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

Do Not Enable your Clients to Set the Terms of Payment

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

Computerize your Charging Procedures

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

Computerize your Accumulations

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

 Acknowledge Electronic Installments

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

Put your Money to Work

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

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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.

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Accounting software has made bookkeeping and finances easier than ever. With a cluster of options to choose from, the software may be used to perform almost each and every one of the complex bookkeeping tasks that were once handled manually. Moreover, the bank auto connect option enables one to import their bank statements into the accounting software of your choice. This option allows for all bank transactions to be updated automatically in bookkeeping records. However, there are exceptions to this import functionality and a few are discussed in the paragraphs that follow.

Access Denied

Despite a company choosing to use accounting software to ease the burden of keeping track of business finances, there may be restrictions imposed on access to transactions by their bank. For instance, integration of the software with the bank’s internal system may not be allowed. Moreover, the bank could refuse access to any and all business bank transactions to the software. In such a case, importing bank statements into an accounting software is likely to fail. This might as well be a safeguard or internal control implemented by the bank’s management in order to ensure secure access and security against vulnerable accounting software.

Format Unsupported

Another reason for import failure may be attributed to formatting issues that have become a serious matter worth contemplating recently. The data could be in such a format that the accounting software cannot easily import it. Depending on whether the software has a potency for adjusting to every data format, this may impede the seamless process of importing bank statements into accounting software. Therefore, it is essential that the software supports the type of format that the data entails to allow import. In addition to this, the software may not support importing bank statements for data that may be older than a few weeks. An alternate importing mechanism may have to be installed in order to do so.

Connectivity Issues

When importing bank statements into accounting software, the connection may not be supported at all times from every remote location. Since banks have implemented internal controls for safety purposes, connectivity of the software with the bank could be an issue. Imagine what could happen if accessing information from the bank was this easy. Therefore, the connection may be allowed for a limited amount of time and only at certain times, per the terms and regulations agreed upon with the bank.

Tax Separation

Another reason why importing bank statements into accounting software may fail is that the particular software is not capable of separating the tax on purchases from the transactions. Tax calculations is an essential matter for many businesses and these must be bifurcated individually in order to estimate the total tax figure. Owing to variable tax rates on different products, these taxes may not be separated out as intended or with complete accuracy. 

Dubious Accuracy

One of the most crucial issues relates to the accuracy of categorization of data. Accounting software can input data with perfection. However, categorization of each transaction is not a possibility unless a criterion for each accounting element and its class has been defined in the software. Without these, the classification of data from the bank statement may be a dubious representation by the software. Moreover, bank statements tend to provide a limited amount of information such as date, amount, and information regarding the supplier. Details are usually not recorded on statements which makes this classification even more skeptical.

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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.

 

 

 

 

 

Printed on the seal of approval documents
There are many reasons that can lead to applying for a bank loan such as buying a car, renovating a house, or going to college. Banks aren’t, however, handing out money to every borrower that comes their way as they have to ensure that the loan is repaid in full. Therefore, anyone applying for a loan must do adequate research about the terms and conditions required by the bank for its approval.

Requirements for a Bank Loan

Before you apply for a loan, you need to understand certain factors that are considered important by ta bank or lender. There are many aspects of a business or individual that are looked into by the bank. However, the following factors are the most relied upon.

  • Credit score and credit history
  • Income or revenues if it’s a business
  • Any outstanding debt
  • Assets in hand
  • Purpose of acquiring the loan

The credit score is one of the most significant factors for a bank to measure the credibility of an individual or business. A well-maintained credit score shows that the person has made responsible financial choices, which basically reduces the risk of defaulting on a bank loan. Surveys indicate that approximately 60% of the people who were approved for a personal loan had a very good credit score.

Apart from having a good credit score, there are many other requirements from a bank. Banks generally have stringent requirements compared to other lending options. Here are a few tips, which can greatly increase your chances of approval from a bank.

Pay Off Previous Debt

Holding on to a large amount of debt can seriously hurt your chances of scoring a bank loan. Banks look at your debt level in terms of debt to income ratio, which signifies the amount of income that goes into paying off the debt each month. For a mortgage, the maximum debt-income allowed limit is 43%. For another kind of personal loan, you may have a bit more leverage. However, the point is that any unpaid loans hamper your chances of scoring a new one. The best course of action should be to pay off your previous loans before applying for a new one, as you will have a better chance of being approved.

Check your Credit Score

You probably won’t want to hear your bank tell you that your loan has been denied because you have a low credit score or there are anomalies in your credit report. Therefore, it is vital to check your credit report before applying for a loan. There are ways to fix your credit report if there are any issues and the best way to fix them is by seeking professional help. However, simple things like keeping older credit card accounts open and loans that have been paid in full are a great way of building up your credit score. If you detect any error in the report, reach out to the credit bureau as soon as possible and file a dispute so that it can be quickly corrected.

Ask Only for the Amount that you Need

One of the worst mistakes you can make is applying for a loan bigger than what you actually require. A bank will ask you for the purpose of acquiring the loan and they will also estimate the costs that are incurred for the specific purpose. A large discrepancy will put them in doubt of your credibility. This will eventually increase the riskiness of giving away the bank loan, which can end badly for your cause.

Another reason for stating the needed amount is that you will have to repay it all with interest. A larger amount will mean that the interest payments will also be greater. Therefore, by all means, it is not such a bright idea to ask for more than you need.

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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.

 

 

 

 

 

 

 

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Keeping your books is not just about preparing for tax filing or tax savings; there is a lot more to it. A lot of critical decisions about the business are made based on the information offered in financial statements. Some might consider bookkeeping to be something that can be done by anyone. However, maintaining accurate records of business financials is not an ordinary task and requires skills and expertise. Businesses outsource professional accounting and bookkeeping services for this job because they consider it important and understand the significance of doing it right. Here are some of the reasons why business accounting tasks should be taken seriously.

Corporate Veil and Bookkeeping

The corporate veil is a legal concept that separates a corporation from its shareholders and protects them from being personally liable to company debts and obligations. When you maintain separate books for each subsidiary of the business, it demonstrates that you have recognized it as a separate entity and, therefore, everything related to the entity is a business of its own. Also, when you keep your personal and business finances separate, it makes it easier for you and the auditors to accurately measure the business performance.

Cutting Corners

Unfortunately, this is an approach that many new business owners opt for and it inexorably comes back to bite them. Accurate bookkeeping is indispensable for tracing the growth of your business and legal/tax purposes. Legal business demands you to maintain an accurate measure of cash flows, expenses, labor costs, and revenues. Cutting corners to save time and money must not be an option and should be avoided at all costs.

Audit and Tax Protection

Every business, whether big or small, has to go through IRS auditing. This can be really bad for you if your books are not well maintained. Discrepancies in financial records will be noted by the audit team and you can face potential charges from the IRS. These charges can result in you paying heavy penalties or fines and, in some cases, even lead to the closure of your business. This is certainly a situation that must be avoided. Appropriate bookkeeping is the only way to avoid such scenarios. 

The amount of taxes that you have to pay depends on the revenues generated by your business. Professional accounting procedures ensure that you pay payroll taxes as well as prepare the documentation for filing your taxes on time. If you have maintained your books properly, you can search for legal ways to reduce the tax burden, which is quite possible given you understand accounting practices. If you are not adept at accounting, it is recommended to hire a professional to assist you with this task.

Bookkeeping Leads to Improved Decision Making

The success of any business depends on its ability to interpret the given information accurately and make informed decisions based on the provided knowledge. The best source of information for any business is its financial records which include expense tracking, budgeting, income statements and sale reports. Any inaccuracy in these records will mean that your decisions are based on imprecise information and that can have disastrous consequences. Whether you are handling the bookkeeping needs internally or have outsourced the job, you must ensure that the highest standards are followed in their compilation. As a business owner or manager, it is your duty to find someone who is capable enough to perform this important task for you.

Automating the Process

The evolution of technology has simplified most tasks that were thought to be complicated just a few short years ago. Using automated bookkeeping services, such as QuickBooks, automates most of the tasks that were previously handled manually. This means that the tasks are completed efficiently with less resources than previously required. You will notice a significant fall in costs related to bookkeeping. You won’t have to spend surplus payroll money on a full-time staff bookkeeper to handle the job, as the automated software will:

  • Keep essential information at your fingertips
  • Efficient use of online banking
  • Better collection of receivables
  • Track real-time receipts and invoices
  • Give you access to financial information on the go

In conclusion, don’t be naïve and laid back about managing your books. Take charge of your business with the help of these vital tips.

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.

 

 

 

 

 

 

 

 

 

Leadership Concepts on Touch Screen
Whether big or small, every company is constantly fretful about handling money. For new businesses, this is even more imperative, as managing start-up finances is crucial to enduring a capricious economy and competition. Particularly, entrepreneurial ventures need to exercise cautiousness with their financial decisions from their incubation. Every business desires a financial structure that engenders profit to maintain their credibility. Entrepreneurs must equip themselves with good money management skills to ensure the success of their venture.

Not all businesses, however, are adroit at controlling start-up finances. This doesn’t mean that you should do nothing about it. Here are a few useful steps that will offer you a good direction to start with.

Educate Yourself on Managing Start-Up Finances

Not every business owner has a firm understanding of basic financial concepts. Many are unaware of the basic bookkeeping rules and lack knowledge about various key aspects. Even if you are planning to hire an accountant, it is imperative to educate yourself on certain basic accounting principles. The long-term success of your business depends on your ability to understand the financial structure of your business because you will have to rely on it for making key business decisions.

Financial statements encompass 4 vital details – balance sheet, profit and loss statement, cash flow statement, and statement of shareholders’ equity. The cash flow statement scrutinizes operational undertakings, investments, and other start-up finances. The balance sheet delivers evidence related to the business assets, liabilities and shareholder’s equity. The profit and loss statement reveals the grossed revenue for a financial cycle. Shareholder’s equity signifies the quantity by which the business is funded through common and preferred shares.

Getting yourself acquainted with such information will be vital for your future endeavors as a business owner.

Plan for Growth

Failure to make a user-friendly product is one of the major reasons of failure for new start ups. However, as an entrepreneur, you are faced with numerous challenges that can be hazardous for your business. As a new business, your focus should be on the target market and every other aspect of the business should be aligned towards your customers. This is the only way you are going to sustain a business.

Your start-up finances should follow a specific plan designed for growth of your company. To secure your venture capital and be eligible for funds, you need to show fast-tracked growth. Otherwise, you will lag far behind in the race. New businesses can run out of funds if the growth stalls in no time as they are unable to sustain losses for a longer duration of time.

Watch the Cash Flow

Managing your start-up finances demands you to establish a financial control that provides your business with a solid foundation. Key internal controls include bookkeeping, auditing, damage control planning and cash flows. These controls are necessary to ensure that your business stays on course in developing SOP’s and manages its cash situation, even in tough times.

At all times you will need to vigorously monitor the cash situation and readjust your forecasts according to the current scenario. This requires setting up maximum purchase limits for everyone so that your business does not run out of cash at a critical time. You will need to oblige all expenses to be recorded on invoices to support audits as well as maintain positive cash flows. Start-up finances should also take inventory management into account, as your chosen method of recording it will have a significant impact on your taxes. If you are filing taxes for the first time, inventory and payroll taxes are two things you need to be concerned about the most.

Evaluate your Achievements

Key Performance Indicators (KPIs) are techniques to measure a company’s triumph in accomplishing business goals. You must create KPIs across multiple departments so that performance can be accurately measured individually.

You should ensure smart KPIs that are Precise, Assessable, Realistic, Pertinent and Well-timed. Goals that are too broad don’t usually have an end date and aren’t within your control. Thus, they are doomed to fail. Start-up finances should be used efficiently to align with the core objectives of your business and eventually help in long-term 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.

 

 

 

 

 

 

 

 

Happy couple using laptop in the kitchen
Finances play a critical and fundamental role in predicting how happy and successful your marriage will be. Lack of financial resources is one of the leading causes of stress in relationships. On the other hand, married couples who trust their spouse with financial issues most often feel more secure with less arguments and more fulfilling intimacy.

However, such level of trust and confidence is usually rare among newly married couples. Although you may know a lot about your spouse-to-be, there may still be huge gaps in your conception about his/her finances. Here are nine money tips you must utilize in order to live a happy and financially stable married life.

1. Have Open Conversation Related to Monetary Matters

Remember intimacy and confidence regarding financial matters begins with better communication. Therefore, you must begin conversations with your spouse on your personal and financial goals. Be fair and open when sharing your current resources as soon as you are married or, better yet, share them with your better half before getting married.

2. Define Shared Goals

Talk about your mutually shared goals with your spouse such as buying a home, having children, seeing them graduating from a renowned school or college, family health and life insurance, and retirement plans. Although financial planning may not be as romantic as other topics may be, you will have peace of mind in the long run if you share mutual financial goals.

3. Create a Budget

Budgeting is essential to achieve your personal and family goals, just as bookkeeping is crucial to managing your book of accounts. Most money tips explained so far revolve around budgeting. It helps us achieve financial balance between our expenditures and our savings within our means, preventing us from getting into a debt burden. A newly married couple’s family budget expenditure categories include Groceries, Entertainment, Dining Out, Shopping, Traveling, and more.

4. Track Your Budget

Making a budget is easy but that is not enough. Married couples needs to maintain their lifestyles strictly on their pre-calculated budget. They must track their expenditure and saving patterns, changes in their earnings and other financial matters and see where adjustments are needed to improve their budget. There are many great smartphone apps designed to manage personal finances such as Mint, an app that can automatically generate a personalized budget based on your income, expenses and other relevant financial activities. It also ensures easy budget tracking and improves your financial outlook by providing money tips and essential acumen.  

5. Build an Emergency Fund

If you are not a couple who keeps an emergency fund set aside for rainy days, wait no longer and start to build an emergency fund for use on a urgent basis. It is one of the most important money tips for married couples which should be your top priority if you want a stable monetary life. An emergency fund is typically money that is proactively set aside and helps you when an unexpected costly event strikes. Such events include and are not limited to loss of a job, a major home repair, family illness, or any natural disaster. Consequently, it aims to save about six month’s worth of your family expenses as an emergency fund.

6. Have Weekly Money Meetings

Having weekly money meetings with your spouse is one of the most powerful money tips to stay on track with your budget as well as achieving financial goals. This ultimately strengthens the level of mutual trust and communication in your marriage. During meetings, newly married couples should discuss what their budget looks like in the current month, how they are doing with their financial goals, if they have any upcoming bills, and anything else regarding money. Also, setting aside some time to communicate financial matters helps the married couple stop worrying about money as they know their matters will be dealt with promptly.

7. Share Expenses

From household purchases like food and groceries to home buying, married couples can qualify for lower charges on bank transactions and retirement accounts and avail mortgages with easy terms upon combining their earnings and savings. In fact, account management fees fall below one percent annually for couples with combined accounts of $250K-$500K and can be a maximum of two percent for smaller accounts.

8. Save For Retirement

Even if you are not married, you must make sure that you are financially secure for the long haul. Consequently, you should start saving for retirement right away. If your employer offers a 401k plan, then put in the maximum amount possible to benefit from any company matching. The compounding interest will grow your retirement fund. Thus, avoid being delayed.

9. Pay off Debt as soon as possible

Debt can render damaging impacts on any person. It can affect married couples more significantly as the two individuals rely on each other and are responsible for paying for their expenditures. Thus, start eradicating your debt as soon as possible.

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.

Young asian businessman carrying heavy box of TAX. Taxation concept
Remember the old saying ‘when pigs fly’? You may have heard your parents mumbling this phrase in response to your allowance increase request. You may also recall it when you saw a casual, unwanted email promising your business 1000 new clients. And, you have possibly even said it when someone recommended that you improve your bookkeeping habits in your business.

You might consider tax preparation a part-time job. However, the key to refining your tax season experience is continuous preparation for the entire year, not just at the time of filing. Developing healthy financial habits should be engraved in the entire culture of your organization. Someone who has suffered from a heavy tax burden would surely understand that ignoring financial responsibilities always results in misery. Bruises may still hurt but they remind you to embrace clever accounting habits, which will ensure the success of your business.   

Get Rid of Outdated Accounting Systems

If you have been struggling to manage a chaos of sales receipts, invoices, and financial reports, you definitely need to redefine your bookkeeping model from scratch. Cloud-based accounting software offers a realistic solution as they allow you to generate, send, and receive receipts and reports in real-time. You can also synchronize the software with your bank account to send or receive payments. All of this is possible remotely, from anywhere. Developing healthy accounting habits should always be a top priority.

As these cloud-based platforms have easy accessibility and functionality, your business will habitually adapt and develop healthy accounting practices that are key to surviving the tax season.

Develop Contemporary Accounting Habits

Most top businesses today have invested in developing a sagacity among their employees that allows them to stay current and engaged. Staying in touch with the latest laws and tax changes is crucial for any business and it is important that you know about them in time so that something could be done before it is too late. The latest tax reforms are a contemporary example, which need to be thoroughly investigated by a team of seasoned professionals. Though you might be outsourcing your business bookkeeping, you should still put an effort into learning about the changes so that you can comprehend things clearly.

Developing contemporary accounting habits also means that you stop procrastinating and start categorizing your expenses on a weekly basis. Leaving things on the back burner only cause them to add up and, when it’s time to file taxes, the situation becomes a fire drill for your whole team. Keeping a regular and consistent record of all of your financials will ensure that you avoid any such situation.

Separate Personal and Business Expenses

Using your business account for personal use is never a good idea. The expenses will continue rising without you noticing and eventually they will add up to your tax bill. You may not consider it a big deal and think of it as a onetime thing. However, over the course of a year, the expenses may accrue to be substantial. This is one of the worst accounting habits you can adopt.

When you use business debit and credit cards only, it will create a paper trail for bank reconciliation which will eradicate the reimbursement process altogether. Don’t stop with only reconciling your bank accounts. All accounts that have an ending balance must be reconciled. Your bank accounts, loans, lines of credit, credit cards and payroll liabilities must all be reconciled on a daily or weekly basis and shouldn’t wait until the end of a month.

Have your Books Reviewed by a Professional

You may consider hiring a CPA an expensive and insignificant endeavor. However, that decision can prove to be one of the most valuable accounting habits that saves you from a hefty tax burden. Just because your books are reconciled, it doesn’t prove that they are also accurate. Having another set of eyes looking at your financials won’t hurt you. Instead, a CPA will offer critical input which could reduce your tax bill considerably. Because these are professionals who have the experience of looking at thousands of financials, they will surely catch any ambiguities and can offer you valuable advice to manage your taxes 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 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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Money can be a difficult thing to deal with, especially if you are an impulse buyer. All those who fall prey to impulse purchases can relate to the dilemma of figuring out what to spend and what to save. Impulse buying is frequent among individuals who are looking to satisfy their wants beyond just basic needs. Segregating the two and identifying when to spend on luxuries has become important in order to survive recent times when money is continuously losing value. Here, a few basic tips regarding what to spend and what to save as part of your routine personal bookkeeping process will be identified.

1. Set Priorities

The first and foremost step is to set your priorities right. Here, priorities refer to choosing what you need over what you’d be interested in buying for the sake of luxury spending. For instance, a top priority could be spending money on basic needs such as food and clothing. Remember, food and clothing can fall into the categories of either basic and luxury. Moreover, it is always a good idea to pay your bills first and then decide on your expenditures for the month. Here is a systematic way to go about doing it: pay your bills, spend on basic needs, spend on what you can’t live without, keep some money away for savings, and whatever you are left with can then be used for luxury spending of any sort. Make sure to follow this order religiously and you will not run out of cash as and when required.

2. Keep an Emergency Fund

Another tip regarding what to spend and what to save has to do with keeping money aside as savings, every single month. It is essential to keep an emergency fund where you can stack up all of your savings for times when you do actually run out of cash. This fund is something you may fall back on in times of a job loss, insufficient cash to fulfill basic needs, medical conditions where you need to purchase the necessary medications, and also during the last few days of the month when essentially every one of us is out of cash for that special take-out extra pepperoni pizza on a cheat day.

3. Don’t Listen to your Impulse

Conquer the struggle of what to spend and what to save by avoiding impulse buying. We often tend to pick up items while grocery shopping that are too fancy and inviting or, in other cases, we are just attracted to it purely because of a promotion going onto it. The overwhelming excitement of a product wears off eventually and then you see no point in making such a purchase. Hence, it is better to stick only to the items on the grocery list and not deviate from them, unless necessary. Caution! Necessary here doesn’t equate your impulse.

4. Be Resourceful

Here, you are being asked to save a little and how so? Let’s identify a few ways how you may be able to save a few bucks from your routine expenditures.

  • Try to use discounts and loyalty cards in avenues that offer similar options.
  • Buy your monthly/weekly snacks when you plan your routine grocery visit. Do not buy snacks every day.
  • Once every 3 months, plan a garage sale. You can get rid of those impulse buys this way.
  • Try to opt for generic but healthy items rather than overspending on brands. 
  • If you want books, use the nearest library rather than buying them.
  • Use the internet for essentials such as watching movies, listening to music and binge-watching your favorite series rather than going out and spending a lot on entertainment.

5. Make a Budget and Follow it

Lastly, another useful tip has to do with drawing up a realistic budget and sticking to it. A budget will enable you to list your monthly expenses and income. Simultaneously, you may also draw up a list of your needs and wants. Once the allocation is complete on each of the needed items, you will have an estimate of how much money you are left with to satisfy your wants. However, this extra money must not be entirely spent on that particular want, a portion of it must go into the emergency fund and savings under all circumstances.

Conclusion

These five tips can help you through the struggle of what to spend and what to save without much hassle. Stick to these and you are good to go!

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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.

 

 

 

 

 

Protecting Assets From Domino Effect. Stop Loss Concept For Stock Exchange Market.
A lot of business owners have misconceptions regarding the law concerning the relationship between the proprietorship and the owner. Because of that, they usually go for expensive plans for protection of their assets. These plans don’t usually work out in the end. Furthermore, some people avoid these plans hoping that their venture won’t face any kind of lawsuit or accident.

It is essential for one to protect their personal assets from the threats that might be posed by the liabilities of a business.

Below is a guide on a few ways to ensure that, if something goes wrong with your business, your assets are safe from the horrors of being seized or confiscated.

The Entity of Your Business

Many businesspersons set up a sole proprietorship when starting out with their business. However, this option is not the safest one when we are talking in regards to protection of personal assets. This is because, being a sole proprietorship, the owner and the business are considered the same entity and both kinds of assets (work related and personal) come under the same category, exposing your own wealth to the threat of a lawsuit. In that case, your firm isn’t able to pay off its liabilities on its own and you’ll have to pay for them yourself out of your own pocket.

In order to set up the business as an entity, which is separate from the owner, it must be registered as a limited liability company or a corporation. You can even go for a two-layer protection, such as having the assets under an LLC and operations under the name of a corporation. Such mixture of multiple entities make it difficult for any kind of lawsuit to affect you personally.

Segregate Work and Personal Finances

You may think that only setting up your business as a separate entity will not provide adequate protection of your personal wealth. You can start this by separating financial documents, operating the company with checkbooks and other documents issued in the company’s name. All property and assets registered in the name of your company will strengthen the protection.

You need to make sure that you follow all regulations that corporations and limited liability companies are required to follow, paying the proper fees and maintaining all documents as demanded by the regulations. If all documentation is properly insured, the business will be saved from a lot of hassle in recreating documents when it comes to a lawsuit. It will also save you, as an owner, from being personally liable for what may have caused the lawsuit.

Take all Possible Precautions to Prevent Lawsuits

This won’t only keep lawsuits away from you but will also help a lot if you ever face one. This also means that you can’t sit back and relax if you’ve registered your business as a separate entity and have ensured the protection of your assets through separating them from the business entirely. You still need to take measures, such as putting up signs where there are safety hazards and ensuring that the quality of your product isn’t questionable and doesn’t violate any set standards required by the law. If you operate with negligence, the lawsuit can attack your personal assets.

Asset Protection vs. Insurance

There are multiple “asset protection” companies that advise methods to avoid insurance by hiding your personal wealth. You shouldn’t fall into such schemes because it is essential for your business to have proper insurance. They help take the bullet shot by creditors and suing individuals and can usually handle incidents in which the safety of assets (business or personal) is under threat.

However, it is integral that you get the correct policy, the kind of which varies with each and every specification. You can even have separate insurance companies provide protection for the entity and the assets of your business. You can get a review of your company from the insurance agent in order to know what the right policies for your business might be. It might sound confusing at first but once you get to know the basics, you’ll be able to streamline your insurance policy to suit each and every need of your business.

Conclusion

If you really want to protect your personal assets from the liabilities at the workplace, you can start by applying what is mentioned in this guide. It is recommended that you consult a licensed attorney with relevant experience. Once you’re done following the outlined steps, the risk to your personal wealth will be minimal and you can operate your business with peace of mind.

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.

 

 

 

Level Up concept as a progress symbol for business success or personal growth aspiration as a cliff and a tree shaped as an arrow with 3D illustration elements.

Managing Business Finances

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

Significance

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

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

Critical To Business Success

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

5 Crucial tips to Keep your Business Finances In Order

Get Yourself Ready For the Tough Job Ahead

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

Keep Your Personal and Private Finances Separate

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

Choose a Suitable Accounting Software

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

Hire a Professional Bookkeeper

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

Make a Budgeting Plan

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

Conclusion

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

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