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With the rise of multiple small, medium, and large-scale cloud storage service providers, cloud security has become a concern among the customers of these organizations. Of course, whenever a user hands over data to these companies, they want it to be in safe hands.

The popularity of cloud storage services boomed in 2005-2006 when several cloud services popped up. Initially, the services were used with the assumption that they kept the data safe. But, with several breaches reported by the media, this puts a very valid concern into the minds of the people utilizing these services, especially among some of the largest clients these service providers have. This led to a need for proper auditing of the operations of these vendors.

Challenges

With new clients adopting cloud storage services in their business operations, there are new challenges that IT auditors should address. Below are a few examples.

Banking Sector Clients need a perfect security strategy, as any data theft can lead to detrimental results for a bank’s clients and reputation. Thus, auditing of any cloud service provider that has a bank as its client needs to look into multiple aspects of cloud security from any onsite data, from theft by the employees of the service provider to cyber-attacks that intend to gather bank information such as card details, personal information, etc.

Government Institutions have many personal data such as addresses, tax and income details, contact details, and other information. If this data is not adequately protected, it may lead to problems for a particular region’s people and government.

Medical institutions also possess private data. Medical records and insurance details of regular and emergency patients require reasonable security measures from the service providers. There is a need for new approaches to protect customer data, mainly because the security measures employed by cloud service providers are shrouded in mystery.

The Auditing Requirements

The first condition for proper auditing of cloud storage services is the audit firm’s independence. External audits represent transparency to a company’s clients better than internal audits.

Furthermore, the audit firm should specialize in dealing with cases of cloud security. It should be well acquainted with the primary and complex data security measures that any cloud storage vendor has to take to protect consumer data adequately. The criteria must meet the legal requirements of the client-vendor relationship, and those measures can ensure success against any threats to data.

However, there is one thing that should be kept in mind. With innovations in cloud computing, IT security firms have to adopt emerging approaches in their audit strategy to ensure that sensitive corporate and personal data does not get into the hands of hackers, rogue employees, or anyone else not authorized to view the data.

Ensuring the audit meets all current requirements is crucial if vendors want to retain or attract clients, especially corporate clients who are profitable for cloud hosting companies.

Approaches for Auditing Cloud Storage Services

Now that we know the importance of auditing cloud storage vendors, a question arises about who should conduct the audit. Any audit by the vendor or the client would probably result in a biased, dishonest result. Therefore, the desired option is a third-party storage audit service with experience, capabilities, and expertise to do the job efficiently. The following aspects and approaches to cloud security must be considered.

Transparency. This requires agreements between the cloud service provider and client such that the deal highlights the service provider’s policy on data security. Service providers should also make audit results available to clients.

Encryption. Traditionally, the data owner has control over encryption, but there are chances that the service providers might have the ability to decrypt user data. A possible solution is using a homomorphic and third-party encryption service.

Colocation. Although rare, this challenge can be addressed by standardizing and increasing oversight.

Size and Complexity. This problem arises because of the sheer number of virtual and physical hosts that need to be audited. Until and unless there is a proper oversight mechanism, the auditing process may become rough, lengthy, and time-consuming.

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.

It is mandatory for every employer in the United States of America, except a few states, to purchase workers’ compensation insurance.

Workers’ Compensation Insurance is a form of security offered to employees and their families if injured or dying while working. Injuries, including loss of limbs, illness, repetitive motion injuries, medical treatments, and rehabilitation required for the recovery, total wages lost, and death benefits all come under workers’ compensation insurance.

This insurance is beneficial not only for employees but also for the company itself. By purchasing workers’ compensation, a company is more protected from legal matters. Here are the six things every employer and employee should know regarding workers’ compensation insurance. 

Injuries Covered Under Workers’ Compensation

There are scenarios when an employee’s injury is due to their negligence. Many companies refuse to pay any benefits in a situation like this. Both employers and employees need to know that injuries caused partially due to the worker’s fault can come under workers’ compensation insurance. The insurance also covers any injuries when an employee is offsite while performing part of their job. Even if an employee is injured while attending an event sponsored by the company, this is considered a part of the insurance coverage.

Avoiding Workers’ Compensation

Some small-scale businesses attempt to avoid purchasing insurance by declaring their employees as independent contractors. Doing so helps such companies avoid paying their employees any compensation. However, if the IRS becomes aware of this, the company may be subjected to paying significant tax penalties and, in the worst cases, may also be held criminally liable.

Workers’ Compensation Fraud

Many believe that fraud risks involving workers’ compensation are remarkably high. Although, this is certainly not always the case. According to studies, fraud risks involving workers’ compensation insurance are lower than 5%.

Every Business Needs to Purchase Workers’ Compensation

The laws of workers’ compensation are different in every state. However, many states in the US make it mandatory for businesses with just one employee to purchase workers’ compensation. No matter how small or big the business is, purchasing this compensation is compulsory.

Worsening of Preexisting Conditions

If an employee’s preexisting medical condition worsens due to work, the business also has to cover the expense of their treatment. It does not matter if the physical condition dates back to when a worker was not working in their present company; the employer is liable to pay for their recovery treatments.

Benefits Cannot Stop Without Notice

A company does not have the right to stop benefits payments without notice. The benefits continue as long as the employee is away from their job due to their work injury. The benefits stop if the employee returns to work and signs a supplemental agreement. The employee should consult an attorney when no such thing happens, and the benefits stop. Unless a judge declares the end of the benefits, the company cannot stop paying it to the employee.

Conclusion

Workers’ compensation is legally regulated, and companies that don’t carry it are at significant risk of high-dollar lawsuits if an employee is hurt. It is crucial that a company covers themselves and takes care of an employee if they are hurt.

However, you must research and understand the laws, requirements, and processes. Before insuring your company under workers’ compensation, if something happens to an employee on the job, you will need to know the steps that must be taken to cover you and the employee. Protecting the company against liability and ensuring the employee gets the best care and financial coverage possible.

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.

Workplace lawsuits can potentially shut down even the most successful of businesses. Handling legal suits is very stressful and causes a lot of damage and financial loss for a company. Companies must stay up-to-date with the state’s employment laws to better protect themselves from legal trouble. 

Common Workplace Lawsuits

Harassment in the Workplace

Harassment is a major cause of toxicity within the workplace. Failing to handle it initially can result in a significant lawsuit. Workplace harassment is of various types; it can either be offensive behavior or hostile speech and action. Some of the most common types include physical, personal, discriminatory, psychological, sexual, third-party harassment, or cyberbullying. These are all types of harassment that have the potential to turn into shameful lawsuits. 

Wrongfully Terminating an Employee

Wrongful termination is a term that is commonly used to blanket the actions that paved the way for it. In some cases, the employer fires an employee and violates the contract’s provisions. It is illegal and provides a solid ground for a lawsuit.

If there was no employment contract, an employee is expected to prove that termination was illegal. The employee may present public policy violation, fraud, breach of good faith, or whistle-blowing as the grounds for building the lawsuit against the employer.

Discrimination between Employees

Another very common workplace lawsuit in the United States is discrimination against employees. There are specific protected classes on which an employee can file a lawsuit. The federally protected classes include race, gender, religion, pregnancy, genetic information, citizenship, age, national origin, familial status, disability, color, and veteran status.

The protected classes of state law vary with every state. Suppose there is no material evidence of discrimination. In that case, an employee must prove it occurred by proving their excellent performance and that the termination or demotion resulted from discrimination.

Improper Overtime Tracking

Federal law is outlined in the Fair Labor Standards Act that covers overtime pay requirements of hourly employees. A lawsuit can be presented if an employee is not paid the correct overtime amount. Improper tracking of overtime hours is a significant reason for an overtime lawsuit against a company.

Injury

Personal injury lawsuits are by far the most commonly occurring lawsuits. Facing a personal injury lawsuit is one of the biggest fears for any company. Injuries can happen at any time, and they can be somewhat unpreventable. Even if the injury is partially the employee’s fault, a company is still liable to pay for it. Any injury incurred by an employee when working within the scope of the job can result in a personal injury lawsuit. 

These are the lawsuits that companies frequently face. Keeping a record of all the little things happening around the workplace is essential. Staying alert helps employers prevent legal suits against them, which damages the company’s reputation and can even lead to a complete shutdown.

Avoiding Workplace Lawsuits

Staying extra cautious is essential for employers. It helps to identify the problems that their employees face, which could result in a future lawsuit. The following are some ways of countering and preventing commonly occurring workplace lawsuits.

Distribution of Employee Handbook

An employee handbook is a perfect way to maintain discipline within an organization. Not only should a company distribute a handbook, but they should also review it with their employees regularly. A handbook helps companies keep their troubled employees in check and outlines a plan for disciplinary actions. Maintaining decorum within a company, issues such as harassment or other violent activities tend to decrease.

Accurate Records of Employees

Besides avoiding lawsuits, maintaining strict records helps companies in numerous ways. Keeping track of the total working hours of employees, their performance and all other data allows companies to avoid lawsuits. If a company faces a lawsuit based on overtime or wrongful termination, the gathered data can be used to prove specific points highlighted by an employer.

Purchasing Workers’ Compensation Insurance

The best solution for countering personal injury lawsuits is to provide workers’ compensation insurance. This insurance helps a company benefit injured employees and even assists if an employee dies.

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.

Cloud computing continues transforming how organizations use, store, and share data, applications, and workloads. Cloud Computing has also introduced a variety of security threats and challenges. With so much going into the cloud, public cloud servers, particularly these assets, become the natural targets for violators. 

The Vice President and Cloud Security Leader at Gartner Inc., Jay Helser, states, “The volume of public cloud utilization is growing rapidly so that inevitably leads to a greater body of sensitive stuff that is potentially at risk.” 

In contrast to what many people might think, the primary responsibility for protecting corporate data in the cloud is not within the service provider but only with the customer. Heiser says, “We are in a cloud security transition period in which focus shifts from the provider to the customer.” He states, “Enterprises are learning that huge amounts of time spent trying to figure out if any particular cloud service provider is ‘secure’ or not has virtually no payback.”

7 Cloud Security Threats

Data Breaches

A breach in data could be the primary objective of a targeted attack, or it might just result from human error, application failure, or inadequate security practices. It can involve disclosing any information not intended for the general public.

This information includes personal information such as health, financial, personality identifiable information, property information, or trade secrets. For various reasons, an organization’s cloud-based data might hold value to different parties. The data breach risk is not unique to that of cloud computing. However, it does consistently rank as number one when it comes to customers. 

Insecure Interfaces and Application Programming Interfaces (APIs)

Cloud providers have exposed various software user interfaces (UIs) or APIs that customers can use to manage and interact with the cloud services. Provisioning, management, and monitoring are all performed using these interfaces. The security and availability of general cloud services depend on the APIs’ security. They should be designed to defend against accidental and malicious attempts to circumvent the policy.

Insufficient Identity, Credential, and Access Management 

Violators impersonating legitimate employers, operators, or designers can read, change, and sometimes even delete data. They will also try to issue the control plane and management functions, sneak on data in transition, or even release malicious software that originates from a natural source. Consequently, inadequate identity, qualification, or acute administration can enable illegal access to data and hypothetically catastrophic damage to establishments or end-users.

Account Hacking

Account hijacking or hacking is one of the oldest kinds of cloud corruption. However, cloud services have added a new threat to the landscape. Attackers who access a user’s credentials can easily eavesdrop on numerous activities and transactions. They can also manipulate data, return falsified information, and redirect customers to illegitimate websites.

The account and service instances may become the new base used by attackers. With these stolen credentials, hackers might also gain access to critical areas of cloud computing services, allowing them to compromise their confidentiality, availability, and integrity easily. 

System Vulnerabilities

System vulnerabilities can be defined as exploitable system bugs that the attackers can easily use to penetrate a system for data theft, complete control of the system, and disrupt service operations.

Susceptibilities within the apparatuses of the operating system might put the security of all of these services, along with the data, at significant risk. With the introduction of multi-tenancy in the cloud, schemes from various establishments have been placed close to each other and given access to the shared memory with resources that create a new attack surface.

Data Loss

The data stored on the cloud might be lost for numerous reasons other than malicious attacks. Data could be lost due to accidental deletion by the cloud service provider or a physical catastrophe such as a fire. This might lead to permanent data loss unless the provider has taken measures to back the data up correctly. 

Denial of Service (DoS)

DoS attacks have been designed to prevent users of this service from accessing the data and the applications. By compelling the targeted cloud service to ingest excessive amounts of finite system resources, such as processor power, network bandwidth, and disk space, the attackers might cause the system to slow down and leave all legitimate users without access to the system services.

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.

By: Jennifer Brazer

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

Fact Checked By: Brittany McMillen

Unlocking Public Investment: Proven Strategies That Attract Capital to Your Project

Why do some infrastructure projects receive abundant public funding while others with similar potential get overlooked? The answer lies in strategic positioning. After years of working on both sides—pitching for private firms and evaluating proposals for government entities—I’ve identified the exact framework that makes projects irresistible to public sector investors.

Public investment isn’t random; it follows patterns, priorities, and proven approaches that align with government objectives. To secure funding in today’s competitive landscape, you need more than a good idea—you need a comprehensive strategy built on trust, policy alignment, and demonstrated long-term value.

The Role of Public Investment in Economic Development

Public investment serves as the backbone of economic development, building essential infrastructure that private markets often can’t or won’t fund alone. When strategically deployed, public capital doesn’t just create physical assets—it triggers economic multiplier effects that benefit entire communities.

A recent study by the Biden administration confirmed that carefully designed public investment can actively crowd in private capital, particularly in emerging sectors like clean energy and advanced manufacturing. This impact of public investment on economy extends beyond immediate job creation to long-term structural improvements.

Public sector investment delivers multiple economic benefits:

• Creates immediate jobs across skill levels while building future employment capacity
• Closes critical infrastructure gaps in transportation, energy, and communication
• Provides stability that attracts private entrepreneurs and investors
• Funds high-impact projects with significant social returns but lower financial yields

Smart investment in infrastructure strategies can transform communities. Consider the historical comparison: the massive public investments in the Interstate Highway System during the 1950s and 1960s fundamentally transformed American commerce, mobility, and regional development, proving that strategic infrastructure spending delivers decades of economic benefits.

Forging Powerful Public-Private Partnerships (PPPs)

Public-Private Partnerships have evolved significantly from their early applications. According to the World Investment Report 2023, PPPs have become central to modern public investment strategies because they effectively share risk and foster innovation while maintaining public oversight.

The PPP model brings distinct advantages:

• Combines public accountability with private sector efficiency
• Distributes financial risk across multiple stakeholders
• Accelerates innovation in project design and delivery
• Improves long-term maintenance and operational outcomes

Government investment strategies through robust public-private partnerships demonstrate how complementary strengths create winning combinations. For example, the Golden Gate Bridge construction utilized an early PPP model where private companies collaborated with public entities, dividing responsibilities according to expertise.

When pursuing a PPP, focus on the unique value your private entity brings to public objectives. The most successful partnerships arise when each party contributes distinct capabilities toward shared goals.

How to Leverage Government Incentives (Without Drowning in Red Tape)

Navigating government incentives can seem complex, but understanding the main types helps you identify which ones apply to your project. The federal government’s production and investment tax credits have sparked remarkable growth in renewable energy by effectively reducing investor risk and upfront costs.

Key government incentives to consider:

• Tax Credits: Direct reductions in tax liability, often available for renewable energy, affordable housing, and historical preservation
• Matching Grants: Programs where government funds match your investment based on specific metrics
• Performance Incentives: Funding tied to achieving measurable milestones
• Preferential Procurement: Advantages in bidding for vendors with strong public benefit alignment

These government investment strategies work by targeted design, not accident. For instance, the federal tax credit system for clean energy has systematically built the solar and wind sectors by creating predictable investment returns while serving public policy goals.

The key to success? Start early, understand eligibility requirements thoroughly, and build relationships with the agencies administering these programs before you need funding.

What Infrastructure Projects Get Funded (and Why)

Not all infrastructure projects receive equal attention from public funders. Those that address multiple public needs simultaneously typically rise to the top of the funding queue.

Projects most likely to attract sustained public funding include:

• Regional transportation solutions that reduce congestion and emissions
• Water and wastewater systems with measurable public health benefits
• Broadband expansion that addresses digital equity concerns
• Clean energy installations with local job creation components

The CLSG Interconnector Project exemplifies successful public infrastructure investment. This landmark initiative connecting energy systems across Côte d’Ivoire, Liberia, Sierra Leone, and Guinea demonstrates how cross-border cooperation can attract funding by addressing regional energy security and economic integration simultaneously.

When presenting your project, highlight multiple benefits streams—economic, environmental, and social. Strong proposals quantify long-term return on investment across all three dimensions.

Get Your House in Order: Public Finance Management

No one gives money to organizations they don’t trust. Strong public finance management best practices form the foundation of successful public investment proposals.

Effective finance management includes:

• Transparent reporting frameworks with clear audit trails
• Resource allocation systems aligned with stated priorities
• Comprehensive risk management protocols
• Real-time monitoring systems that track both spending and outcomes

The 601 City Center in Oakland demonstrates how smart financial management supports innovative infrastructure. This building implemented an AI-powered variable air volume system designed by Siemens that optimizes HVAC performance. During the pandemic, the system’s ability to dynamically adjust air quality settings protected public health while maintaining energy efficiency—showing how good governance enables technical innovation.

Remember: governments fund execution capability as much as they fund ideas. Demonstrate your financial governance strengths before asking for capital.

Sustainability Isn’t a Bonus—It’s a Requirement

Sustainability has moved from nice-to-have to must-have status in public investment decisions. Projects without clear environmental and social benefits face increasingly steep funding challenges.

Sustainable public investment initiatives typically feature:

• Green infrastructure components (renewable energy, conservation elements)
• Inclusive access provisions that serve diverse populations
• Health-promoting design features
• Low-carbon transportation connections

These projects secure funding not just because they’re environmentally responsible, but because they align with ESG mandates, climate policies, and growing public expectations. Data shows that sustainable projects often outperform traditional alternatives on long-term cost metrics when all benefits are properly valued.

To position your project effectively, build sustainability into the core design rather than adding it as an afterthought. The most competitive proposals integrate environmental and social benefits into their fundamental value proposition.

The Role of Government: More Than Just a Checkbook

Government’s role in public investment extends far beyond simply writing checks. Understanding how government shapes the investment landscape helps you position your project more effectively.

Key government functions in public investment include:

• Setting national and regional investment priorities
• Creating regulatory frameworks that reduce market uncertainty
• Providing land, technical assistance, and other non-financial resources
• Ensuring alignment between projects and broader development goals

Successful proposals speak government’s language by clearly connecting project benefits to established policy priorities. This means researching not just funding programs but also strategic plans, executive orders, and legislative priorities that reveal what governments truly value.

Conclusion: Make Public Investment Work for You

Attracting public investment capital requires strategy, preparation, and alignment—not luck. By building strong partnerships, leveraging government incentives wisely, practicing transparent financial management, and emphasizing sustainability, you can position your project for success in the competitive public funding landscape.

The most successful projects don’t just meet minimum requirements; they demonstrate how public investment can achieve multiple policy objectives simultaneously. When you show how your project delivers economic growth, environmental benefits, and social equity, you create a compelling case that stands out among competing proposals.

Ready to take your public investment strategy to the next level? Visit Complete Controller for expert guidance on financial management strategies that build trust with public sector funders and position your projects for success.

FAQ

How does public investment affect job creation and economic growth?

Public investment creates jobs directly through project construction and operation, and indirectly by creating conditions for private business growth. A dollar of strategic public investment can generate up to $1.50 in economic activity through multiplier effects, particularly when targeting infrastructure gaps that constrain private sector expansion.

What makes public-private partnerships successful for infrastructure projects?

Successful PPPs clearly define responsibilities, fairly distribute risks, establish transparent governance, and align incentives between all parties. The most effective partnerships leverage each sector’s strengths—government’s long-term planning horizon and private sector’s operational efficiency—while maintaining mutual accountability.

How can I identify which government incentives apply to my project?

Research federal, state, and local economic development websites, consult with industry associations, attend government funding workshops, and build relationships with program officers who administer relevant grants and tax incentives. Many jurisdictions offer free consultations to help match projects with appropriate funding streams.

What documentation do public funders require for infrastructure project proposals?

Most public funders require detailed feasibility studies, environmental impact assessments, cost-benefit analyses, financial models showing long-term sustainability, community engagement evidence, and risk management plans. Projects with comprehensive documentation addressing technical, financial, and social dimensions consistently outperform competitors for limited public funding.

How important is community support for securing public investment?

Community support is increasingly critical for public funding success. Projects with documented community engagement, transparent public input processes, and demonstrable local benefits receive priority consideration from most government funders. Opposition from community stakeholders often delays or derails otherwise viable projects, making inclusive planning essential from the earliest stages.

Sources

• Biden White House Archives. (2023). The Economics of Public Investment. https://www.whitehouse.gov/briefing-room/statements-releases/2023/
• Complete Controller. Efficient Business Finance Management. https://www.completecontroller.com/efficient-business-finance-management/
• Complete Controller. Creative Investment Ideas to Add to Your Portfolio. https://www.completecontroller.com/5-creative-investment-ideas-to-add-to-your-portfolio/
• Complete Controller. Merger Finance Strategies. https://www.completecontroller.com/merger-finance-strategies/
• Contruent. (2023). Top 7 U.S. Megaprojects Under Construction in 2023.
• Digital Journal. Smith, A. (2020). Digital Revolutions: From Internet to Social Media.
• Global Infrastructure Hub. Project Case Studies. CLSG Interconnector Project.
• Neuroject. (2025). 4 Case Studies of Successful Smart Construction Solutions.
• U.S. Treasury. (2023). FY 2023 Capital Investment Summary. https://home.treasury.gov/resource-center/faqs/capital-investments
• UNCTAD. (2023). World Investment Report 2023. https://unctad.org/webflyer/world-investment-report-2023

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.

For restaurants, food costs are an essential component similar to bookkeeping records that will help you make financial decisions for your restaurant. Restaurant owners usually do not calculate this metric for individual menu items because, for many, it is a time and energy-consuming process.

To calculate base food costs and keep track of wastage, you need an inventory management system that has been optimized for restaurants.

A restaurant owner must clearly know which recipe components are profitable and which are not. They also must determine whether the combined effect of each element results in a profit, ensuring that their business is on the right track.

Talking numbers, on average, high-end restaurants have a food cost percentage of 35%. Meanwhile, quick-service restaurants usually maintain an average food cost percentage of 25%. You must look at your weekly inventory by following the steps below to find your percentage.

Step 1: Make a list of the Food Supplies you have at the beginning of the Week

Your inventory software may support the feature of being used on tablets, allowing you to check the inventory at the beginning of the Week.

Step 2: Valuate the Inventory for Each Item

Calculate or note the price of each item. Suppose a carton of milk: sum up the price you paid for all milk cartons, and do this for all items. Finally, sum them up to mark the total value of your inventory. You’ll need these values in your calculations later on.

Step 3: Keep Track of Purchases made During the Week

If you made any purchases after that, you should note them.

Step 4: Valuate the Inventory Again at the Beginning of the Next Week

Follow the same valuation process you followed in step 2.

Step 5: Sum up the Sales you made Per Shift

Your restaurant POS system will be able to help you get this value automatically.

Step 6: Calculate the Weekly Food Costs using the Following Formula

Food Cost Ratio = (Opening Inventory + Purchases – Closing Inventory) ÷ Food Sales

Food Cost Percentage = Food Cost Ratio x 100

TIP: If your food cost comes out too low or high, you must ensure you’ve valued the inventory correctly, put the correct values into the formula, and sum up each sale and purchase invoice.

The Ideal Food Cost Percentage for Your Restaurant

Calculating your food costs once doesn’t mean your work is done. You will need something to compare your food costs with, and therefore, you will need to calculate your restaurant’s ideal food cost percentage.

The ideal food cost percentage is also called the recipe food cost. It doesn’t take into account any wastage or theft. You can calculate it using the following formula.

Recipe Food Cost = Sum of Costs of Ingredients x Weekly Sales

Ideal Food Cost Percentage = Recipe Food Costs ÷ Total Sales

The Importance of Food Cost

Restaurant owners usually don’t consider the ideal and actual food cost percentage values. This is probably because these figures don’t directly affect their bank account. However, restaurant owners should realize that optimizing the value to make it closer to the ideal value can help your business maximize profits and succeed.

Successful food businesses understand the importance of food costs and make it a part of their decisions related to wastage and theft. Big food chains must care for actual and ideal food costs, as tiny differences can become massive on a bigger scale. Suppose a multi-national food chain sells 50 million meals a day. An offset of a small value, suppose 5 cents, can lead to losses of about $2.5 million in a single day.

Conclusion

In conclusion, understanding and managing food costs is vital for restaurant success. Restaurant owners can optimize profits and ensure long-term sustainability by implementing proper inventory tracking and calculating food cost percentages. Paying attention to actual and ideal food costs can make a significant difference, even for large food chains, preventing potential losses and maximizing revenue.

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.

How do you feel seeing your company’s progress and all the profits you receive after much hard work? Let me tell you one thing. Profits are one of the main elements that affect your company’s progress.

To maintain your company’s progress, key performance indicators (KPI) help you assess your business’ success and build strategies for achieving your goals. As a business owner, you must keep track of your KPIs as they affect your company’s progress.

We have listed seven critical KPIs for small business owners to help you identify your business progress.

Gross Profit

The main element for every business is its profit. If your business spends more on suppliers and netting less in customer sales, it is time to change your business strategy. Furthermore, to determine your company’s profit margin, multiply your gross profit by 100 and divide it by your sales.

 Keeping track of this KPI is essential as it will tell you how much profit you generate, contrary to the amount paid to suppliers. If your business’s profit margin increases, continue with your strategy. However, if you see a decrease, you need to reduce your company’s extra costs like utilities or wages or increase the cost of goods.

Flow In and Flow Out

This is one of the most important key performance indicators for small businesses. Flow in and out helps business owners assess whether their sales and margins are appropriate. The first step is to estimate your sales for each week and month. However, once you have an idea of what your sales history looks like, estimate your payment timings and likely costs.

Generally, this process covers 12 months, called Cash Flow Forecast. It also helps in tax preparation, new purchases, or identifying any cash surpluses. For example, if you plan to purchase equipment for your business, you add the cost to your forecast. Therefore, the new statistics will tell you whether buying the equipment will help your business make profits.

Revenue Ratio

A company’s revenue depends on the company’s profit or sales growth. If your business income or sale is increasing, it is evident that the revenue rate is also growing. To ensure your company is progressing well, check the difference between the current and previous year’s revenue growth rates.

Inventory Gross

Inventory gross tells the company how much inventory it has sold over time. Furthermore, keeping track of your inventory is essential, as it will help you plan any adjustments. 

Funnel Analysis

Funnel analysis lets you see how users move through a series of steps. It is a great way to track where users drop out– the funnel drop-off rate. Therefore, it tracks the number of visitors who left the conversion process (the funnel).

The conversion process depends on what type of business you run. Examples of conversion could be a shopping cart, subscriptions, and more. Once you identify where customers are dropping out, make strategies to boost your sales. Overall, many businesses rely on the internet as a sales tool in this technology age, so funnel drop-off rates have become a key performance indicator to track.

Accounts Payable Rate

If you want your business to continue operating, ensure you have paid all your suppliers. Accounts payable measures the cost given to suppliers. Moreover, it is hard for most business owners to track all their financial transactions.

Hiring someone to oversee your bookkeeping will make your life easier and ensure no errors in your company’s accounts. Overall, this key performance indicator will help you identify whether you must reduce the spending on suppliers to boost the company’s future profits.

Market Share

This KPI assesses a company’s success and position in the market. How is your business performing compared to your competitors? This is the only KPI that needs regular tracking. If you do not know what your company’s progress looks like compared to others, it is impossible to change the strategies and policies.

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.

Nobody likes rejection from someone you love, a job interview, or a bank loan. As a small business owner, the feeling is relatable as only half of all small business loans are approved. Even though small businesses have many lending options, it is still arduous to acquire any credit. The high number of lending options might make things worse rather than better.

Surveys reported that almost 45% of small business loan appeals had been rejected more than once, and about 23% had no idea why. Here are the most common reasons for rejecting small business loans to clear the dilemma.

Bad Credit Scores and Financial History

A credit score is one of the most imperative measures of a person’s creditworthiness. Banks heavily rely on credit scores to make decisions regarding approval. Therefore, they set interest rates accordingly. Credit bureaus are responsible for keeping track of credit scores.

A bad credit score is often due to several reasons, including late or missed payments on credit cards, loans, vendors, or others. Banks will approve small business loans after reviewing credit history to minimize risk. If your business has a bad credit score for any reason, you should immediately take measures to improve it.

Some small businesses are too new to have any credit history. Such a situation is harmful when it comes to scoring a loan. To elevate their personal and business credit scores, business owners must make payments on time, spend well under their credit limit, and keep their credit accounts open. However, this requires business owners to make intelligent financial decisions, eventually leading to higher credit scores.

Lacking Collateral

Banks and other lending associations require collateral, typically a fixed asset such as property, to guarantee that the loan is repaid. A start-up venture often does not have resources to put up as collateral and might not risk its assets for the purpose. The amount approved as the loan is equivalent to the value of the collateral.

Homes and cars are the most popular options for collateral among new businesses. However, that can be a significant risk and must be thoroughly analyzed before advancing. Online lenders are a better option for securing small business loans without collateral. However, the interest rates are significantly higher.

Weak Cash Flows

Lenders want to see businesses with enough money to sustain their daily business operations and make monthly loan payments. A healthy cash flow is vital for the survival of any business, and lenders know that. However, small businesses often struggle to keep a steady balance in their bank accounts because they must make advance payments to vendors.

If the amount of money going out of your business exceeds what’s coming in, it can be hard to acquire a small business loan. Business owners need to implement changes into their current business model to improve the cash flows. Lowering expenses and looking for ways to grow your business are the only ways to improve cash flow and eventually qualify for a loan.

Pursuing Small Business Loans

Small businesses often look for loans that amount to less than $100,000. On the other hand, banks want to approve larger loans because they are more profitable. The cost of processing a $20,000 loan is the same as processing a $1 million loan. Therefore, the predisposition. It does not mean you cannot get a loan approved. Merely suggesting the way banks look at small business loans.

Small businesses, however, can acquire a loan from other sources, such as online lenders and personal contacts, if the amount is relative to the size of the business. You also have a better chance of getting a loan approved from a community bank, provided you have good relations with them. Having a banker who recognizes your business can be a blessing as your chances of approval rise significantly.

Avoiding the scenarios mentioned above will ensure lenders approve your small business loans. Always ensure the applied loan amount fits your business’s needs and requirements. Don’t go for a higher amount just for the sake of it. Instead, calculate the amount you need to maneuver your business toward its mission.

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.

Running a business can be overwhelming due to the numerous responsibilities that come with it. From managing finances to promoting products and services, business owners often struggle to find enough time to do everything efficiently. However, outsourcing can be a game-changer in such situations. Hiring trusted professionals to handle some of the workload allows you to streamline the business processes, reduce stress, and focus on your best work. It is an effective tool to help you keep up with the competitive market and grow your business exponentially.

Outsourcing Overview 

Outsourcing is when you hire a third-party company to handle specific business processes. This can include anything from accounting and HR to customer service and IT support. While outsourcing has pros and cons, it’s worth considering if you’re overwhelmed or need time to focus on other aspects of your business.

Advantages 

One of the most significant benefits of outsourcing is cost savings. Hiring an outside company can be more cost-effective than hiring and training new employees to handle specific tasks. Plus, outsourcing companies often have specialized knowledge and expertise in their field, which can lead to more efficient and effective processes.

Another advantage of outsourcing is flexibility. You can outsource specific tasks as needed, which can be especially helpful during busy seasons or when you need to scale your business quickly. It can also help you access a wider talent pool, as you’re not limited to hiring locally.

However, outsourcing isn’t always the best choice for every business. 

Disadvantages 

One potential downside is the loss of control. When you outsource a process, you’re essentially handing over control to a third party. While this can be a relief in some ways, it can also be nerve-wracking if you’re not used to relinquishing control. Another potential downside to outsourcing is the risk of communication breakdowns. If the outsourcing company isn’t clear on your expectations or there’s a language barrier, it can lead to mistakes or delays. Communicating clearly and regularly with your outsourcing partner to mitigate this risk is essential.

Best Outsourcing Candidates 

So, which business processes are the best candidates for outsourcing? Here are a few examples:

1. Accounting and bookkeeping: Unless you’re an accountant yourself, outsourcing your accounting and bookkeeping tasks can save you time and money. Plus, an experienced accounting team can help you identify ways to reduce expenses and improve your bottom line.
2. Marketing and advertising: If you’re not a marketing expert, outsourcing your marketing and advertising tasks can help you reach a wider audience and generate more leads. From social media management to email marketing, there are plenty of options.
3. Customer service: Providing excellent customer service is crucial for any business but can be time-consuming. Outsourcing your customer service tasks can help you provide 24/7 support, improve response times, and free up your team to focus on other tasks.
4. IT support: As technology becomes more complex, keeping up with the latest trends and security protocols can be challenging. Outsourcing your IT support can help ensure your systems are up-to-date and secure while freeing your team to focus on other tasks.

Conclusion 

Are you seeking to streamline your business operations, reduce costs, and leverage specialized skills? If so, outsourcing could be an ideal solution for your business needs. However, before you take the plunge, it’s important to weigh the pros and cons of outsourcing carefully. By carefully identifying the business functions best suited for outsourcing, you can make a well-informed decision that aligns with your business goals and delivers long-term rewards. You can trust that this approach will help you achieve your desired results and gain a competitive edge in the market.

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.

From personal expenses to business costs, life is expensive. It may seem like you must open your wallet wherever you go. One way to save more money every year is to identify and deduct legitimate tax write-offs, which intersect your personal and business expenses.

Dental and Medical Expenses

You may be able to deduct dental and medical costs for yourself, your partner, and any dependents when the total costs exceed 10% of your adjusted gross earnings. In addition, when you or your spouse is 65 years old or over, you can deduct all medical costs that exceed your adjusted gross income of 7.5%. 

Home Renovation

Home renovation expenses are not typically deductible on an individual’s tax return. However, when you make specific improvements to your house mainly for medical purposes, such as lowering cabinets for better accessibility or adding wheelchair ramps, you can deduct such home renovations as medical costs. However, when the upgrades specifically improve your home’s value, one cannot claim them as medical expenses.

Tax Preparation Charges

Whether you pay someone to prepare your taxes or do it yourself, you can write off charges on your miscellaneous tax deductions using a tax calculator and bookkeeping concepts. Expenses can include electronic filing and tax return preparation fees. However, the preparation charges should exceed two percent of your adjusted gross income to qualify for such a deduction.

Moving Expenses

When you satisfy the IRS time and distance test requirements upon your relocation for new employment, you can deduct moving expenses from your taxes. In this regard, the movement of military personnel due to service obligations does not require them to meet any time or distance qualifications.

Jury Duty Pay

When you return your jury pay, as you also received your paycheck while serving on a jury, you can deduct such pay from your overall taxable income.

Job Search Costs

Looking for employment can cost you money. You should add these expenses to the list of your write-offs. Itemizing them can help you deduct costs that occurred during your job search. It would help to remember that your job search must be most relevant to your current or most recent employment. Moreover, the search expenses that you may deduct include:

• Preparation, printing, and sending your resume
• Transportation that provides for a deduction of tolls, cab, parking, and 54 cents per mile fees
• Employment agency fees
• Other fees related to job searches

Investment Fees and Costs

Certain charges you pay for your investments’ management qualify as miscellaneous deductions. Such fees and expenses can include: 

• Investment counseling charges
• Custodial charges paid outside of the account
• Safe-deposit rental fees
• Online and software services you utilized to manage your investments
• Legal costs you paid to collect taxable income
• All transportation expenses to and from a financial or investment advisor’s office
• Costs needed to replace your lost security certificates

Airline Baggage Fees

If you are an entrepreneur, freelancer, or simply a self-employed individual, always deduct your baggage fees for the travel you do for business purposes. Your mind might be blown to see how they add up and cost you.

Home Appraisal Charges

One can deduct home appraisal fees as a miscellaneous itemized deduction when the real estate property is integral to a charitable donation. 

 Mortgage Points

When you itemize your mortgage points or prepare interest you paid to buy or construct your primary house, you can deduct them. Typically, when you can deduct the entire interest paid on your mortgage, you can deduct all the points.

Charges to Collect Dividends and Interest

Any charges you pay to a bank, trustee, broker, or similar agent to collect taxable dividends on shares of stock or interest on bonds are deductible. However, the actual securities, bonds, or stocks are not deductible.

Home Sale

When you sell your house at any profit, you can deduct up to $250k of profit from your income. Remember, if you are married or filing jointly, you can exclude a maximum of $500k.

Casualty, Theft Loss and Disaster

It is a significantly painful experience to suffer damage or loss to your house, household items, and vehicles. If your insurance coverage does not pay for them, they are, at the very least, tax-deductible.

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.