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A Double Dip denotes a recession in which the business declines after a quarter or two growths and comes back to growth for a short span and again goes into a declining state. 

When a business suffers a double-dip recession, the pressure to perform better increases more than ever. New challenges arrive and the stress level is increased for entrepreneurs as well as employees. Managing huge workload and developing effective strategies to survive through a double dip recession is highly stressful for entrepreneurs facing this. The employees related to the business facing double-dip challenges are often overwhelmed and stressed. Even if the economy is heading down, many business owners/entrepreneurs work on strategies to keep their businesses thriving.

Double Dip Survival guide

During a period of a double-dip, many companies do not survive in the second phase of recession. So, here comes a time for entrepreneurs to make a double-dip survival plan. Entrepreneurs can adopt many policies, techniques, and strategies to survive through a double-dip period and lead their companies towards a growing period.

1.  Reassess pricing of products and services: It is not considered the best option to cut prices all at once. First, consider the negative effects of cutting the price of your business products/services. Also, consider promotional offers such as a bonus product or service at the same price or placing business products on a limited sale to attract more customers and users of your business.

2.  Keep searching for more opportunities
: During a period of recession, entrepreneurs should keep looking out for other companies which are losing market share. As the other company loses its market share for the same product or services, try gaining your market share by moving into new markets. Try to win the customers of another company.

3.  Review products and what changes can be made to them: In a period of recession or during double-dip survival, your products and services must be reviewed and certain changes and upgrades can be made to attract more customers. For example, try introducing more flavors in processed eatables. Try marketing them in bundles at a reduced introductory price like promotions.

4.  Make agreements: Make agreements with other businesses/professionals. For example: Refer clients to each other and give commission as agreed upon by both parties.

5.  Refresh the packaging:
Entrepreneurs can take a look at old packaging of their products and see if they are still appealing or not as compared to their competitors in the market. Customers often love to buy the same product with new attractive packaging. This is a good technique to promote the same product with a better packaging point of view.

6.  Raise up the marketing: Try finding cheaper methods of marketing to reach to your customers. Social media is a good option to reach your customers, getting their feedback and sorting out the queries related to your products or services through social media sites. Make accounts on social media websites and promote your reconsidered products there as well. This might attract new customers and previous customers may come back to your product again.

7.  Entrepreneurs must pay attention to loans, as huge amounts of the sales earnings might have been going to pay back interest. Cut down the inventory if possible and to return the loans as much as possible.

8.  Keep a check and balance on bookkeeping. Constantly take a look at your budget and bookkeeping efforts.  Observe where you can cut back, where you are spending too much, and what changes can be made so that your company survives the recession. 

Entrepreneurs must put all of their efforts and hard work into the business, especially during a double-dip survival period, but must never compromise on their physical and mental health. Short breaks and weekly days off must be taken to refresh and come back to work with an eager attitude.

Conclusion

A double-dip survival period is a hard time for entrepreneurs. Many businesses do not survive in the second phase of recession if good practices and techniques are not adopted. Entrepreneurs must remain vigilant and cope with stress well throughout the recession periods. Entrepreneurs should try different strategies to survive and thrive their business again. Reviewing products and services, promotional offers, managing inventory, building good terms with retailers and wholesalers and searching for more opportunities are key to double-dip survival for entrepreneurs.

 

 

Pen on earnings report with calculator on desk of financial adviser. Concept of invest planning, analyze return on investment.
An accounting statement is the written report of the financial condition of a company. It is the first step in formulating a financial management system. Accounting statements should be prepared on a monthly basis to have a proactive approach. Financial or accounting statements have the following elements.

Income Statement

An income statement measures the sources of revenue and expenses of businesses.

Cash Flow Statements

Cash Flow Statements are the combination of income statements and balance sheets.

Balance Sheet: Gives a snapshot of business assets, liabilities, and equity of owner for a specific period. It is one of the most helpful tools in the financial management system. It is used to measure financial activity for a specific period.

Key elements of the balance sheet are:

  • Current assets
  • Fixed asset
  • Other asset
  • Current liabilities
  • Long-term liabilities
  • Owner equity

A Cash flow statement has four-parts.

  • Net cash flow from operating costs
  • Net cash flow from investments activities
  • Net cash flow from financing activities
  • Net change in cash and marketable securities

The success of an entrepreneurs lies in financial statements because financial statements provide details for better decisions. The progress of businesses can be assessed and measured from these statements.

Following are the advantages of accounting statements driven by successful entrepreneurs.

Predict Future Progress

Entrepreneurs make future predictions which attract and motivate others to work on that great vision inspired by them. Their predictions are based on three projections i.e. assets, future revenue, and operating costs in future. Financial statements provide analysis of projections and allow the company to achieve goals.

In the initial stage of entrepreneurship, projections are used make a team, providing them a strong, practical and measurable vision.

In the middle of businesses, financial statements are used as a measuring tool for determining the accuracy of projections.  Sales and cost trends are assessed to make future predictions. Comparison of past sales and current sales is used to predict future revenue. Similarly, by understanding all steps of manufacturing, supply chain and delivery provide predictions of how the cost will affect the revenues of the future. Bookkeeping is specifically helpful at this stage to make future predictions.

In late periods of entrepreneurship, financial statements reduce complexity and make it simpler to achieve goals and to be more specific in the procedures and targets.

Future Commitment

To grow a business, entrepreneurs must make commitments. Commonly four types of commitments are made by entrepreneurs.

  • Make investments for a fixed asset or a long-lived item. For example: machinery or building
  • Promise for payment of a large amount for a specific period which may be rent of a fixed asset or salary of an expert.
  • Lending cash for expansion of the business.
  • Investments of working capital. For example: inventory management at specific level or clients credit.

These commitments are made to invest in such asset which will lead to the reduction of operating costs and for capacity building to serve future demands. Money, time and energy are utilized. Delivery procedures and sales funnels are designed for conversion of raw materials to a product required by clients. Measuring costs of all of these steps help in making a practical commitment. Predictions and analysis of cash flow help you to prioritize commitments.

Measurement of Progress

Accounting or financial statements are used to measure the progress and make critical adjustments in entrepreneurship. Bookkeeping also provides clarity in the scenario.

The first step is the comparison of actual progress and projected progress. This comparison provides you a report regarding achieving goals and targets set by entrepreneurs. Top performers can be rewarded if you measure progress accurately and determine individual contribution. Progress measurement helps you to recognize problematical areas and bottlenecks. It helps in preventing fraud and making a strong, trustworthy, and motivated team.  Progress analysis results in better decisions for the future.

It helps you to recognize cost trends so that you identify the problem early and make corrections necessary to keep the business safe and on the expansion and growth track.

Conclusion

Accounting statements are the lifeline of successful entrepreneurship. Quarterly reviews enable business owners to make better decisions for achieving goals. Bookkeeping is also used as a tool to control and analyze progress.

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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Reducing overhead expenses can be tricky as modern business has many new aspects to handle. However, for it to make a difference, saving costs matter greatly. To be able to contribute beneficially to all commercial endeavors, arresting any unwanted or unnecessary costs is the key to good management skills. In the global markets today, being cost-effective is definitely a magnificent step.

 8 Strategies for Reducing Overhead Expenses

  1. IT Resources And Its Costs

IT resources can eat up energy, so being energy efficient and reliable are two things that are mandatory for modern IT shared resources like printing and email. Switching to equipment that helps things run with low costs is highly advised. Large screens consume more electricity and so does an older version of motherboards and drives. The latest technology allows more cost and energy savings. For example, converting your business needs to cloud computing is a little costly but, once implemented, it saves many resources and is always feasible in the long run.

  1. Reducing Overhead Expenses with the Internet

Using internet telephony is a marvelous way to save on business communication costs in the shape of reduced phone bills and other expenditures incurred for different services that are offered on a mandatory basis by the phone company. And, living in the 21st century, it’s wise to utilize all that is available.

  1. Monitor Payment Services

Some banks deduct charges from the merchant account. If that increases and the turnover isn’t worthy of it, stop using it. If sales are poor and the only sales that do occur are online payments, that means partial profits. For reducing overhead expenses, insist on cash wherever applicable.

  1. Daily Vital Activities

The digital era has turned offices paperless. Vital daily correspondences, for example, between vendors and field agents like engineers, for specific material requests can be conducted and stored as PDF on digital storage media much easier as compared to printing paper for a file. Having a centralized database of correspondences would be a good idea if the situation is as described. However, other expenditures such as electricity and heating expense must be supervised. Employees who wish to work from home are welcomed to do so, reducing overhead expenses, cutting utility charges, and other related expenditures. Even on premises, make sure an advisory system of politely requesting all equipment to be placed in standby mode to become more cost-efficient. Avoiding high frequency lighting and providing energy efficient light such as low energy bulbs offer a significant sigh of relief when billed.

  1. Outsourcing

Some businesses require minimized accounting or IT services which can easily be received by consultants or service providers. By outsourcing such departments, businesses can benefit with employing interns or freelancers. Temporary staff is effective for specific projects. Businesses like vending or merchandising eradicate the need for mass training of staff and help in reducing overhead expenses. 

  1. Outdoor Calls

Traveling for campaigns requires cost-effective methods such as using teleconferences instead of taking a team of marketing whizzes on a three-day product introduction workshop. Using business tools for communication like Skype should be the first mode of all such conferences. With technology and the evolution of the web, it’s a smart business tool that is always an influential ally of a business. Traveling lightly or traveling only on essential trips that are necessary help to economize by reducing overhead expenses. 

  1. Business Gatherings

It is always a great idea to know business contacts but it’s even smarter to form joint venture partnerships. Some businesspersons welcome such projects and, with the experience it provides, the portfolio of a business shines bright! Sharing projects leads to consortium which helps provide an influx of revenue while sharing tasks between entities. This approach is rampant in construction, oil and gas, power generation, etc. This practice leads to win-win situations which are of mutual interests. Carrying assigned tasks per project description helps in reducing overhead expenses on both sides, while delivering quality and ensuring a greater profit.

  1. Smart Decisions – Buy Versus Rent

Some business owners have to deal with this often. Renting versus buying; which is better. It’s always a great idea to procure small equipment like pumps, which are easily handled by trained staff. It’s a little more difficult with high power industrial pumps which can be rented in dire circumstances. But, it’s always preferred that the continuously needed hardware should be purchased.

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.

3D Illustration, Financial accounting stock market graphs analysis, growing world economy.
The financial health of a business corporation refers to the financial state of a business which illustrates the well-being of its operations. Financial health itself is known to be an indicator of substantial importance in an establishment which determines the profits margins of a company. Profit margins of a company depict the phenomenon where profits exceed the cost in a revenue generated by a business. However, financial health of a business is necessary for running a smooth and successful business which ensures its welfare both in terms of market status as well as higher returns at minimum costs. A recent study conducted in order to explore the key factors which tend to promote prosperous businesses stated that the business enterprises with a high rate of profit margins possess three common attributes.  They are:

  • They are insured for future concerns such as immediate emergencies.
  • They tend to appoint accounting experts for advice on financial leasing of all tools and machinery used in the office. 
  • They manage their transaction activities through a separate bank account and are efficient in budgeting.

The following tips are for entrepreneurs and management teams which can be implemented in order to achieve sound financial health of their businesses.

  • Efficient Budgeting

Budgeting refers to the art of allocating all funds and resources available in an office in order to generate higher profits. Budgeting is a key factor to financial health as it aids in the appropriate use of resources in order to conduct the operations of an office. This tends to provide a business certain limitations and requirements which are necessary in order to proceed with the working processes in an office. Several bookkeeping softwares are available to support the budgeting activities in a financial world. Bookkeeping is the concept of keeping all transactions records in order to avoid any misunderstandings and corruption. This maintains a healthy financial balance in a company. Several bookkeeping softwares such as QuickBooks are available in order to accurately measure and record the transactions taken place in a business which, in return, provides key suggestions for budgeting in future endeavors.

  • Quick Ratio

In order to determine an enterprise’s capacity to fulfill its short-term liabilities, quick ratio is used to determine the economic well-being of a company. A simple formula calculates the ratio of assets to a company’s liabilities. The formula states:

Quick Ratio = Current Asset and Inventories/Current Liabilities

The formula above illustrates the way to discover the quick ratio of a company to determine the cash flow which can be beneficial for repaying debts on time. This also ensures the economic and financial well-being of a company through depicting the marginal profits generated by it.

  • Current Ratio

Current ratio refers to the value in monetary terms which depicts the company’s financial stability in respect to its abilities to pay short-term and long-term debt or liabilities. The formula of current ratio is written as:

Current Ratio = Current Assets /Current Liabilities

This gives a quick view regarding the comparison of assets with that of liabilities. If the assets are more than the liabilities,  a company is  financially stable enough to repay short-term and long-term debts.

Conclusion

The financial health of a company is the indicator for its marginal profits. Marginal profits ensure the economic and financial well-being of a company where it can easily go for future investments as well as repaying debt.

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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Business Funding
/Financing is the course through which entrepreneurs arrange money for investment for business purposes. A investment can be used for starting a new business or to finance current activity in a business that’s already well on it’s way.  

There are 3 main purposes of financing:

  • Funding a business startup
  • Financing for growth and expansion of a business
  • Dealing with unforeseen financial encounters

Sources of Business Financing

  • Self-Funding
  • Giving up Equity
  • Debt
  • Business credit card use
  • Small Business Administration loans
  • Foreign investors
  • Crowdfunding /Selling shares of the business

Are Business Funding Rules Good or Bad?

If you ever turn to economics, accounting or managing the books in a business, there will probably be rules everywhere. Following rules in business are good for running a successful and growing business.

But, experience and personal forecasting and judgment matter quite a bit in making decisions for running a successful business and producing result oriented business operations.

If you ever ask a successful entrepreneur if he is a strict rule follower, the answer will be no. From a study conducted on a course of 30 years and on 12,686 Americans sample size, “Study finds successful entrepreneurs have brains and a history of risky behavior in their teens

7 Business Funding ‘Rules’ to break:


1.  
Think out of the shell. Be rebellious in nature. Being rebellious in business does not mean risking conflict in legal matters. It means to think out of the box. If the market is going down and the overall economy is falling, even then there is nothing bad in taking risks and facing challenges. But, be prepared and get ready before falling into any kind of new challenge. Introducing a product with better taste as demanded by customers in the previous survey can be risky but those who do not try new ventures, do not get new experiences and/or better outcomes.

2.  Be risky in business. If your current growth rate of business is not up to the mark, there is no harm in being risky and going over new horizons in business. Those who do not take risks do not reach to the skies. The large corporations that we now see often started with the least capital investment and a small sized business. Invest money in new ventures and put your efforts in fully. Even if the business goes into recession, it might rise again after using effective strategies.

3.  If you think your previous business history must be spotless in financial bookkeeping, then it is a wrong assumption. Investors are often not interested in previous failures, but they are interested in your new ideas and new business plans.

4.  It is not true that 100% of online lenders are spams or scams. Though many can be, not all are. There are registered tools to find and meet online lenders. Go for suitable interest rates and look at the time in which the loan has to be paid back.

5.  You must always have a confirmed and high-profit yielding business plan to meet lenders. This is again a wrong assumption. It can be true to some lender’s point of view. But, many are just available to lend money and receive it back with some interest.

6.  Do not go for too much loan just to show you need a huge investment capital for the business. This is not the right thing to do. Lenders often have no concern with how large your business is. They are lending money just to get more.

7.  Fail harder. There is no one in the world who never failed in his/her lifetime. Never fear failures. You fall and you rise again. That is the real success.

CONCLUSION

When studying business and financing, we are told thousands of rules during our whole coursework. Accounting consultants and economists are always explaining the rules to run a successful business with an upsurge growth. However, how to fund your business is not always by a perfectly rule-abiding procedure. Use skills, be risky, gather experience from the past, and be  ready to take challenges to ensure a successful business funding and growth.

Sometimes breaking the business funding rules ensures a better entrepreneurship than sticking to the rules as told by books.

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.

 

 

Business team discussing interface of new mobile application
A fine financial management structure depicts how an entrepreneurship business is doing and why. A well-organized system for bookkeeping is critical to establish procedures to manage and control finances. Financial management is the system to place digits to work for a successful business. Financial management is used to formulate the decision that improves business operations and make it more successful.

Advantages of Financial Management

Financial management makes you a better macro manager. These are the advantages gained if you ace financial management:

  1. Turning your business with proactive management.
  2. Debts for business are easily approved.
  3. Quick formulation of an efficient financial plan for sharing with investors.
  4. Accessibility to good tools for making critical financial decisions.
  5. Investing money on fixed assets wisely.
  6. Efficiently maintain inventory and accounts receivable, develop working capital for short-terms.
  7. Clear knowledge of growth orientation and setting goals for sales.
  8. Improvement in margin of gross profit by effective pricing of your services and cutting the effective costs of direct labor, supplier prices. All of these measures affect costs of products.
  9. Cutting down of administrative expenses and general costs plus a more efficient business management.
  10. Planning for taxes.
  11. Planning in advance for worker settlement.
  12. Executing sensitivity analysis with the diverse fiscal variables involved.

Developing a System for Financial Management

The first step is to create the financial statements. For proactive management, you need a plan in which a monthly generation of financial statements is done. This statement needs to include:

  • Income statement
  • Balance sheet
  • Cash flow statement

All of this information can be extracted from bookkeeping, invoices, bank statements, and invoice receipts.

Master Financial Business Management with these 6 Tips from the Best Entrepreneurs

1. Profit Doesn’t Characterize Success

In financial management for entrepreneurs, profitability doesn’t indicate success. Rather, growth indicates that a business is excelling and on the right path. Profit is the ultimate goal for sound entrepreneurs but growth of the business is critical to determine how the business is doing.

2. Identify what Metrics Affect the Business

Identify the financial metrics which are universal and applicable to every business. Closely look into your specific business and identify specific metrics that affect your particular company. The universal metrics are revenue, operating expense, money on hand, gross margins, etc.

3. Don’t Drop Capital on Dumb Mistake

Efficient bookkeeping will help you in assessing your mistakes and where you are losing money. Identify all of the areas where money wastage is avoidable because early profits are more worthy in entrepreneurship.

4. Carry Out a Cost Review

An audit of the business should be done because you cannot monitor all of your employees all of the time. This should be done at least quarterly to have a close look on your expenses and how to justify them.  Audits also reduce the risk of fraud.

5. Make your Time Count

Entrepreneurs have to do many tasks themselves due to small budgets. They have to maintain bookkeeping, run payrolls, etc. Entrepreneurs do things themselves to save money but, in reality, this time should be spent in growth of their business. Use technology to save your time.

The monthly financial statement can be generated through the latest automated software package especially designed for accounting. These are to be used with your manual bookkeeping system. To save your time, you can also employ internal or external bookkeepers to provide you with monthly financial statements.

6. Build a Method to Track Success with Time

Every entrepreneur must have a system to assess success over time. This system is used to validate the financial management system and to reset goals, if needed.

Conclusion

To grow a successful business as a sound entrepreneur, you must have a deeper understanding of your financial management system. Sabrina Parsons, CEO of Live Plan, believes “budgeting, forecasting, and planning are not just for start-ups. If you do this for an ongoing business, you’re going to grow 30 percent faster, you’re going to be more successful and your numbers are going to mean more.”

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.

 

 

Handshake of two big successful investors
In business, it is important to establish a good working relationships with your vendors. A business must keep track of their payments by keeping accurate and punctual bookkeeping and maintaining their accounting records. Establishing and maintaining good and successful vendor relationships is important and is the key to cost-effective operations. The success of your business can easily depend upon effective vendor management. Every business needs to know how to have exceptional vendor management as well as the success tips behind this idea.

Today, many companies want to know how to have effective vendor management. Many companies and managers share their experiences regarding vendor management and how to effectively deal with them on a number of issues. They offer tips on establishing a proactive dialogue and two-way proactive communication with them. This eventually leads towards building strong relations with vendors and maintaining flexibility through successful vendor management tips. This further ensures successful outcomes for your business.

Vendor Management

There is a wide variation that exists among business owners and vendors regarding procurement processes, logistics, autonomy and payment processes. Business owners must take various approaches to ensure that their vendor management is performed effectively and efficiently. To maintain a good relationship with your vendors, there are a number of success tips that have emerged through effective vendor management techniques.

Successful Tips

Vendor management should be an integral part of your business and, for that reason, here are some vendor management success tips that you, as a manager or business owner, should know about.

  • Clearly define your vendor management processes up front to all stakeholders and employees involved. Effective vendor management involves service level agreements, processes, documentation, etc. All of these are completed before contractual execution which is effectively taken into account.
  • Effective vendor management also involves building a solid base foundation with an explicit framework. It further involves striving for collaboration and partnership with vendors and then practicing it efficiently.
  • It is important to document each and every interaction with the vendor, from contractual terms or payment negotiations to logistic support documents. By documenting each and every process with the vendor on the front end, it further improves upon the relationship and maintains all of the necessary legal documentation as well.
  • It is necessary to continue upon the vendor relationship properly by creating contractual amendments and pricing adjustments based on a mutual consensus and an agreement that can benefit both parties. You should allow vendors to bring in solutions and innovative ideas as your vendor knows their market situation better than anyone. This also involves you making sound judgments based upon your analysis and research.

 

Further Strengthening Vendor Relationships 

To ensure proper vendor management, it is necessary for both parties to be fully aware of the expectations, processes and all legalities before agreeing to contractual terms. To ensure alignment of the vendor and business processes, all of the needs and requirements of both parties should be explained clearly. The vendor should also clearly define all deliverables and how they shall be held accountable to manage those outcomes.

Proper terms and conditions should be clearly defined in the contract to hold both parties accountable. All of the processes, including the tasks, responsibilities and key deliverables, must be defined in a concise manner for both parties. This further ensures top vendor management and also allows collaboration and give-and-take for both sides of the relationship. Careful documentation not only protects each side when any legal problems arise, but also provides clarity to the vendor and owner about their needs and expectations.

Top vendor management success tips involve a vendor evaluation process. Extra responsibility should be assigned to the vendor which can further ensure successful engagement. The business owner or manager should maintain their strong presence, as relationships can be complex to maintain. Vendor management should be given priority and full attention, when required, to ensure smooth running processes.

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 being depressed by accounting in his office
Accounting and bookkeeping are the key jobs in any business. Accounting is the systemic and complete recording of financial operations in a business. Business bookkeeping is the recording of financial dealings as a part of the accounting process.

Small business accounting errors range from minor errors to big accounting and bookkeeping errors which cause grave danger to the business. Accounting problems start with irregular bookkeeping and accounting. This will not give a true picture of the business and no good decisions can be made. Entrepreneurs/owners often do not realize that common small business accounting errors are a major threat to the growth of their business in the long run.

Here are some common accounting errors that actually damage the businesses.

NOT USING AN ACCOUNTING SOFTWARE

Manual work is always the toughest and is at risk for errors. A small accounting error can lead to big damage in businesses. Small and medium-sized businesses should use an appropriate accounting software according to the type of business they run. Cloud accounting is an emerging technique in accounting software and has its benefits in small to medium-sized businesses. 

Manual accounting is time-consuming and the chances of errors are much higher. While using an accounting software not only diminishes the chances of errors, the software also take much less time for accounting operations.

Choosing an appropriate software is an important and challenging step in business according to your needs. You should consider its cost, usability, and extra features when choosing a suitable software for your small business.

Features of an accounting software must include

  1. Inventory management
  2. Sales tracking
  3. Contacts management and contact history following
  4. Account to accept credit card payments
  5. Producing invoices
  6. Financial statements, cash flow statements, and balance sheet,
  7. Budget planning
  8. Payroll
  9. Taxation matters

INFREQUENT BOOKKEEPING

Bookkeeping and accounting statements must always be kept up to date in any business. Running behind in bookkeeping and submission of entries of the expenses or sales will not produce an up to date picture of the business and allow you to make timely decisions. It can lead to a negative balance if expenses are made but an income statement is not updated. Invoices that have not yet been paid by the company may go unnoticed and it can lead to a bad reputation for a company. It can end terms with your suppliers. Business growth is ceased or significantly reduced. Not producing financial statements monthly is common in small business accounting problems.

MIXING PERSONAL FINANCES WITH THE BUSINESS ACCOUNTS

  • Business owners combine their personal cash with business expenses. It is of utmost importance to keep the personal finances and the business finances separate. If these two finances are not isolated then it cannot be known what was planned for business and what was consumed personally. The amount of profit that was produced out of the invested capital cannot be assessed properly.
  • A business credit card is operated for personal expenditures during a holiday trip or other payments. Later on, this sum will be funded from the company’s income which is a bad idea.
  • During purchase orders for inventory of the company, procurements are also made for private use.

COVERING SMALL EXPENSES IN A BUSINESS OUT OF POCKET

Business owners take it upon themselves to pay small expenses for the business out of pocket as it saves their time. However, these expenses are not listed in the business bookkeeping. The business looks stronger in income when this accounting error is done. While in reality, the business is not that strong.

INTERESTS ON DEBTS FOR MANAGING PAYROLL

Small to medium-sized businesses get loans at the time of monthly payroll. The income of the business ends up paying back the loans with interests. Sometimes, the debts increase as well as the interest on those debts. Businesses, instead, can get the services of payroll companies to avoid heavy long term loans.

CONCLUSION

Small business accounting errors range from minor errors to big accounting and bookkeeping errors which cause grave danger to the business.Accounting problems start with irregular bookkeeping and not using accounting software.

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.

 

A Satisfied Customer Is The Best Business Strategy of All sign
The customer is an asset to the business. Business can only grow if you have customers. Without customers: no profit, no business. The customer should be the focused and central point of a business plan because he/she is the individual who is going to purchase your product or avail your services. 

The customer is the most valuable and central point of every business who must be focused upon while formulating strategies to improve the business success rate. Establishing and maintaining excellent customer services is the critical step in a successful business plan. Customer services require that all customers are equally valuable and you have to understand the expectations of customers. Your products and services should fulfill the needs and wishes of customers. All customers should be dealt with respect and attention. Communication with customers should be effective and business owners should listen to them whenever they need your help.

Issues of customers should be resolved promptly and they should always be asked for feedback. Everybody believes that their opinion is valuable. When you ask customers for opinions or suggestions, they feel themselves valuable and privileged to be customers of such a high standard company. Take their opinion as advice for improvement and make adjustments. In case of any loss or damage, a compensation policy should be there for customers.

Happy customers are assets of a successful business and should be tracked by using CRM software. This software is used to track sales.  Respond to all emails from customers immediately.

The two steps to excellent customer service are as follows:

1. Training the Team for Outstanding Customer Service Delivery

The first step is training of the whole team to deliver excellent customer services. This training should emphasize the following points:

  • The value of customer service for the business.
  • Expectations of the customers.
  • How should these expectations be fulfilled?
  • Ways to satisfy and make customers happy.
  • What are the roles of each employee in delivering excellent customer service?

This training is an ongoing process. All new employees should be trained step by step while refresher training should be scheduled for seasoned employees periodically.

Train employees in such a manner that they show commitment to deliver customer service at their best. The more you emphasize wonderful, committed customer service, the more satisfied your customer will be.

2. Consistent Emphasis on Expectations of Customer Service

Once the entire team is well trained, begin reinforcing the value of customer service expectations. The more you emphasize your expectations of customer service, the more committed the employee will be in delivering excellent customer services. Bookkeeping data will help you trace the value and size of transactions made by various customers and how each customer’s buying is affecting your business. Use CRM software to track satisfied customers. Providing them great services ultimately increases the growth of the business.

Any flaw or weakness in customer service is the failure of business planning. It has many reasons. Either all employees didn’t get enough and appropriate training to deliver services according to customer expectations or employees are not well aware of the value of customer service due to lack of emphasis and reinforcement by the trainer. Another reason is that the company doesn’t have the proper well-established system for customer service monitoring related queries and feedback. Also, any employee that failed to deliver customer services efficiently that have not been fired by management is a failure in business planning. Analyze shortcomings and overcome all to flourish your business.

Any errors related to customer service can be forgotten and forgiven if the customers you have see that you have improved your systems and processes.

Develop Standards

Classification or grading of customer service cannot be done without having standards. Develop standards and train employees accordingly. Unsatisfied or grieved customers often leave your business without complaining. This is the real loss of your business. The satisfied customer will remain your customer for a longer duration and refer others to you. This is the key to success of the business.

Conclusion

Customer service should be excellent to win the loyalty and trust of the happy customers. This is crucial for the growth of the 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.

Five marble pillars of islam or justice on blue cloudy sky background, details, front view. 3d illustration

What is an excellent company? What are the features that identify business excellence? Whether we want to achieve this degree of excellence or identify large companies to work with, what are the values ​​we have to take into account?

Axesor marketing intelligence believes that there are at least five factors that we can take into account when assessing the type of companies with which we do business with. We will discuss the five pillars of excellence below.

Financial Management

Good financial management raises companies high above their competitors.  This includes account profitability, risk, and stability beyond the short term.

By comparing the structure and evolution of a company’s income statements, in addition to other key indicators, excellent companies can be determined and compared with others based on their commercial segment and sector.

Thus, the most healthy, stable, and with less risk of default societies are identified. These are truly attractive entities when proposing new commercial agreements.

Management of Human Resources

Over time, the staff of a company becomes one of its defining features. Therefore, in order to locate an excellent company in its management and organization of human resources, it is essential that it has an efficient composition of employees.

The distribution of the number of employees in different departments and the volume of expenses that it presents are some of the key factors in this regard.

Innovation Capacity

The innovative capacity of companies is also a pillar of excellence because they can face new challenges efficiently and identify new possibilities to increase their business.

In order to locate the companies with the highest degree of quality in the field of innovation, it is important to properly assess their investment in R & D & I and new technologies to weight this absolute data as well as the productivity ratios resulting from these investments in comparison with those of the competition.

Degree of Leadership

Larger companies are not always the most profitable in terms of business since a company with a large volume of profits does not ensure excellent management.

However, the position of a company in the market itself can possibly determine to what extent we are interested in them becoming a client.

To establish this degree of leadership, we must take into account the results, both in turnover and market share, which allow us to segment the entities depending on their level of activity within their geographical and sectoral scope.

Import & Export Capacity

Finally, finding stable companies means locating those that diversify their activity in different geographical areas and are not very dependent on specific local situations.

The capacity of an entity to carry out imports and/or exports depends on factors such as financial results, physical location of the company, or the business to which it is dedicated to.

These and other indicators allow you to calculate both the health of your foreign commercial activity, if any, and the possibilities of carrying out quality business in the future.

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 QuickBooks™️ ProAdvisor’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.