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You must have seen people working on their tax calculations only to have a frustrated look on their faces each year. As consumers, we are all familiar with sales tax and the tax you pay on gas at the pump. However, income taxes can be daunting because you are required to file personal income tax returns.

Part of the confusion inevitably comes when you consider certain people are exempt from income tax while others have financial information that is simple or even complex. Individuals with simple financials must file a single on-page 1040EZ form. However, those with complex financials, like homeowners, parents, or people with dependents and business owners, often require the help of an accountant or a tax attorney to navigate the process of filing their taxes. 

This guide will cover the basic process of filing your taxes. Then, you can research federal websites, such as the Internal Revenue Service (IRS), for further details and forms.

Do You Need to File?

A citizen or United States resident who has reached a tax-paying age and meets the other IRS requirements must file their income tax returns.

Filing Status

A filing status refers to a filer’s marital status. The ‘Head of Household’ option is someone not married but responsible for supporting a household, such as a divorcee or a widower. Married couples can choose to file their tax returns jointly or separately. 

Which Tax Form Should You Use?

You should use the simple 1040EZ form to file your taxes if you have simple assets and financials. You can use this form if you have a low taxable income (typically below $100,000), are only utilizing the standard tax deduction, are not claiming any others, and do not have any dependents.

If you do not meet the criteria for 1040EZ, you would need to use form 1040A. If you do not meet the criteria for 1040A, you will be required to use a complex 1040 form to file your Income Tax.

Should You File Electronically or Stick to the Traditional Paper Form?

There are two methods for filing returns: mailing a signed paper form or using the electronic method called E-File. There is an option for downloading and printing fillable forms, which you can sign and mail to the IRS. Otherwise, you must find an IRS E-File service provider, which may have a fee. You can also use third-party tax preparation software for E-Filing. If you E-File and are eligible for a refund, you will often receive your refunds quicker than filings received via mail. 

When Should You File Your Taxes? 

The filing is generally required to be post-marked by the 15th of April. If you face any kind of tax filing issues, you can apply for an extension until the 15th of October. Similarly, there is also an automatic extension if you are out of the US. Remember that the extension for filing taxes differs from an extension to pay taxes owed. The IRS also offers various payment options if taxes are filed and due.

Is There Any Room for Mistakes?

Everyone has different specifics regarding taxes, and they may be affected by many factors, including homeownership, investments, alimony, business ownership, children, and other dependents. It is easy to make mistakes when dealing with such complexities, and the IRS allows you to correct errors. However, you can save time and money if you file them correctly the first time. You should consult a tax attorney or accountant to help you with the tax filing process to avoid any confusion, delays, or possible legal action.

Conclusion

Navigating tax season can be overwhelming, but understanding the basics can ease the process. Whether determining your filing status, choosing the right tax form, or deciding between electronic or paper filing, this guide has you covered. Remember important deadlines, seek professional help if needed, and strive for accuracy to minimize errors and maximize efficiency in your tax filing journey.

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.

Money can be difficult to manage, especially if you are an impulse buyer. Impulse buyers can relate to the challenge of figuring out what to spend and save. Impulse buying is frequent among individuals looking to satisfy their wants beyond basic needs. 

Segregating the two and identifying when to spend on luxuries has become essential to survive in recent times when money is continuously losing value. Here, a few crucial tips will be identified regarding what to spend and what to save as part of your bookkeeping process.

Set Priorities

The first and foremost step is to set your priorities right. Here, priorities refer to choosing what you need over what you’d be interested in buying for luxury spending. For instance, a top priority could be spending money on basic needs like food and clothing. Remember, food and clothing can fall into either basic or luxury categories. 

Moreover, paying your bills first and then deciding on your monthly expenditures is always a good idea. Here is a systematic way to do it: pay your bills, spend on basic needs, spend on what you can’t live without, keep some money away for savings, and whatever you are left with can then be used for luxury spending of any sort. Follow this order religiously, and you will not run out of cash as and when required.

Keep an Emergency Fund

It is essential to keep an emergency fund where you can stack up all your savings when you run out of cash. You may fall back on this fund during job loss, when there is insufficient money to fulfill basic needs, or in medical conditions where you need to purchase the necessary medications. It can also be used during the last few days of the month when essentially every one of us is out of cash for that special take-out extra pepperoni pizza on a cheat day.

Don’t Listen to Your Impulse

Conquer the struggle of what to spend and what to save by avoiding impulse buying. We often tend to pick up items that are too fancy and inviting while grocery shopping, or, in other cases, we are just attracted to them purely because of a promotion. The overwhelming excitement of a product wears off eventually, and then you see no point in making such a purchase. Hence, it is better to stick only to the grocery list items and not deviate from them unless necessary. Caution! Necessary here doesn’t equate your impulse.

Be Resourceful

Here, you are being asked to save a little. How so? Let’s identify a few ways to save a few bucks on your routine expenditures.

• Try to use discounts and loyalty cards in avenues that offer similar options.
• Buy your monthly/weekly snacks when you plan your routine grocery visit. Do not buy snacks every day.
• Once every three months, plan a garage sale. You can get rid of those impulse buys this way.
• Try to opt for generic but healthy items rather than overspending on brands. 
• If you want books, use the nearest library rather than buying them.
• Use the internet for essentials such as watching movies, listening to music, and binge-watching your favorite series rather than going out and spending a lot on entertainment.

Make a Budget and Follow it

Lastly, another useful tip involves drawing up a realistic budget and sticking to it. A budget will enable you to list your monthly expenses and income. Simultaneously, you may also draw up a list of your needs and wants. Once the allocation is complete on each item, you will have an estimate of how much money you are left with to satisfy your wants. However, this extra money must not be entirely spent on that particular want. A portion of it must go into the emergency fund and savings.

Conclusion

These five tips can help you navigate the struggle of knowing what to spend and save without much hassle. Stick to them, and you’ll be good to go!

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 never a positive situation to find that you owe the government taxes and, even worse, do not have the resources to pay them. The first action plan should be to look for payment plans and file the tax returns before the deadline. This will help you avoid the monthly 5% penalty on the available balance. There will also be an additional interest, which is adjusted every four months, depending on the Internal Revenue Service’s (IRS) assessments. At this point, your goal should be to minimize the damage by finding an opposite plan that will pull you out of tax misery.

To discuss payment plans with the IRS, you can call them at 1-800-829-1040, and they will assist you to the best of their ability. Additionally, their other options to reduce your tax bill include hiring professional consulting services and following the advice below:

Pay as Much as You Can

Even though you may not be able to pay the entire amount at once, paying as much as possible in the first installment is essential. A lower remaining balance will significantly reduce the interest and penalty. Also, the IRS may offer better payment plans to individuals having a lower remaining balance.

Request an Extension of the Tax Bill

If you are unable to pay the tax on time, you can request a payment extension. Typically, you will have 120 days to pay the taxes after submitting the forms. The IRS may ask you if you want to request a payment extension. Those individuals who have not previously applied for extensions are eligible for an extension option.

Installment Payment Plans

Experts advise that installments are a viable payment plan if you owe less than $50,000 and need more than 120 days to pay the tax bill. An online payment agreement form needs to be submitted to set up an installment plan for up to six years. Depending on the amount you owe, a one-time setup fee will be charged, usually $30 – $250. The fee can be significantly reduced for individuals who can set up direct payment plans from their bank accounts.

Another benefit of opting for an installment plan is reducing penalty charges for failing to pay the installment. You will be charged an interest of .33% for failing to pay the installment on your tax bill, rather than paying .5% for a general plan. However, this is only offered to one-time filers.

Apply for Leniency Payment Plans due to Adversity

To ask for a leniency payment plan from the IRS, you will need to authenticate that making this payment would leave you in dire circumstances, including losing your home or other financial sacrifices due to the ongoing crisis. If the IRS approves a leniency plan for your tax bill, you will be given more time to pay, and any penalty will be waived.

To become eligible, an “Application for Extension of Time for Payment of Tax due to Undue Hardship” needs to be filed and submitted. A thorough investigation into your claims is completed before you are offered the remunerations to ensure the leniency payment plans are only sought in case of eligibility.

Personal Loan

A personal loan is an option if a family or friend is willing to help. There may be people in your life with whom you share a mutual trust who may be willing to waive interest payments that are common in a traditional loan agreement. However, it is still recommended that the terms and payment plan of the agreement be documented and notarized to avoid any inconvenience for both parties. While it may not be one of the most suitable payment options for most people, it certainly can offer some relief from a significant tax bill.

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.

Doubtless, cutting business expenses and controlling costs has become challenging in today’s business environment. Modern trends indicate that companies must reduce costs to effectively achieve their business goals and objectives. However, establishing control over your business and its finances requires tremendous motivation, knowledge, skills, and expertise. Only a clear-cut strategy and carefully laid-out plan can make cutting down your monthly expenses hassle-free.

Moreover, reducing business expenses and increasing revenue can substantially impact a company’s profitability and are two ways companies can maximize their profitability index. According to industry experts, increasing sales and revenue is problematic because it requires a lot of planning and strategy. It takes time and effort to come up with a brilliant execution plan.

On the contrary, cutting business expenses is easy and without much stress. All that it takes is a little bit of your time. Additionally, you must review your bookkeeping and accounting records to understand your company’s standing before deciding to control your costs.

Below are six hassle-free ways to cut business expenses.

Reduce Supply Expenses

You must look outside your pool of traditional vendors to reduce supply expenses. Look for the vendors, manufacturers, or suppliers who can offer you the best price since large discounts help you cut business expenses and costs. Consider ordering and making bulk purchases because they are ideally the most cost-effective options. 

Suppliers often provide discounted prices when items are ordered in increasing quantities. This cost-effectively maintains your inventory. Similarly, seek multiple bids to get optimal rates, and never make a long-term contract for supplies with a single party or vendor, as saving can greatly impact your bottom line.

Lower Financial Expenses

Hiring an in-house accounting or auditing professional can be a costly decision. That is why most businesses rely on external accounting agencies or individuals offering competitive service rates. Cutting your business expenses may also mean saving on insurance and additional bills. However, it is important to note that you must regularly contribute to your savings account to meet financial emergencies and consider a business expansion. 

Lastly, please do not take on unnecessary debt to make ends meet because you may eventually find it hard to pay back the money you borrowed from the bank with interest. Before making debt-incurring decisions, complete a thorough cost-benefit analysis and future forecasting.

Employ Social Media Marketing

Traditional marketing can cost a fortune, indicating that you need to look at some less expensive alternatives, like social media marketing on dynamic platforms like Facebook and Twitter. You can quickly build your customer base there, as studies have revealed that social media marketing is more effective than traditional, mainstream media marketing, ultimately reducing your business expenses.

Try To Achieve Economies of Scale

Maximizing manufacturing productivity will minimize expenses. Improved Research and development (R&D) and market knowledge will help you achieve economies of scale, ideal for maximizing profitability.

Review Your Books Quarterly

You need to review, maintain, and manage your business books to understand your finances and business conditions clearly. If this cannot be done every month, it must be done quarterly. Moreover, you must audit your monthly subscription billing to cut business expenses and switch to software applications or employee talent worth your resources and money.

Look For Office Alternatives

Do not shy away from considering an office relocation to a more affordable area to cut business costs. Often, in the age of digitalization, companies do not need to have their office located in prime, expensive locations or have all associates in one physical office. Consider moving your office to a convenient location that offers affordable rates to reduce commercial rent.

Conclusion

In conclusion, navigating the complex terrain of business expenses in today’s competitive landscape requires strategic planning and diligent execution. While increasing revenue is challenging and time-consuming, cutting costs presents a more accessible avenue to improve profitability. By adopting a systematic approach and implementing the outlined strategies, businesses can reduce expenses without compromising operations or quality.

From optimizing supply chain management to leveraging digital marketing platforms and reevaluating office space needs, proactive cost-cutting measures can yield significant financial benefits in the long run. Embracing these tactics empowers businesses to enhance their bottom line and achieve sustainable growth amidst evolving market dynamics.

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.

Outsourcing is a fantastic strategy businesses of all sizes and industries use to delegate specific tasks to third-party providers. It’s a great way to help your growing business thrive! While outsourcing can bring many benefits, it’s essential also to be aware of the potential drawbacks. In this article, we’ll explore the undeniable advantages and disadvantages of outsourcing so you can make informed decisions that will positively impact your business. Let’s dive in!

Pros of Outsourcing

Cost savings

Outsourcing can be a cost-effective solution for businesses looking to scale their operations. By outsourcing specific tasks, companies can avoid the costs associated with hiring and training new employees and the costs of providing benefits and office space. Outsourcing can also help businesses save on equipment costs, as they won’t have to invest in expensive equipment and technology.

Access to specialized skills

Outsourcing can give businesses access to specialized skills they may not have in-house. For example, a company may need help with marketing, but they don’t have a marketing department. By outsourcing their marketing efforts to a third-party provider, they can access the expertise of marketing professionals who can help them develop and execute a successful marketing strategy.

Flexibility

Outsourcing can allow businesses to scale their operations up or down as needed. For example, if a business experiences a surge in demand, it can outsource specific tasks to a third-party provider to help them manage the increased workload. They can reduce their outsourcing efforts when demand decreases to save on costs.

Focus on core business activities

Outsourcing can allow businesses to focus on their core business activities rather than getting bogged down in administrative tasks. By outsourcing tasks like payroll, accounting, and IT support, companies can free up their time and resources to focus on what they do best – growing their business.

Cons of Outsourcing

Loss of control

One of the most significant downsides of outsourcing is the loss of control that businesses may experience. When you outsource tasks to a third-party provider, you trust them. This can be a scary prospect for businesses that are used to having complete control over every aspect of their operations.

Communication challenges

Outsourcing can also lead to communication challenges. When working with a third-party provider, you may not have the same level of communication as you would with an in-house team. Miscommunications can lead to delays, mistakes, and other business issues.

Quality concerns

Another potential downside of outsourcing is quality concerns. When you outsource tasks to a third-party provider, you rely on them to deliver high-quality work. If their work doesn’t meet your standards, it can reflect poorly on your business.

Security risks

Outsourcing can also pose security risks for businesses. When working with a third-party provider, you share sensitive data and information with them. If they experience a security breach, your business could be at risk.

The Bottom Line

When it comes to growing a business, outsourcing can provide several benefits to help you achieve your goals. One of the most significant advantages is cost savings, as outsourcing allows you to access specialized skills without hiring and training in-house staff. Moreover, it will enable you to focus on your core activities while the outsourced team handles the rest.

But, as with any business decision, you must carefully weigh the potential drawbacks against the benefits. Outsourcing could lead to losing control over your operations, communication barriers, quality concerns, and potential security risks. Therefore, you must assess your budget, business goals, and risk tolerance before deciding whether outsourcing is right.

Choosing a reputable provider who can help you achieve your business objectives is essential if you decide to outsource. A good outsourcing partner will work closely with you to understand your needs and tailor their services accordingly. With the right approach, outsourcing can be a valuable tool for your business’s 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.

Protecting your financial information is an obligation for every business, big or small. The stakeholders must understand the security procedures necessary for financial protection, especially when identity theft and hacking have increased tenfold over the last decade. Hackers have been able to obtain key information like personal data, contact information, and financial information largely without victims realizing the theft occurred.

Therefore, following these tips is vital to protect all your key information.

Use Strong Passwords and Keep them Private

A weak password offers a hacker easy access to your accounts. Ensure you use strong passwords that involve numbers, symbols, and other variable patterns to make your accounts impenetrable. Avoid using standard names of things and places. Do not write down your passwords on digital platforms; write them down and store them securely. Alter passwords regularly if you are securing critical financial information or other important data. It would help if you did not share your passwords with anyone; always keep them private and secure.

Secure your Devices

Firewalls and security software are essential if you engage in frequent financial transactions. Installing the latest security features as a business must be your utmost priority because your security and reputation depend on protecting your financial information. Update software regularly by using the auto-update feature, if available. Many hardware devices are available for additional protection; however, their use is recommended for highly classified information. It is harder to secure a mobile device than a Personal Computer (PC). Therefore, avoid using it for financial matters unless there is no other option.

Establish Two-Factor Authentication

Most cloud storage services ask customers to create a two-factor authentication to access their accounts. This provides an added layer of security to your account. Whenever an unknown device attempts to access your account, you must approve it via another secured access point, which has been determined beforehand. Two-factor authentication is helpful when protecting your financial information because you will receive an immediate notification of any suspicious activity on your cell phone or another registered device.

Be Prudent When Using Unknown Wi-Fi Connections

Unsecured Wi-Fi connections are highly vulnerable to malicious attacks. Public Wi-Fi connections are the most susceptible, as their security settings are minimal, allowing everyone to access the internet. This makes these networks a lucrative target for hackers. Generally, individuals tend to use airport or hotel Wi-Fi services while traveling. They should be careful not to send or receive financial information using this unsecured network. Update your local network security settings for maximum protection when managing your financial information.

Take the Utmost Care When Downloading

The device to secure your financial information should be used carefully when downloading programs or documents. Viruses and malware often come in small patches that are downloaded along with the requested file without the user noticing. Before clicking any download link, ensure the website runs on a secured (HTTPS) platform. Most hacks and data losses occur because people are careless or uninformed about downloading. To protect your financial information, it should be company policy that employees should take extreme care when downloading online material. 

Never Respond to Emails Seeking Personal Information

Emails are vulnerable as they have forged the way for scams, fraud, and hacks. Any email that seeks personal information should never be responded to. Call the requesting company using authentic numbers from their website if you receive something suspicious to confirm the email is legitimate or to alert them there is a potential scam circulating in their name. It is recommended to avoid opening emails that look suspicious from unknown senders.

Conclusion

Protecting your financial information is a priority for many organizations. With data protection and safety uncertainty, you must take timely, proactive steps to secure your data and financial information.

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.

Wouldn’t it be awesome always to have enough cash to buy whatever you wanted? Few have the liberty and liquidity to turn this into reality with their efficient use of credit. If used wisely, credit can alter your life in ways you can’t even imagine by allowing you to afford the lifestyle of your choice. It can fund your dream house or help you buy that dream car. You can further renovate your house and spend quality time with friends and family. The possibilities are endless, provided you make wise credit decisions.

Why Efficient Use of Credit is a Very Good Thing

People use credit for different purposes depending on their preferences. The purpose is to fill the affordability gap, ultimately allowing you to live blissfully. Using credit efficiently has far-reaching benefits other than just affordability. Responsible use of credit results in a positive credit history and good credit scores on your credit report.

Having a good credit score means that you will automatically qualify for better insurance rates, open up mobile accounts with smaller security deposits, and help you secure loans for your business or personal use. The responsible use of credit also shows your credibility to your employer, which eventually translates into career growth.

Understanding How Credit Works

Whether you’re asking for a loan or a credit card, asking for credit means that a lender will look at your credit report for information about managing your finances. Even if you want to do business with some other company, they will look at your credit report for clues, along with your bookkeeping records. Your credit report includes your financial history and previous use of credit. Your creditworthiness is determined by your credit report by anyone lending you a loan or looking to do business with you.

Your credit history translates into credit scores, which go up and down depending on your financial decisions. Any missing loan or credit card payment will result in deductions from your credit scores, while timely payments will improve your scores. The scores precisely measure your likelihood of paying back a loan. Therefore, lenders rely on them heavily.

Certain types of credits are revolving, such as credit card payments, and there is no fixed end date for repayment. A credit limit is set for using credit, and you can borrow up to that limit and then pay part of it back every month. A particular interest rate has to be paid along with the payments accrued each month.

How to Improve Your Use of Credit

Because all your financial decisions are converted into scores, all types of credit impact them. Making responsible financial decisions in the early stages of your life will have fruitful consequences in your future. Don’t waste credit on things you can live without; always pay off your debt in time. Once you build up a solid credit history, you will have plenty of opportunities to do what you desire.

To ensure that your use of credit is handled responsibly, review your credit reports and scores regularly. Keeping track of your report will allow you to make informed decisions about your financial life. 

Here are some ways to build up your credit

• Paying off your utility bills and other similar payments on time each month can significantly amplify your creditworthiness. Set up automatic payments for these types of payments so that you don’t miss them.
• Ensure your credit card debts and other revolving loans are regularly paid off. Keeping low credit card balances is always a good idea because unsecured credits are more expensive than secured ones.
• Pay attention to the use of credit for all types of credit. This shows the lender that you can manage different credit types efficiently, creating a responsible image.

A smart use of credit will elevate the standard of your life in all possible ways, and taking steps to improve your credit only leads to improving the quality of your life.

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.

Bookkeeping is an essential business procedure that should be executed appropriately by entrepreneurs. Keeping track of your assets gives you a synopsis of the business cycle and profitability of the company. It aids you in regulating where your cash goes and gives you specific data for potential development and analysis for an increase in the return on your investment. You should have an appropriate method to gather, document, and evaluate financial information to help you estimate how your company is functioning.

Successful corporations know what essential accounting strategies are. The financial health of your business affects expansion or announcements, which makes it critical to have suitable bookkeeping and financial management for your company.

Unfortunately, most small companies do not emphasize their bookkeeping until something has gone wrong. The apprehension that your accounting needs to be appropriately managed typically happens a few days before taxes are due or, even worse, when you notice charges on your bank account for a bounced check. Luckily, you can save yourself all the stress and last-minute defense by initially producing an efficacious accounting strategy.

Accounting Stratagems for Small Businesses

Design your monthly budget prudently

As essential advice, plan your finances monthly to help save you money. Tracing your periodic budget is ideal for efficiently implementing your financial plan. Write down all detailed specifics for your financial transactions. Once you have documented all your expenditures, you can compare them with your income. Examine your budget and eradicate unnecessary financial costs that will not benefit the company.

Organize your financial records

Ensure you have separate bank accounts for your private money and business investments. Your salary should be deposited punctually into your personal bank account. Never make personal transactions using your business account. Your business and personal assets should be detached to avoid misunderstandings and mishandling of finances.

Consider employing a competent and specialized accountant

One of the best things a company can do is hire an experienced accountant to review their financial dealings. Bookkeeping is a critical duty for companies, and calculating your money, tracking expenditures, and coming up with a financial plan can be done skillfully through accounting facilities. The success of your enterprise relies on operational accounting and precise financial management tactics.

Document all business cash flow

Track your records, manage cash flow, and have a precise record of all your business transactions. Documentation is essential to help you recall all expenditures credited for the business. You should preserve all receipts and file forms appropriately. Make specific documentation easy to find when you need to complete or provide an updated financial analysis.

Generate backup archives for your account records

Always backup your bookkeeping files in case an unpredictable system crash, file mishandling, or other security risk occurs. To avoid losing all vital accounting evidence, create backup records of your accounts. Always store at least 2-3 duplicates of your books on different hard drives. Likewise, having a printed copy of your accounting records is ideal to help you compare all your transactions effortlessly.

Use the correct accounting tools

There are many accounting tools that you can use for your financial management. Research and employ accounting tools that will manage your bookkeeping efficiently. Similarly, select billing and backup tools that are user-friendly.

Employing all these strategies will help increase your business success, but do not neglect to factor in your specific industry’s requirements to keep your business afloat.

Final Note

Accounting for small companies does not have to be complex or intimidating. If you use these strategies from the beginning, such as conserving your records and consistently reviewing your financial reports, you will be able to stay on the path to 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.

Building credit is not an overnight task since it builds slowly over time. Obtaining a loan, mortgage, or lease requires a good credit score, which highlights that you have behaved responsibly in the past. Good credit reduces risk by telling lenders you will likely make your payments on time. Students and young individuals who will start building a solid credit history must make smart decisions to ensure a safe future. Doing things correctly from the start has advantages; maintaining a good credit score is no exception.

Get Help from Others

Anyone in your network, circle of friends, or family who has a good credit history can advise you and help you start the credit journey. Opening a loan account with a cosigner with a good credit history is a great way to kick-start the process. The cosigner simply guarantees to make the payment if you cannot and should be someone who trusts you. The credit score of a cosigner can suffer if you cannot pay, so before using this option, all terms must be considered to protect both parties.

Obtain a Starter Credit Card

A starter credit card is built explicitly for people starting their financial journey and usually has lower credit limits of $300 – $500. However, the interest rates are significantly higher compared to mature credit cards. Student credit cards allow you to build up your credit gradually and upgrade your cards when you have built credit. People with a bit of credit history can opt for Capital One credit cards with a high approval rate, among starters.

These cards come with no annual fees and offer better rewards if you keep a good history of building credit. Be careful to know the interest rate and the repayment terms for the card before applying for and using it. Not recognizing and adhering to these terms can damage the credit you are trying to build.

Watch Credit Card Balances

Another significant factor in measuring the worthiness of your credit score is how much revolving credit you have versus how much you are actively using. The percentage should be low for a better credit rating, where the optimum percentage is 30% or below. Paying off and keeping your balances low will ensure this percentage stays small. Consolidating your credit card balances with a loan can also help you score valuable credit points. Building credit with credit card issuers accepting multiple monthly payments should be your priority.

Leave Old Debts on the Credit Report

There is a general perception that having debt on your credit report is a bad sign and that you should hurry to remove it as soon as you pay off the loan. While it is true that negative items affect your credit score and generally stay on your report for almost seven years, removing them might not be the best idea.

If you have paid off the debt, you have converted it into good debt, which builds a credit score. Keeping your old accounts open that you have a history of paying on time is recommended by credit-building experts. Therefore, avoid closing accounts that have been paid off on time.

Pay Bills on Time

If you are trying to make a large purchase like a house or car, you must plan for it in advance to avoid failing to pay bills and scrambling for money. A good credit score requires you to invest time by maintaining a steady flow of payments, month after month. Ruining all your effort and diligence by missing a single payment is never recommended because it will take years to build that again. Building credit requires patience and implementing innovative strategies to keep your financial and bookkeeping needs in order.

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.

Every entrepreneur thinks about optimal inventory, but how exactly does one measure how much stock is available and how much is too much? In any business, having stock is essential and depends on the activities necessary to run it. To grow, any company must first cater to the demand for an item and then begin selling. Many businesses need a specific stock level to keep up with demand. 

Each business is unique; however, some examples can give a better picture of the inventory levels for each sector. Enough inventory allows a business to be cost-effective and efficient because planning out budgets, finances, and expenditures is meaningless if the proper stock is not maintained. Without stock, deliveries cease, which translates to business cessation. Below are some examples of businesses that need to keep stock available, supply without delay, and deliver to demand.

Restaurants

If you sell edible products at a restaurant, specific quantities of raw stock and semi-cooked items are essential. For example, a fast-food restaurant with famous burgers must prioritize having a daily stock of buns, sauces, raw veggies, patties, garnishes, etc. This may require the owner to coordinate daily with the bakery, meat market, and vegetable vendor to ensure smooth operations.

If an order of ten burgers is received and you have only six ingredients, the odds are high that the customer will not return since their request cannot be fulfilled. Whatever you are selling, it must be enough to meet expected demands.

Retail Stores

Retail stores require significant organization and maintenance when considering their tight inventory control systems and proper handling of items, complete with model numbers and areas designated to rows of stock. For instance, a t-shirt would usually be kept in four regular sizes, ranging from small to extra-large, and in different colors, which means different codes for each combination.

Similarly, shoes would be kept in sizes for men and women ranging from 6.5 to 10 and have codes corresponding to each combination of size, color, and style. A balanced stock level is to sell and handle customers to their satisfaction.

Pharmacies and Drug Stores

Drug stores often have a particular Point of Sale (POS) software that manages their inventory and stock levels. This software helps them monitor all inventory, especially when controlled and heavily supervised substances are used. When a drugstore is set up, this software is configured with a minimum-level warning system that tells the user what is in stock. 

Costly meds, like cancer treatment prescriptions, are kept in limited stock, while commonly occurring meds, like aspirin or flu-fighters, are stocked in high quantities. Similarly, the pharmaceutical stock should be maintained according to your geographical area and ease of delivery. For example, pharmacies in remote areas might need more stock to supply the public if deliveries are inconsistent.

Considerations for Inventory Management

Trends or Seasons

A growing and thriving business must forecast each year’s sales season and prepare for upcoming fluctuations. To better prepare, inventory must accommodate patrons and regular customers. Preparing for influxes can quickly determine what part of the year is most active and which is the slowest.

This will be helpful in the upcoming year to envision cost-effective methods of stocking whatever you are selling and prepare accordingly. For example, retail stores often see higher sales around the holidays. This allows the owner to predict client needs regarding inventory and better calculate cash flow.

Weekends and Weather

Some businesses thrive during the weekend while they are slow on weekdays. This prediction can help business owners arm their stocks before each weekend hits. Restaurants, bars, clubs, and other weekend leisure venues that experience heavy traffic Friday through Sunday are successful if they plan for clients during that time. 

Similarly, some businesses experience more visitors during the summer than in winter months or even close during inclement weather. Businesses must observe and account for fluctuating attendance based on the weather. Thus, a company will often see success if client demands are met. However, if stocks are not leveled according to predictions, business cash flow and reputation will be negatively affected.

Conclusion

Understanding the type of business you operate and observing customer trends should help you set your need for available stock accordingly.

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.