all your secrets. Even sharing recipes online for favorites will get people coming to your site and either ordering food or bringing them to your restaurant. The bottom line is, people love to learn something and interact with the chefs. This could be an easy way to draw in new and returning customers.

 

Interaction

Outside of digital marketing strategies, you should employ other tried and true marketing approaches. Run ads in local publications as can be afforded, attend community events, hand out free samples, and use flyers and signage.  Interacting with potential customers will get them in, and your food and atmosphere will keep them coming back.

 

Conclusion

When running a small business restaurant, marketing is the most important element in your business’s success outside of the food quality. Everyone knows most restaurants fail within the first three years, but your restaurant doesn’t have to be part of that statistic. Implementing these simple marketing strategies will make your small business restaurant the hottest game in town in no time!

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Business Owners Risks - Complete Controller

Being an entrepreneur in itself is a risk. You risk money, time, and sanity, deciding to own and operate your own business. But most entrepreneurs will say that the risk is worth the reward because owning your own business and having some control over your career and financial destiny is a powerful position in which to be. Here are some risks every business owner should be aware of and how to manage them to lead you to success. Check out America's Best Bookkeepers

Market risk

Market risk refers to the risk of loss due to fluctuations in the market. Everyone knows that if you are in business, your business is vulnerable to what is happening in the market. To minimize this risk-taking a toll on your business, an entrepreneur needs to plan how to ride out market downturns. Most successful entrepreneurs navigate the downturns by prepping a safety net when the market is strong. You know your business better than anyone else and should know your business’s strengths and weaknesses and what it offers. Having a strategy in place to combat market fluctuations will lessen or even eliminate this risk and thus limit stress. Check out America's Best Bookkeepers

Competitive risk

Competitive risk refers to how direct or indirect competition impacts your business. Unless you have a product or service that no one else in the world has, every business has a competitive risk. Start-ups, in particular, are vulnerable to this risk due to competition with well-established companies with the same product or service. However, this risk can be seriously diminished by researching the competition. Learning what works for them and their weaknesses can help you form strategies to give you a competitive edge over the competition, even if they have been in business longer.

Credibility risk

Credibility risk refers to the risk when putting out a new product or service in the market. It is a proven fact that consumers are more willing to try a new product from a brand they already trust. Building your brand from the beginning will eliminate any risk when offering new products or services or making any significant changes to the business. Even if a new product or service fails to be a hit with consumers, you will retain loyal customers if they trusted your brand before the failure.  Check out America's Best Bookkeepers

Technology risk

Technology risk refers to the risk of losses due to technology failures. This risk is incredibly risky for those businesses that are technology-based or dependent. Even if your company is not technology-based, even a website crash could spell significant revenue loss for a business. This risk is easy to minimize by investing in reliable and up-to-date software and performing regular security checks and maintenance. Data breaches are a huge technological risk due to how much sensitive data can be accessed. 

Financial risk

Financial risk refers to the risk that the company’s cash flow will not meet its financial obligations. This risk is shared by every business that exists and is the biggest concern of an entrepreneur. Financial risk isn’t limited to cash flow issues; it also relates to funding sources.  Financial risk for the business owner can never be eliminated. However, it can be minimized by having a stable accounting system and by vetting investors.

Conclusion

Risks are a part of life, but that is especially true for the entrepreneur. Knowing what the business risks are and how to minimize or eliminate them will keep you in business despite the risks. Knowing the different types of risks and how they affect your business can help you ride out the fluctuations and sail through a downturn.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
life insurance policy - Complete Controller

Most people don’t think of death in terms of their funeral and the costs associated, and often leave family members unprepared for the costs. Some life insurance policies will include death benefits that can be used towards funeral and final expenses. When choosing a life insurance policy, if you already hold life insurance, ask your agent about adding death benefits to your policy. The main importance is to get something in place now. The burden that a funeral and final expenses can have on the loved ones left behind can be overwhelming. Check out America's Best Bookkeepers

If you don’t carry or cannot carry life insurance or you want to carry separate insurance for end of life expenses, there are two funeral life insurance policies that are specifically designed to relieve your loved ones of this expense in their time of grief. Burial insurance and preneed funeral insurance. These life insurance types allow you to finance your funeral in advance, but there are some differences between the two you need to understand before deciding on which will best suit you and your family’s needs.

Burial Insurance

Burial insurance is a policy designed to cover your funeral or cremation expenses when you die. Burial insurance policies can vary between companies that offer life insurance, and like other life insurance policies, it comes in both term and whole life. Generally, death benefits for burial insurance are low, ranging anywhere between $5,000 up to $25,000. Check out America's Best Bookkeepers

Burial life insurance pays the death benefit directly to your beneficiary. It can then be used to finance your funeral and cover other final expenses in any way the beneficiary chooses. If they receive a higher benefit than the funeral cost, it is up to their discretion on how they use the remaining amount. It is often used to pay debts left behind or other final expenses.

Preneed Funeral Insurance

Preneed funeral insurance is also designed to finance your funeral before your death, similar to burial insurance. The main difference is that the funeral costs are predetermined, including services, merchandise, and church and burial services. It can also protect the costs from going up on the funeral expenses. These expenses are a locked-in, negotiated cost at the time of the insurance purchase.

Another difference from burial insurance is that instead of paying your beneficiary benefits when you die, the money goes directly to the funeral service provider of your choosing. This policy is paid in full once the negotiated amount is met through premiums, and the policy remains in effect for the entirety of your life. This policy will relieve your loved ones of the funeral costs and stresses.  Check out America's Best Bookkeepers

Conclusion

The arrangements are premade, which leaves little to deal with for those left behind after your death. However, there is no additional death benefit that can go towards final expenses or unpaid debt.

Both burial and preneed funeral insurance are beneficial to your loved ones after your death. It would be best if you determined which would better benefit them by deciding whether you will leave behind debt or other expenses or not. You also can prepay and plan your funeral directly with the funeral home of your choosing. This option would be similar to preneed funeral insurance. Instead of the funeral home receiving the payment at the time of your death, you will pay the costs in full directly to the funeral home, who will execute your plans once you’ve passed. Whatever option you choose, financing your funeral before your death is a great relief to your loved ones once you are gone.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Business Insurance - Complete Controller

When starting a small business, you should make your business an LLC or Limited Liability Corporation. Creating it as an LLC or Limited Liability Corporation will protect you and your personal assets from being affected should your company have legal issues, including lawsuits or collections.

Outside of making your business a Limited Liability Corporation, you also need to obtain business insurance. Many business owners believe they are completely protected by becoming an LLC. Still, this assumption is incorrect and could be costly or even devastating to a company that does not carry business insurance. Here are three major reasons your small business needs business insurance. Check out America's Best Bookkeepers

Protecting Your Business Assets

While forming your company into a Limited Liability Corporation protects your personal assets, business insurance is necessary to cover your business assets. Both of these, in combination, will give you complete protection against lawsuits and disasters.

Small businesses often have financial struggles larger businesses don’t experience, and one liability incident could destroy your business. This possible destruction is the main reason every small business needs business insurance without question.

Business insurance will also protect your business assets should one of your employees makes a mistake that puts your business at risk for suit or other liability. Check out America's Best Bookkeepers

Protecting Your Personal Assets

Even if your business is a Limited Liability Corporations, there are still some circumstances in which you could be held personally liable. These circumstances include if you guaranteed loans with your personal assets or left any of your personal assets attached to the business.

Therefore even under an LLC, your personal assets could be lost if connected to your business, and you don’t have business insurance. Business insurance also covers court costs even if you are not found to be liable.

We live in a litigious society. Even if you or your business have not done anything wrong, if a suit is brought against your business and you are not covered by business insurance, your company could go bankrupt.

Liability Goes Beyond What We Can Imagine

There are so many hidden issues we can involve ourselves in as a business that could open us up to potential financial devastation without business insurance. Professional liability insurance covers accidents that happen on your property, it also covers libel issues, and it covers third party mistakes made by your employees or subcontractors. Check out America's Best Bookkeepers

There are many scenarios where you and your business could be liable beyond what you can imagine that business insurance would cover. Those small businesses that go without business insurance may believe they are low risk due to the nature of their business. Still, many unforeseen issues can cost you greatly if you are not covered by business insurance.

Examples of Unforeseen Scenarios

An employee is delivering something and accidentally breaks a $125,000 vase. Without business insurance, your company would have to pay the client $125,000 or risk court where the client could win more than just the vase’s cost. If you carry business insurance, it would cover the vase’s cost and protect you and your assets.

The classic slip and fall can potentially wipe a business out depending on the physical damage the falling victim incurs. You would be liable for not only the medical cost but potentially for loss of income and future medical costs if the issue is permanent or long-term.

Conclusion

Small businesses have many expenses that are a challenge to pay at times, and often small business owners will cut out business insurance to save the premiums. These reasons laid out above explain why you need business insurance and should make paying the monthly premiums a priority.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Bad Debt Expenses - Complete Controller

Bad debt expenses in business are those accounts receivables that have gone into severe default and are considered a loss. For businesses that operate cash only or payment upon service or purchase don’t have issues with bad debt expenses. However, some businesses, to some degree, feel they need to operate by extending some credit.

If your business accounting shows your bad debt expenses to be high, you need to consider reassessing your accounts receivables. Here are five ways to lower or eliminate bad debt expenses and increase your company’s revenue. Check out America's Best Bookkeepers

Review of Credit Policies

You should be reviewing your accounts receivables monthly and noting what customers are late or possibly going to become completely default. If you have some customers who consistently pay late or default, you may consider changing them to cash-only or payment on receipt.

If you have multiple customers paying late or not, you may want to contemplate eliminating accounts receivables. You have to make tough financial decisions that have the best interest of your company in mind. While you want to be accommodating to your customers, it should never be at the expense of your business.

Eliminate Terms

Any credit terms, whether 30, 60, or 90 days puts your business at risk. Giving long terms of payment can cause your bill to be forgotten or ignored. You may need to consider eliminating these payment terms or only offering these types of payments to specific customers on a case-by-case basis. Check out America's Best Bookkeepers

Early Payment Discount

If you continue to offer 30, 60, or 90-day payment terms, you can offer various early payment discounts. Many companies that offer early payment discounts will give a significant discount if paid on the day of purchase or service. You can also offer lower discounts if paid earlier than the due date.

This discount will allow you to offer payment terms and give your customers the incentive to pay when the products or services are received earlier than the due date. Despite the discounts, if every customer is paying on time or early, your company revenue will increase because you will be clearing your accounts receivables.

Collection Policy

If you opt to continue allowing your customers to make payments or buy now and pay later, you will need to put a collection policy in place. This collection effort will be a regular interval at which you will send reminders and follow up with phone calls.

You must set a collection policy that will make sense to the due dates and provide the customer with reminders while not overwhelming them. Customers have often forgotten the payment, and gentle reminders will encourage them to pay without alienating them. It is suggested that you have three reminders. One reminder sent at the 30-day late mark, then another at the 14 days from the first reminder, then a final phone call seven days after the previous reminder. Check out America's Best Bookkeepers

Collection Agency

A collection agency would be the last resort but may become necessary to recover at least a percentage of the receivable from your defaulted customer. After your final phone reminder, you should give them seven days then look to turn the debt over to a collection agency.

A collection agency will buy the debt for a percentage of the total account and attempt to collect the full amount or even the full amount with penalties from profiting from the purchased debt.

Conclusion

While your customers are important, and you want to retain as many as possible for your business, you have to take steps to eliminate or lessen bad debt expenses. Your business has to make a profit to survive, and the more bad debt expenses you have, the lower your profits. Some businesses get into trouble when these bad debt expenses exceed profits; therefore, you must consider some or all of the ideas on this list to help eliminate it.

Check out America's Best Bookkeepers 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. Check out America's Best Bookkeepers
Find Your Business Idea - Complete Controller

Many people come to a point in their life where they decide they would like to start their own business. Maybe you are feeling underappreciated or that your talents are being wasted working for someone else. There could be many reasons you have decided to strike out on your own, and you need a business idea.

Before you start the process of choosing a business idea, make sure you are well-rested and ready to open your mind to the possibilities. Here are five steps to take to help you find your business idea. Check out America's Best Bookkeepers

You Don’t Have to be Original

Don’t apply too much pressure on yourself to come up with the next new thing. Search business ideas others have already successfully launched and maintained. There are so many business types, from the smallest home-based businesses to owning and operating a franchise business with major corporations’ branding.

Look for those businesses that tap into some level of desire or passion and explore them to narrow down the type of business you want to start. Once you have narrowed down the business type, look at ways to be unique or tap into a niche market. You don’t have to deviate much from the original business idea to add your brand.

Brainstorm with Someone

There is nothing that says you have to do this alone. Though the contemplation is for you to have sole ownership of the business, getting another person or, better yet, a team of people to help you brainstorm ideas can be productive. Check out America's Best Bookkeepers

Gather together, and if possible, have a whiteboard or drawing pad and express that no idea is a bad idea. If you are having difficulty connecting with someone to brainstorm, there are many online sources of articles or forums with multitudes of ideas you could add to your possibilities.

Turn Your Talent into an Idea

Everyone has gifts and talents often paired with untapped potential. Now is the best time to identify your talents and skills to their fullest extent and look for business ideas that use those talents and skills. This time is also where you can discover your passion.

So many times we get into long-term jobs or careers, we started of necessity and suppressed our passion and leave our talents to gather dust. Now that you decided to start your own business, it’s time to dust off your talent, gear up your skills, and ignite your passion.

Solve a Problem

Many businesses that exist today that have great success are those that solve a problem. Please make a list of problems that people face. Make sure it is a problem that most people or at least a group of people face. If you choose to solve a problem, only a few have, you will not sustain a business. Check out America's Best Bookkeepers

Even if there are already solutions out there for a problem you would like to solve, you can own a business in the market and still succeed.

Look Around for Inspiration

Open yourself up to look for inspiration everywhere. You can look at businesses that exist in your community or look online. Also, look for Inspiration that has nothing to do with the business. Inspiration and ideas can come from anywhere, and seeking inspiration will guarantee you find it.

Artists have muses or use nature or their surroundings. Those same sparks can inspire business ideas. You have to be open to the possibilities.

Conclusion

The ideas don’t have to come out of your mind, fully formed and perfect. Keep the thought that no idea is a bad idea and throw them out and narrow down to the ones that you feel a pull towards. Once you have narrowed it to one idea you have a passion for, it will be time to start planning.

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