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One of the most important reasons a company may understate its cost of goods sold is to increase its chances of short-term success in a given market. Short-term success can be attained by financing or impressing outsiders to finance the company. However, understating the cost of goods sold can be dangerous for the long-term survival of a company if authorities find the fraud.

Moreover, understating the cost of goods sold directly opposes bookkeeping standards and rules. The different reasons a company would understate its cost of goods sold are discussed below.

Increase in Income

The cost of goods sold is subtracted from revenues to determine a company’s gross profit. The lower the cost of goods sold, the higher the gross profit. Consequently, lower cost of goods sold makes an organization look more effective and efficient. A company stating the lower cost of goods sold can create the appearance of a more sustainable business model in a competitive market. A company looking to increase the cost of goods sold may underrepresent the cost of goods sold to impress potential investors. 

However, this does not provide an accurate presentation of an entity’s balance sheet and, therefore, can bring legal trouble. Sure, a firm can increase its income by attracting more investors, but the investors and other authorities can sue the company if they find out that the cost of goods sold is understated.

Get Financing

Small businesses often need outside financing to survive and grow in the market. A lower cost of goods sold (COGS) and a more appealing balance sheet may be needed to impress a bank loan officer. Businesses may be tempted to understate their COGS to make their business model look more attractive and their profit more sustainable, making them better loan candidates. A lower COGS makes the financial statements more attractive until it comes time to pay taxes on the earnings. This may impress potential investors and analysts who look only at the documents and do not delve deeper into the data. 

The analysis based on provided data – that is, understated cost of goods sold – can provide positive remarks regarding the performance and sustainability of an organization. Therefore, investors can be convinced to invest their money in the company. Hence, some companies falsely understate the cost of goods sold to present their efficiency in managing costs and achieving higher profits.

Considerable Risk

Knowingly filing false financial statements puts a company, the signatory to the documents, and perhaps the business owner in legal jeopardy. State and federal agencies watch for irregularities in balance sheets and are increasingly focusing on the raw data used to compile those numbers. Fraudulently lowering the COGS or altering anything on financial documents carries a considerable risk of fines, prison terms, or both. Even still, although understating the cost of goods sold is illegal and risky, some companies do so to attract different stakeholders.

Legally Minimizing COGS

Companies can value their inventory in a way that legally minimizes the cost of goods sold, depending on the nature of their business. Using the first-in-first-out (FIFO) method determines the COGS by using the costs of your oldest inventory first. Depending on what kind of business it is, this may or may not objectively be the optimum strategy. 

For example, a business that sells rare coins may have won a particular item for $100 at auction and later spent $1,000 to acquire another one. If the business then sells that coin for $900 as part of a promotion, the FIFO method would result in the company showing an $800 profit, taking the coin that cost $100 to acquire out of inventory. The first-in, first-out inventory value method would record the same transaction as a $100 loss by removing the $1,000 coin from inventory.

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.

Getting the right pool of talent on board is essential for any company. However, start-ups and new business ventures cannot afford to make any hiring and recruitment mistakes. When the budget is tight and brand credibility has yet to be made, even a single wrong hiring can set your business back and keep it from taking off altogether. 

Moreover, the scarcity of resources and lack of recognition can make it too hard for you to attract the brightest and best start-up talent. Below, we have compiled seven great tips for building your ideal start-up workforce.

Build Your Business Upon an Exciting Idea

Attracting top talent begins with initiating a business based on an innovative idea that others want to be a part of. Everything else, including the location of your business, is secondary. When your venture is exciting, potential talent will undoubtedly want to work for you. In addition, your employees will share their awesome experience with your company with their friends and loved ones. Thereby, many other potential candidates will approach to work for you. Consequently, you will eventually have the best start-up talent.

Choose People Who are Professionally Better and More Competent than You

Although a person may have experience in several fields, one cannot be an expert in everything. Thus, you require a team of top experts in their fields: sales, marketing, or development. Always remember that talent attracts talent. Thus, begin your business by picking great start-up talent who will eventually bring many other well-versed professionals to your company.

Build Team Buy-In

Every new hire you choose impacts your team’s norms and culture, particularly for small teams. Consequently, buy-in from your start-up team is simply imperative for each hire. You should build team buy-in in two essential ways: First, have each team member of your start-up meet a potential candidate at the final interview stage to assess cultural fit.

Once they meet, ask your present employee one straightforward question: Will you efficiently and happily spend twelve hours a day with that person? Second, ask others in the field: Would you desire this candidate to be your supervisor or boss? If others rely on the knowledge and dedication of an expected potential teammate, then such a start-up talent would be the right hire.

Be Transparent About Your Start-up Needs

The quick evolution of a growing company’s needs is one of the toughest aspects of start-up recruitment. It can potentially leave your team members behind when their skills become obsolete. Therefore, every start-up enthusiast should be well-prepared for this challenge ahead of time. You should completely disclose present expectations for the job vacancy and how it may change based on your company’s evolution.

Being transparent about your potential business shifts and needs encourages your motivated employees to improve their skills continuously. It helps them determine how their efforts can best serve your business mission.

Offer Genuine Benefits

It would help if you offered real and measurable benefits to lure, recruit, and retain the best start-up talent. Employee equity (or ownership) is a powerful benefit that aligns the founder and employee incentives and can potentially beat lower paychecks than competitors. Simple, budget-friendly benefits like food and technology allocations can also help attract great start-up talent. Employee healthcare benefits are another vital competitive benefit.

Define Your Process Clearly and Be Loyal 

There are several different ways of carrying out these strategies. Whatever approach you adopt, it is necessary to define a process clearly and accompany someone on point to manage it and commit to it. Remember, the process you define should stay the same, even when your business grows. The things that seem obvious when you are small naturally tend to get discarded when you grow.

Keep Up and Never Stop

The incredible things that guide you through recruiting and retaining the best start-up talent should continue long after the job contract is first signed. Prioritizing your team’s expectations is valuable to keep your employees motivated and enthusiastic, which can turn a mundane business into a thriving venture.

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

What is Personal Budgeting?

Budgeting is essential not only for businesses but also for an individual’s personal life. Personal budgeting is a method of monitoring and controlling your finances. This helps in monitoring personal finances and managing them accordingly. At times, we are so far from having a budget that we end up broke within a week of being paid. This not only leaves you stressed out but also affects your professional life.

You feel like you are not paid enough, or there is no use in getting paid, as you eventually end up with nothing within a week. If you are working and still end up being broke, it drastically negatively impacts an individual’s mind. Hence, a person needs to monitor their financial spending, analyze the problematic areas, and design a budget to improve their financial position.

Assess Your Current Financial Position

It becomes frustrating when you know that you are working on a low salary and your expenses carry the weight of a mountain. Low-income budgeting seems hard at an initial level. However, starting small lets you figure out your budget plan more effectively. 

Categorize Your Expenses

The first and best way to budget is to monitor your current lifestyle. Observe your spending habits and monitor your current financial position. Before making any budget quota, list your expenses in the following categories.

Debt

Your long-term expenses include student loans, car loans, unpaid bills, credit card balances, etc. Writing them down will give you a shockingly realistic yet clear picture. Do not worry; they are not impossible. 

Monthly bills that are fixed expenses

Monthly bills are something that you cannot avoid; they are things that you must pay. However, listing them gives you a clear snapshot, and you can even reduce them to a limited extent. These expenses include rent, utility bills, cell phone plans, gas, and food.

All the variable expenses that you can balance

Variable expenses are all the leisure or emergency expenses that do not occur every month, such as buying new clothes, dining out, buying new gadgets, getting your car fixed, and other fixtures and expenses at your residence. You cannot simply eliminate all these expenses. However, you can manage a few of them and see which expenses are repeated often.

Identify your problem spending areas.

When you are done listing all expenses, you will be better able to pick out the problematic areas straying you away from your budget every month. This problem could even highlight the areas that need your immediate attention. For example, if your car asks for monetary attention every month, you need to get it fixed properly once and for all before it breaks down completely.

Making a budget

Designing a budget is not difficult unless you do not manage your steps carefully. Step-by-step is crucial as it will help you design a practical and applicable budget for your expenses. 

In the first step, create a comprehensive list of your liabilities and devise a gradual repayment plan, avoiding the pitfalls of overwhelming yourself with a crash repayment approach. Step two involves listing all necessary expenses, while step three emphasizes prioritizing your financial goals. Step four challenges you to cut unnecessary expenses, acknowledging the difficulty in reducing seemingly essential bills.

However, after completing the monitoring and budgeting steps, identifying failures in your current spending methods becomes feasible. Finally, step five encourages adopting a frugal approach to enhance your budgeting effectiveness.

Tips for creating a budget and saving money without going broke

• Be realistic
• Always record every transaction.
• Bookkeeping
• Control your spending
• Don’t cut out all the fun.
• Take advantage of all the upcoming opportunities.
• Always keep updating your budget, as once you are done repaying one of your debts, you might have some free cash to rearrange to pay another.
• Always keep emergency funds.
• It is best to plan your remaining cash in percentages.

What are the Budgeting Benefits?

Achieve your financial goals with stability and organization in just months. Gain full control, manage expenses, build emergency funds, and enhance spending habits.

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.

Turnover rates, vital in business, measure how often a company sells its stock within a specific period. This metric, crucial for competitiveness and profit analysis, is calculated using various methods. Explore the commonly used formula and multiple ways to calculate turnover, from determining the period for calculation to using quick estimates for efficient results. Understanding turnover rates provides valuable insights into a business’s performance, efficiency, and success within its industry.

What are Turnover Rates?

Turnover rates measure the number of times a business sells stock inventory in a specific period. Companies use turnover rates to calculate competitiveness and profits. Usually, it is a track of the performance of a business. It is rather clear why this information would be helpful to the success of one’s business. A high turnover rate in the inventory is mainly seen as positive as it is a sign that goods are being sold before they are damaged or deteriorated.

The most generally used formula for calculating a turnover is:

Turnover = Cost of goods sold /Average inventory

Ways of Calculating Turnover Rates

Determine a period for your calculation.

Inventory turnovers are calculated over a specific period. This period varies as it can be anything from a fiscal year to an everyday basis. The costs of goods sold are meaningless when they appear as an instantaneous value.

Once the period is decided for calculating the turnover, calculate the Cost of goods sold. The Cost of calculating the goods sold will not include the amount of money spent on the shipping, distribution, and creation of the products.

Utilizing the formula 365/turnover to find out the average period of selling the Products

With this operation, you can calculate the estimated time it has taken to sell all your products stored in the inventory. Usually, you find out the turnover every year and divide the ratio by 365. The number will be the average calculation of how long it took to sell your products. Once you receive this information, you can determine how well your business is doing. You can see how much you have sold in total.

Divide the cost of goods sold from the stored average inventory.

Divide the cost of the goods that have been sold by the number of goods that are still in your inventory. The average stock is the sum of the inventory balance’s beginning value and the inventory balance’s ending value divided by two.

Using the formula turnover=Sales/average inventory for quick estimates only

Time is a valuable aspect of any business, and entrepreneurs often do not have the time to make complicated calculations. These calculations are not quick. This formula saves them time in calculating the turnover rates, but there is a slight chance of inaccuracy alongside. You must be careful.

The values can be inaccurate because the inventory is calculated on wholesale rates. In contrast, the goods that sell record at the prices offered to the customers. Using this ratio makes a list look higher than it is. It advises that you only use this equation to calculate quick estimates.

Use the inventory as an approximate measure of efficiency!

Businesses try to clear out their inventory to sell their products as soon as possible. This shows how the company is performing, especially among its competitors. Although the background of the business and the scale it is operating on must be determined before any of these comparisons can be held, the period it takes for a company to sell out the products in the inventory proves how well it is performing. You can usually access this information when needed.

Conclusion

Low inventory turnovers do not always prove to have a negative effect, and high inventory turnovers do not always have a benefit. Record every transaction, including the stock price, every product sold, the profit gained, and sale targets in bookkeeping records. This will also help calculate the turnover rates without gathering all the information at the last minute.

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.

If your company or business has been in trouble for a while and you cannot seem to pay off your corporate debts, your collectors may start looking for money. They can do this by threatening lawful action against you or your company. How your industry is set up and whether you or your business guarantees any debts or recompenses will predict how much your creditors will be able to get from you through your bookkeeping records. Furthermore, whether you file for insolvency may also change how much a creditor can obtain.

Protect the Company

Understandably, the first possibility in saving a business while handling its debt is taking money out of your pocket and putting it into your business. This is a calculated risk that possibly has failed as many times as it has prospered. It should only be done if you can validate it as a short-term bookkeeping approach that promises the probability of a long-term payout.

Cut Expenses

If you cannot bond out your business with private assets, you need to recognize areas where you can condense costs. Maybe you can sublease the unused space or sell off unused equipment. While lessening your employees is not a striking option, it may be essential to keep your business alive.

Contact Clients and Providers

Stay associated with your consumers and seek ways to upsurge your exposure and develop your business model, thus possibly increasing your profits. Offer your best clients discounts if they can pay you quicker. You should also contact your dealers to arrange discounts and deferred expenditures.

Contact Creditors

Contact every collector and advise them of your pickle. Ignoring your money lenders can only worsen matters while confronting a debt problem is easier when you act timely. Since it’s in everyone’s interest to find a resolution, request that your investors work with you on bookkeeping to lower interest rates, increase your credit line, or streamline your repayment options.

Amalgamate Loans

You can merge your business loans into one reimbursement, which may reduce monthly costs without negatively affecting your credit. A business debt consolidation loan can allow you to deal with a single collector rather than many and perhaps get a loan with a lower interest rate. The process can be facilitated by a debt consolidation company hired to take accountability for conveying the new loan, gathering payments for your business, and paying off your former creditors. The loan may be unsecured or secured by business assets.

Bankruptcy

As a last resort, liquidation is a route to salvage a company, especially if the business’s debt challenges are temporary and the company is otherwise viable. Liquidation can always be measured when your company is deep in the red, and you may face collectors coming after you. There needs to be a lot of thought before filing for bankruptcy, but it may be able to provide you with the period you need to get the whole lot straightened out. There is no assurance of what possessions you can keep after insolvency, so you must prepare yourself.

Benefits of bankruptcy: How it Can Help You

One of the main gains from filing for liquidation is time. Once you have filed for insolvency, the bankruptcy court of law typically puts an automatic stay on all debt collection, meaning that none of your collectors can ban or recuperate your assets.

In addition, liquidation can wipe out unsafe debt (not protected by property, like credit card debt). Fortified debts (e.g., home mortgages and car loans) are another story and must be deliberated individually. Because you put up possessions as a security for the loan, your creditor is still possibly authorized to take it, even if you file for insolvency.

Final Note

However, if you think you are in imminent danger of losing your business and need help quickly, bankruptcy might be your best option. But before you file, get advice from a knowledgeable small-business attorney with bankruptcy experience.

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 retailer puts all its focus, time, and resources into finding ways to generate more sales. Sales ultimately lead to revenues, which are integral to the growth of the business. The actual sales process involves many critical steps, physical processes, and systems that allow a sale to occur. A Point of Sale (POS) system that is right for your business will help you. A POS checklist would not only include conducting sales transactions but should also handle several other activities around it, ranging from inventory management, returns, and exchanges to tracking customer behavior.

With so many solutions offered for POS services, it can be challenging to find the right one for your retail business. This article has highlighted guidelines to help you choose the best for you.

POS Checklist – Understanding Your Needs

Due to the many POS systems available in the market, it can be confusing to choose among them before assessing your business needs. If you leave this task to the system provider, they will most likely install a system that offers them the most profit and is not suited to your needs. Before pursuing a specific system provider, you must assess your needs according to the below-mentioned specifications.

Inventory and Customer Management

Inventory management should be a priority on the POS checklist for any business that sells products. Keeping your shelves stocked requires you to keep an efficient POS system that automatically updates after a sale has been made. This will save you a lot of time and energy in keeping track of every item in the inventory.

Apart from managing your inventory, a POS system allows you to monitor your customers closely. The right POS system for your business lets you run loyalty programs that are great for the marketing aspect of your business. Customers can avail of discounts and get alerts about sales or offers in advance. It also allows insights into customer behavior by recording each customer separately.

Hardware Needs

A POS system is software, but running it on the correct hardware is important. Typically, small businesses only require a tablet or system supporting cloud-based POS software. However, larger stores need printers, terminals, card readers, e-tags, and other sophisticated machinery to make the checkout process faster and more convenient for the customer.

Before making any hardware investments, scrutinize what you have and what must be added to make the process more efficient.

A POS Checklist must entail the effectiveness of a POS system in terms of its capability and robustness. As every business has particular unique needs, your business is no exception. Therefore, the POS system must cater to the individual demands of your business.

Ease of Use

This is perhaps the most crucial capability associated with a POS system. Processing time is of utmost importance when there are long queues of customers, and every second is crucial. The POS system should be simple enough so you do not have to consult a manual every time there is a pause. A POS checklist must ensure the system is thoroughly checked and beta-tested before implementation.

Integrating Other Areas of Your Business

If a POS system cannot integrate the key areas of the supply chain and logistics with your inventory, it might not be as robust and effective. Systems that automate most processes are generally a safe bet because they save you from spending countless hours transferring data from one function to another.

Another point to remember when choosing the right system is that the POS checklist should ensure the price for implementing the whole system is clearly illustrated by the vendor. If the system can track information related to business analytics, it is a huge benefit, and you can only observe its real advantages once you implement one in your business.

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

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

Surveys reported that almost 45% of small business loan appeals have been rejected more than once, and about 23% have no idea why. To clear the dilemma, here are the most common reasons contributing to the rejection of small business loans.

Bad Credit Scores and Financial History

A credit score is one of the most imperative measures of a person’s creditworthiness. Banks heavily rely on credit scores to make decisions regarding approval. Therefore, they set interest rates accordingly. Credit bureaus are responsible for keeping track of credit scores. A bad credit score is often due to several reasons, including late or missed payments on credit cards, loans, vendors, etc. Banks will approve small business loans after reviewing credit history to minimize risk. If your business has a bad credit score for any reason, you should immediately take measures to improve it.

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

Lacking Collateral

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

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

Weak Cash Flows

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

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

Pursuing Small Business Loans

Small businesses often look for loans that amount to less than $100,000. On the other hand, banks want to approve larger loans because they are more profitable. The cost of processing a $20,000 loan is the same as processing a $1 million loan. Therefore, the predisposition. It does not mean you have no chance of getting a loan approved; it merely suggests how banks look at small business loans.

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

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

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

Past-due payroll taxes can cause many problems for you and your business. Because of the increased efforts to enforce tax compliance, there is a threat of your business being shut down and you being subject to penalties, criminal investigation, and tax debt.

Smaller businesses have a higher chance of being subject to this tax compliance because they are the largest group suspected to be responsible for tax avoidance and evasion. For this reason, the IRS targets these business owners, especially during critical economic times.

What Can Happen if you have Payroll Tax Problems?

Suppose there are issues in your business’s tax payments. In that case, the repercussions can be detrimental, especially if the Federal Government takes on the extreme version of its tax compliance enforcement.

Closing Your Business

First, the IRS is mighty, and if it becomes aggressive, it can do a lot, from locking your business’ doors and shutting down its operations. They can do that without getting it approved through a court order. They can seize or confiscate your equipment and machinery and even divert your account receivables towards themselves. Since the IRS has so much power and will use it against those who do not file, deposit, or pay their taxes, dealing with payroll tax problems promptly becomes necessary.

Hefty Tax Bills

Other things that can be a problem for you are the fines and the penalties; these can continue increasing to noticeably considerable amounts. A hefty tax bill is the last thing you want for your business. The three considerable penalties that you would need to worry about if you do not solve your payroll problems are:

Non-compliance includes failure to file, deposit, and pay taxes.

This can collectively turn into 33% plus interest, which can become too dependent on the conditions of your business. The inability to pay these tax bills may lead to the confiscation of assets or, worse, closure.

Federal Crime

Not properly filing or paying your taxes, including those concerning payroll, constitutes a crime against the federal government. Your case can be put forward to the Criminal Investigation Division, leading to a case referred to the Department of Justice if the IRS can prove that you intentionally avoided and evaded taxation.

Furthermore

It is illegal to use the money taken on behalf of payroll. It is common practice for many small and medium-sized businesses to do so in a business’ operating expenses. However, it is to be understood that money collected for withholding tax, FICA, Medicare, and Social Security does not belong to the business and must be paid to the government. Ideally, one must make a tax deposit three days after the payroll checks are issued.

The IRS can come after individual owners and shareholders for unpaid payroll taxes. It has access to the Trust Fund Recovery Penalty (TRFP), which it can use against shareholders and owners. Even the thought of the IRS being able to snatch you behind the protective cover of the ‘corporate veil’ can send shivers down one’s spine.

What do You Need to do?

If you are going to be audited or owe payroll taxes, it is recommended that you talk to a professional accountant or bookkeeper. It can be problematic if you do not have expert help; imagine being without a lawyer in a courtroom. It will be much easier to face an audit or handle a non-payment if you have the services of a Tax Attorney or a Certified Tax Resolution Specialist.

Conclusion

In conclusion, the consequences of past-due payroll taxes can be severe and far-reaching for both businesses and individuals. The threat of business closure, hefty tax bills, and potential criminal investigations by the IRS loom large. Small businesses, in particular, face a higher risk of being targeted for tax compliance issues, making it imperative for owners to address payroll tax problems promptly.

The power of the IRS to shut down operations, seize assets, and impose significant fines underscores the importance of timely tax compliance. Failure to file, deposit, or pay taxes can lead to penalties totaling 33% plus interest, placing a considerable financial burden on businesses. Additionally, the failure to distinguish between funds collected for payroll taxes and those for operating expenses can result in legal repercussions.

Taking proactive steps to address and resolve payroll tax problems is crucial to safeguarding the business and individuals from the potentially devastating consequences of non-compliance with tax obligations.

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

The transformative impact of cloud computing on healthcare and patient care is truly remarkable. With the ability to securely store and quickly access patient data, healthcare providers have realized significant improvements in data management, collaboration, scalability, and disaster recovery. However, implementing cloud computing in healthcare presents particular challenges concerning security and data privacy. 

Nevertheless, we are excited to explore the best strategies for success in this area and provide valuable insights into the benefits and challenges associated with this innovative technology. Our comprehensive article offers an informative overview of how cloud computing changes the healthcare landscape. We are confident that you will find it both exciting and valuable. We hope it will inspire you to feel incredibly optimistic about the future of healthcare in the cloud.

Securing Healthcare Data in the Cloud

We understand that healthcare providers place security at the top of their list when embracing cloud computing. Protecting confidential patient data is paramount, so choosing a cloud provider that implements strong security protocols that meet industry standards is essential. This includes implementing multi-factor authentication systems and encryption methods to prevent unauthorized access. We take pride in providing robust security measures that ensure complete peace of mind for healthcare providers and patients. 

You can rest assured that your sensitive information is safe and trustworthy.

Effective data management is also critical for healthcare providers. With the vast amount of patient data generated daily, healthcare providers must have a centralized system for storing and accessing patient data. Cloud-based electronic health record (EHR) systems provide a solution, allowing healthcare providers to access patient data from any location at any time. These systems should also be able to integrate with other healthcare systems, such as billing and scheduling, to streamline patient care and improve overall operational efficiency.

The Power of Cloud Collaboration

Collaboration is another critical benefit of healthcare in the cloud. With cloud computing, healthcare providers can share patient data and collaborate on treatment plans in real-time, regardless of location. This can result in better patient outcomes and increased efficiency. Additionally, healthcare providers can use cloud-based communication tools, such as video conferencing, to communicate with patients in remote locations and improve accessibility to care.

Disaster recovery is also an essential consideration for healthcare providers. In a natural disaster or other emergency, cloud computing allows healthcare providers to access patient data from any location with an internet connection. This ensures that patient care can continue uninterrupted, even during a disaster.

The impact of cloud computing on healthcare providers cannot be overstated. Cloud infrastructure offers unparalleled flexibility, allowing providers to effortlessly adjust their computing resources to meet the changing demands of their operations. This is particularly beneficial for smaller providers who lack the financial resources to invest in expensive on-premise infrastructure. 

With cloud computing, these providers can now expand their services and reach a wider patient base, ensuring they can deliver high-quality care to as many people as possible. The possibilities for growth and innovation in the healthcare industry are endless with the advent of cloud computing.

Conclusion

In conclusion, healthcare in the cloud provides numerous benefits for healthcare providers and patients. However, it also presents its own set of challenges, particularly around security and data privacy. 

By implementing the abovementioned strategies, healthcare providers can ensure patient data is secure, easily accessible, and organized. They can also collaborate more effectively, recover from disasters more quickly, and scale their services to meet growing demand. While there are still challenges to overcome, the benefits of healthcare in the cloud are clear, and healthcare providers who embrace this technology will be well-positioned to provide better patient care in the coming years.

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.