Bookkeeping can be painful. Freelancers and small businesses tend to avoid the topic of accounting as it is too exasperating, time-consuming, and tedious. Fortunately, various innovative companies solve accounting problems for specific freelancers and large enterprises. A big part of bookkeeping is payroll, and a big part of payroll is tracking time and validating expenditures. The significance of time-tracking might be apparent. Small companies usually have salaried, hourly workers—ensuring you know where and how your money gets spent is a must.

Similarly, handling and verifying expenses that you and your employees make on behalf of your commercial will help you spend money on what you need and save on what you don’t. And you still need to trail and categorize your expenses for tax purposes. Have a look at these accounting tools to track time and costs while managing your employees.

TSheets are online labor and time management software programs that save your business time and money. It is an operational and easy-to-use time tracking tool. You can track time from the workplace or in the field with mobile-compatible time tracking applications.

• TSheets offers a fresh interface free of needless clutter
• The virtual timesheets are easy to use
• The retailer provides free training and setup via live chat and phone
• You can use the online knowledge base to learn the system on your own
• TSheets automatically trails and updates both time-off requests and accrual tracking
• If you do not need the automatic system, you have the choice of manually filling in timesheets
• Email and phone support offers free of cost to clients
• Top-notch consumer support averaging 4.9 out of 5 rating

TSheets also makes it easy for you to control a shift-based schedule, altering it week-to-week according to you and your operatives’ needs. The publishing supervisor is intuitive, and your employees will get notifications when their shifts have been posted or changed. Moreover, you can even accord specific tasks, projects, or jobs to these shifts, minimizing misperception and maximizing efficiency.

Expensify

Expensify is a business structure used to manage expenses, transactions, and money matters through real-time data and reporting procedures. The bookkeeping functions performed by the user-friendly interface of Expensify come in handy for many monies management issues. It allows companies to maintain summaries of different accounts along with calendars. You can obtain transparency, and other ratios such as debt-to-income ratios can be balanced at the right time, averting any crisis or undesirable situation. Expensify can also track your travel expenses based on the miles traveled or the amount of time spent on a particular project. For international traveling, you can change currencies, and it records the information in the accurate text fields. It offers a simple resolution to recording expenses by the information provided through photos.

Neat

Like Expensify, Neat excerpts the critical information from your receipts and documents; it assimilates with popular accounting and business software and simplifies how you work. Neat lets you scan tickets and financial records. Excellent allows you to use a smartphone, a desktop camera, or an accurate scanner. You can securely access your files from any device anywhere. Neat also incorporates with your other bookkeeping tools so that you can transfer your expense documents directly. You can build expense reports, track bills, and share financial data with your co-owners and accountant.

With Neat, you can also easily add contact information and sync these new contacts with your email marketing platform. It gets rid of the slow, laborious manual entry commonly associated with expense filing and gives you an easy-to-use online process in its place.

Conclusion

While a bit more limited in their functionality compared to many of the apps, time-tracking and expense management accounting tools can still be an integral part of your suite of accounting tools.

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

Small and medium-sized enterprises (SMEs) are the backbone of any economy. They significantly contribute to the Gross Domestic Product (GDP) and create job opportunities. However, SMEs face numerous challenges, including financial management. This is essential for long-term success. One crucial financial concept that SMEs must understand is financial gearing.

Understanding Financial Gearing

Financial gearing uses borrowed funds to finance a company’s operations and investments. These borrowed funds are known as debt or leverage. The ratio between the debt and equity used to finance an SME is called the gearing ratio. The higher the gearing ratio, the more the company depends on borrowed funds.

While financial gearing can help SMEs grow and expand their operations, it poses significant risks. Particularly if the SME is not generating enough revenue to repay the debt, the SME may face financial distress, leading to bankruptcy or liquidation.

Therefore, SMEs must have a sound financial strategy considering the benefits and risks of financial gearing. This strategy should consider the SME’s financial goals, the amount of debt it can comfortably service, and the potential impact of changes in interest rates on the company’s cash flows. By understanding financial gearing, SMEs can make informed decisions about their financing options and achieve long-term financial success.

Deciphering Financial Gearing

Financial gearing is the debt-to-equity ratio in a company’s capital structure. It indicates the level of financial risk that a company is taking on. A high gearing ratio means the company has a lot of debt about its equity. A low gearing ratio indicates that the company has less debt and more equity.

Now, the question arises: why is low gearing better for SMEs? The answer is that SMEs are more vulnerable to economic downturns and market fluctuations. Although, high gearing can increase the risk of default, bankruptcy, and insolvency in such situations. On the other hand, low gearing provides a cushion against such risks and ensures that the company can weather the storm.

The Impact of Low Gearing on SMEs

Let’s look at some statistics to understand the importance of low gearing for SMEs. According to a Federal Reserve Banks’ Small Business Credit survey, a staggering 59% of small businesses in the US have reported that they struggle with debt. Furthermore, this highlights the need for SMEs to have a healthy balance between debt and equity.

Moreover, low gearing can also positively impact a company’s credit rating. Credit rating agencies such as Standard & Poor’s and Moody’s consider a company’s gearing ratio while assigning credit ratings. A low gearing ratio indicates that the company has a lower risk of default. Which, in turn, can lead to a higher credit rating. This can help SMEs access cheaper sources of finance and attract more investors.

In recent years, there has been a trend towards alternative sources of finance for SMEs, such as crowdfunding and peer-to-peer lending. These platforms have gained popularity due to their flexibility and accessibility. However, it is essential to note that these sources of finance also come with their risks. In such cases, low gearing can provide a safety net and ensure that the company does not become over-reliant on external sources of finance.

Conclusion

In conclusion, financial gearing is an important concept for SMEs to understand. Low gearing can help SMEs mitigate financial risks, improve their credit rating, and provide a cushion against economic downturns. With the rise of alternative sources of finance, maintaining a healthy balance between debt and equity is more important than ever for SMEs. Therefore, SMEs should strive to achieve a low gearing ratio to ensure long-term sustainability and 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.

What is a household budget?

A household or home budget is a finance plan that reveals the snapshot of your monthly income towards expenses, saving, debt repayment. It allows you to keep a close look at your income and help you examine where you can save money or cut extra expenses. Without a home budget, it’s like sailing a ship in an open sea, moving uncontrollably without a direction. In simplest terms, a home budget is a tool used for sustaining a stable lifestyle.

Significance of a household budget

Planning and creating a household budget is no easy feat. It requires persistence and dedication as it may take time, mental effort, and energy. No matter how well off you consider yourself to be, it is necessary to have a home budget to keep a track record of monthly spending. No one is born with money management skills. You must learn the art of this game before you can start building your budget.

According to studies, a home budget works as a magic formula that solves most of your money-related problems. Home budgets signify that we can save tons of money by using scarce resources for the month. Trust me. A household budget solves more than half of the problems in homes! We often find ourselves stuck miserably fighting with our thoughts about how on earth we will meet our demands for the month with a single paycheck. This concern haunts most people around the globe and, if you consider yourself to be among those people, you must learn money management strategies and skills to maintain a healthy financial life cycle.

6 Steps to build a household budget

Know your income and set goals

The first and the most crucial step in creating a budget is knowing the exact influx of your income. Whatever you earn for the month must be wisely allocated into several subcategories like food, health, transportation, utility, clothing, home maintenance, and other miscellaneous expenses. So, after keeping, let’s say, 20% as a reserve for hard times, you need to distribute resources per set requirements.

Distribution means that you need to identify what is important to you and draw a clear line between your needs and desires. Moreover, setting smart goals can help you maintain an equilibrium between your income and expenditures for the month, ultimately increasing your savings!

Stick to your goals

Your spending should never exceed your household budget! For maintaining a healthy financial life cycle, you need to plan a budget that remains within the allocated amount of money. There is certainly no point in making a budget plan if you don’t expect support and stick with it later. Your positive attitude and conviction will allow you to reap the rewards, and negative ones will lead you to trouble.

Separate needs and wants

Once you start to track where your income or finances are going, you will discover which things you can afford to buy and which you can afford to postpone. By closely examining the household budget, you will get a clear picture of your monthly spending and will be able to make a separate list of your wants and needs.

Design your budget

People have mixed opinions regarding how to design a budget because everyone has their own set of priorities. They also feel deprived when dealing with the word ‘budget,’ which evokes feelings of fear, anxiety, stress, or frustration. So, before building your budget for the month, you need to know exactly how much money you can afford to spend in a month.

Make a clear execution strategy

Once you set your priorities, you need to allocate money and decide how much money you can afford to spend for a particular need. Planning plays a critical role in defining the fate of the household budget. The better it is, the greater the rewards. So, once the plan initiates, you need to put it into action to optimize resources at your disposal.

Reevaluate the budget

Any good household budget plan involves monitoring, tracking, periodic review, and occasional re-evaluation. If you continue making effective budget plans, there will come a time when drafting a budget will become more accessible than you can ever imagine.

Conclusion

A household budget can help you feel more in control of your finances. It will reveal whether you are exceeding your budget limits. A careful plan and an intelligent approach can help you save more money than you can imagine.

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.

Unlocking Profit: Essential Guide to Fix and Flip Loans

Fix-and-flip loans are short-term financing solutions (6-24 months) that provide real estate investors with capital to purchase distressed properties, fund renovations, and resell for profit. They typically offer 70-90% of total project costs based on the property’s after-repair value rather than current condition.

Over my 20 years as CEO of Complete Controller, I’ve watched countless entrepreneurs transform rundown properties into profitable investments, and the key differentiator between those who succeed and those who struggle always comes down to smart financing strategies. With fix and flip investors earning an average gross profit of $65,000 per property in Q1 2025, according to National Mortgage News, the opportunity remains strong—but only for those who understand how to leverage the right loan structures, minimize carrying costs, and time their exits strategically.

What are fix-and-flip loans and how do they work?

• Fix and flip loans provide short-term financing (6-24 months) for purchasing and renovating investment properties for quick resale
• Funding is based on after-repair value (ARV), covering 70-90% of total project costs, including purchase and renovation
• Interest-only payments during renovation preserve cash flow and maximize returns
• Approval focuses on property potential and investor experience rather than traditional income verification
• Most loans offer flexible terms with no prepayment penalties for quick project completion

Understanding the Fundamentals of Fix and Flip Financing

Fix-and-flip loans revolutionize real estate investing by providing specialized financing that aligns with the unique needs of property rehabilitation projects. Unlike traditional mortgages that emphasize long-term occupancy and steady income streams, these loans focus on the investment opportunity itself—the potential to transform undervalued properties into market-ready assets within months rather than years.

The core advantage lies in how lenders evaluate these loans. Traditional banks look at your current income and the property’s existing value, but fix and flip lenders see what the property could become. They base loan amounts on the after-repair value (ARV), which means you can access significantly more capital than conventional financing would allow. Most lenders offer 70-75% of the ARV, enabling investors to cover both acquisition and renovation costs with minimal cash outlay.

Calculating your investment potential

Three critical metrics determine your loan terms and project viability:

• Loan-to-Value (LTV): Compares loan amount to current property value (up to 90% for qualified investors)
• Loan-to-Cost (LTC): Measures financing against total project expenses (typically 70-90%)
• After-Repair Value (ARV): Estimated market value post-renovation (lenders fund up to 75% of ARV)

Smart investors use these ratios to evaluate deals quickly. For instance, a property purchased at $200,000 with $75,000 in renovations and an ARV of $350,000 could qualify for financing covering 80% of costs ($220,000), requiring only $55,000 in investor capital while generating potential profits of $50,000-75,000.

Types of Fix and Flip Loan Options

The financing landscape offers multiple pathways, each suited to different investor profiles and project requirements.

Hard money loans: Speed and flexibility

Hard money loans dominate fix-and-flip financing, accounting for the majority of non-cash purchases. These private loans close in 7-14 days compared to 30-45 days for traditional funding, giving investors crucial competitive advantages in hot markets.

• Interest rates range from 9-15% annually
• Origination fees typically range from 1-3 points
• Terms usually 6-12 months with extension options
• Minimal documentation requirements
• Credit scores as low as 620 accepted

Jake, a first-time investor featured in a Lending Bee case study, leveraged hard money financing to purchase a distressed property for $155,000, invested $150,000 in renovations, and achieved an estimated ARV of $370,000-400,000, generating 30-50% ROI with only $37,000 of personal capital invested.

Investment property lines of credit

Experienced investors managing multiple projects benefit from credit lines offering:

• Access to $1-10 million in revolving funds
• Draw capital as needed across multiple properties
• Pay interest only on funds actually used
• Simplified documentation for subsequent projects
• Lower overall costs for high-volume investors

Traditional bank options

While less common, some banks and credit unions offer investment property loans featuring:

• Lower interest rates (7-10%)
• Longer approval times (30-45 days)
• Stricter qualification requirements
• Higher down payment needs (25-30%)
• Better suited for less time-sensitive deals

Strategic Application and Qualification Process

Securing optimal financing requires preparation that goes beyond basic loan applications. Successful investors build comprehensive packages demonstrating both project viability and execution capability.

Building your investor profile

Lenders evaluate three key areas when assessing applications:

Project Analysis

• Detailed property evaluation with comparable sales data
• Comprehensive renovation budget with line-item breakdowns
• Realistic timeline accounting for permits and seasonality
• Multiple exit strategies beyond simple resale

Financial Capacity

• Bank statements showing available reserves
• Credit reports (minimum 620 for most hard money loans)
• Proof of funds for down payment and carrying costs
• Documentation of liquid reserves (15-25% of project cost recommended)

Experience Documentation

• Previous project portfolios with before/after photos
• Profit/loss statements from completed flips
• Contractor relationships and vendor lists
• Professional team credentials (architect, contractor, realtor)

New investors should compensate for limited experience by presenting exceptionally detailed project plans, strong contractor partnerships, and conservative financial projections.

Choosing the right lender partnership

REsimpli data shows that 63.8% of flips use cash purchases while 36.2% rely on financing, and the average project takes 166 days to complete. This timeline reality makes lender selection critical—you need partners who understand construction delays, market fluctuations, and the need for flexibility.

Evaluate lenders based on:

• Funding speed and reliability
• Extension options and terms
• Local market knowledge
• Track record with similar projects
• Transparency in fee structures

Maximizing Returns Through Smart Financing

The difference between profitable and marginal projects often lies in the financing structure rather than the property selection. Current market conditions, with ROI dropping from 48.8% in 2020 to 25% today, according to National Mortgage News, demand sophisticated approaches to maintain profitability.

Optimizing loan structures

Interest-only payments during renovation preserve critical cash flow. Consider this comparison:

• Traditional Loan: $220,000 at 12% = $2,400-2,500 monthly (principal + interest)
• Fix & Flip Loan: $220,000 at 12% = $2,200 monthly (interest only)

That $200-300 monthly difference compounds over 6-12 months, providing $1,200-3,600 in additional renovation capital while reducing carrying costs.

Geographic strategy and market timing

Regional variations dramatically impact financing needs and profit potential. Homes.com reports median profits ranging from $283,000 in San Jose to just $8,844 in Austin, demonstrating why location-specific financing strategies matter.

Spring/summer markets offer better resale conditions but increased competition, while fall/winter purchases may provide better acquisition prices. Structure loans with:

• Extension options for market timing flexibility
• Terms aligning with seasonal patterns
• Contingency funds for holding costs
• Multiple exit strategies for changing conditions

Risk Management and Common Pitfalls

Success requires proactive risk mitigation across three critical areas:

Construction and timeline management

Delays directly impact profitability through increased carrying costs. Protect against overruns by:

• Building 10-20% contingencies into budgets
• Maintaining preferred contractor lists with backups
• Structuring contracts with performance incentives
• Conducting thorough pre-purchase inspections

Market risk mitigation

Property values can shift during the 6-24 month project period. Safeguard investments through:

• Conservative ARV estimates based on current (not projected) comparables
• Multiple exit strategies (retail sale, rental conversion, wholesale)
• Flexible loan terms allowing strategy pivots
• Regular market monitoring throughout projects

Financial control systems

Cost overruns plague inexperienced investors. Implement controls including:

• Detailed scope documentation preventing change order creep
• Weekly budget tracking against actuals
• Staged funding releases tied to completion milestones
• Liquid reserves covering 15-25% of total project costs

Final Thoughts

Fix and flip loans remain powerful wealth-building tools when approached strategically. The key lies in selecting appropriate financing structures, maintaining realistic projections, and building strong lender relationships that support long-term success. Current market conditions demand more sophisticated approaches than the boom years, but opportunities persist for prepared investors who understand both the mechanics and nuances of specialized real estate financing.

Ready to implement professional financial systems that maximize your real estate investment returns? The experts at Complete Controller provide comprehensive financial management solutions designed specifically for real estate investors, helping you track project costs, optimize tax strategies, and scale your portfolio with confidence.

Frequently Asked Questions About Fix and Flip Loans

What credit score do I need for a fix-and-flip loan?

Most hard money lenders accept credit scores as low as 620, though better scores (680+) qualify for lower rates and higher loan-to-cost ratios. Traditional banks typically require 720+ for investment property loans.

Can I get 100% financing for fix-and-flip projects?

True 100% financing is rare, but some lenders offer up to 90% of total project costs for experienced investors with strong track records. Most first-time investors should expect to contribute 20-30% of total costs.

How quickly can I get approved for a fix-and-flip loan?

Hard money loans typically approve within 24-48 hours and fund within 7-14 days. Traditional bank loans take 30-45 days, while portfolio lenders fall somewhere between 2-3 weeks.

What happens if my renovation takes longer than expected?

Most fix and flip loans include extension options for 3-6 additional months, though these typically involve additional fees (1-2% of the loan amount) and continued interest payments. Planning realistic timelines upfront prevents costly extensions.

Do I need experience to qualify for fix-and-flip financing?

While experience helps secure better terms, many lenders work with first-time investors who present firm project plans, adequate reserves, and professional contractor partnerships. Some lenders specialize in mentoring new investors through their first projects.

Sources

• National Mortgage News. (June 20, 2025). “Home flipping bears less fruit for investors in Q1.” https://www.nationalmortgagenews.com/news/home-flipping-profits-drop-in-q1-attom
• National Mortgage Professional. (March 21, 2025). “Home-Flipping Falters Again In 2024.” https://nationalmortgageprofessional.com/news/home-flipping-falters-again-2024
• Homes.com. (March 20, 2025). “Investors flipped fewer homes in 2024, but their profit rose slightly.” https://www.homes.com/news/investors-flipped-fewer-homes-in-2024-but-their-profit-rose-slightly/2128868104/
• Lending Bee Inc. (June 10, 2025). “Case Study: How a First-Time Investor Used Hard Money to Land Their First Flip.” https://lendingbeeinc.com/blog/case-study-how-a-first-time-investor-used-hard-money-to-land-their-first-flip
• REsimpli. (April 10, 2025). “240+ House Flipping Statistics: Profits & Pitfalls Revealed (2025).” https://resimpli.com/blog/house-flipping-statistics/
• Investopedia. “Hard Money Loans.” https://www.investopedia.com/terms/h/hard-money-loan.asp
• Consumer Financial Protection Bureau. https://www.consumerfinance.gov/
• Wikipedia. “House Flipping.” https://en.wikipedia.org/wiki/House_flipping
• Complete Controller. “5 Money Management Tips to Help Avoid a Deficit.” https://www.completecontroller.com/5-money-management-tips-to-help-avoid-a-deficit/
• Complete Controller. “Personal Lines of Credit.” https://www.completecontroller.com/personal-lines-of-credit/
• Complete Controller. “How to Streamline Your Investment Portfolio.” https://www.completecontroller.com/how-to-streamline-your-investment-portfolio/

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. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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Starting a personal business is one of the financial dreams that many people wish could come true. Although most people think that the lack of resources, a complex market situation, or some other significant factor stops them from initiating their own company, the most potent element is themselves resisting to get into entrepreneurship. In essence, the only thing that can hinder you from starting your business is YOU!

Procrastination is because entrepreneurship begins with taking calculated risks, accepting responsibility, and striving to turn the idea into reality. Until and unless you do not take an intelligent threat, you cannot initiate a business.

There is no perfect or ideal time for starting your business. Instead, you must find the time to create it regardless. You don’t need permission from anyone. You are the only obstacle standing between your idea and its fulfillment. And you are the only person who can turn your vision into reality and build a business you have always desired.

Consequently, there is no reason to wait for someone else to start your business, such as a digital agency, bookkeeping, a taxation firm, a bookstore, a real-estate company, and a photo studio. Here are the five most common yet biggest fears most people face that you must overcome to effectively land on the road to entrepreneurship.

Fear of failure

According to psychologists and mind experts, the fear of failure is more bitter and unbearable than the loss of autonomy and the fear of separation. It is one of the leading factors stopping you from starting your business. 

To overcome this fear, you must redefine the meaning of success. You must realize that a decent job with handsome pay and so-called financial security with employment is not the definition of success. Instead, chasing your dreams and achieving your goals is a real success. Once you realize it, you will begin working towards your vision instantly.

Inadequacy

There may be a voice in your head repeatedly telling you that no one would take your idea seriously. Instead, your idea is a poor thought that can barely produce fruitful results. Also, the voice may be reassuring you that your current job is a necessity, at least for now.  

To conquer the fear of inadequacy, spend time with entrepreneurs who are naturally confident entrepreneurs past and present successful biography, telling you how they transcended their fear. You will know that successful entrepreneurs think of success, networking, and confidence instead of feelings of inadequacy, insecurity, and unworthiness, which is familiar with others who only dream of having a business. Once you realize the truth, your fear of inadequacy will diminish, thus starting your business will become easier.

Humiliation

The fear of ridicule and rejection can be more damaging than the fear of failure. Being anxious about what others will think and how you could be embarrassed is another factor stopping you from starting your business.

Once you start taking steps towards initiating your business, you will be surprised to see that people will incredibly encourage and support you. They will appreciate your idea and efforts instead of criticizing you for your bold step. Also, many people will rally to join your venture.

Poverty

Poverty is another big fear stopping you from starting your business, especially with individuals who have grown up in a low-income family and feel worried that they would stay poor if they do not have a secure job. For them, compromising on the job is like inviting poverty into their life.

To overcome the fear of poverty, you must realize that you must sacrifice something to ‘gain’ something. A closed fist cannot hold anything. It would help if you opened your palm to get anything special.

Separation

The self-contemplated sense of separation from your resources and even very close relationships for working towards your dreams is another factor stopping you from becoming an entrepreneur. On the contrary, starting your business begins with taking the first step alone, and then you will find many other following your footsteps. Remember, even if your first attempt to fulfill your dream fails, you will know who your real friends are and see the true face of life. Once you know who is always with you, equally in your good times and bad times, it will undoubtedly help you fulfill your dream. With that in mind, take the first step!

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.

 

A statement giving a clear picture of the net worth of a business is known as a balance sheet. A balance sheet is a financial tool for all companies to list their assets, liabilities, and owner’s equity to calculate the actual worth of the business. Creating a financial statement is standard practice for all businesses. Governing agencies later audit these statements for taxes and other purposes. The commonly used financial statements of a company include the following.

• Income statement:

An income sheet covers sales, cost of goods sold, expenses, net income, taxes, and earnings per share. It creates annually, half-yearly or quarterly.

• Balance sheet:

A balance sheet displays a snapshot of the net worth of the business. It is at the year-end and the date specifies on the balance sheet.

• Cash flow statement:

A cash flow statement merges both above information to display the utilization of the cash in three main business activities, including:

1. Operating activities
2. Financial activities
3. Investing activities

What is a balance sheet?

A balance sheet is a financial statement that consists of the balances of multiple different ledger accounts. This bookkeeping method helps list the ledger balances in the below-mentioned categories so that a company can get an idea of its financial position. These categories are:

• Assets:

Assets are all properties/belongings/things owned by the business. They can include the properties, cash, machinery, and even prepaid expenses.

• Liabilities:

The liabilities of a business include regular dues, which the company is supposed to clear in the coming days or years. They have long-term loans, short-term loans, and an accrued account of the business.

• Owner’s equity:

The owner’s equity is the capital of the owner who invested in the business. It includes the retained earnings and finances generated from issuing stocks and debentures.

Therefore, a balance sheet can define as “A statement which consists of assets, liabilities and owner’s equity (capital) on a particular date.” The balance sheet got its name as the closing balance at the year-end.

Components of a balance sheet

Types of assets 

1. 1. Real assets
   2. Fixed assets
   3. Tangible assets
      1. Building
      2. Plant
      3. Fixture and fittings
      4. Furniture
      5. Machinery and vehicles
   4. Intangible assets
      1. Goodwill
      2. Patent rights
      3. Trademarks
   5. Current assets
   6. Quick assets
      1. Stock debtor
      2. Cash
      3. Cash at bank
   7. Floating assets: which keep on converting from one form to another, such as:
      1. On the sale of goods, the inventory changes into debtors
      2. On purchase of goods, cash converts into inventories
   8. Fictitious assets
      1. Preliminary expenses
      2. Loss on the issue of shares

Types of liabilities

1. 1. Fixed liabilities
      1. Debentures
      2. Long-term loans
   2. Current liabilities
   3. Deferred liabilities: The payback period is less than a year and more than a month
      1. Short term loans
   4. Quick penalties: The payback period is within a month
      1. Bank overdraft
      2. Outstanding expenses
      3. Creditors
   5. Equity or internal liabilities
      1. Reserves
      2. Owner’s equity
      3. Share’s capital
   6. Retained earnings

Features of a balance sheet

1. The balance sheet is the final stage of the financial accounts in bookkeeping records.
2. It prepares at the year-end.
3. It is just a statement, not a ledger account.
4. The balance sheet has two sides which show the assets on the left side and liabilities on the right side.
5. Both the right and left sides of a balance sheet should always balance.
6. The balance sheet only reflects the balances of the asset accounts and liability accounts. They do not reflect revenue accounts.
7. The balance sheet also reflects the business’s solvency.
8. The balance sheet is designed after the income statement as it requires the net profit or net loss in the equity section.

Why is a balance sheet crucial?

There are plenty of benefits to creating a balance sheet for your business. However, for smaller companies, the balance sheet is not an essential requirement as they are not opting for listing their businesses for stocks or they are paying huge taxes. Regardless, a balance sheet can be beneficial in reflecting the whole heart of your business.

1. It acts as a snapshot of the business’s financial health on a specific date
2. It helps you in expanding your business
3. Can help you get financial aid through investors or loans as your business performance and current health documents
4. Prioritizes your work, showing you all your liabilities that need your immediate attention
5. You can even generate financial ratios very quickly if you have an appropriately detailed balance sheet documented

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

To understand how a company that Audit is ready will capture more market share, we must first understand the basics. What is market share? What is an audit, and who performs them? And how do I ensure that my company is Audit ready? Let’s look below.  

Market share: Out of the total purchases made by customers for the same product or service in a market (in a country or a global market internationally), the percentage of the investment that goes to a company is its ‘Market Share.’

Audit: An audit is the examination and inspection of bookkeeping and accounts by an auditor and compared with the physical verification of the stock/inventory.

Auditors do auditing. An audit can be done internally or by external auditors to inspect all accounting information and bookkeeping in a company.

Internal Audit is done by the company’s employees or by the head of a particular department in a company.

External Audit is done by an external auditing company or by a team of external auditors. All government and private registered firms are bound to get an external audit performed annually. An independent company does an external audit. An external audit is according to laws and rules, financial statements, balance sheets, and cash flow statements of a company. The external auditor prepares an audit report after the completion of the auditing process. Audit report information can be used by investors, government agencies, and by the public. An external auditing company must be a registered and recognized qualified accountancy firm. The information provided by such an accountancy firm as an audit report gives a piece of reliable and unbiased information to its users.

Your business must use specific software for managing the accounting and other information of the company. There should be a well-established checks and balances system in the accounting software used in business bookkeeping and accounting.

The accounting software must be able to:

1. Adjust and automate day-to-day accounting jobs and financial endings 
2. Eradicate the danger of manual worksheet mistakes 
3. Reduce the time required for an auditor to recheck your calculations 
4. Provide all necessary data to an auditor but do not allow editing or deleting options to any auditor.

 Benefits of Audit in a business

• It is better to keep a check and balance in business by carrying out a regular audit. Especially when a company has employees, various offices, many technical works, and where a single person cannot run all the business operations, these factors provide chances of errors in business operations.
• Weakness in the accounting and financial systems can be made clear after audits. You can suggest improvements after an audit report.
• By performing audits, business owners do not have to check or get involved in accounting functions daily. Audits provide a way for business owners to check that accounting functions are running correctly.
• An audit report gives valuable information that critical decisions can be made, such as where internal controls are regulated, tax planning, or reducing the dangers of fraudulent practices.
• An audit increases the trustworthiness and dependability of a business. Information is available to its users.
• A company that is always Audit ready attracts more investors and customers.
• The overall rating of a business increase after regular audits.
• Banks, suppliers, and such users prefer companies in which audits are performed regularly.
• If the company has insurance, the audited accounts are given.
• If there are shareholders in a company, audits guarantee shareholders that the business is running a fair and accurate picture.
• When purchasing from different companies, the companies with regular audits carry more weight. Bulk purchasers have greater trust in Audit ready companies.
• An audit-ready business provides an actual financial status of a significant company for foreign entrepreneurs, banks, and investors.

Conclusion

Audit-ready companies always have up-to-date accounting data. This account information is always available to its users and auditors. Regular audits ensure clear and transparent accounting information. You can make wise and confident future decisions easier with regular audits. An audit-ready business equates to a company ready to get its market share due to the trust of investors, customers, and legal authorities in that 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-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.

The term unauthorized access means invading the privacy of someone’s computer without their consent. Such a situation can arise if you leave your system unattended or you are using your Internet without any firewall to protect against malware and viruses. To protect your data, you can take preventive measures regardless of the operating system you use.

Today, users are aware of password protection that is essential for wireless networks and systems. Irrespective of the fact that cyber rogues can access your private data, there are still a few loopholes that most users aren’t aware of. Therefore, the shortcomings are utilized by cybercriminals to gain access to your system.

In this article, the best tips and techniques are covered to prevent unauthorized computer or network access:

Install all Security Patches

People who are using Windows PC often ignore Microsoft updates that ensure the security and protection of your confidential data. These usually pop up during work – thus, users tend to ignore them to avoid interruptions. However, they are not aware that these updates are critical as they include updated security patches that ensure better data protection. If you are concerned about why these updates are required, it is because the operating system and browser that you use have certain susceptibilities, which may give unauthorized computer access to hackers. In addition to this, hackers can easily determine the loopholes to invade a computer. It is recommended to set the Microsoft Updates to automatic so that you save your time.

Browsing the Internet? Pay Due Attention to File Sharing

This is critical if you are surfing the internet on a Local Area Network (LAN) where the file-sharing feature is enabled for unlimited users. To keep your data protected, you should disable this feature. In case you do not want to disable it, share files and folders only with users and systems you know. Leaving it enabled can make your system an easy target for hackers to invade.

Keep the Firewall On

If you understand the concept of a firewall, you should know its significance as well. This basically acts as a protective wall or layer between you and the internet. Before sending, a firewall’s primary responsibility is to track and scrutinize all the data exchanged between the computer and the server. In instances where your firewall thinks there is a threat, a pop-up warning message may appear to notify you. Having a firewall turned on, you can easily stop potential threats in the form of malware or virus.

Carefully Read Your Email MEssages and Know the Senders

The majority of the users tend to ignore or neglect email security despite knowing about it. It is imperative to ignore email messages you receive from unknown sources. Further, do not open any attachments included from a source that you do not trust. One of the oldest methods to send malware and viruses is through email attachments.

Maintain a Proper Backup of Your Data Online

One thing that you should avoid doing is surfing the internet for important data on a computer that is infected. It may further create trouble as hackers can easily invade your computer to get unauthorized access to your valuable data and information. It is recommended to create and maintain a backup of all your data online. There are different platforms available to store your data on the server. Rest assured, such platforms are reliable as they offer limited or unlimited storage space for a specific amount.

Make Use of Strong Passwords

It is essential to use a personal password for all your accounts to prevent unauthorized access. A user has to be more careful about this if they use a shared system. Apart from this, make sure to change passwords often.

• Use antivirus software. “Do not avoid security patches.” Download a strong antivirus to prevent viruses, worms, and others. This will prevent your computer from being hacked.
• Keep the software up to date.
• Verify your software security. Do not allow any application to make changes to your computer.
• Back up early and often. Make use of websites that provide storage and allow you to keep a copy of your information. It will help to keep the data safe.

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.

Key Performance Indicators (KPIs)

Key Performance Indicators helps the company or an organization in measuring their performance.  

The goal is to achieve key business objectives. With the help of Key Performance Indicators, a business would be able to set up an objective and measure whether the company is on the right track to achieve their goals or not. Different companies use different KPIs to evaluate their success. However, there are some high-level and some low-level KPIs. Both are equally important. Senior KPIs focus on the overall performance of the organization. Low-level KPIs focus on processes/areas like marketing, call center, sales, and more.

How to set up Key Performance Indicators:

Setting up KPIs for your business can be tricky. It is essential to keep in mind that there are financial and non-financial KPIs that almost all businesses have. To develop strong KPIs, you have to understand what your company’s objective is and how you plan to achieve it. This process involves feedback from all the board members and department heads. Once you have a better understanding of the company’s objective, your next step is to determine which process/areas need to be measured with Key Performance Indicators. Keep a few questions in mind when deciding on the KPIs:

• What is your company’s desired outcome?
• How to measure the company’s progress?
• Who is accountable for the outcome?
• How to influence a positive outcome?

Different processes or departments need different KPIs. For example, let us say the goal is to increase sales revenue this year. It will be known as the Sales Revenue Key Performance Indicator. The question is, how are you going to define this KPI?

• Increase sales revenue by 25%
• Hire an accountant for bookkeeping
• Motivate customers to buy a new product
• The sales officer is responsible for reviewing KPI, which will be considered every month
• Achieving the target will be beneficial for the business

 

The most crucial factor in any business is bookkeeping. Keeping track of the business accounts could be challenging; however, if you already have a good record of your funds, it will be easier for you to come up with KPIs. 

 

Do Key Performance Indicators define success?

Whether it is a small business or a large organization, both need KPIs to set up their objectives. To follow their targets, they need a strong strategy that will help them in achieving their goals.

Many business owners believe that KPIs practice is old-fashioned; however, they do not realize that it is only valid when it is inspired action. Some businesses adopt KPIs without even practicing them and wonder why it did not reflect any positive outcome.

 

Key Performance Indicators are a form of communication. For example, when planning for a new project, you discuss the pros and cons of the team. Next, you develop strategies that will help you obtain success; the communication you and your team hold are similar to setting up key performance indicators. You have to communicate with your team and different departments in your organization to achieve a successful outcome; the more precise and relevant the information is, the more easily it is acted upon.

 

The fact is that KPIs are useful when you make them valuable, as it requires time and effort. One of the best-selling authors, Bernard Marr, wrote in his article, “What the heck is a KPI?” This topic sparked an interesting conversation among the audience. However, the conclusion remained the same that KPIs value remains in favor of those that use them.

 

Keep in mind that every action in the business counts. Your business strategies should be strong and must be followed to produce a positive outcome for the business. Your Key Performance Indicators could be a door to success if you understand the value of 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-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.