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Close-up Of A Businessperson's Hand Checking Invoice On Computer At Workplace
An accounting system is an assemblage of interconnected processes intended to amass, organize, and account for an organization’s transactions. The ultimate goal of this bookkeeping system is to engender informative reports to sustenance an organization’s decision making. Managers can make well-informed decisions based on the knowledge they gather from these reports, which are generated through an automated system.  

In order to assimilate a novel and efficient system of accounting into your business, you should follow a step-by-step approach.  The implementation of this approach for your accounting system includes a series of steps that must be undertaken before you are ready to go digital and say goodbye to your old ledgers.

The following list of steps is a theoretical impression for the implementation process in a standard organization. Factors such as the proficiency of your IT department, available resources, and ability to adapt to change will influence the design and related implementation stages that are essential to achieving the go-live plan.

Plan for Implementing an Accounting System

Before you start with anything else, it is imperative to devise a proposal in the form of a project plan and perform a cost-benefit analysis of the whole project. Rest assured, the benefits far outreach the costs if you are serious about running a professional business. The plan should include the timelines, key milestones to be achieved, and a list of all required resources for the project. Planning is the most critical phase of the whole implementation because key details need to be kept in mind for everything to go smoothly.

Hire a Project Manager

An implementation of an accounting system has to be managed carefully. You must designate an individual who serves as a project manager. The job of the project manager is to lead the entire process and form cross-functional teams. Members of the team represent all of the departments that have a vested interest in the system who will be using it in one way or another. Since these departments will eventually be the end users, it is vital to have their input in the implementation process.

Tidy Records in the Previous Accounting System

Bad data is one of the main reasons for nuisances when you move over to a new system. If you know there is imprecision in your books, bad transaction coding, invoicing issues, and other areas that need to be fixed, you should always prioritize this.

Trying to start fresh without getting rid of old mistakes can result in a huge blunder. Even the best system in the world would not be able to help you if you have issues related to the credibility of your data. The project manager is responsible for designating a special team with the sole job of removing bad clusters of data and repairing them for reuse in the new accounting system.

Data Migration and Pilot Testing

As most of your old data needs to be transferred to the new system, a data conversion plan must be devised. Mapping the data according to the new format is the key highlight of a conversion plan. Depending on the format support of both the old and new systems, the conversion can vary from being relatively simple to highly complex. Therefore, before you choose the new system, it is important to gather all of the technical details about it in order to avoid complications later on.

Once all data is transferred, the accounting system needs to be pilot tested in order to ensure that it is working perfectly. Apart from being technically sound, you need to acquaint the key people in your company with the new system so that they can efficiently work with it. Arrange a conference room pilot testing for everyone so that they can learn about the key features from an expert hands on. You may need to hire someone for the training session or you can do it yourself.

Configure and Generate Reports

Once everyone is on the same page and your employees understand how to work with the new system, it’s time to configure it to their devices and reap all of the benefits. The new accounting system will be able to generate better, more detailed financial reports such as balance sheets, income statements, cash flows and other reports that can greatly assist you in making key decisions for your business.

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.

Businessman climbing the corporate ladder of success

1. Market Knowledge

How well do you truly know your market? Remember that it isn’t as straightforward as having decided the sort of item or service you plan to sell– finding your own particular specialty is critical. For instance, www.ties.com is one such brand. By concentrating on a solitary article of clothing, the brand developed to end up noticeably as an online market pioneer, providing the biggest collection of neck wear over the globe.

Deploying resources into a brand journey and digging up market data will help characterize and make your product distinct from competitors. It will likewise guarantee that your customers will see, hear and recall you over all of the market clamor. Know your opposition and know them well. Break down their qualities, gauge their oversights, and benefit as much as possible from the information available through bookkeeping data. It provides a visit inside the mind of an entrepreneur.

 

2. Setting Up and Winning Acknowledgment

Being a brand name isn’t the same as a recognized name. Gone are the days when it was sufficient to simply have an item in the market– your group of potential customers demand and request all the more today. What does your image represent? Is it true that you are representing your brand on a stage your market is listening to? The present group of customers are enthused about becoming more acquainted with their brands from web-based social networking to shelves and beyond. They expect an educational, ambitious and energizing client journey. Distinguished as the UK’s best narrating brand of 2015, Apple is the best case there is. From practically reinventing phones to realistic stories of how Apple items could change the world, their extraordinary products tell remarkable tales. For any business, it is an efficient bookkeeping strategy that can lead to the best business story for customers. No business has ever gone on to establish a strong brand image without compliance to accounting and financial standards. It is compliance with these which leads to a balanced scorecard for a business.

 

3. Developing a Digital Presence

The vast majority of marketers agree that social media is vital for their business. While this is something a ton of brands have still not got on to, customers around the world over invest time on the web. Basically, it is important to achieve your market on their medium of choice and a digital platform offers organizations different chances to creatively present brand identity, story and service offerings. Investigate your alternatives with easy to use sites and online networking stages like Facebook, Instagram and Twitter. All of which effectively encourage people to cooperate and engage with SMEs. In the same instance, it is also efficient to ensure that accounting statements are also available online. This is part of an efficient bookkeeping strategy.

 

4. Putting Resources into Assets

Concentrate on what you specialize in. Endeavoring to do everything internally isn’t always the best approach, particularly when you’re attempting to build up a solid footing in the market. Energize associations that draw out the best in your business and help it prosper and grow. This won’t just line up with your general business strategy but also helps connect your audience in a more productive way.  

 

5. Less Expensive isn’t Generally Better

Assess your choices admirably and don’t decide on less expensive choices, simply in light of the fact that they exist. Concentrate on three key components; what will give your item or service more esteem, what will give your gathering of people a wealthier client encounter, and what will fabricate your image loyalty– this will help control your decisions when choices are simply taken on the basis of book.

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.

Gorgeous caucasian female on concrete background with creative success sketch and light bulb. Business idea concept
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.

 

Start up Business Team Meeting Ideas Concept

One of the primary reasons behind why start-up businesses run into difficulties is that they keep running into the issue of not having any market for the product or service being provided. Here are some common issues that new businesses face:

  • There isn’t a sufficiently convincing incentive or occasion that compels the customer to focus on buying or purchasing the product or service. Experienced sales reps often reveal that to get a request in the present intense conditions, you need to discover buyers that have a dire need to purchase the particular product or are greatly enthusiastic about it. You additionally hear individuals discussing whether an item is a Vitamin (pleasant to have), or an Aspirin (must have). This is a key to startup success and survival.

  • The market timing isn’t right. You could be ahead of your market by a couple of years and the stakeholders will not be prepared for your specific arrangement at this stage. For instance, when EqualLogic first propelled their product iSCSI, it was still early. It required the landing of VMWare which required a capacity zone system to do VMotion to truly jump start their market. Luckily, they had the financing to last through the early years.

 

  • The market share of business being small and having finance which is essentially not too large. Strategizing to capture significant market share is also a key start-up task for an entrepreneur.

Business Model Failure

In the wake of numerous organizations just starting their business operations, it can be observed that the most significant and widely recognized reasons that obstruct startup success are the excessively idealistic approach about how simple it is to get to new clients. They accept that since they will assemble a fascinating site, product, or service, the clients will beat a way to their doors. That may be true with the initial set of clients, yet from that point onward, it quickly turns into a costly errand to draw in and win clients. When compared to the cost of acquiring the client (CAC), it was ultimately higher than the lifetime estimation of that client (LTV). Bookkeeping these two elements require careful financing and intense management strategies.

The perception that you must have regarding the capacity to get your clients for less cash than they will produce in the value of the lifetime of your business with them is stunningly self-evident. However, regardless of that, it can be observed that by far most of the entrepreneurs neglect to give careful consideration to making sense of a reasonable cost of acquiring customers. These assessments are primary start-up tasks which should be done by an entrepreneur.

The Essence of a Business Model

A straightforward approach for startup businesses is to concentrate more on what makes a difference in your business model.  It is about giving a thought to the following questions:

  • Can you find a versatile approach to secure clients?
  • Can you capitalize those clients at an altogether higher amount than your cost of acquisition?

Contemplating things in such straightforward terms can be extremely useful. There are two “standards” around the business model which are less rigid. These are laid out as follows:

  • The CAC/LTV

The principle is relatively straightforward: CAC must be not as much as LTV

  • CAC = Cost of Acquiring a Customer
  • LTV = Lifetime Value of a Customer

To calculate CAC, you should take the whole cost of your sales and marketing capacities (counting pay rates, marketing programs, lead generation, travel, and so on) and divide it by the number of clients that you may close during that time frame. So for instance, if your aggregate sales and marketing expenditure in Quarter 1 was $1m and you close 1000 clients, at that point your average cost to get a client (CAC) is $1,000.

To calculate LTV, you will need to take a look at the gross margin related to the client (net of all establishment, support, and operational costs) over their lifetime. For organizations with one time charges, this is quite straightforward. For organizations that have repeating membership income, it is calculated by taking the month to month repeating income and dividing that by the month to month churn rate. In bookkeeping for these numbers, accountants need to develop a system that focuses on CAC, and LTV returns.

Since most organizations have a progression of different capacities, for example, G&A and Product Development that are extra costs in addition to the sales and marketing, and conveying the item. This is where bookkeeping can play a strategic role for startup 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.

Stock index data analysis shown the success of promotional sale for discount shopping at the department store.
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.

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Businesses face several accounting costs when conducting day to day business operations that can easily be identified and calculated. Companies, however, also face other costs known as economic costs that are not displayed on the bookkeeping records and have a huge impact on the decisions made by management. Accounting costs are crucial for the external and internal reports of the company. Whereas, economic costs are applicable to the internal sector only.

Implicit Costs

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

Explicit Costs

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

Accounting Profit

If an accountant or bookkeeper wants to calculate the accounting profit of the financial year, they will only have to look at the profit of the company and its accounting costs. The economic cost details are not needed by the accountant to form an income statement for the company. For instance, accountants have no concern with the fact that the company could have made $3,000 by leasing off the building to some other business – making a total of around $36,000 during the financial year. This figure of $36,000 has nothing to do with the gross profit of the company during the financial year.

Economic Costs are not included in Bookkeeping

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

Economic costs, however, are generally considered when a company has to make strategic decisions that involve opportunity. For example, if a company has intended to close down an operational location and rent or lease it out to another business, the company needs to consider the economic costs of losing the money generated from business operations or the profit that might be generated from the rent.

In general, economic cost comprises of the monetary value of resources employed by the business. Also, it links to the opportunity cost that arises from the inputs used by the enterprise to make the business functional.

Accounting costs, on the other hand, are focused on explicit costs that are incurred by the business. The costs that are incurred by any company in normal, day to day market transactions are referred to as explicit costs. One common example of explicit costs include wages that are given to employees. The money spent on buying the resources needed by the business is also known as explicit costs.

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.

Man and woman working behind the counter in a clothing store
The need for bookkeeping and accounting will never die. They are the two most basics needs and goals of every business, regardless of size, scale, or industry in which a retail business operates. Since businesses need to keep track of their income and expenses to improve their chances of increasing profitability, they need to implement sound bookkeeping and accounting practices to help their business grow in such a fierce environment. The slightest financial miscalculations or projections can cost significantly and can even kick a business out of the competitive race. For better financial decisions, businesses need to collect the necessary financial information as well as document and review their bookkeeping records accurately.

What Is Bookkeeping?

In simplest terms, bookkeeping is the process of recording business transactions as they occur, which means documenting daily transaction in an accounting system. It helps businesses track their finances, cash flow, income, and expenses and come up with a sound game plan to increase profits. In short, it reveals the financial status of the company that can further be matched against long-term intended goals.

Most small to medium-sized retail businesses prefer to do their own books as it saves money. However, the idea that hiring the expertise of professionals is costly is just a mere perception. There are many individuals and agencies who offer unique bookkeeping and accounting services at competitive rates. Therefore, it is recommended that small to medium-sized retail businesses search for professional, yet affordable, individuals or agencies who can help them achieve their intended financial outcomes.

The Use of Advanced Software in a Retail Setting

There is no denying the fact that advanced accounting software can be as helpful as hiring a professional accountant to do the job. For a small to medium-sized retail business looking to maintain and manage its accounting in-house, accounting software is one of the most convenient and cost-effective ways to record, handle, and manage important business books and financial records. Some accounting software used in retail businesses can be purchased for $300-$800 dollars. Businesses can even buy monthly subscriptions to record transactions, manage their payroll, sales, inventory tracking and have a clear picture of their finances.

Why Is Accurate Record Keeping the First Step towards Success?

As someone rightly said, accurate financial records lead a business to make ideal assumptions and wise decisions. Whether you are using a credible accounting software or not, you must always keep backup of important financial documents like receipts, sales records, bank statements, loan status, past tax data, etc. A tangible file and hard copy of financial records as well as bills and invoices need to be maintained properly to handle situations such as data loss.

According to accounting veterans, it is ideal to plan for the worst scenario to happen to your business. The records of a retail business need to be backed up properly in order to avoid problems that miserably drag you into a severe financial crisis.

Accounting Expertise

Hiring someone with the proper accounting knowledge and skills can help you reduce your tax season troubles and save you a lot of money and time. For retail businesses that consider investing in accounting services as troublesome and expensive, the investment made on hiring an expert will always pay off in the long run, with accurate results. 

It is important to remember that acquiring an accounting service tailored to your business needs can be extremely helpful to your business in many ways. You can leverage more control over your company by concentrating more on core affairs of running your business and allow your accountant to ensure accounting and financial data is handled properly.

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.

Businesswoman studying business papers on her desk. Woman working in office sitting at her desk.
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.


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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.



 

 

Calculator, pen and business balance
Closing your books at the end of the year is a customary task and a good bookkeeping system makes the process pretty basic. Subjecting to your company, the closing process comprises of the year’s transactions, ensuring that they are all appropriately categorized. Adjusting entries for company activities must be done along with searching for errors or missing information in the data.

New businesses closing their first year often face significant challenges at the time of closing because of their inexperience. However, adhering to the basics of the closing process will ensure that everything works out smoothly. More prominently, closing your books allows you to precisely account for your company’s financial doings from the year, highlight balances that will carry forward to the upcoming year, and create the outline for the next year’s financial reports. Here are a few basics that will help you close out at the year end.

Closing your Books – Year End Checklist

Reconcile your Bank Account

The balance on all of your books should be equal to your year end statements. Particularly, if you have been entering all of your numbers by hand, it must be ensured that all bank statements, credit cards, and money accounts are accurately reconciled. Even if you use a bookkeeping software, double check all of the numbers. The best way to endorse that your bank accounts are reconciled properly is to hire an adept team of experts that will make the entire process a whole lot easier for you.

Review Payroll Expenses and Income Statements

When closing your books, you must ensure that your monthly and year end payroll expenses match each other. You will need to approve this before filing the annual IRS Form 940 and to reconcile the expenses for the year. You must be very careful with handling payroll expenses as it is the government’s money that you are assigned to hold until the year end when taxes are filed. You could land in serious trouble with the IRS if your payroll expenses are not handled correctly. 

Furthermore, your income statements need to be carefully studied to guarantee that everything is categorized fittingly. If the classification is troubling you or if you’re unsure about your payroll taxes, it is best to seek professional help as they have the right team with a voracious approach towards this task.

Evaluate Accounts Receivable and Invoices

Guarantee that you have cleared your year end invoices and make certain that all sent invoices have been remunerated. It can be easy for an invoice to go unnoticed among so many year end tasks, which can result in an over or understatement of accounts and cause strain at the last minute. Therefore, it’s important to keep track of all of the small details without any negligence. Also, ensure that all of your revenues are recorded in the defined time period.

 Fixed Assets and Depreciation Expenses

If you have made any hefty fixed asset purchases this past year, they must be accounted for in your balance sheets. Check your current fixed asset inventory and look into the minutiae of sales, disposal, or depreciation as fitting. Tackling issues related to depreciation when closing your books can be a tricky task and would require professional services. 

You will also have to run a taxable sales report which will confirm that you have paid all of the taxes on all of your sales. Ensure that you do not neglect any of the above mentioned basic tasks because it can land you in serious trouble with the IRS.

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.