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Every associate’s needs differ based on factors such as firm size, years of practice, geographical region, and available resources. Any organization should be clear about its goals and objectives regardless of size or nature. A simple personal sales and marketing plan can help businesses determine what to focus on and where to spend their time and money. 

Drafting Your Personal Sales and Marketing Plan

When you draft your personal sales and marketing plan, know it cannot be a “universal” plan. You must keep your ultimate goal in mind, which is to succeed. At the same time, don’t overdo it by pushing yourself too far in a short period. Remember, you are in for a marathon, not just a sprint.

Having planned your activities, take a calendar and lock in essential dates and deadlines. All resources, including executives, associates, and admins, should work together to create an effective personal sales and marketing plan.

Setting Goals: The SMART

Your personal sales and marketing plan should not be formally documented but well-defined and communicable. It should identify goals so that it can convey your business objective to every team member.

When making a plan, formal or informal, choosing a SMART goal is the way to go. SMART is a widely used concept in management and planning. SMART goals are acronyms for Specific, Measurable, Attainable, Realistic, and Timely. Many marketing experts use an additional ‘T’ to add tangible to the equation.

Identifying Your Prospects

Identifying where to start and who to target can be quite challenging. To begin, when making your personal sales and marketing plan, you must analyze your existing contacts or customer lists. The effectiveness of your marketing and sales efforts is based on a good contact list. Your contact list should include people you have known, met, or plan to meet. Everyone can be a prospect, from an existing client to a referral source.

You should aim to get as much information as possible. It is a good idea to include how you know the contact, i.e., where you met the contact, mainly when you were introduced to another source. It is advisable to categorize your contacts as a referral source, client, or prospect. Investing your time in maintaining a well-organized contact list will save you time, effort, and energy in the future.

The next step in preparing a personal sales and marketing plan is to use your contact list to identify prospects. Determine who directly or indirectly influences organizations and people who may need the services you offer.

Proper prioritization is necessary to be successful in making a plan that assists in business development. 

Measurements of Success

Several metrics can help you keep track of your progress. These metrics vary from firm to firm, but the general purpose of any marketing plan is to maximize your outreach. Generally, you must monitor your conversion rate, number of qualified leads, referral rates, etc. These metrics make a plan more tangible and allow you to identify your areas of weakness, if any. The best strategy is to review your plan every six months and make changes as needed.

Making a plan is your first step toward success. Your personal sales and marketing plan can be vital in building your credibility and clientele. Remember, the plan should serve as a guideline. Keep it simple, and focus on the substance rather than form. With the right plan, you can identify and capture opportunities.

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 fine financial management structure depicts how an entrepreneurship business is doing and why. A well-organized system for bookkeeping is critical to establishing procedures to manage and control finances. Financial management is the system that places digits to work for a successful business. Financial management is used to formulate decisions that improve business operations and make them more successful.

Advantages of Financial Management

Financial management makes you a better macro manager. These are the advantages gained if you ace financial management.

Turning your business around requires proactive management. This entails swiftly securing business debts, devising an efficient financial plan for investor presentations, and accessing quality tools for informed financial decisions. Wise investment in fixed assets, streamlined inventory and accounts receivable management, and bolstering working capital are key.

Additionally, setting clear growth goals, optimizing gross profit margins through strategic pricing, and trimming direct labor and supplier costs are vital. You ensure more efficient business management by reducing administrative and overhead expenses and planning for taxes and worker settlements. Lastly, executing sensitivity analysis on fiscal variables ensures preparedness for various scenarios.

Developing a System for Financial Management

The first step is to create the financial statements. For proactive management, you need a plan in which a monthly generation of financial statements is done. This statement needs to include:

• Income statement
• Balance sheet
• Cash flow statement

This information can be extracted from bookkeeping, bank statements, and invoice receipts.

Profit Doesn’t Characterize Success

In financial management for entrepreneurs, profitability doesn’t indicate success. Instead, growth indicates that a business is excelling and on the right path. Profit is the ultimate goal for sound entrepreneurs, but business growth is critical to determine how the business is doing.

Identify What Metrics Affect the Business

Identify the financial metrics that are universal and applicable to every business. Closely look into your business and identify specific metrics that affect your company. The universal metrics are revenue, operating expense, money on hand, gross margins, etc.

Don’t Drop Capital on Dumb Mistake

Efficient bookkeeping will help you assess your mistakes and where you are losing money. Identify all areas where money wastage is avoidable because early profits are more worthy in entrepreneurship.

Carry Out a Cost Review

An audit of the business should be done because you can only monitor some of your employees all the time. This should be done at least quarterly to examine your expenses and how to justify them closely. Audits also reduce the risk of fraud.

 Make Your Time Count

Entrepreneurs have to do many tasks themselves due to small budgets. They have to maintain bookkeeping, run payrolls, etc. Entrepreneurs do things themselves to save money, but in reality, this time should be spent on the growth of their business. Use technology to save your time.

The monthly financial statement can be generated through the latest automated software package specially designed for accounting. These are to be used with your manual bookkeeping system. You can also employ internal or external bookkeepers to provide monthly financial statements to save time.

 Build a Method to Track Success with Time

Every entrepreneur must have a system to assess success over time. This system is used to validate the financial management system and to reset goals if needed.

Conclusion

To grow a successful business as a sound entrepreneur, you must have a deeper understanding of your financial management system. Sabrina Parsons, CEO of Live Plan, believes “budgeting, forecasting, and planning are not just for start-ups. If you do this for an ongoing business, you’re going to grow 30 percent faster, you’re going to be more successful and your numbers are going to mean more.”

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.

Threats to e-commerce in cyberspace are on the rise. Every day, several websites are hacked, resulting in data theft or complete data loss. Businesses have problems keeping their e-commerce sites safe from hackers and other risks such as ransomware.

Cyber security for e-commerce sites is not an easy task. Managers and business owners often do not have technical training, and the lack of information can discourage even the most cautious and security-conscious business owners. This guide will be helpful for managers to secure their e-commerce websites and overcome security obstacles.

Identify the Most Vulnerable Areas

To protect a business from any threats related to cyber security, the initial precaution to consider is to identify the vulnerabilities of a website and the company it represents. If it is challenging to identify weaknesses, think about how these issues can be fixed. Is there a lack of knowledge about the data type the company stores? Knowing its vulnerabilities, increasing cyber security for E-Commerce sites is challenging without proper information about the data type.

Businesses have crucial data related to the company’s intellectual property, customer relationship management, essential financial information, and inventory management.

Thorough Mapping of the Entire Business

Carry out a comprehensive mapping of all of the processes performed by staff members. Gather, secure, and properly dispose of this data to avoid threats to e-commerce in cyberspace. Information can be stolen from various transit locations. Considering the negative effects of a cyber security breach on the business, employees, and relationships with customers and partners is essential. The next phase is to start putting precautions in place, such as providing adequate protection to the computers and website servers.

Protection for Computers and Web Servers

Virtually all the work that allows a business to operate goes through computers and other devices. However, these devices are always connected to the internet and a local area network, which makes them susceptible to a cyber attack. Hire an I.T. service to provide adequate protection protocols for the computer equipment and servers to enhance the cyber security of your E-Commerce site.

Software Updates

Computer systems used by an e-commerce site are pretty vulnerable to an attack. Ensure their safety by keeping all software updated. Hackers are looking for loopholes in the software, exploiting the flaws to break into the system. Hackers have different motives for hacking into computer networks or websites. The most common reasons behind a cyber attack are that the hackers want to make their political stance clear, they want to make some money, or they are simply hacking because they have the capabilities to do so.

Hacking and ransomware are intrusions that can cause considerable harm to any business. Hence, they are threats to e-commerce in cyberspace. Hackers can steal crucial information like credit card numbers, social security numbers, and identities of customers, clients, and employees. The best approach to evading becoming the next victim of hackers is to regularly update the software to improve cyber security for e-commerce sites.

Anti-Virus Programs

Viruses can do many things; they are malicious, and a virus can infect a computer system or an entire network. In general, they access essential data and delete or modify it. The computer virus spreads by making several copies of itself in email messages hidden in attachments.

If a computer on a network receives a virus, it can spread quickly and infect all computers and websites of a business. The virus outbreak results in significant data loss. The two most hazardous forms of viruses currently in circulation are “malware” and “ransomware,” which are significant threats to e-commerce in cyberspace. 

Some differences exist between malware and ransomware. The malware prompts the victim to download specific software, thus gaining access to the latter’s computer. It can access the same things as you can on the computer, take confidential information, or spam an email address.

Ransomware is a malware type that, when launched successfully, can deny access to the targeted computer and prevent the user from accessing crucial data until the ransom is paid. Ransomware works by forceful encryption of your data; once the encryption is complete, it requires a special key that the attacker holds. The attacker threatens to destroy or delete the data until the ransom is paid. 

The WannaCry cyber attack is an example of ransomware. Paying the ransom is not necessarily the answer. There is no assurance that hackers can unlock the files. Anti-virus programs must be updated regularly to avoid attacks like WannaCry. Businesses need to take precautions to increase cyber security for their E-Commerce sites.

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.

Each organization requires an inventory to carry out the various activities to achieve its objectives as a successful business. Stock inventory is created when items are in standby mode before they are used or sold. A stock of items can be found at any stage of the process, initially as raw material, then processed stock, and finally, finished stock.

Types of Stock Inventory Management

Businesses rely on different types of inventory to conduct their operations. Some of the most common types are:

• Raw Material Inventory – Materials intended for production. This inventory allows the organization’s cost, production time, and priorities to determine continuous production and its size.
• Work In Process Inventory – Materials in the production line waiting between different workstations. This inventory includes products that are allotted to different processing times of workstations.
• Finished Goods Inventory – Inventory of finished products intended for sale and awaiting customer delivery.
• Inventory of Supplementary Materials – Materials that do not directly participate in production but are necessary to complete the process. For example, office supplies, packaging materials, and other products are included in indirect production.

Costs Associated with Inventory Management

Costs associated with inventory management differ depending on the production process and type of finished product. Following are costs related to inventory management for adequate bookkeeping records.

• Cost of Labor – Includes all costs associated with those responsible for managing inventory. This cost includes salaries and wages paid to warehouse managers, clerks, and inventory holders.
• Cost of IT – Includes purchasing and maintaining computers and software.
• Cost of Management – Includes building procedures and approving and assimilating them into the system. For example, storage procedures, handling procedures, and delivery procedures.

Benefits Derived from Inventory Management

There are several benefits taken from effective inventory management for the success of a business and proper bookkeeping. Savings on inventory maintenance help optimize costs associated with inventory maintenance. They also include expenses related to repeat orders on other products.

Meeting supply times assists in proper inventory management. It enables ongoing production and meeting schedules and delivery times to be determined. Timely delivery will lead to additional orders and new customers for the business. This indicates that proper inventory management is effective in helping the company succeed.

Maximum utilization of production factors is another benefit of stock inventory management. Proper inventory management will enable a continuous production process and prevent downtime, delays, and idle time in the production process.

LIFO Method – Last In, First Out

This inventory management method is also known as the stack method. The LIFO method determines that the last product that enters the inventory will be the first to be exported. LIFO is an effective method for products with a long shelf life.

FIFO Method – First In, First Out

According to FIFO stock management, the first product that enters is the last product that leaves the manufacturing facility. It considers the product’s shelf life and the validity of the warranty received from the supplier against the product.

JIT – Just In Time

This is one of the most common inventory management methods for products with high maintenance costs. According to this method, a company will order products from the manufacturer precisely at the time of purchase. According to consumption, inventory management is the most economical model for inventory management but requires a high level of control and analysis for demand forecasting and delivery time management.

Inventory Management and IT Services

Inventory management software allows a business to track every exit and entry from the inventory of items in the various warehouses of the organization. Inventory management software is a system module that includes sales and purchasing modules to enable data integration and greater manageability, control, and analysis for maintaining costs associated with inventory management.

Linking the IT Sector with Warehouse for Effective Management

The warehouse and inventory management software will be essential to the organization’s inventory mechanism. The warehouse ensures proper maintenance of the various materials entering the facility, enables adequate inventory management, and provides exemplary service to the various factory departments. Inventory management software should allow quantitative inventory management and serial numbers for stock inventory management.

When done efficiently and professionally, warehouse management is one of the most essential conditions for successful logistics system management, stock management inventory, and bookkeeping. Both play a decisive role in helping a business succeed. Here are everyday activities that are carried out in a warehouse.

• Handling of deliveries from suppliers
• Inventory counts and complete control of inventory levels
• Preparation of inventory and supply to various departments through transportation systems
• Maintenance of physical conditions such as temperature, humidity, and pressure
• Proximity restrictions for other materials
• Regular maintenance
• Receiving finished products from production
• Receiving orders from customers
• Preparing shipments to customers

Inventory Management with Serial Numbers

Inventory management according to serial numbers enables tracking transactions of every item and managing responsibility with the supplier and customer. Inventory management software allows a company to analyze inventory movements, such as displaying sales of items according to different periods per business needs. The software must provide information on the dead stock (unsold inventory) to alert the business of missing items when an item falls below a specified minimum level to reduce costs associated with inventory management.

A crucial part of inventory management software should be the ability to manage exchanges and returns of the customer. The inventory management software provider should be able to perform a variety of actions against any return of a customer or return to a supplier. For example, actions such as withdrawing a return certificate for monetary credit, replacing a product, substituting product X with product Y, and exchanging with withdrawal of liability apply if the product is under warranty.

How Can Software Help in Stock Inventory Management?

Inventory management assists with business inventory, tracking the entry and exit of items from stock and noting the speed and profitability of each sale. The inventory management module consists of a price list for each customer. The software can be helpful in the calculation of profit per invoice.

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.

QuickBooks accounting software, designed by Intuit, is known for being one of the best accounting software programs on the market. Although there may be more crucial decisions for small business owners, it is essential to differentiate between different suites of QuickBooks. Every QuickBooks software program offers different features that suit unique business operations. Rather than spending money on the wrong type, one should wisely compare QuickBooks Pro vs. Premier to determine which version is best for their business. 

It is difficult to differentiate between both editions when new to QuickBooks as both have multiple attractive options. This article will help you decide on the best edition for your business. If you are looking for a desktop edition of QuickBooks, you are likely stuck between QuickBooks Pro and QuickBooks Premier for your small to medium-scale business. Before comparing the features of both editions, you must understand what QuickBooks is and how it can help you in your business operations. 

QuickBooks is known for being the most innovative accounting tool for small business owners. Small to medium-sized business owners prefer using QuickBooks to manage their accounting and bookkeeping processes, such as paying invoices on time, accepting payments from vendors, and tracking inventory expenses in one platform. However, one should understand the following points before purchasing any QuickBooks product.

1. The features of QuickBooks products can change. Therefore, research the bookkeeping software just before purchasing any product.
2. The products in a QuickBooks portfolio have nuances, as very minor differences exist between each product.
3. The developers can discontinue or replace QuickBooks products with a different product. Therefore, carefully analyze the product before making any purchases. 

 QuickBooks Pro

QuickBooks Pro is a product of Intuit’s QuickBooks accounting software designed to simplify small business management’s basic accounting tasks. Being the oldest product of Intuit in the business accounting range, QuickBooks Pro was created in early 2000. However, to date, QuickBooks Pro has evolved with the ever-changing needs of businesses today.

QuickBooks Pro is a complete software package for businesses aiming for a less complicated and more user-friendly accounting system. The software does not have additional packages, making QuickBooks Pro more affordable than the Premier edition.

Main Features of QuickBooks Pro

QuickBooks Pro has many built-in features to assist businesses in their accounting operations: 

• Multi-Monitor Support: QuickBooks Pro allows licensed customers to take care of their business faster on three monitors. The program will enable three users of your business to operate with one licensed purchase. With this, a business can manage the list of customers on one screen while tracking invoices and payments coming from the customer on the other two screens.
• Past Due Stamp: Another attractive feature is that the program will automatically update a “Past Due” stamp over the invoices that have crossed their due dates. This feature will help in tracking debts and accounts receivables.
• Search Chart of Accounts: This option enables the bookkeepers of a business to track any account or sub-account for speedy accounting easily. 
• Cash/Accrual Toggle: The software makes filtering results with cash or accruals easier. This way, a business can compare its performance on a cash and accrual basis.
• Payroll Liability Reminder: Another great feature is that it reminds a business of its upcoming liabilities.

QuickBooks Premier

QuickBooks Premier has almost every feature of QuickBooks Pro, with a few additional attractive features according to the needs of a business. The software has multiple versions that are tailor-made for a business, according to their industry. Businesses have the option of 6 industries to choose from, such as:

1. General Business
2. General Contracting
3. Non-Profit
4. Professional Services
5. Retail
6. Wholesale & Manufacturing

Additional Features of QuickBooks Premier

• Multi-Monitor Support: Up to five users
• Inventory Reports: Flexible and customized inventory reports
• Search Chart of Accounts: Track any account or sub-account of the business
• Cash/Accrual Toggle: Compare performance on a cash and accrual basis
• With Pro, a business can quickly get a snapshot of their customers
• The software allows accountants to use the Income Tracker feature, which will show all unpaid dues of the company.
• Using QuickBooks Pro, you can easily extract essential data from your customers in Excel.

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 business is often exciting – yet scary at the same time! It is like moving through immense fog where you can only see a few feet before the windshield. Hence, you do not know what is awaiting you until it is upon you. However, the more experienced you are in entrepreneurship, the better you can navigate that fog. From bookkeeping to business management, your knowledge and expertise will enable you to make the right decisions. 

Here are nine critical factors or vital decisions at a start-up that can go a long way.

A Good Sense of Timing

You need to understand this in two ways:

1. Picking the best moment to begin your start-up: The ideal moment to start your company is typically a balancing act that is determined by several significant factors, including the availability of necessary start-up funds, the success or failure of competitors, the ebb and flow of your industry, and your personal and family circumstances. For instance, you may delay the plan as you expect a baby in the next few months.
2. Immediate action to grab the opportunity: Since entrepreneurship is about taking calculated risks, you must leverage an opportunity immediately. You can achieve this by completing your business plan and making decisive moves to get your company off the ground promptly. But always avoid a rush attitude. You must show diligence in the plan development. However, many start-ups fail because they are too sluggish and wallowed to complete any task promptly.

Avoid Giving Heed to Statistics

Many people use statistics like 95% of businesses fail’ simply as an excuse to make themselves comfortable about giving up. Even if that number is correct, it is because most do not commit to their goals, follow through to the end, or have money management skills.

Do Something You Love

Do not begin something you will not want to do in the next five years. Making your passion your business means you will still enjoy and earn in the next five years. It could be painting, singing, engineering, teaching, marketing, auditing, or bookkeeping. 

Assess if You Must Raise Funds to Launch Your Start-up

It is often rare for an entrepreneur to have enough savings and funds in his bank account to begin their business seamlessly. On the other hand, most start-up enthusiasts must raise finances to turn their ideas into reality. Therefore, you might need to use bank loans, leverage assistance from family and friends, or put properties on the mortgage to arrange money to invest in your start-up. Hence, assess your business goals to know how much you need to begin.

Know Your Team Members Before Bringing Them on Board

The people behind your business are the most critical factor, particularly for start-ups. Recordkeeping is essential for bookkeeping, and products or services must be iterated many times until they find their marketplace; similarly, it is all about having the right people do the right job. Their direction is more important than the pace of their performance. Here, it would be best to focus on their background story, such as precious experience, companies and qualifications, and the value they bring to the table.

Invest Wisely

Warren Buffet says, “Instead of putting all your eggs in the same basket, make multiple investments.” Following this inspiration, you should diversify your investments to help increase your chances of success and reduce the risk involved. Since these investments are for the long run, always show patience.

Avoid Over, or Under, Investment

Starting a business can significantly affect you and your family financially. You must learn where and when to spend what amount. You should neither waste your precious dollars nor fail or delay investing adequately where necessary. You often need to spend funds to earn money in any business. Hence, never skimp out or underestimate things your company needs.

Set Up Your Cash Flow Tracking

Since you must submit a self-employed tax return, you must have a good track record of all business transactions. Though opening a separate business account is not necessary when setting up as a sole trader, it could be helpful to keep track. Several online tools help small businesses manage bookkeeping and maintain other accounts and enable large organizations to prepare audit and complex financial reports. 

Start Selling

You must know how to promote your product or service and who to target. Though you have already mentioned it in your business plan, it is time to put the matter into execution. Much of your early budget will be on advertisement and marketing, whether SEO, networking, telemarketing, or targeting retailers. Your first few sales will boost your confidence and help you show more commitment and dedication toward the business goals.

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.

Businesses face several accounting costs that can easily be identified and calculated when conducting business operations. All money coming in and going out must be tracked. Companies, however, also face other economic costs that are not displayed on the bookkeeping records and have a significant impact on the decisions made by management. 

Accounting costs are crucial for the company’s external and internal reports. At the same time, economic costs apply to the internal sector only. This factor is significant for bookkeeping. These different costs and expenses will be explained below. 

Implicit Costs

Economic costs reflect a company’s implicit and explicit costs during the year. Implicit costs are linked to resources offered to a company without any price tag. If a company, for instance, operates from a building it owns, it encounters an implicit cost due to the rent that could have been earned by leasing the building to some other company. The owner could have earned around $3,000 monthly from a commercial renter. Therefore, in this case, the company faces an implicit cost of $3,000, referred to as its economic cost.

Explicit Costs

Accounting costs are generated from the overall explicit costs of a business throughout the fiscal year. They do not include the implicit costs coming from unused resources. Explicit costs defined by their monetary value are included in a business’s accounting costs to identify the net income. 

Accounting Profit

If an accountant or bookkeeper wants to calculate the accounting profit of the financial year, they will only have to look at the profit of the company and its accounting costs. The accountant does not need the economic cost details to form an income statement for the company. 

For instance, accountants are not concerned that the company could have made $3,000 by leasing the building to some other business – making a total of around $36,000 during the financial year. This figure of $36,000 has nothing to do with the company’s gross profit during the financial year.

Economic costs are not included in bookkeeping.

Economic costs are not written or mentioned in a company’s accounting records or bookkeeping. When creating financial reports, accountants are focused on the explicit costs generated from the business operations conducted throughout the financial year.

However, Economic costs are generally considered when a company must make strategic decisions involving opportunity. For example, suppose a company intends to close an operational location and rent or lease it out to another business. In that case, the company needs to consider the economic costs of losing the money generated from business operations or the profit that might be generated from the rent. 

Economic cost generally comprises the monetary value of resources the business employs. Also, it links to the opportunity cost that arises from the inputs used by the enterprise to make the business functional.

On the other hand, accounting costs are focused on explicit costs incurred by the business. Any company’s costs in normal, day-to-day market transactions are referred to as explicit costs. One common example of explicit costs includes wages that are given to employees. The money spent buying the resources the business needs is also known as explicit costs. 

By learning about each specific cost and profit, you and your company will be better prepared for the financial reports and audits. Make sure to keep an eye on economic factors. Many economic costs will not be publicly published. You will have to stay informed!

Conclusion

In conclusion, while accounting costs are vital for tracking financial performance in business, economic costs play a crucial role in strategic decision-making. Understanding the distinction between implicit and explicit costs empowers businesses to navigate financial complexities effectively. By incorporating accounting and economic perspectives, companies can optimize their operations and adapt to changing market dynamics, ensuring long-term sustainability and success.

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

In your opinion, what do you think an excellent, profitable restaurant would look like? Smiling, happy servers, clean kitchens, and extensive tips received by customers are what most of us think of. However, to calculate how a restaurant performs, you must also consider what kind of profits it generates. If there is no difference between the profits gained each month, consider revising your management skills. The best tips for effective restaurant management will take your profits up a notch.

Prime cost is the best marker of benefit potential and how well your expenses are being overseen. Cooks who do not have control over the prime expenses have an inferior administration framework. It is one of the fundamental pointers on how well the business is being managed.

Prime Cost Should Not Be More Than 60%

For most, prime cost should run nearly 65% of aggregate deals. Bigger chains can keep their prime cost at 60% or less. Yet, for most, accomplishing a prime cost of 60-65% still allows getting a solid net salary.

When prime cost surpasses 65% and reaches around 70% of offers, gainfulness issues primarily emerge. Furthermore, it is exceptionally troublesome for any restaurant to influence satisfactory profits when this happens. In short, the objective is to keep the prime cost at 60& of aggregate deals or less.

Profit and Loss

The most critical destination of each business is to make a profit. The Profit and Loss account demonstrates how a restaurant has accomplished this target. Organizations are required to keep their P&L accounts in specific arrangements. Usually, the P&L record will demonstrate the income a business receives and the costs associated with creating that income. In straightforward terms:

Incomes – Expenses = Profit

Month-to-Month Profit and Loss Examination

Daily and week-by-week, numbers are an indispensable piece of administration that offers an inclination to fruitful restaurant activity and productivity. Finish monetary articulation bundle incorporating a pay proclamation and accounting report should be arranged and looked into monthly.

Numerous food providers want a rundown variant of their profit and loss investigation to rapidly examine the key numbers and understand how the restaurant performs. Some just dig into the more point-by-point reports if something has all the earmarks of being out of line or does not bode well. You must look at your bookkeeping records frequently.

When you look at your profit and loss statements, you need to feature the following key numbers.

Prime Cost

Prime cost incorporates the cost of offers and finance. It is prescribed to ascertain prime cost weekly, yet prime cost should be incorporated into the profit and loss investigation.

Other Controllable Costs

Other controllable costs are sensible somehow by management. These fields can be assembled into classifications like direct working costs, advertising costs, utilities, and so on. With profit and loss, the investigation should demonstrate month-to-month and year-to-date sums in the individual records incorporated into these outline classifications.

Controllable Salary

If you isolate controllable costs from non-controllable costs, it is conceivable to figure out a standout among the most vital edges on any profit and loss statement: controllable salary. It is a crucial marker of management adequacy in driving deals and cost control. Those numbers reflect the details over which they apply any impact or control.

Non-Controllable Costs

Non-controllable costs incorporate inhabitance costs—property charges, building protection, lease, and different expenses. Management has next to no control or impact over these costs.

Restaurant Working Wage

Restaurant working wages are produced without respect to corporate overhead, financing costs, nonrecurring salaries and costs, and wage charges. It is helpful for correlation with different restaurants and the working consequences of the industry midpoints. Restaurant wages are improved using correlation with spending plans, earlier periods, and pattern investigation for more than a few periods.

Consequently, bundled business accounts deliver profit and loss statements. The issue may happen if the wrong information has been entered, lost, or ruined.

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.

Keeping everything organized in your business allows it to run like a machine. The boost in efficiency that proper organization gives benefits small and large companies. However, small businesses often need to pay more attention to this crucial factor of efficiency, which limits their ability to grow and expand operations.

A critical aspect of keeping a business organized is having adequate space to keep unused equipment, inventory that hasn’t been stocked, and files for records that might be needed later.

What is Self-Storage?

Self-storage is a rental service offered by providers where individuals or businesses can lease storage space for varying durations, typically every month. Tenants rent these units to store belongings, inventory, equipment, or other items they may not have adequate space for on their premises.

The rental agreements for self-storage units often offer flexible terms, allowing tenants to adjust their space requirements as needed. While monthly rentals are standard, some providers may offer longer-term contracts with annual payments or extended leases to accommodate different needs.

For small businesses, self-storage presents a cost-effective solution for managing inventory, equipment, and other materials without the high overhead costs associated with expanding physical premises. This affordability makes self-storage attractive for businesses looking to optimize operations without committing to significant real estate investments.

Benefits that Can be Offered for Using a Self-Storage Facility

Self-storage facilities often extend beyond mere storage solutions, offering a range of supplementary services tailored to meet the diverse needs of their tenants, notably smaller businesses. Here are some key benefits that self-storage providers may offer:

1. Meeting Rooms: Many self-storage facilities feature on-site meeting rooms that tenants can utilize for client meetings, presentations, or team gatherings. These spaces offer a professional setting without a dedicated office space, catering to businesses requiring occasional meeting venues.
2. Fax and Internet Services: Access to fax machines, printers, and high-speed internet within the self-storage premises can be invaluable for businesses that operate remotely or lack these amenities in their primary locations. This convenience allows tenants to handle administrative tasks efficiently without investing in costly office equipment.
3. Courier Receiving Services: Self-storage providers may offer courier receiving services, accepting deliveries on behalf of tenants during business hours. This feature is particularly advantageous for businesses with irregular schedules or limited on-site personnel, ensuring secure package handling and receipt without constant oversight.
4. Package Sending Services: Some self-storage facilities may also provide package-sending services, allowing tenants to dispatch shipments directly from the storage site. This offering streamlines logistics operations for small businesses, eliminating the need for separate trips to courier drop-off locations and saving valuable time and resources.

By offering these additional services, self-storage providers cater to the specific requirements of smaller businesses, which may not have the infrastructure or financial means to access such amenities independently. This holistic approach enhances the value proposition of self-storage solutions, making them an attractive and cost-effective option for businesses looking to optimize their operations and minimize overhead expenses.

Businesses that Use Self-Storage

Different businesses have different kinds of storage needs. Self-storage services cater to businesses with unique storage requirements tailored to their specific operations. Here are examples of small businesses that commonly utilize self-storage solutions:

1. Landscape Businesses: Landscaping companies often require storage units to house their equipment, such as lawnmowers, trimmers, and gardening tools. Self-storage units provide a secure and convenient space for storing these items when not in use, ensuring easy access and organization for landscape professionals.
2. Medical Offices: Medical practices, including doctor’s offices, clinics, and dental practices, may utilize self-storage units equipped with climate control to store patient records, medical supplies, and equipment. Maintaining a controlled environment helps preserve sensitive medical documents and equipment, ensuring longevity and compliance with regulatory requirements.
3. Hospitality Industry (Restaurants, Hotels, Motels): Businesses in the hospitality sector, such as restaurants, hotels, and motels, often leverage self-storage solutions to store seasonal decorative items, excess furniture, linens, and kitchen supplies. By utilizing self-storage units, these establishments can efficiently manage inventory turnover and store items not currently in use, optimizing space within their primary facilities.

These examples illustrate how self-storage services cater to the diverse needs of small businesses across various industries. Whether storing equipment, preserving sensitive documents, or managing seasonal inventory, self-storage solutions offer flexibility, affordability, and convenience for businesses seeking efficient storage options.

Conclusion

In conclusion, if you are an owner of a small business looking to organize your business better to streamline operations and improve efficiency, it is recommended that you look into the benefits of availing of these self-storage facilities.

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.

Are you someone who spends much time looking for a receipt for personal or business use? Receipts are proof of transaction or purchase made and are invaluable to keep an excellent financial backbone. Many people tend to pile up receipts over time, leading to a complete mess that is nearly impossible to sort out.

When organizing receipts for business or personal use, think of a system that is easy to use, simple to recall, quick to file papers, and easy to locate what you need. No system for recording receipts is perfect, and each has flaws. The best way to deal with receipt tracking is to convert them into digital form.

Receipts in Digital Form

Paper receipts are not made from the best paper; they are frail and don’t last very long. Paper receipts are prone to wear and tear and are easily lost and destroyed. Keeping all receipts in one place will make it much easier to store and record. Digitizing all paper receipts is the best way to help manage different receipts.

Using software like Evernote, keeping track of receipts is easier. Evernote can scan and record any receipt within seconds. It uses less storage space with many options to tag and keeps every receipt safe. Following are the best ways to keep track of every single receipt easily:

ShoeBoxed

Shoeboxed is an effective mobile app available for Android and iOS that allows receipts to be scanned with a phone camera. It uses the phone camera to scan a paper receipt, extracting all the information needed to keep track of any receipt. For more services, Shoeboxed offers a chance to have the receipts reviewed by certified professionals who can review five monthly receipts. The app can automatically sync to the web version of Shoeboxed, making it easy to organize receipts for a business.

Office Lens

Internet and app-savvy individuals must know OneNote and its new companion, Office Lens. Microsoft develops Office Lens to assist people and corporations in keeping track of their receipts. Office Lens is a scanner app with highly customized integration settings with Microsoft Office and other products. It works seamlessly with Office 365 and OneNote. It gives the user more options to save the digitally scanned image as a PDF, an image in an email, or a jpeg in your camera roll to organize receipts for a business. The system is straightforward; just click a photo from the app, choose the needed service, and let the app do the rest.

Genius Scan iOS

Grizzly Labs has devised a viable solution to eliminate the cluttered mess of receipts lying about in drawers. The app is integrated with many different cloud services, including OneNote. The app is very simple to use; just take a clear photo from the app using the phone camera and let the app get to work. Genius Scan will enhance the receipt to be excellent, allowing a high-quality copy to be stored and retrieved later. The Genius Scan app is available for both Android and iOS. The basic version supports DropBox, while the premium version supports Google Drive, OneNote, Expensify, and EverNote.

Expensify

Creating a business expense report was never this easy; the Expensify app has made it easier for business and home users to create expense reports from receipts stored as photos automatically. It’s possible to track the total hours worked with a single tap. The app can track mileage using GPS by taking a picture of the odometer in the car. The app can link up everything with the bank account or a credit card to pull transactions that do not have a receipt. The app can generate IRS-guaranteed e-receipts.

Receipts

Receipts is a scanning application available on iOS only. The Receipts app scans any receipt, placing it in its allocated category. The app can keep track of spending in each category. Such a system is highly effective in tackling account management issues. The app is available on iOS. However, without free versions, it is a letdown for many when organizing receipts 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.