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Effective cash flow management is one of the basic keys to success for every operating business worldwide. Efficient management of cash enables business personalities and entrepreneurs to utilize the incoming and outgoing flow of cash to the maximum benefit so that it can be used for the development of the business itself. Below are key tips that will allow you to manage the cash flow of your business, no matter how large or small your business is, regardless of the industry.

Do Not Enable your Clients to Set the Terms of Payment

If you allow your clients to manage their installment terms, it could be simply a question of time before their cash flow management issues turn into yours. Set strict installment terms, regardless of whether it implies losing a customer, particularly where credit is being expanded. Incorporate particular time spans for paying the money owed, late installment penalties, and conditions that may trigger legitimate activities into your installment terms. Great clients will respect your terms, leaving a positive impression.

Computerize your Charging Procedures

If it takes over a day to get a receipt into the hands of a client, you are squandering profitable time and assets. Considering you may have to wait up to 60 days for an installment (with net 30-day installment terms), you can’t stand to physically package your solicitations and send them once every week or once per month. Utilizing a mechanized charging procedure will not just decrease staff costs; it can quicken the change of receivables into money.

Computerize your Accumulations

For private companies, accumulations can overpower their assets and put a genuine pleat on their income. Computerize your receivables framework so that it can give an everyday report of the bookkeeping records arranged by age and sum owed. This won’t just empower you to predict potential income issues, it will enable your accountant or bookkeeper to center around remarkable records arranged by need. 

 Acknowledge Electronic Installments

With the accessibility of moderate electronic installment forms through a bank, for example, credit cards and Electronic Funds Transfers, there is no motivation behind why a business can’t quicken their money receipts while limiting buoy. Advanced installment alternatives cannot just streamline the receivables procedure; they can likewise give more noteworthy insurance against extortion.

Put your Money to Work

In the computerized millennial age, money does not provide any benefit without moving. In the past, organizations collected their overabundance money and raced to the bank to make a deposit. Today, your money can move consequently from your business financial records to an interest-bearing record every night. These robotized “clear” frameworks decide how much surplus money can be cleared, leaving what’s required for the following day’s installments. Getting your abundance money to work can add several dollars to your income every month.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

QuickBooks


QuickBooks has proven to be a useful invention in the discipline of accounting and bookkeeping, especially for incumbents and small businesses. Despite the market being flooded by many similar accounting software, such as Xero, Wave, FreshBooks etc., QuickBooks has taken the lead by transcending the competition. It has been the most favorable among small business owners. It’s several versions are catering to multiple business needs that other competing software lack to date. Its transcendence in the market for serving small businesses are attributed to the following reasons.

Diversity & Flexibility

QuickBooks is available in different versions allowing for greater diversity in serving small businesses. Small business owners can choose from an array of versions depending on their unique business needs and specifications. For instance, QuickBooks Pro, QuickBooks Online Plus, QuickBooks Mac, QuickBooks Hosting, QuickBooks Premier Hosting and the sort. Each one comes with a unique set of features to enable businesses to choose the one that fits best with their business needs. The various versions may be purchased according to one’s budget as well, allowing for even more flexibility. Hence, QuickBooks leads the competition through flexibility in pricing and features.

User Friendly

Another reason for this market transcendence is the user friendly interface that it comes with, allowing for easy access and use within the business. Employees working on a legacy system are generally more resistant to change. Traditional bookkeeping has been popularly replaced by accounting software which may be a source of intimidation for employees at work. However, QuickBooks helps with the initial phase of using the software step-by-step and also extends the option to seek professional help, if need be.

Compatibility

QuickBooks offers a compatible interface that may be integrated with multiple vertical market applications easily and without much trouble. This superior compatibility helps with aligning and streamlining every single process within the organization and allows for savings in terms of cost, time and effort. Automation sounds like a brilliant idea when it comes to accounting, but automation to this extent is no less than a miracle for small businesses.

Customization

In addition to the above reasons, QuickBooks has been successfully outperforming the competition due to its ability to customize almost everything related to accounting and bookkeeping. One can customize a chart of accounts to their specific business needs, customize invoices, sale receipts, and estimates. You name it and QuickBooks has it covered! It sure is a one-stop solution for all your tedious accounting hustles.

Simplification of Tasks

QuickBooks has been an innovation in the market to help serve small business needs related to complicated and enervating accounting procedures and activities. Not only has it provided a complete and sorted package for A to Z accounting but it has helped with simplifying complex spreadsheets, returns filling, reconciling, invoicing, and financial reporting tasks throughout organizations, especially for small businesses.

Unlimited Features

QuickBooks has also taken over full responsibility for performing all of the accounting tasks with the provision of its various features. It manages cash flows, invoicing, billing, receivables and payables, employee performance, bank transactions, check printing, online banking, emails, payroll as well as financial reporting. Other features include access to its online version from any and all internet-enabled devices. This is particularly useful for small businesses that are operated remotely.

Business Tracking

Another one of the many reasons why QuickBooks has led the market competition is the streamlining and automation that it has facilitated for small businesses. With its use, business owners have been empowered as they can now track each and every business transaction and workflow hassle-free and in a seamless manner. This has enabled a transparent work environment for small business owners.

Conclusion

Therefore, based on the numerous reasons identified above, QuickBooks has remained victorious in establishing a position for itself in the market – a position that transcends that of any competitor serving small businesses.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

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Value Your Hard-Earned Money

The biggest misconceptions about household budgeting are spending less, compromising on your superfluity lifestyle, and financial restrictions on everything, which means no family hangouts, no shopping, and no vacations. Budgeting may be associated with a frugal lifestyle but it doesn’t have to be in reality. Budgeting doesn’t have to make you spend less but it surely allows you to spend smart, as it prevents you from overspending on less important items. Staying on top of your hard-earned money is essential for ideal budgeting because, without knowing your monthly expense limit, you cannot expect to have success. Similarly, you cannot expect to make better financial decisions and projections if you do not have a clear picture of your cash flow or finances.

Allocating Your Paycheck(s) Wisely

Although people may have different perspectives about household budgeting, no one can deny the fact that households can save a lot of money for hard times if they budget their monthly paycheck(s) properly. Households must set their priorities and budget their resources effectively in order to have a financially secure and stable future. Creating a household budget to limit certain extraneous expenses and knowing the actual status of your finances requires a lot of commitment, patience, planning, and wisdom. In fact, it is your motivation and determination that encourages you to save for your family to meet financial uncertainties and emergencies.

Budgeting Helps in Maintaining a Healthy Lifestyle

Cutting monthly expenses is certainly an intimidating task for most households, especially for those who have just tied the knot. You and your significant other ideally need to make a household budgeting plan right from the beginning in order to have a financially secure and healthy lifestyle. The need to manage your paycheck(s) has become more intense than previous times which means an ideal management of resources is nearly impossible without making a proper budgeting plan.

Household Budgeting Options

Households that cannot budget their paycheck(s) properly have two options to consider. 1) Hire a budgeting partner 2) Employ household budgeting software. Those who find it challenging and costly to hire a personal budgeting mentor can utilize advanced budgeting software to budget their monthly paycheck(s). All that you need to do is search and utilize the software that has the capacity to deliver you the best results and budgeting plan according to your needs.

Managing Accounts with Accounting Software

Have you ever wondered why so many start-ups fail to manage their internal and external finances? The reason is obvious. They most likely lack the accounting knowledge, skills, and abilities to manage their finances and reduce costs that can be avoided. Plus, they also fail to maintain an order in their cash flow (influx or outflow of cash). Sketching a clear picture of your financial standing may be hard but not impossible. Businesses also have two options to know the current financial position of their company. Either to 1) Hire an accounting professional or 2) Use accounting software.

Accounting Software Or Household Budgeting Software—Is There A Difference?

Yes, accounting and household budgeting software are completely different from each other but both serve the right need of their own respective domains! Accounting software helps business owners to reduce costly errors, minimize tax bills, repayments of debt(s) and, hence, help businesses of every scale to know the exact status of their finances for making financial projections. On the other hand, household budgeting software helps families to manage their monthly paycheck(s) and allocate their hard-earned income wisely.

Accounting and Budgeting—Done Right!

The best part is now you have access to the finest accounting/bookkeeping agencies that will not only help you to manage your accounts but also help you with household budgeting. There are also some companies that offer a discounted bundle of services or packages which can be cost-effective and reliable.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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What Is Bookkeeping?

Bookkeeping is a subset of accounting in which financial transactions are recorded, analyzed, transmitted, and reviewed to make important business and financial decisions for a stipulated period of time. The transactions includes sales of goods, purchases of business machinery and equipment, vendor invoices, receipts, and payments by an individual or company.

The person who records, handles and performs day-to-day bookkeeping activities is generally known as a bookkeeper. All of the cash and credit transactions are recorded and ensured by a bookkeeper who is also responsible for keeping all business transactions in order.

Bookkeeping for Start-Ups

Most medium to large scale businesses have employees who manage the accounts payable and receivables, payroll, vendor invoices, bills, and other similar day-to-day transactions. They are often supervised by higher authorities or accounting professionals that can predict the fate of the company by making financial assumptions and projections.

Bookkeeping is one of the most critical aspects of every business. For start-ups, the need for a professional bookkeeper to run and manage the day-to-day operations becomes even more crucial. Start-ups, from the very beginning, need to record all business transactions in order to give their accountants an opportunity to sketch a clear picture of the business’s finances.

Why Do Most Start-Ups Fail?

Entrepreneurs who fail to administer their financial records, cash flow, and other important areas of their business create trouble that is hard to resolve. Start-ups that fail to task their employees with work, at the later stages, regret when they are out of the competitive race. Since making financial projections and assumptions is entirely dependent on how well you extract financial data out of your bookkeeping records, you need to hire competent employees who will take responsibility for maintaining and managing the business books, otherwise known as bookkeeping.

Bookkeeping for Start-Ups: Four Key Steps

1. Gather all records of financial transactions including deposits, vendor invoices, bank statements, purchases receipts and sales invoices.

2. Enter the data into journal ledgers or accounts.

3. Balance the accounts and remove discrepancies.

4. Close the books for the accounting period.


Key Bookkeeping Accounts

Cash Account

Small to medium sized businesses most often witness transactions in cash, which means business transactions will go through a cash account. The transactions will either be debited or credited to your account. At the end of the defined period of time, ideally a month, the bank account must be reconciled for any outstanding transactions or errors. It is important to note that it is ideal to close all discrepancies within the given month to prevent any confusion or stress later down the road.

Accounts Receivable

The money that is due from your customers must be tracked properly in order to receive and ensure timely payments. This can either be done manually by a bookkeeper or you can also incorporate bookkeeping software to know the current status of your transactions.

Inventory

Obviously, in order to know the status of your business’s inventory –  which could be raw goods, work-in-progress or ready-to-sell –  you must make sure that the actual inventory on hand agrees with your accounting records. Industry veterans recommend conducting physical counts of inventory to have a clear picture of your inventory records. Any discrepancies or variations found in the records can be a result of inaccurate tracking or, unfortunately, a result of employee fraud or theft.

Expenses Accounts

All of the expenses incurred by the business for a brief period of time, ideally a month, must be recorded properly in order to know the current expense status of your company. Some of the expenses may include rent, office expenses, petty expenses, insurance, marketing, cost of goods sold, etc.

Payroll Expenses

Undeniably, payroll expense is one of the biggest expenses for companies. This includes disbursement of salaries, bonuses, and other fringe benefits that fall under the payroll expense column in bookkeeping records.


Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Reevaluate Your Business – Even in the start-up

It is not mandatory to have a large, innovative organization to reinvent your business. Truth be told, the smaller and leaner the business is, the quicker it is to change gears and adapt to the rapidly changing environment. There is greater flexibility in the start-up for a business to respond to paradigm changes in consumer demands.

Entrepreneurs need to consider the following areas: Do clients still need and purchase a similar sort of items or services you offer? Have industries and practices changed since the start-up of business? Does the entrepreneur have sufficient awareness of changes in business practices? If not, what changes should be done to make the business competitive?

Is there a need to launch new products and services? Try not to speculate what clients need and will pay for it. Break down your current sales and interact with real clients and prospects. What do they require? What would you be able to give? What’s an ideal approach to convey answers for them? What will acquire the most profit? Is there a specific specialty that the business can specialize in?

Provided that this is true, entrepreneurs need to consider how customers can be targeted and what other products can be launched in the target market.

Sales over the Internet

Is the entrepreneur offering their products and services on the web? If not, then what are the reasons for not doing so? If the sales are declining and there are no offers available on the web or capturing leads online, it’s an ideal opportunity to capitalize on this opportunity. Notwithstanding when individuals purchase face to face or by individual connections, they are probably going to explore the items, organization or consultant online before settling on a choice on what to purchase and from whom to get it. If you have a business, a website is a must. The kind of website and what ought to be on it relies upon what the entrepreneur has to offer. However, an efficient bookkeeping method also needs to be in place to account for online sales. This aspect has to be evaluated as part of the many start-up tasks.

Get Involved in Social Media

Do you have an online networking presence? Online networking may not be everyone’s cup of tea, but the Pew Internet Social Media Update in 2016 found that 68% of all U.S. adults (i.e., Internet clients and non-Internet clients) are Facebook clients. While 28% of these clients utilize Instagram, 26% utilize Pinterest, 25% utilize LinkedIn, and 21% utilize Twitter.

Discover which of the web-based social networking locales pulls in the type of clients you need to reach and, after that, it is important to get active in those channels. Post remarks, answer questions, begin discourses identified with your products and industry. If you don’t have time for all of this, consider having a trusted staff to handle the web-based social networking assignments. Consider publicizing via web-based networking media destinations, as well. The social media activities need to be launched from day one of the businesses start-up.

Contact Former Customers

Try not to accept that a previous client who did not purchase from you in the business start-up will never purchase from you again. Clients’ needs and conditions change, just like that of an entrepreneur. The mega corporation that didn’t renew your agreement a few years back on account of changing business needs may have altered their course of action and could be a decent prospect now. The client who might have considered a lower-priced competitor might be disappointed with the quality of service and be responsive to a call from you today. Bookkeeping previous records of the former customer can reveal how greater gains can be made in the present.

Contact Competitors of Present or Former Customers

On the off chance that an organization needs what you offer, there’s a decent shot that their rivals do as well. Industry groups that you belong to such as trade shows, seminars and friends in the industry would all be able to assist you to distinguish likely prospects. On the off chance that the target market approached in the start-up doesn’t require your products or services, inquire as to what their specific expectations and requirements are. To account for this, non-financial bookkeeping is also important to be conducted.

Sell Additional Products and Services to Existing Customers

Regularly, the simplest approach to acquiring new business is to sell more to your current clients. You might have the capacity to sell additional products to a similar contract or sell a similar product to an alternate division of the organization. Or, there is also the possibility to sell related items and services to the client. Keep your eyes and ears open for new opportunities.  It needs to be ensured that clients know about the dynamism of the business right from its start-up.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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An accounting professional is the secret weapon for faster growth of any company. Sketching a clear picture of finances and cash flow is an intimidating task for most business owners as it requires vast accounting knowledge, skills, perseverance, and wisdom to manage your finances seamlessly. Moreover, a qualified individual will help you nurture your start-up with better decision making, minimizing your tax bills, and saving you a ton of time on administrative work. A professional accountant or bookkeeper has the capacity to change the entire dynamic of a business with better financial rulings and projections for the future.

Why Hire an Accountant or Bookkeeper for a Start-Up?

Hiring the right person for the job is always a challenging task for most organizations. In the beginning, entrepreneurs may feel reluctant in hiring professional accounting services as they consider them costly. However, hiring a top-notch accountant or bookkeeper can change the entire fate of a company in a very positive way. Time and time again, it always pays off in the course of a business’ journey. Since most entrepreneurs lack in depth financial knowledge and skills, it is ideal to hire professional services so that they can focus more on running their business and less on the accounting side of it.

Accounting Professional—The Need of the Hour!

According to studies, most start-ups fail to make their mark in their first year of business. When you examine the core of failure, you find accounting and financial inefficiencies along with poor financial management, planning, and forecasting cash flow and resources. Certain inabilities restrict organizations in managing their internal and external managerial affairs which further confines them in making an impact in the market. This indicates that cash, borrowing, and resource management have their own unique significance and must be managed professionally.

Entrepreneurs may lack the financial wisdom to tackle complicated issues such as debt and tax requirements, debt repayment, filing income tax returns, managing financial books, credit accounts, etc. However, that doesn’t mean that they cannot understand and comprehend the financial standing of their company with help from a professional.

Here are few of the reasons why all entrepreneurs and business adventurists should work with an accounting professional.

They Help You Find Work-Life Balance

Whether it’s a new business start-up or an established business, the need for finding the perfect work-life balance never dies. It is the job of a professional accountant to provide you with peace by taking on certain finance-related tasks that you are less than passionate about handling. Delegating some of the responsibilities to experienced and qualified accountants is ideal for ensuring faster growth and success.

They Help You Focus on Achieving Your Strategic Goals

Hiring a seasoned accounting professional is absolutely necessary for managing your business’s finances effectively. Entrepreneurs usually have a certain state of mind that keeps them passionate about their business, which means they will be more than excited to see their business grow at a significant rate at any cost. Businesses can only expect to grow at a massive speed if they share some of the responsibilities with specialized third-party service providers.

A Professional Reputation

Start-ups can only expect to grow if they keep all of their stakeholders, clients, employees, accountants, promoters, distributors, financiers,etc. happy. This indicates that building and retaining a strong relationship with your stakeholders can help you achieve success within no time. By maintaining integrity and upholding standards, an accounting professional will not only earn a name and positive rapport for themselves, but also represent your company in the best possible way.

They Understand Accounting Matters More

From developing a new financial perspective to providing you a safe method for saving more time and money, an accounting expert has become the need of the hour for handling core financial matter. Plus, they know the legal tricks to minimize your tax bills, which is huge in each and every sense. They help you make better financial decisions for your business which is vital to business success. An accounting professional is an ultimate game changer as they can put a business on the right track to succeed and grow.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Small business owners are often searching for cost-effective solutions to manage their business needs in an efficient manner. This is the sole reason why more and more businesses are now shifting towards QuickBooks Online to manage their accounting and bookkeeping needs effectively.

QuickBooks is an accounting software that is easy to setup and has a simple user interface. It keeps all of your data in one place and ensures smooth processing. You can create customized reports and export them onto other applications using the useful features of this bookkeeping software.

Though there are several training courses available online, most do not teach you how to create inventory assemblies – which is an important part of the QuickBooks online application that will help you ensure efficient management of your data. Though the concept is quite simple and the application helps you out in the process, it can still prove to be a complex task at times.

A Guide to Building Assemblies in QuickBooks Online

We have compiled a handy guide that will teach you how to build assemblies in QuickBooks Online. Before you start, make sure that you have formed detailed records of items that will be added to the assemblies. If there are any new items, you can add those later. However, it is best to add all items beforehand in order to ensure smooth processing.

We have listed all of the steps that will help you create a simple assembly. Several issues can arise when creating and selling builds. Therefore, if you plan on doing these frequently, you should consider taking a QuickBooks class to understand it more completely.

1. Click on the ‘Vendors’ menu and open the ‘Inventory Activities > Build Assemblies’. A dialogue box will pop up in front of you.

2. Click on the arrow next to the category labeled ‘Assembly Item’ and click on the option ‘<Add New>’. A ‘New Item’ box will appear displaying ‘Inventory Assembly’ as highlighted. Select ‘New Item’ and enter the ‘Item Name or Number’ in the field.

3. You will not yet be entering anything in the field of ‘Cost’, however, you can enter a description in the ‘Description’ category. Also, you need to make sure that you have chosen the right Cost of Goods account under the ‘COGS Account’ category.

4. Go down to the box below ‘Bill of Materials – BOM’. Click on the space underneath ‘Item’ and access the list of items present in your inventory by clicking the down arrow. Choose the first option in the assembly and fill up the ‘QTY – Quantity’ field. Go down to the next option and continue doing this process until you’ve entered all of the required information.

5. QuickBooks Online continues tallying the costs of the items present in your assembly, which is not the sales price and puts the total beneath the ‘Bills of Materials (BOM)’ box.

6. The ‘Asset Account’ must display the accurate information. You need to enter the number of new builds that need to be ordered in the ‘Build Point’ field. If you know the amount of builds you have in your hand, type that number in on the ‘On hand’ box. QuickBooks then calculates the total value of your current builds and presents the figure in the ‘Total Value’ box.

7. Once you are done with the above steps, you can scroll back up and issue a ‘Sales price’, which will be based on the cost along with the markup. When you are done, click on ‘Ok’. The screen that comes up after that will ask you the number of assemblies you want to build. Type in the number of assemblies you want to build and save the record.


Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.



 

 

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Managing Business Finances

Business finance is a very crucial term in corporate finance and accounting that encompasses a wide range of disciplines and business activities regarding management of money and other valuable financial assets. It teaches us about effective management and utilization of financial resources, investing strategies, accounting methodologies, and effective debt management. In short, it defines the fate of the business and long-term growth and profitability of any company.

Significance

In order to survive in an extremely competitive environment, businesses need to maintain their financial resources effectively or else pack their bags and go home. In the demanding era we live in, business finances works just like oxygen for survival, stability, strength, consistency, and growth. In short, money keeps your business running and your employees working to attain business goals and objectives.

However, the influx of money needs to be assured at the hour of need or your business may face a financial crisis which may eventually lead to overall business failure. Some of the most common ways in which a business can be financed or money can be raised include business loans, private loans (family or friends), mortgage loans, crowdfunding, etc.

Critical To Business Success

Entrepreneurs or business adventurists around the globe face a lot of difficulties in generating business finances for their unique business ideas. But, even those who manage to generate desired finances often strive to maintain or manage their money—perhaps due to the lack of financial knowledge or management of money related skills. They may have scarce resources but hiring a professional accountant or bookkeeper seems to be a smart choice. This allows them to concentrate on core affairs of the business while their bookkeepers take care of the rest (money related matters). Looking at the sensitivity of the matter, it is indispensable in managing business finances effectively for maintaining a sustainable competitive advantage.

5 Crucial tips to Keep your Business Finances In Order

Get Yourself Ready For the Tough Job Ahead

In order to survive in a volatile economy, you need to come up with new and effective ways to get things right—the very first time. No one is a born genius, it’s your motivation, inspiration and result-oriented approach that encourages you to learn the art of the game before taking on challenges head-on. For managing the finances of a business, you need to educate yourself and get ready for the tough accounting job ahead, as financial recording is no easy feat. The entire fate of a company is dependent on financial recording and analysis—the better they are, the higher the results. This makes it clear that the management and bookkeeping of business finances requires accounting knowledge, skills and, hence, a complete accounting know-how for keeping finances in order and perfectly streamlined.

Keep Your Personal and Private Finances Separate

For developing more command and control over your personal and business finances, you need to deal with them separately in order to avoid confusion. The outflow of cash has to be managed well for keeping a proper track of your business transactions. This will not only help where your money is going but also helps when submitting tax returns at the end of the term. Small businesses often find themselves strangled in sorting between business and private finances as they lack awareness, accounting knowledge, experience, and expertise in dealing with money related issues. By sorting this out, you will have the exact status of your money.

Choose a Suitable Accounting Software

All salutations to superior accounting tools and techniques that have made things a lot easier than traditional and manual ways of recording business transactions. If you haven’t yet moved to cloud technology for maintaining a real-time track of your money and resources, we suggest you do it right away. Today, you have a myriad of options to choose from, however, integrating the right accounting software or technology is crucial.

Hire a Professional Bookkeeper

You may have a basic level of accounting knowledge and experience in keeping transaction records which may not actually be enough for your business. In order to effectively manage each and every thing related to your business finances, you must consider hiring a qualified and reputable bookkeeper. This will not only help you solve financial discrepancies but will also help you save a lot of money in the end.

Make a Budgeting Plan

By creating a budgeting plan, you will get things aligned and more organized than ever. Business budgeting is a necessary evil, which means that no matter how far you run away from it, you still have to create it. This allows you to know the business expenses and see whether they need to be cut if they are exceeding the limit or need to be financed with more money.

Conclusion

It is true that a lot of business owners do not keep records of their business finances or, even if they do, they are most often in a disorganized or cluttered form. In order to establish 100% command and control over your business, you need to manage your finances and cash flow carefully. It is better to hire a qualified bookkeeper for achieving intended outcomes and pave your way to business success.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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There is no denying the fact that cutting business expenses and controlling costs has become extremely challenging in today’s business environment. Modern trends indicate that companies need to reduce their expenses to effectively achieve their business goals and objectives. However, establishing control over your business and finances requires a large amount of motivation, knowledge, skills, and expertise. Why? Because only a clear-cut strategy and well laid-out plan can make cutting down your monthly expenses hassle-free.

Cutting business expenses? Not a problem!

Moreover, reduction in business expenses and an increase in revenue can have a big impact on a company’s profitability and are two ways by which companies can maximize their profitability index. According to industry experts, increasing sales and revenue is hard 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 something that can be done easily, without much stress. All that it takes is a little bit of your time. Moreover, it is important to review your bookkeeping and accounting records to establish a clear picture of your company’s standing prior to making any solid decisions regarding controlling your costs.

Reduce Supply Expenses

If you expect to reduce supply expenses, you need to look outside of your pool of traditional vendors. Look for the vendors, manufacturers, or suppliers who can offer you the best price as large discounts help you cut business expenses and costs. Bulk purchasing is ideal in each and every sense. Always seek multiple bids to get ideal rates and never make a long-term contract for supplies with a single party or vendor as saving can have a big impact on your bottom line.

Lower Financial Expenses

Hiring an in-house accounting or auditing professional can be a costly decision. That’s why most businesses rely on external accounting agencies or individuals who offer competitive rates for their services. Cutting back on your business expenses means saving money on insurance and additional bills. To meet financial emergencies and consider a business expansion, you need to regularly contribute to your savings account. Lastly, don’t 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. Prior to making such decisions, you must do a thorough cost-benefit analysis and future forecasting.

Take Advantage of Social Media Marketing

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

Try To Achieve Economies of Scale

By maximizing your productivity in manufacturing, you can expect to take your expenses to a minimum level. Improved R&D and market knowledge will help you achieve economies of scale, which is ideal for maximizing your profitability.

Review Your Finances and Business Books Quarterly

To get a clear picture of your finances and business condition, you need to review, maintain. and manage your business books, if not on monthly basis, then quarterly. Moreover, to cut business expenses, you need to audit your monthly subscription billing. Switch to the software applications or talent that are worth your investment and money.

Look For Affordable And Suitable Office Alternatives

You can always consider relocating your office to a more affordable area to cut business costs. Often times, in the age of digitalization, companies don’t need to have their office located in prime, expensive locations. You can move your office to a convenient location that offers affordable rates to reduce commercial rents.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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Creditor days is used for the purpose of calculating the days a company is required to pay all of their creditors, whereas debtor days measure the average amount of days it will take for a business to obtain all payments for the products or services they have sold. It can also be termed as accounts receivable days. Bookkeeping will provide all of the necessary and relevant information from which all of your accounts are formulated. 

Creditor Days

Creditor days is a way for a company to show its creditworthiness to its creditors and suppliers. These days are a way for the company to know how long their creditors and suppliers will wait for their payments to be made.

Within reason, a higher number of days will be better for the company. This is because all companies wish to conserve their cash. Still then, a business that is found to be especially slow in paying all of their bills (for example, taking 100 days or more), could be a company that has trouble generating cash. Maybe the company is having trouble financing its operations with their supplier’s funds. In the end, a business whose creditor days are in excess will eventually have trouble in obtaining their supplies.

Debtor Days

Debtor days is a way of indicating a business’s efficiency in collecting all of their money owed. In such cases, it will be beneficial for the company if their debtor days are lower. When the number of debtor days is high, it reflects on the company’s inefficiency. It may also point towards the company’s bad debts or doubtful sales figures.  

Different Ways to Reduce Creditor and Debtor Days

 

  1. Negotiate and Discuss Payment Terms and Conditions with Suppliers

You pick your suppliers based on your specific needs and requirements, whether it’s about price, quality of the product, or simply speed of delivery. In most cases, the payment terms and conditions are the last thing considered when selecting suppliers.

If you have built a good relationship and rapport with your suppliers, negotiating better payment terms should not be a problem for you.

 

  1. Offer Discounts and Concessions For Prompt or Early Repayment

If you use invoice finance in your business, you end up paying 3% for the first 40 days of the invoice, with 4.5% for 80 days. You could offer this discount to your clients in cases of payment upfront vs. delivery.

  1. Change Payment Conditions And Terms

Although the majority of businesses in their early lifecycle are found to be flexible in terms of their payment conditions, over time this leads to problems with working capital. Just as your client/supplier payment terms start to stretch, you might face difficulty running your business. New businesses start to apply short, new payment terms to all of their new clienteles they have on board. When they are confident that there is no such issue, they revisit their clients and change their terms and conditions. 

  1. Set Up Chasers, Automate Credit Control

With the introduction of cloud accounting, like Geniac and Xero, there are now several solutions available that help a business with automating timely reminders.  

  1. Credit Control Externally

Although automated credit chasers can be extremely helpful, credit control cannot be beaten. If you happen to have a bookkeeper who works part-time, you are likely to find out that you have lengthy debtor days. With the help of external credit control, you will not only have confidential, but quick results.

  1. Boost Stock Control

In order to reduce the necessity of working capital, a business must become effectual and efficient in their sales/purchasing cycle.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.