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Cost per occupancy is a usual term and might refer to the occupancy costs related to hotel management, properties, or commercial real estate. Before acknowledging cost per occupancy, it is essential to comprehend what occupancy costs entail and determine them.

Occupancy or operating costs are a group of costs associated with maintaining a property. While leasing a property, the contractor will pay his proportionate share of the operating cost based on the leased area. In most cases where occupancy costs modify frequently, certain variable factors, including maintenance, weather, and other requirements. 

These factors will require exceeding the preliminary budget, and therefore, the proprietor will have to make mandatory alterations to transmit his burden to the contractor. Once this cost is recognized, determining the price per occupancy becomes much easier. 

Elements of Occupancy Cost

A tiny portion of the occupancy cost of a commercial property includes:

• Property taxes.
• Repair and maintenance.
• Building insurance utilities.
• Landscaping.
• Some voluntary prices are negotiated before drafting a lease agreement.

Various fees are considered to identify the cost per occupancy, including rent, additional services, load factors, and refund of occupancy costs. 

An occupancy cost has two significant components: fixed and variable costs. 

Fixed costs: 

A fixed cost is a fee that does not change with increasing or decreasing sales or productivity. You must pay it in a timely manner regardless of the business’s activity or performance. The fixed cost helps generate desirable profits. 

Variable costs: 

Variable costs refer to charges related to production. Unlike fixed costs, variable costs improve as production increases and lessens, and vice versa. Variable costs include raw materials and utility bills. For instance, a restaurant chain that sells French fries will need to increase its purchases of potatoes from vendors to enhance sales. 

How to Calculate Cost Occupancy

Businesses must keep track of cost occupancy and the costs connected with non-operating activities, including internet bills on loans. Both accounts differ in a company’s accounts, allowing financers to determine how costs are associated with income-generating activities and whether the business can run more efficiently. 

Trimming a company’s cost per occupancy can diminish productivity and profitability. Reducing excess costs increases temporary profits, which can eventually hurt the business’s income. For instance, if a company reduces its advertising costs, its earnings will increase since it cuts down the occupancy costs. 

The following formula is useful for calculating the occupancy cost. Additionally, you will get the information required from the company’s income statement to report the financial performance for the period. 

Now that we have successfully comprehended occupancy costs and what they contain, it is time to acknowledge cost per occupancy, which refers to the cost acquired by each tenant. In other words, cost per occupancy is a mechanism that relies heavily on total occupancy costs. 

Operating costs = cost of goods sold + operating expenses

 

1. Take the total cost of goods sold from the company’s income statement, also known as the cost of sales. 
2. Look out for total operating expenses, which must be further down the income statement. 
3. Add total operating expenditures and COGS to approach the total operational costs for the period. 

The resulting figure will provide cost per occupancy, which helps recognize the proportion of the total cost contributed by each occupant. Careful identification of each cost head is significant in arriving at a particular figure.

Remember that the three components of the total occupancy costs illustrated in the formula are associated with cost elements. 

You might study occupancy costs by utilizing the occupancy sales ratio. They can also divide the sales figure to determine the occupancy ratio. Furthermore, you might calculate the occupancy cost by area by dividing the sales figure by the square feet of a particular property. 

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

The best place to tuck in your savings is online savings account with high-interest rates. The good thing is that savings account rates are meager but provide higher interest rates, unlike what brick-and-mortar banks offer. Using a high-yield savings account is also a great way to deposit your savings as a higher interest rate is being paid compared to the traditional, old method of saving.

Several banks and websites show you where to track rates, where it is easy to compare and explore options for when and where to open an account. You can earn even more by using a certificate of deposit (CD). A savings or online savings account is a high-interest account offering an economical interest rate that rivals the opposition. It is intended to assist you in saving your money rather than spending it. Other than this, it is similar to a bank account. The following are reasons to open a high-interest savings account. 

Emergencies

You can never predict the future. An accident never informs a person before it occurs. A lack of emergency savings can be problematic in times of instant need and cause a significant financial setback. We never expect to deal with any sudden, unexpected circumstance, such as a car accident, sudden decline in health, or significant repair issues. In all these circumstances, a person most likely needs a lot of money immediately. In this instance, a savings account is beneficial.

Security

When an individual deposits money into a savings account, the Federal Deposit Insurance Corporation secures the account. In the event that a bank closes or abruptly goes bankrupt, the depositors’ money is safe, and the government will substitute the money up to a certain extent. If money is deposited into a bank’s savings account, it is protected. An individual can also earn interest on the money in a high-interest savings account, which, over time, can be a significant amount.

Dissuades Irresponsible Spending

When individuals do not have a savings account, they are more likely to waste money and make impulsive purchases. If money is tucked into a savings account and not easily accessible, saving and thinking more thoroughly about what you spend is much easier. You can refrain from rapidly spending all of your hard-earned money if a portion of your earnings goes into a savings account.

Financial Control

When you contribute a portion of your paycheck on a monthly basis to your savings, you create a sense of financial control. Continuing to maintain the savings account encourages discipline in an individual. It also helps an individual be mindful of his or her financial condition.

Possible Opportunities

If you have a substantial amount of savings, you can choose to take part in more opportunities, such as investments and loans. Furthermore, if you require assistance from a bank or investors, a solid and stable savings account will help you gain the loan.

Life Changing Events

Even though most of us are encouraged to save for retirement, there are other life-changing events you can also save for, such as college, marriage, childbirth, buying a house, etc. A savings account can benefit anything you may encounter during your life.

Conclusion

In conclusion, opening a high-interest savings account is wise for several reasons. It provides a secure place to save money, offers protection against emergencies, discourages impulsive spending, fosters financial control and discipline, and opens up possibilities for future investments and opportunities. Whether saving for emergencies, long-term goals, or life-changing events, a high-interest savings account offers stability and peace of mind in managing one’s finances effectively.

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.

Cash flow is crucial for any business, so businesses must ensure that their customers pay on time. Debt recovery can be a very time-consuming and energy-consuming task and can still result in failure, regardless of the efforts made. The solution to this can be properly streamlined procedures to identify bad debts beforehand. Therefore, setting an effective and comprehensive credit control and management policy is crucial for getting paid on time.

Getting Started

The first thing to do is to identify the requirements of your credit management policy. It would help if you looked clearly at your business to identify the requirements. The first thing you have to look at is your margin. A bigger margin allows for a more relaxed credit control policy. In comparison, businesses with a smaller gross profit margin might not be able to sustain a significant bad debt, thus making the magnitude of gross profit margin a factor that can’t be neglected in making your credit control strategy.

Consider the following tips for an effective credit management strategy. However, this strategy will enable you to identify existing deficiencies and get a clearer picture with which you can reevaluate your company’s credit control policy and procedures.

Order Stage

In the order stage of your company’s credit control process, clarity in the credit control policy for the sales staff is paramount. This ensures everyone understands the guidelines and procedures for extending credit to customers. Additionally, implementing a credit application form can greatly streamline the process and organize all necessary information. 

This practice helps assess customers’ creditworthiness and makes bookkeeping tasks more manageable, reduces the risk of errors, and ensures efficient record-keeping. Furthermore, by having clear policies and organized documentation, your company can effectively manage its credit processes and maintain financial stability.

Use the Credit Application to get the Following Details

When using a credit application, gather essential details such as the company’s name, contact person, and contact information, including phone numbers and email addresses. Additionally, obtain the VAT number and, if applicable, the company’s registration number. Conduct thorough credit checks on new customers, including bank references, and consider obtaining a personal guarantee for high-risk accounts. Establish criteria for credit recipients and be prepared to decline credit if necessary. Analyze your margin and assess the feasibility of credit insurance to mitigate risk. 

Moreover, credit limits for new customers should be set to minimize potential losses. Regularly review the creditworthiness of existing customers and document clear Terms of Trade to facilitate recovery processes and deter bad debts. Include clauses in your Terms of Trade outlining fines for late payments or bounced checks, a Retention of Title Clause, and the right to charge interest on overdue payments. Implement streamlined procedures for resolving disputes and clearly define credit terms with a 30-day payment due date after the invoice date. Finally, ensure all parties sign an agreement delineating the payment terms and maintain thorough records of payment due dates for effective credit management.

Invoicing

When invoicing, accuracy is key. Include essential details such as your business’ bank information, terms and conditions, customer details, payment address, order specifics, VAT information, total amount due, payment terms, and applicable discounts—issue invoices promptly, ideally within 24 hours of delivery or service completion. Regularly review monthly statements from your bookkeeping records to track paid invoices and follow up with customers with outstanding balances. However, this ensures efficient financial management and timely payment processing.

Collection

In managing collections, stratify customers into categories based on their payment history: bad, average, and good debtors, each requiring a tailored approach. Contact customers with substantial debts before the due date to prompt timely payments. Follow up on overdue payments promptly, applying pressure for settlement within a week of the due date. Furthermore, late payment fees or interest charges should be implemented as necessary. If efforts to secure payment fail, seek assistance from a solicitor or debt collection agency to resolve outstanding debts efficiently.

Recovery

In the recovery phase, consider suspending supply or delaying ongoing deals if payments remain outstanding past the due date, with timing tailored to each customer type. Consult a solicitor or debt collection agency for legal assistance. Additionally, legal action should be pursued through the court system to compel debt repayment if necessary.

Management

In the management phase, establish clear goals for your credit control policy and monitor them to gauge progress and success. Provide comprehensive training to your sales staff, equipping them with the necessary skills in questioning, persuasion, and negotiation to handle various situations effectively. Regularly assess and refine these strategies to optimize credit management practices.

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 stock of materials and products is at an intermediate stage between the original raw material and the finished product. This inventory includes the value of the raw material plus the work invested, supporting documents, electricity, supervision, and other direct expenses. Here is how a company can effectively calculate its work-in-progress inventory to include in its bookkeeping.

Manage the Inventory Size

Product inventory size in the production process stems from the nature of the production, length of the production line, and planning and technological means available to the firm. Since this category can include products of any degree of processing, the extent to which the product inventory is processed should be defined in the process and evaluated for effective calculation of work in progress.

Two methods are used to estimate the inventory of products in the process. The first method works by conducting calculations from the bottom according to the cost of the raw material plus costs incurred by the firm until its processing stages. The second method calculates the selling price minus gross profit and completion expenses up to the condition of a final product.

Effective in Managing Raw Materials Needed in Production

Work in progress (WIP) refers to halfway finished goods that are still in the production procedure. It does not include raw materials or finished goods. WIP normally involves estimating the raw materials required for an item. As the raw materials are included in an initial stage of the production process, they are automatically included in the cost of extra processing as each unit progresses through the different manufacturing steps.

Estimation of Finished Goods for an Accounting Period

Work in progress helps estimate the finished goods throughout an accounting period. The estimation helps the company determine a valuation to measure the inventory of items within the production lines for practical work-in-progress calculation. Work in progress is one of the three types of inventory that also includes raw materials and finished goods in bookkeeping records. 

Work in progress might be accounted for on the balance sheet for each accounting period. Calculating the exact cost of a work-in-progress inventory is difficult as many products may be considered work-in-progress in different production phases towards the end of the period. 

Quickly Transferring Goods from Work in Progress to Finished Goods

To make the bookkeeping process less demanding, some organizations finish all their work in progress inventory and move them into finished goods inventory before closing the books. This type of bookkeeping is useful because it means there is no work-in-progress inventory to represent. An option is to allow a standard level of function for every task related to the inventory of work in progress. The theory is that a healthy level of finishing products will be around redress of when the products arrived at the midpoint.

It is conceivable to gauge the measure of ending work in progress. However, the outcome can be inaccurate because of varieties caused by genuine piece levels, rework, and deterioration. The count of ending work in progress is:

Beginning WIP + Manufacturing costs = Cost of Goods Manufactured

Reducing Measures of Work in Progress Inventory

From a traditional viewpoint, businesses are increasingly focusing on reducing the number of work-in-progress units in the manufacturing process at any one time. Companies need to reduce the manufacturing processes that lead to damaged goods in the production line to calculate work in progress effectively. Minimal work-in-progress investment is a basis for just-in-time manufacturing. An inventory structure is required before a product is sent into production to guarantee an even stream of goods.

From a borrowing point of view, some banks will enable work in progress to be utilized as insurance for advances since incompletely finished inventory is troublesome for them to offer in case the borrower defaults on their loan unless it is nearing fruition.

Conclusion

In conclusion, effective management of work-in-progress inventory is crucial for streamlined production processes and accurate bookkeeping. Companies can optimize their operations and financial performance by managing inventory size, estimating raw materials, and efficiently transferring goods. Reducing work-in-progress units and implementing just-in-time manufacturing principles can enhance efficiency and profitability. Additionally, utilizing work in progress as loan collateral can provide financial flexibility. A strategic approach to work-in-progress management is essential for maximizing productivity and maintaining financial stability in businesses.

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 budget approximates revenue and expenses over a quantified future period; it is accumulated and re-evaluated periodically. Budgets can be prepared for an individual, a family, a group of people, a business, a government, a country, a multinational organization, or just about anything else that makes and spends money. Among companies and organizations, a budget is an internal instrument the administration uses and is often not essential for reporting by external parties.

Following a budget or spending plan will also keep you out of debt or aid you in working your way out of debt if you are currently in debt. Spending less than we make is usually quoted as the most critical personal finance objective. It helps us save for emergencies and stash cash away for retirement. It’s the principal practice that facilitates attaining some level of financial freedom. Constructing a budget with a template can help you feel more in control of your finances.

Common Excuses for Not Having a Personal Budget

Individuals and families have finances, too, of course – or they should. Generating and using a budget is not just for those who must meticulously monitor their cash flows from month to month because “money is tight”; it’s a valued tool for all demographics. Even though budgeting is an excellent tool for managing your finances, many people still think it’s not for them. Below is a list of budget mythologies – the specious logic that halts people from keeping track of their investments and allotting money in the best way.

I Don’t Need to Budget

Managing your monthly salary and expenditures lets you ensure your hard-earned money is used for its highest and finest purpose. For individuals who enjoy a salary that covers all bills with money left over, it can help maximize savings and investments.

I’m Not Good at Mathematics

Thanks to budgeting and costing software, you don’t have to be; you simply have to be able to follow guidelines.

My Job is Safe

No one’s employment is truly secure. If you work for a corporation, being laid off due to downsizing or a takeover is always possible. If you work for a small business, it could die with its titleholder, be bought out, or just fold. You should always be ready for a job loss by spending at least three months’ living expenditures in the bank.

Unemployment Insurance Will Save Me

Unemployment compensation is not definite. Let’s assume that a bad work condition leaves you with no choice but to resign. Unless you can prove constructive discharge (that is, you were virtually forced to resign), your exit will be measured voluntarily, making you ineligible for unemployment insurance.

I Don’t Want Anything Big

If you don’t have any main savings goals, it’s tough to find the motivation to save extra money each month. However, your condition and attitudes can change over time.

I’m Debt-Free

Great for you! But it won’t pay your bills in an emergency.

I Always Get a Raise or Tax Repayment

It’s never a good notion to count on changeable sources of income. This may be the year your business may not have enough money to give you a raise or as much of an elevation as you’d hoped, even if you’ve earned it. The same is true of bonus money. Tax refunds are more trustworthy, but this depends partly on how good you are at computing your tax liability.

I Don’t Have the Right Regimen

If you’re still not convinced that budgeting is for you, here’s an approach to safeguarding yourself from your own spending practices: Set up an automatic transfer from your checking account to a savings account, programmed to occur right after you get paid each time.

Conclusion

Formulating a budget doesn’t have to be difficult. A budget can secure your future financial status and lead you to financial freedom. 

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.

Understanding the difference between equality and equity in business management is not just important, it’s the cornerstone of successful strategies and outcomes. While both terms are rooted in egalitarianism, they have distinct features. Equality refers to the state where all resources, status, and funds are distributed equally among the population. On the other hand, equity refers to the state where the available resources, status, and funds are distributed according to the needs of each individual.

This understanding is a theoretical concept and a practical tool that can guide your business toward maximum profits and overall welfare. Equity is a powerful tool used by enterprises to achieve their desired results. In business management, equity is achieved under the prescribed motto of the business organization, which aims to provide its preferred status. The following steps can be implemented effectively by an enterprise to achieve equity.

Appointment of an Accurate Management Team

A competent management team is not just nice to have. It’s a crucial element in achieving equity. They are responsible for managing all tasks in a way that generates greater profits and welfare for the company. Every company strives for a high status and income. To achieve this and attain equity, it’s not just essential. It’s imperative to hire a highly qualified and experienced management team. This team should be competitive and work hard to generate the desired results, encouraging the board of directors to invest more and ultimately gain more.

Equity is about getting what is desired according to your needs. This can only be possible if the requirements and goals of the organization are known and achieved on time. A competitive team that can confidently manage all tasks and challenges is not just instrumental. It’s the backbone of making these goals a reality.

Budgeting and Bookkeeping

Budgeting is a design that portrays the optimal distribution of all resources and funds available to generate a business efficiently. Bookkeeping is the art of keeping records of all transactions in an organization. But the question is, how can it promote equity? 

Budgeting and bookkeeping are not just administrative tasks; they are powerful tools for promoting equity in a business. Budgeting is a design that optimally distributes all available resources and funds to generate business efficiency. On the other hand, bookkeeping is the art of keeping records of all transactions in an organization. It promotes equity by providing accurate results of the transactions held in a business corporation. As bookkeeping portrays all company transactions, it creates a track record of revenue generated and expenditures.

This record reveals whether a business is running successfully or not. Cash flows in the records are also a tool to determine the state of equity in a business. In case of a loss, these records can help devise strategies to overcome it and conclusively reach the state of equity. In short, budgeting and bookkeeping are not just about numbers; they are about ensuring fairness and balance in your business operations.

Final Note

In conclusion, grasping the disparity between equality and equity in business management is pivotal for effective strategies and favorable outcomes. While rooted in egalitarian ideals, they possess unique characteristics. Equality mandates an even distribution of resources, status, and funds across the board, while equity customizes distribution based on individual needs. This comprehension serves as both a theoretical foundation and a practical guide, steering businesses toward maximum profitability and overall well-being.

A powerful instrument, equity is attained through strategic management team selection and diligent budgeting and bookkeeping practices. These measures ensure fairness and balance and pave the path to sustainable success in the competitive business landscape. Achieving equity in a corporation is vital for its smooth operation and prosperous future. It must be pursued to allow the organization to reap benefits at minimal costs. Equity represents realizing organizational goals and desires, achievable only through meticulous planning and management. Embracing equity not only fosters fruitful results but also fosters a thriving business environment.

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.

There have been a lot of concerns from consumer advocates about banks not being able to clearly explain the procedure for charging overdraft fees to their customers. Because there is quite a bit of confusion, customers are often unaware of the charged fees and unsure how to tackle or avoid them. However, the Consumer Financial Protection Bureau has taken measures to redesign the forms banks use to explain the fee procedures. The new guidelines are still in the testing phase and will take a considerable amount of time to make it official.

What are Overdraft Fees?

An overdraft happens when there isn’t enough money in your bank account to cover a purchase or bill. However, the bank takes it upon itself to pay it and then charges you a certain overdraft fee, usually $34 per payment, which can increase with the amount they have to pay. This fee has to be paid to the bank in addition to the amount they paid for the original bill.

In the past, these fees were mainly related to checks, but with changing consumer spending patterns and needs, they are now more frequently charged on debit cards. If you have been careless and spent more than you should have, you must prepare to be charged substantial overdraft fees.

Concerns

For a long time, banks have not been regulated in charging these fees, and some have even been heavily fined for deceptive marketing practices that fortified customers to register for overdraft services. However, bankers’ associations and the Protection Bureau have been closely working together to minimize the burden on consumers and regulate the fees.

Now, banks are required to ask for permission from their customers before they pay for the shortfall. Instances related to spending too much or withdrawing more money than they have in the account can be avoided just by rejecting the requested transaction. Banks do not need the customer’s consent to charge overdraft fees on checks and online payments, therefore making it a notable concern for many people.

Apart from all the inconvenience caused by these fees, some customers feel that this is expedient if they miss a sporadic payment. However, most working-class families view these fees as an unnecessary burden, as the ones paying the maximum amount of overdraft fees are only a small percentage. There have been concerns regarding the authenticity of overdrafts affecting the general population. Still, it has been reaffirmed that the figures are derived from 40 million bank accounts, which is quite a large number.

Malpractices

Many banks market these overdrafts as “protection,” a more favorable term. Customers are advised to think before giving their consent to use these services, as they may not be fully aware of the consequences. Also, if you don’t want to opt for extra services, there are no mentioned benefits in the current form. Only the cost of these fees can be relied on, as they are discussed and charged.

How to Avoid Overdraft Fees

Signing up for alerts on your bank account is one of the best ways to know if your account balance is altered. You can also link multiple accounts together, forcing your bank to charge from other bank accounts, and the fees can be avoided. This may cost you a little, but it will be significantly less than you would have paid otherwise. For debit purchases, you always have the option to opt out. If you feel that overdraft services are no longer required, you only need to request that the bank cancel them.

Avoiding overdraft fees can be one of the most vital financial decisions you can make because they could end up costing you way more than you ever expected.

Conclusion

In conclusion, overdraft fees remain a significant concern for consumers due to banks’ lack of clarity in explaining the charging procedures. While efforts from the Consumer Financial Protection Bureau aim to address these issues, concerns persist regarding deceptive marketing practices and the burden placed on consumers. Despite regulations requiring customer permission for overdraft payments, challenges remain concerning fees charged on checks and online transactions.

Consumers are urged to scrutinize their banking options and consider alternatives to avoid unnecessary financial strain. By staying informed, utilizing alerts, and exploring account-linking options, individuals can mitigate the risk of overdraft fees and make sound financial decisions for their future.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud 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.

Companies are increasingly shifting towards the online trend. Most of their operations, including bookkeeping, are now being conducted online. The two main factors that have driven companies towards adopting the ‘paperless’ office trend are environmental concerns and low setup costs encountered when going virtual.

However, the biggest obstacle to overcome when running a virtual company is efficiently managing remote teams. Michael Watkins of Harvard Business Review states, “Communication on virtual teams is often less frequent and is always less rich than face-to-face interaction, which provides more contextual cues and information about emotional states — such as engagement or lack thereof. The only way to avoid the pitfalls is to be extremely clear and disciplined about how the team will communicate.”

Thanks to technological advancements, you can now effectively manage and communicate with your teams and ensure smooth work operations using several handy tools available online. Here, we have compiled a list of the best tools for keeping all your team members in sync when running a virtual company.

Google Applications for Business

Google Apps enable small business owners to manage their teams and collaborate remotely using Google Docs, Gmail, Calendar, and Chat. Business owners upgrade their email storage when getting a paid subscription to Google Apps. They can better manage contacts, improve security for their online data, and control multiple domains associated with one account and mobile access. Moreover, you can schedule meetings using Google Calendar and easily access documents through Gmail’s inbox-sharing feature.

Highrise

Highrise is an outstanding application that allows you to manage your contacts effectively. It offers smooth tracking of your business proposals and deals and will effectively organize your notes and emails. Moreover, you will receive a text or email when you need to follow up with a particular contact. So, it turns into your virtual secretary.

Highrise is an ideal choice if you are looking for a tool to help you track your conversations efficiently. The Productive Flourishing and Lift Off Retreat co-founder claims, “So much of our business is based upon real interactions with real people, and it’s hard to know who’s talking to whom sometimes. Highrise lets us keep track of conversations across the team using the tools we already use, rather than going to a dedicated CRM and sending emails from it.”

Yammer

Yammer is ‘the boss’ for connecting virtual teams to social media platforms. Giant corporations like 7-Eleven, Groupon, and eBay use Yammer to unite all their groups in different countries and keep them engaged. Engagement, however, does not mean it will not be suitable for small businesses, as Yammer offers a free general subscription while the advanced features come at a small price of around $5 per month.

Yammer comprises the following features:

1. Creation of profiles
2. Private Messaging
3. Creation of groups
4. Microblogging
5. Enhanced Security for Online Data

The Director of Communications at LauraRoeder.com, Sarah Burns, states, “LauraRoeder.com is a completely virtual company with team members working around the globe. With Yammer, we instantly all know what is going on, what we are working on, what is finished, and what needs to happen next. It is our internal status update tool. Best of all, it is very much like one of our favorite social media tools, Twitter, so it’s familiar and easy to use.”

GoToMeeting

If you manage virtual teams and need to meet them frequently to communicate ideas, have tutorials, or conduct training sessions, GoToMeeting will be the perfect choice for your company. GoToMeeting allows you to organize online meetings of up to 15 people simultaneously. You can share applications with your contacts in real time using the web conferencing tools it offers and can save those sessions to view later.

The co-founder of Meylah (a social platform for users to showcase their creativity), Jason Dirks, relies extensively on GoToMeeting to arrange meetings. Jason says, “Our favorite tool that we use to manage our virtual team, other than Dropbox, is GoToMeeting. GoToMeeting allows us to connect and collaborate with our team anytime on the phone or computer.”

Dropbox

Dropbox is an essential tool for virtual companies to effectively manage and share their documents, photos, videos, and audio files with other team members. With the Dropbox application installed on your mobile phone, these files will remain with you wherever you go. Whether using your laptop, computer, iPad, or mobile phone, you can easily access all files – you need an internet connection.

 Moreover, your Dropbox storage will be upgraded by getting a paid subscription, allowing you to store massive files without any restrictions. Tina Su, who manages the ‘Think Simple Now’ and ‘Work Awesome’ blogs, states, “I love Dropbox. It is free (for the first few gigs), quick to set up, easy to share, automatically backs up, and mounts like a hard drive. We use it to store and share documents, software codes, and resources like graphics.”

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

Starting a new business is an exciting undertaking that can be both thrilling and daunting. However, it’s a journey that requires a lot of careful planning, hard work, and a bit of luck. To succeed, you must deeply understand your target audience, market, and competition. This article will explore the factors that can influence your new business’s success and provide a roadmap to help steer you toward a bright and prosperous future.

Assumption 1: There is a Market Need for Your Product or Service

Before launching your startup, it’s vital to identify a market need for your product or service. Market research can help you determine if there is a demand for your offering. Moreover, you can start by identifying your target audience and conducting surveys or focus groups to understand their needs and preferences. Additionally, analyzing trends and competitors in your industry can help you identify gaps in the market that your business can fill.

Assumption 2: Your Target Customers will Pay for Your Product or Service

Understanding your target customers’ willingness to pay for your product or service is critical. You need to determine the price point for your business to be profitable while still providing value to your customers. Furthermore, conducting a pricing analysis and testing different pricing models can help you identify the optimal price point for your offering.

Assumption 3: Your Product or Service Solves a Problem or Fulfills a Need

Ensuring your product or service solves a problem or fulfills your target customers’ needs is essential. However, it is critical to understand your customers’ pain points and how your offering can alleviate them. Conducting user testing and getting feedback from early adopters can help you refine your product or service and ensure that it provides value to your customers.

Assumption 4: Your Marketing Strategy Will Effectively Reach Your Target Audience

A solid marketing strategy is crucial to the success of any startup. Moreover, you must identify the most effective channels to reach your target audience and develop messaging that resonates with them. Conducting a competitive analysis and testing different marketing tactics can help you determine the most effective strategy for your business.

Assumption 5: Your Team has the Skills and Expertise to Execute Your Business Plan

Having the right team in place is essential for any startup. However, you must ensure your team has the skills and expertise to execute your business plan and bring your vision to life. Conducting a skills and experience analysis can help you identify gaps in your team and develop a plan to address them.

Assumption 6: Your Startup Has Enough Funding to Sustain Itself

Securing funding is critical to the success of any startup. However, you must ensure that your business has enough funding to sustain itself until it becomes profitable. Conducting a financial analysis and developing a realistic budget can help you identify how much financing your business needs and the best funding sources. 

Assumption 7: Your Business Model is Scalable

Finally, it’s essential to ensure that your business model is scalable. Furthermore, you must develop a plan to grow your business and expand into new markets while maintaining profitability. Conducting a scalability analysis and developing a growth strategy can help you identify the best path forward for your business.

Conclusion

In conclusion, launching a successful startup requires making the correct assumptions about your market, customers, and competition. By conducting market research, understanding your customers’ needs, developing a solid marketing strategy, building the right team, securing funding, and developing a scalable business model, you can set your startup on the path to success. Remember, starting a new business is a journey, and it requires hard work, dedication, and a little bit of luck. But you can turn your vision into a reality with the correct assumptions and a solid plan.

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.

Circumnavigating the tax season can prove rough for all companies; nevertheless, small businesses become very vulnerable when we discuss dissecting the issues regarding tax and making optimal decisions regarding the company’s financial health. The time to think about tax season is not at the start of the year; it is throughout the year. The following five strategies will help numerous small businesses plan for a simple tax season.

Invest In Your Retirement Now

If you are a small business owner, you must create a retirement plan that takes complete advantage of the tax deferral rules to maximize your tax savings and all the retirement savings for later. Rather than trying to tackle all of the various ins and outs of setting up your retirement plan on your own, it is advised that you consult a professional in this field. There are multiple options available from which you can choose. Let a professional make this choice for you; not only will they help you with your business finances, but they will also help you.

Make Balancing Taxes Your Priority

Traditional tax planning involves accelerating deductions and credits. This will occur alongside deferring the income. Numerous taxpayers are “cash taxpayers, “meaning that the users get to deduct the expenses when they are all paid and must declare the income once the payment is received. Thus, expediting the expense payments while deferring the income payments might improve your current year’s tax position. You need to bear in mind that the inverse also rings true. If the business anticipates significant revenue in 2018, it is wise to collect the income this year and delay the expenses until 2018.

Find Silver Lining in Loss as Well

Numerous small businesses finish off with a net operating loss during the initial years of the business operation. The net operating loss leads to a tax deduction bigger than the taxable income, mostly when the various business expenses exceed the earnings. Even though this appears to be very bad news, NOLs (net operating loss) might be used to recuperate past tax payments and reduce them. NOLs can create tax relief by applying the loss to the payments and receiving credit by applying the net loss to the future income tax. The rules will vary based on the business; therefore, understanding how to work them will have a considerable impact.

Understanding the Taxable vs. the Nontaxable Fringe Benefits

All fringe benefits, such as a company car, subsidized meals, and insurance, are an amazing way to pay for all the services and decorate an even more appealing employee package. Nevertheless, these various fringe benefits are taxable most of the time. An in-depth knowledge of which fringe benefits lie outside the taxable demand might ease each year’s tax burden. When small businesses appreciate the benefits, you can save money on payroll taxes. The tax rules for every user are somewhat different. Therefore, selecting the correct fringe benefits for your company is important.

Invest in the Counsel to Benefit Small Business

Planning all of your taxes should never be an end-of-year scramble. Instead, it should involve a reliable and yearlong conversation with a tax lawyer or a professional accountant. It is better for the continued health of the business to work with a professional who has been in the industry for a long time and knows its ins and outs. You will also save a lot of money working with a professional.

Conclusion

In conclusion, navigating the complexities of tax season can be challenging, especially for small businesses. However, by implementing strategic tax-saving measures throughout the year, businesses can mitigate their tax burdens and optimize their financial health. From investing in retirement plans to leveraging tax deductions and credits, understanding the nuances of taxable income versus fringe benefits, and seeking professional counsel, these proactive steps can significantly ease the tax season burden for small businesses. Embracing these strategies ensures compliance, maximized savings, and long-term financial stability.

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.