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Focused young female entrepreneur working on her small business with a digital tablet while sitting at her kitchen table at home
Over the years, companies have saved millions of dollars through professional advice and counseling. With success comes the added responsibility of managing your resources well and many small businesses owners, on their ladder to success. might fall into spending more and not practice being frugal entrepreneurs. The important lesson to learn here is that you must squeeze the last drop out of your every dollar if you want to continue climbing the ladder.

It’s a Mindset

Being a frugal entrepreneur doesn’t necessarily mean that you have to save money at any cost. Making intelligent budgeting decisions is what will differentiate your business from others. Most people start their business with a bare minimum, but their focus is to improve the operations of the business and not to impress people. Even when your business grows eventually, it’s this same mindset that will keep you going and will keep you out of trouble as well. The point is to offer all your employees a comfortable working space, not something luxurious. Everyone needs to be on the same page and must understand the value of every single dollar that is spent.

Frugal Entrepreneurs save themselves from Resentment

If the boss sits in a lavish office and enjoys all of the perks while others are sitting at their old desks and putting their blood and sweat in for the cause, it certainly doesn’t equate to a cohesive working environment.  A simple office can do the job as well as any other. If you are worried about impressing others with your “stuff”, you will not be able to sway your clients with your results.

Wage gaps and other terms like these make employees quite aware and, by leading a luxurious lifestyle, you not only attract unwanted attention but can also cause resentment from your employees. However, this is not to undermine the importance of all of the basics that you must have and deserve to have because you have put in a significant effort in the overall scheme of things.

A Frugal Entrepreneur is Sharper

With success, comes the added responsibility of micromanaging your finances as you tend to overspend more often. What you would not have bought otherwise, you will be inclined to buy because you will convince yourself that you deserve some credit for your efforts and it boosts your ego. There is nothing wrong in treating yourself occasionally, but if you start doing it more often, it can affect the other walks of your life, including the business.

Experts call it an opportunity cost, which is something that could have been done with the same amount invested elsewhere. There will always be an opportunity cost for your decisions, no matter how much success you achieve. Being frugal means that you can make smart decisions as you have the capital to finance your desires for the business and yourself. A frugal entrepreneur is always sharp in choosing the most cost effective ways.

Being a Frugal Entrepreneur trains you for Bad Times

Spending your money sparingly will ensure that you have enough kept aside for bad times. Always remember that you will not stay at the top and success is always followed by hard times. A business always ebbs and flows. When times are hard for your business, you must be ready to face it. When you are accustomed to leading a simple life, you will not be so shockingly affected from a recession or increase of competition in the market. You will survive and bear the burden with an open heart and enough courage to keep on going and make it to the top again.

Some Misconception

Being a frugal entrepreneur does not mean that you are not ready to spend big when the opportunity comes. In your business, you will have to make decisions regarding spending on acquiring a new asset or investing in a lucrative project. Go ahead and take the risk if you have done your research about the results going in your favor. As said before, it is the mindset that matters, which should be firm and frugal, even when you are at the height of your 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.

 

 

 

 

 

 

 

Businesswoman holding piggy bank drawing front of blackboard
If anyone is to ever name two things that are critical for startups, they would undoubtedly be ‘time’ and ‘money’. Both play a significantly important role in defining the fate of a new business. Gone are the days when people could afford to launch a new business with a relatively common idea and still make profits. Now, they can never expect to survive without a brilliant idea backed up by a failure-proof plan, as both go hand in hand. Business adventurists have a different set of priorities and they try to put their best of knowledge and skills to task right from the beginning to yield intended outcomes.

Why do New Businesses Fail to Survive in a Challenging Business Environment?

According to statistics, 3 out of 5 entrepreneurial business ventures fail to survive in the first year of their launch. The reasons may include lack of experience, knowledge, skills, expertise, managing critical business affairs like cash and inventory management, marketing, the strategic balance between demand and supply, etc. This indicates that the reasons could be internal as well external and one needs to keep a close eye and focus on changing corporate dynamics in order to ensure long-term survival in terms of profitability, sustainability and growth.

Capitalizing On Score Strengths and Avoiding Risks

Trust me! Starting a new business is no easy feat. Your thrilling adventure may turn into an awful experience if you don’t create and follow a unique strategy and execution plan. Moreover, entrepreneurial business ventures are often threatened by risks. In the core of every startup business lies risks and uncertainties. Those who are able to fight them well and capitalize on their strengths are able to achieve both their short/long term targets and business goals. With so much entrepreneurial knowledge and professional guidance, fighting against the odds has become relatively easier than ever.

Money, Money, Money

It wouldn’t be wrong to say that ‘money’ is one of the main reasons why most entrepreneurial ventures fail to survive long term. According to studies, the success or failure of any business is usually determined by how well they can manage their money. For any new business to survive and succeed for long, it becomes absolutely necessary to manage money-related tasks effectively—the better they are, the better the results! In order to avoid risks and uncertainties to a complete business failure and mismanagement of money, a solid game plan must be in place and priorities must be set.

5 Crucial Money Tips to Failure-Proof Your New Business

Manage Your Money

Starting a new business requires a hefty stack of hard cash. For ensuring a smooth flow of a financial life cycle, you need to keep track of business transactions on a daily basis in order to avoid discrepancies for the whole month. You must know your financial status exactly; the influx and outflow of cash. Since the beginning of our entire academic and professional career, we have been learning that profits keep the business running.  However, we’ve focused little on the ‘effective cash management’ behind every successful business.

Entrepreneurs may have a fantastic idea to launch their new business but they usually lack cash management knowledge, skills, and experience quite significantly. Hiring an expert bookkeeper or accountant to manage money-related tasks is a smart choice for ensuring optimal results. This way, you will have a clear snapshot of your business’s financial status. Moreover, it allows you to focus on core matters of business, while your accountant takes care of the finances. Investing in a professional accountant will surely save your time and money in strategic terms!

Diversify Your Business

It is really important for any new business to keep itself up to date with the latest trends. Businesses fail to keep their competitive advantage and market share if they solely rely on old customers. The sole reliance on one single client is a secret recipe for disaster as you may never know when that big client might change their direction. When you want to keep your new business up and running, you need to evolve with time and find new clients to maintain and grow your business.

Don’t Overpay Your Taxes

This is a serious mistake often made by most start-ups when they unintentionally overpay their taxes. Tax returns must be filed very carefully and you must only pay what you owe, not more! It is better to procure the expertise of a professional accountant who may turn things into your advantage, which is a reduction in taxes. Any new business feels the heat to save as much as possible, so hiring the expertise of a professional will lower your concerns of mismanagement and calculation.

Know Your COGS and Margins

COGS stands for cost of goods sold, which refers to the total cost incurred on the goods produced and sold. It is critically important to know the total production costs of different products or services in order to set a price that will bring you significant rewards or returns. For example, if a product costs you $20, then obviously you won’t be selling it for $20. You will need to sell it for more in order to earn a return.

Time Is Money—Both Must Be Allocated Wisely

Any new business start-up has very little time to make a mark. Creating a perfect balance may be very hard in the initial phases of business development. However, for attempting things correctly the first time, you need to make a sensible judgment and realistic analysis for allocating time and money in your business. As you know, no business can survive for long without being productive, so you need to allocate your hard earned money and time wisely. This means that spending too many resources on a single person or employee can be dangerous for a new start-up, as you may never know when they may leave the organization.

 Summary

In order for a unique business idea to survive and thrive in the market, money tips to failure-proof the new business can be implemented and applied to give the business more time to create an impact.  It all starts and ends with an effective management of money—the better that is, the better the result!

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
When you hear “small-business bookkeeping software,” you possibly think of QuickBooks. Since Intuit launched its leading product over 20 years ago, the financial management platform has conquered the accounting software marketplace. Presently, QuickBooks software holds more than 80 percent of the small-business market share. If you’re exploring small-business accounting solutions, clearly QuickBooks is on top of the list. QuickBooks has a product for nearly all of your bookkeeping needs, but sorting through the options can feel like an insurmountable task.

If QuickBooks is usually believed to streamline accounting, then QuickBooks Pro is thought to polish and perfect the procedure. There are two products available: QuickBooks Pro and QuickBooks Pro Plus, both full of advanced functions and perceptions. The Desktop Pro version simplifies accounting and helps companies stay organized despite of the large amount of data they have to collect and analyze.

Inter-Company Transactions

Once in a consolidated file, use journal accesses in QuickBooks to cancel out intercompany transactions that throw off the accuracy of the consolidated statements. These are transactions where related subsidiaries may sell inventory or services to each other. Each subsidiary’s balance sheet records the transaction accurately, but when consolidated, the transaction is double counted, throwing the consolidated balance sheet out of balance. Accountants use a journal entry to correct the imbalance.

QuickBooks Enterprise

QuickBooks Enterprise, an upgrade to standard and professional versions of QuickBooks, combines data from several company files and exports them into a Microsoft Excel file. Once in Excel, you consolidate the totals as needed. Access the feature by selecting “Combine Reports from Multiple Companies” under the “Reports” menu. Select the reports you wish to combine, including balance sheet, profit and loss, cash flow and trial balance.

Advantages of QuickBooks

No matter what the nature of your business, keeping an accurate set of books is essential. Without accurate business records, it will be difficult to attract the funding you need because business records are generally the first thing potential lenders and investors want to see. Inaccurate or disorganized business accounts can also make it difficult to file your taxes or even land you in hot water with the Internal Revenue Service. Using QuickBooks to keep your business records lets you avoid those potential problems.

Ease of Usage

One problem with bookkeeping programs is that many of them are difficult to use and cumbersome to learn. QuickBooks, on the other hand, is intended to be intuitive and easy to understand, even for business owners who lack an accounting or financial background.

Incorporation

The ability to assimilate with other programs is a big advantage of QuickBooks. After using the product to input all of their business income and expenses, business owners can easily export that data to their favorite tax preparation program to make filing income taxes at least a little less painful. QuickBooks also integrates well with Microsoft Excel, making it easy to import data from other sources and use it in QuickBooks.

Customization

QuickBooks provides a number of ready-to-use templates that business owners can use to create invoices, spreadsheets, charts and business plans. The software also makes it easy to customize the look and feel of those documents, giving them less of a cookie cutter appearance and helping them to stand out in the crowd. The ability to customize invoices can be particularly useful and business owners not only can add their company logo, but detailed information about each line item as well.

Check Signing

If you sign a lot of checks for your business, using QuickBooks can save you a lot of time. QuickBooks permits business owners to scan and upload their signatures and use those signatures to prepare the checks for the business. This automated process is much simpler and easier than writing hundreds of checks by hand each month.

Final Note

QuickBooks is the ideal business bookkeeping software for small to mid-sized business owners. You can save time on bookkeeping and paperwork because many simple bookkeeping tasks are handled automatically making it easier to run your business. You can easily generate the reports with the information you need and you save money because QuickBooks is so affordable.

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.