Author: Complete Controller

The wide acceptance of artificial intelligence in society has changed our lifestyles. When it comes to business, artificial intelligence offers a wide range of benefits. Most enterprises prefer artificial intelligence to decrease their operational cost and maximize profit. Artificial intelligence has become an essential part of our lives, and we interact with it daily while performing daily house chores or conducting business activities. The impacts of artificial intelligence on organizations are beyond our thinking.

Artificial Intelligence – A game-changer 

Artificial intelligence is a broader term and can be used to define multiple computer programs and software performing human activities and functions, including planning, learning, and problem-solving. We can’t associate artificial intelligence with some specific applications or features, as it covers several aspects. To analyze the impacts of artificial intelligence on organizations, we need to consider different areas.

Machine learning is the most common example of AI in business that helps develop and expand. Machine learning is beneficial for processing larger data sets within a short period by using algorithms. These algorithms are getting better over time—machine learning analyzing many datasets.

• Deep learning 

Deep learning is more specific than machine learning focusing on neural networks for nonlinear reasoning. It has more advanced features such as fraud detection, performing multiple analyses, and others. An example of AI in business is identifying information related to driving cars, including speed and distance.

Among the most significant impacts of artificial intelligence on organizations, deep learning models. The machine learning algorithms lose their capability once their maximum amount of data reaches the limits. However, deep models perform better with an increased amount of data.  

• Artificial Intelligence opportunities in business 

Artificial intelligence acts as a supporting tool for business. One can see the most common impacts of artificial intelligence on organizations through their operational changes. AI offers innumerable benefits to businesses, but all you need is the willingness to change its structure wherever and whenever possible.

• Transforming E-commerce 

Several e-retailers, including Amazon, are in search of AI solutions that can reduce their cost. Many online businesses leveraged technological advancement to understand their customers better, generate more leads, and offer an outstanding customer experience.

An example of AI in business is the use of cookies to offer personalized recommendations to consumers. Ever thought about how a platform knows what a user wants? They use Natural Language Processing (NLP) features such as images, videos, and voice recognition.  

Several firms extract valuable information from consumers to predict online behaviors and products that will best suit them. Usually, more personalized messages lead towards loyal customers and act as a tactic for businesses to understand their customers better.

Some companies are also implementing techniques for identifying product returning probability, which help them perform better. There is a wide range of impacts of artificial intelligence on organizations, especially in the e-commerce industry.  

• Digitization 

Artificial intelligence is a kind of decision-making software that has improved the decision-making process compared to existing software. This improved decision-making power resulted in implementing technological innovations within businesses to perform complex activities and tasks regularly. These impacts of artificial intelligence on organizations led towards more reliable decisions.   

• Automation 

Artificial intelligence has a crucial role in automation and efficient customer relationship management (CRM). Usually, businesses rely on the CRM model to organize and manage employees and teams efficiently. Leveraging artificial intelligence into the CRM model helps the company to get updated with the relevant information without any human involvement.  

The automated CRM model sends automatic updates to the responsible person, ensuring the smooth and controlled functioning of the organization. Artificial intelligence has also introduced the concept of a self-correcting system, which eased project managers’ work through the effective management of work life cycle.

AI provides opportunities to financial institutions, including banks and trading organizations, to offer a better customer service experience. An example of AI in businesses is chatbots, ensuring outstanding consumer service through query resolution and guidance.

You can extract information from the customers’ queries and use it to train your chatbots. By integrating AI in their process, organizations can cut their labor costs and reduce errors caused by human interaction.  

Nowadays, software solutions are based on predictive analysis and data science management. These are positive impacts of artificial intelligence on organizations that help them in gaining insights and resolving problems.

In a nutshell, the scope of artificial intelligence is constantly expanding in multiple areas of businesses. The impacts of artificial intelligence on organizations are not invisible anymore. Technological innovation not only makes your working techniques efficient but also makes your business market competitive.    

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Accounting is an integral part of any thriving business, and financial analysts are vital in providing valuable insights through analyzing financial data. It’s important to note that even the most seasoned financial analysts can make mistakes, which may lead to inaccurate financial statements and flawed analysis. Nevertheless, we have an opportunity to learn from these mistakes. In this article, we’ll explore the top five accounting mistakes that financial analysts may make and offer practical tips on how to avoid them. Join us as we embark on a journey of exploration, learning, and bolstering confidence in financial analysis!

Failing to Reconcile Accounts

Reconciling accounts is a vital process in finance that involves comparing records to ensure they agree. Financial analysts who don’t reconcile accounts run the risk of double-counting transactions, overstating assets, understating liabilities, and, ultimately, misrepresenting the company’s financial position. It’s essential to reconcile accounts regularly, like monthly or quarterly, to guarantee the accuracy of financial statements. This method helps avoid errors and allows for a clear and transparent view of the company’s financial standing.

Misclassifying Transactions

Financial analysts understand the importance of accurately classifying transactions to ensure that financial statements and analyses are reliable. Misclassifying transactions is a standard accounting error that can have significant consequences. An incorrect classification can lead to an inaccurate reflection of a company’s financial position, potentially inflating assets or understating liabilities. That’s why we strive to work diligently to classify all transactions correctly. By understanding the distinctions between assets, liabilities, and expenses, we can confidently navigate the financial landscape and provide valuable insights to our clients.

Failing to Account for Accruals and Prepayments

Accruals and prepayments are transactions that have been incurred but have not been paid or received. Failing to account for accruals and prepayments can lead to inaccurate financial statements and analysis. For example, if a company has incurred expenses but has yet to pay them, failing to account for the accrued costs can lead to an understatement of expenses and an overstatement of profits. Financial analysts must ensure accruals and prepayments are accounted for and that the financial statements reflect the company’s financial position.

Ignoring Cash Flow

Numerous financial analysts prioritize the income statement and balance sheet, often overlooking the critical cash flow statement. Neglecting this vital component can result in misleading assessments of a company’s financial well-being. Profitability doesn’t guarantee solvency; a company could face issues if it lacks the necessary cash to meet obligations. Analysts should scrutinize the cash flow statement to discern the sources and destinations of a company’s funds, ensuring a comprehensive understanding of its financial dynamics.

Failing to Update Depreciation

Depreciation is the process of allocating the cost of an asset over its useful life. Failing to update depreciation can lead to an overstatement or understatement of assets and profits. For example, suppose an asset’s useful life is ten years, and the company has depreciated it for only five years. In that case, the asset’s value will be overstated, leading to an overstatement of profits. Financial analysts must update depreciation regularly to reflect the actual value of assets and profits.

Conclusion

Financial analysts play a vital role in examining a company’s financial data, but even the most seasoned professionals may sometimes make accounting errors, leading to flawed financial statements and analyses. Fortunately, our article highlights the top five accounting mistakes to avoid, ensuring dependable and precise financial analysis. By taking these preventive measures, financial analysts can help businesses make well-informed decisions based on trustworthy financial data. Let’s strive for precision and excellence in our economic analyses to support success and growth in the business world!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A term deposit is a fixed income investment, that is, an investment that promises a safe return. You give the bank an amount of money, and within a known period, the bank puts at your disposal your money plus a profit. 

The term deposit helps you to invest money for a specific time with a fixed interest rate. The term duration usually ranges from three months to five years. It’s up to you to either withdraw the money you invest with the lender or reinvest it. 

Reasons to use a term deposit

There is no risk if you invest your money with lenders and get a specific amount of interest. There is a fixed time in which you can lock away your money. If you want to withdraw your invested amount, you will pay penalty charges. To open a term deposit, you will need to spend at least $5,000. The reasons for the term deposit are as follows.

• Higher interest rates let your money grow fast. By term deposit, you get more interest as compared to transactions and saving accounts. 
• The government allows you a guaranteed deposit. It pays a specific amount for Deposit in the unlikely event that the lender fails. 
• You don’t need to pay charges for set-up. But you will give 31 days’ notice with a penalty fee for getting back your invested money before the term of Deposit ends.  
• You will need to ask to open a linked transaction account while applying for a term deposit.  

Characteristics of a term deposit

Next, we will discover the characteristics of term deposits:

• It is a collection instrument that allows the investor to deposit money at a particular time, obtaining at maturity the return of the principal plus the interest at a previously known rate.
• The profitability shows at the beginning of the operation. The client can dispose of the funds upon expiration thereof.
• Individuals or companies can be fixed-term or renewable, nominative, endurable, unipersonal, or personal.
• Renewable: When taking the Deposit under this modality, when the expiration date arrives, the client has three working days to recover part or all the money; otherwise, the Deposit will be renewed automatically for the same term and at the preferential interest rate that the bank has that day.
• Fixed (Non-Renewable): When the expiration date of the Deposit arrives, it stops paying interest (and readjustments, if applicable), and it is up to the person to rescue it from the bank. That is, the money invested earns interest only until the date the Deposit expires.
• Currency: It can be in pesos, UF, or foreign currency (dollars or euros).
• Term: Depending on the Deposit, they are usually from 7 to 365 days.

Benefits of a time deposit

Here are the benefits of term deposits:

• You can make investments for amounts that are within your reach.
• Obtain Preferential Rates for Automatic Renewal Deposits and Deposits made online.
• You can request that your Deposit of more than one year be covered by Tax Benefit 57 bis of the Income Law.
• Generally, the certificates are Electronic Custody, without costs.
• Time deposits in UF practically guarantee a positive absolute return since, when expressed in UF, they are readjusted monthly with the CPI, a factor that partially protects them against inflation.
• Term deposits contracted through the Internet have preferential rates with the convenience of doing it from anywhere at any time.
• The term deposit allows you to earn a fixed amount of interest-based on the specific term. It would be helpful for cautious savers as there is no chance of losing your money. 
• The term deposit protects you from market slumps. It means if the market’s interest starts falling, the growth of your investment will continue with the same level of interest. 

You should note that profitability is not advisable to renew a term deposit when the expiration date arrives automatically. The new rate applied is usually lower than the original, so it is essential to negotiate again with the financial institution.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The ability to recognize the financial heal of your company is one of the most vital skills for an aspiring entrepreneur. Armed with this information, entrepreneurs can better identify the promising opportunities while ignoring the undue risk and making more strategic decisions. 

Whether you’re a fresh entrepreneur or an investor, you need to understand how to analyze and create financial statements to get an accurate acknowledgment of your business’s finances. The financial statements are the report card of a company. The financial information will inform you how much cash the operations have buried away, how much debt you owed, the revenue-generating each month, and the total expenses. 

Understanding the financial language of a business is a crucial task for every entrepreneur who doesn’t come from an accounting background. However, it is of utmost significance to understand the mechanisms of the financial statement rather than keep investing money blindly. 

 Successful entrepreneurship has a versatile knowledge of accounting tools. Grasping the understanding of organizing monetary statements permits one to accomplish principal tasks. 

Benefits of Understanding the financial statements: 

The following are the most beneficial pointers for any entrepreneur who understands the mechanism of financial statements. 

1. With a primary understanding of finance, an entrepreneur can easily predict the future of the business. They can coordinate with the accountants and financial advisers to accomplish their goals. 
2. They can utilize their valuable time, energy and fund more productively by making intelligent decisions. 
3. They can review the finances and implement their tactics accordingly. 

Comprehending accounting statements: 

To identify a company’s financial position, you need to analyze and review the sub-sections of financial statements, including balance sheets, income statements, and cash flow statements. The value of these documents lies in the narrative they represent when analyzed equally. 

The balance sheet: The balance sheet defines the “book value” of a business. It shows the assets, liabilities, and owner’s equity. It allows you to consider your company’s available resources on a specific date. The balance sheet also provides the data that it can grasp to compute a rate of returns and evaluate the capital structure, utilizing this accounting equation. 

Assets= liabilities + owner’s equity

The Income statement: 

The income statement represents your sales revenue, operating expenses, and income for a specific period. Sales revenue gets split into cash and credit sales. It is usually known as the P&L (profit and loss) statement. This document is being shared as a part of the quarterly and annual reports and shows economic trends, business activities, and comparisons over a set period. Accountants or entrepreneurs regularly review income statements. The net income shown on this document is the difference between the credits and debits. 

The cash flow statement: 

The cash flow statement borrows some of its information from the income statement and the balance sheet. For instance, if you purchase new inventory with cash, your long-term balance sheet assets will increase, and an outflow cash statement will appear on the cash flow document. Additionally, the income statement expenditures paid in cash list the cash flow statement. On completion, the cash flow statement reveals how much it used cash and how much you have. 

The annual report: 

The annual report refers to the publication that public organizations must publish annually to shareholders to evaluate their operational and financial conditions. At the front, this report shows the editorial and storytelling in the form of infographics and images. On the contrary, there is an availability of detailed financial information. It can use the information provided on the annual report to measure:

• A company’s ability to clear the debts as they come due
• Whether a company generated profit or loss in the previous year
• The cash retained by the business to grow its operations

The above-defined financial statements are interrelated. Accurately interpreting financial statements can work as a litmus test for business owners. Entrepreneurs need to understand the critical data in credit analyses of their business. In this way, they’ll determine the profitability and the risk factor in the asset of their companies. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Every day you strive to increase your company’s profits and reduce costs. But what about yourself? Do you use your human resources optimally? See if you can improve yourself with these twelve tips.

Start each day efficiently

In many cases, you will have more planned for your working days than you could handle. Before you go home, please take a moment to write down the unfinished business and structure them: Start the next working day with manageable ones that You can complete without communicating with others. Then delegate all tasks where possible and applicable. This way, you start with an abundance of completed tasks every day before new requirements interrupt your work rhythm.

Be on time

As a boss, you should set an example for your employees when it comes to punctuality. For you to succeed, you should block 50 percent of your time for unforeseen appointments and calls. Being on time avoids the temptation to go on too many dates. Make appointments as early as possible in the morning, then the risk that other work prevents you from arriving on time is not so significant. Buffer times between charges help that a single timeout does not affect all appointments during the day.

Use the phone

The telephone is handy as a direct communication tool because you can use it to discuss processes sustainably and then finalize them. Therefore, you should seek telephone contact in the event of problems and always set yourself the goal of achieving the plan without delay (for example, giving instructions or deciding).

Optimize your email communication

Many bosses fail to take advantage of one of the main advantages of email: unlike phone calls, you don’t have to deal with them immediately. So, get in the habit of checking your emails no more than three or four times a day. In this way, you avoid being constantly interrupted in your work. You also educate your employees that urgent matters are no longer sent via email but are brought up immediately by telephone or in-person.

Implement ideas

Do you also belong to that type of boss who has good ideas every day but often cannot implement them? Then you should take care of an automatism: Always carry paper and ballpoint pen with you and write down every idea that comes to you spontaneously. Your assistant should then put your thoughts in a fair copy before each employee meeting and present them. If these seem worth pursuing after a discussion, an employee takes over the implementation. The assistant then checks at regular intervals what has become of it. This way, you prevent promising approaches from fizzling out.

Create an expert network

The corporate world is becoming more complicated, and the pitfalls (for example, labor law) are becoming more and more diverse. Even if you keep yourself updated, you may not know everything. You should, therefore, systematically (and not randomly) develop a network of experts: Write down a list of topics (IT, labor law, contract law, recruitment, etc.) and make a note of the experts you already know. Then gradually try to fill the existing gaps and thus have a competent contact person for every difficult situation.

Works council: cooperation saves time

Arguing on the matter is good and can be efficient. Arguing over atmospheric disturbances is just a waste of time. There are, for example, companies in which the cooperation with the works council runs smoothly and in partnership, and others in which lawyers are involved in every operational measure. If possible, strive for a cooperative collaboration. Therefore, you should inform the works councils early on any planned changes and seek regular discussions. If works councils feel that they are being taken seriously, this usually dampens the desire to fight.

Travel time, I was working time

Time is always a scarce commodity for you. So, save where you can. It would be best if you considered whether you could replace travel with video or conference calls. Service providers such as Deutsche Telekom do this without their technology so that there are no acquisition costs. Also, try to travel so that you can work during it, for example, traveling by train or with a chauffeur. Always take something with you to work when you are out – this way, you can make better use of unforeseen breaks.

Don’t allow desk chaos

You should save yourself time searching for mislaid documents and notes. The first rule to introduce is that nobody can put something on your desk – it must be handed over to you personally to know what is in folders and stacks of paper. As a second rule, you tidy up your desk every evening – this is usually only a few minutes a day, but it saves you a lot more search time during the next working day.

Make your decision right away

Postponed decisions are often not made at all, and the matter takes care of itself – often to the detriment of your company. Therefore, decide on every problem. In the issue in which you make a final decision immediately.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Productivity in any sector is a crucial factor, but it is essential in a real estate company, dependent on market flows and continuous customer acquisition. Therefore, whether our work system works for us, we must constantly worry about innovating in the processes and tools that allow us to attract as many users as possible with the same work team. To achieve this purpose, we must know how to make the most of the work time of each real estate agent without implying that it is overloaded with work. And how can we get it?

 

How to increase productivity in a real estate agency

 

Facilitates team management

 

On more than one occasion, we are unconcerned about the most vital things because things work, but are the appropriate management processes carried out through the team leaders? Does each staff member know their daily tasks and what you should do every day to improve sales?

Real estate work is not summarized to teach flats and sell them: that must be the final objective of a chain of tasks in which each contribution counts and ads, but it should not take up the bulk of time to teach one floor after another.

Therefore, before filling the agenda of the agents of visits to flats without more, we must first ensure that each appointment is a real sales opportunity and that each member works for this purpose.

 

Ensure that each team considers weekly and even daily goals to achieve and have the tools and means to do so. Project management programs such as Trello or RedBooth can be beneficial.

 

Put technology at your service

 

Automate whenever you can. That does not mean that you stop counting on the human factor, something key when we talk about selling or renting apartments. Still, precisely that where we can do without a person being in charge, we do it automatically so that the Real estate personnel can dedicate themselves to the most important: serving customers.

Do you know the virtual tour software? It is an excellent example of how technology improves these processes. Through them, customers interested in a home can visit it comfortably from their computers or mobiles without making an appointment for it.

In this way, the virtual tour acts as a filter so that prospective clients can know if they are interested in the property, and the real estate agent would only perform when the interest is sufficient to close a sale.

 

It has an effective real estate CRM

 

Having technology but not being able to analyze and manage the information you provide is worthless. Therefore, a real estate CRM is presented as the most effective support tool to improve an agency’s productivity.

A CRM acts as the axis that allows the proper equipment management to each property’s available information and contact information. It is, therefore, the tool that will enable you to take full advantage of the two points mentioned above.

Thanks to the management of the CRM, I know how much time each employee spends visiting properties and other fundamental sources of information to improve productivity, such as what elements we incorporate into the records of the properties that receive the best visits: those that become clients.

 

Continuous training

We cannot innovate if we do not incorporate new tools and processes, and for this, we must know how they work. Therefore, we must worry that each staff member will improve their training with specialized courses and be able to find and keep up to date with real estate news to detect changes and developments.

In short, what it is about is that we continually invest in improving services and processes not only to sell more but to work better and, therefore, to have the ability to innovate and always grow.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Accounting policies are the rules and regulations chosen by a company to prepare and represent its financial statements. Accounting policies are of utmost importance, as they set a framework that every company follows.

Like other financial policies, accounting policies happen to improve organizational performance in various ways. By acknowledging the benefits of well-structured accounting policies, you can also design and implement the accounting policies in your business to enhance both the efficiency and productivity of the financial operations.

Principle guidelines of accounting policies:

The Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) are the accounting principles that provide the guidelines on how companies should prepare financial statements. However, GAAP is a rule-based approach.

Types of accounting policies:

The accounting policies are classified into two types which are;

1. Conservative policies:

Conservative policies highlight a company’s present financial condition and show better economic performance in the following years. It is an enduring approach, and it permits companies to deliver betterment over the years, which is an optimistic sign for the investors.

2. Aggressive policies:

Aggressive policies tend to engage accounting policies to overstate the progress in the initial years, leading to a significant decline in a company’s performance in the following years. These policies can also provide a refusal from the investors if they feel mismanagement anywhere in the operations.

Disclosure of accounting policies:

When providing a proper understanding of financial statements, it is mandatory to disclose every accounting policy adopted in the presentation of financial statements. Such revealing information must be a form of financial statements.

It would be feasible for the financial statement’s reviewer if all the data is in one place rather than being scattered over various statements or notes. Any alteration in the accounting policy which has a significant effect should always be informed.

Impact of accounting policies disclosures on a company:

In the world of financial management, accounting policy disclosure is issued by organizations and corporations, revealing every relevant data that can potentially impact an investor’s decision. It helps investors make notified decisions and select stocks or bonds that suit their investment requirements and portfolio.

Such information disclosures are assigned through a disclosure statement containing relevant information about the company. The revelations are annotations after a research report, which provides essential information that one might want to consider while making investment decisions.

Importance of accounting policies:

There are numerous reasons why accounting policies are fundamental to preparing financial statements and auditors and investors.

1. The government keeps a check on financial statements:

All companies should follow either the IFRS or GAAP when preparing financial statements. In this way, the government maintains a review of the financial records. Furthermore, it will ensure the investors as well. 

2. Genuine framework:

As mentioned earlier, accounting policies primarily provide companies with a proper framework to record their financial statements, so they must follow a standardized format throughout the process.

3. Provides benefits to investors:

You can effortlessly compare the financial statements with other competitors’ records. By mentioning that they have followed specific accounting policies, investors will develop self-confidence in their operations.

4. Disclosure:

A company must reveal the accounting policies that they implement. The policies comprise individual rules on disclosing information to the investors, and every company should respect the adequate disclosure requirements.

5. Removes uncertainty:

Complete disclosures of the policies also lessen tension to a great extent. Uncertainty is one of the reasons for market volatility. When there is full disclosure by the companies in the market, there is an increased level of total certainty. On the contrary, the volatility level decreases, and stability comes in.

The operations like net profit, assets value, equities, and accounting statements are all affected by disclosing a company’s accounting policies. Potential investors can review the financial records before investing a considerable sum of money in any business. Accounting policies are significant because they help to create consistency and set up a professional platform for decision-making.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Business auditing can process in two ways, internal auditing and external auditing. Internal auditing happens by people in the business- supervisors or other employees. When performing external auditing, you must hire an auditing company or team. An audit company reviews a business’s activities to advise how to make the performance better. They also investigate any chances of theft and fraud and make sure that the industry follows all the state’s rules and regulations. All the stakeholders use the audit reports to review the performance. The stakeholders include investors, government agencies, banks, and consumers. A business’ market share is their part or percentage of total net revenue in an industry. A business’s market share is calculated to identify the size of a company concerning the market it is dealing in. An assessment identifies the audit readiness of a business. 

A business should use proper mediums to ensure those accurate and legal transactions are performed to keep your business audit-ready. A company could use software to make sure that the business is following all the rules. Accounting software should be able to perform day-to-day transactions, indicate and warn about dangers and errors, should be time-saving, and should be able to provide data to auditors with a no edit mode. A few benefits of auditing your business are as follows:

• Compliance: An audit ensures that all the business activities are correct and legal and agree with the command. When regular audits happen, it gives the owners peace and helps them reduce stress to know that they’re following all the rules correctly. If the business does not follow the regulations, it can face heavy fines and penalties.
• Improved systems: Some audits happen thoroughly, which means that those audits will investigate the business’ internal systems and controls. It is an excellent opportunity to gain ways to improve your system advised by professional analysts.
• Increases integrity: An audit verifies that your business is fair and the financial statements are factual. It provides credibility and boosts your confidence. The clients and customers will trust your business, and it is most likely to be their first choice.
• Fraud prevention: A lot of frauds and thefts occur in businesses without any detection or recovery. A practical tool to identify and prevent fraud is an audit statement. People who are skilled and perform audits can quickly point out where fraud is happening in the financial statements. They can suggest ways to prevent them and how to recover from them in the future.
• Easy budgeting: Planning and creating budgets require accurate financial statements to set aims and goals for the business. An audit analyzes that the financial statements made in the companies are true and correct. This way, you can use them while creating a budget too! You can use these financial statements for a lot of other decision-making.
• It will cancel the need for keeping a check every day: With regular audits, the business owner does not have to always keep a check on the records and bookkeeping in the business. The owners are provided all the information about the situations by regular audit reports. That way, you will save their time, and they could use their time for other decision-making processes.

Audit-ready companies are authentic and are liked by everyone. Banks, investors, suppliers, and customers look for properly audited businesses to ensure fair dealing. Market share can be captured by attracting more customers and beating your competitors, which can happen when your business is audit-ready and fair. Auditing makes sure that the data of the finances in a business is up to date and accurate. Business audits are available to the whole audience to get an idea of the systems in the business. Businesses should always be audit ready to gain loyalty from all the stakeholders and gain a good reputation. A business should process regular audits always to keep a check on its finances and to prevent danger. It will be easier for the owners to be confident enough to run their business with peace.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A prominent part of your shareholder’s operational activities usually involves shareholders’ expectations. It is one of the trickiest parts of convincing your shareholders. It is the activity of communicating with shareholders, fulfilling their expectations, addressing financial issues in the company, resolving conflicting situations, and achieving potential objectives. 

The process consists of holding meetings to gather feedback. A competent shareholder’s management is the assurance that relevant and timely feedback is provided. The project manager is responsible for fulfilling the stakeholder expectations, resolving the conflicts, and setting the issues during the project course. 

When reporting to the shareholders, you must remember that executives are not as interested in your work management methodology as in the outcomes. Keep the communication focused on the value and progress of the business. Be concise but brief. Sending valuable time buried in the gory details will not only frustrate the shareholders; it does not do you any good either. Here is a list of intelligent ways to meet the shareholder’s expectations: 

Identifying the shareholder’s perspectives: A shareholder is a person who actively participates in every official project, and he contains such interests that might positively or negatively influence the performance of employees in the completion of a project. Many official projects involve numerous stakeholders and are the most easily recognizably. 

Additionally, you will need to recognize the other concealed shareholders of this project. For instance, who are the funders? They might like to stay hidden behind the movers and shakers. However, if you have ignored their expectations, you might be a versatile influencer. You must keep brainstorming for such stakeholders. 

Determine the method of communication wisely: 

Secondly, you must determine the shareholder’s preferred method of communication. With the usage of an effective manner of communication, you can make the shareholder remains satisfied. On the contrary, if you opt for the unethical method of communication, it will cause frustration and a lack of patience. 

Keep them engaged: 

In many organizations, a shareholder’s attention period is precise. Lengthy projects that require a bit more patience tend to fall apart and fail. Providing traditional value to the shareholder’s choices keep them engaged and interested. Another essential aspect of fulfilling the shareholder expectations is keeping them active and involved with regular updates. If needed, ask them for the potential. 

Include them in decision making: 

Never forget to involve the shareholders in decision-making. You have already made all the decisions by yourself for the best of action, but leaving a little room for them to express their opinions and add their ideas will make them feel valued. 

Keep them involved through the process: 

You must provide regular updates to the shareholders. Begin with evaluating the process, the timings, and what level of scope is available for them to make an impactful change. Make sure that they easily understand the evaluation process so that they will execute the plan accordingly. 

Having two-way communication would be appreciative and always be ready to receive feedback during the process. 

Share evidence of the research: 

While communicating regarding the project, you will need to reveal all the data after researching from a reliable source. You must take into consideration their perspectives as well. Be prepared to adjust their strategies with them, if needed. 

Track the expectations: 

Shareholders’ expectations are about how they feel towards the projects and any current issue that arises unintentionally. When you anticipate your shareholder’s expectations towards you, you will be able to work accordingly. An effective way to track the shareholder’s expectations is by observing their management system. 

Manage all the shareholders differently: 

Different official projects assign foreign shareholders, and they will more likely have different expectations. You will require to approach each group separately, providing them with the relevant information. It is where shareholder’s drafting can be invaluable. 

It might sound like a lot of work and patience are included in fulfilling the shareholder’s expectations. Still, with the appropriate strategies and processes supporting your team, you can simultaneously meet their requirements and minimize your work stress. Moreover, after notifying the shareholders about the operations, you can focus on your responsibilities as well. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

As a business owner, it is necessary to get involved in every business operation. Business owners might wear multiple hats of business management. However, it doesn’t mean that every hat fits you well. They have a much worse time when it comes to donning that financial chapeau.

Accounting is a significant element for any business. Many entrepreneurs might realize this fact in the company’s initial stages, but they still fail to manage it properly.

Being an entrepreneur, if you’re not familiar with the mechanism of accounting, then you’re going to create errors, not by choice but with a lack of knowledge. In severe cases, repeated accounting errors can lead your business to insolvency and assets liquidity.

Here’s a list of accounting errors that business owners are prone to create.

Not saving official receipts:

After the work is complete, it is a common practice to throw the receipts away. Maintaining correct records monthly will help you convince your auditors that you’ve added accurate records. In case of a potential audit, proper forms of income and expenditures could end up securing thousands of income tax dollars.

Combining personal and business accounts:

Not having a separate bank account for personal and professional activities. Make sure that your banking records are adequately maintained. In case of an audit, you might need to provide complete business financial records separated from your private finances. This separation of accounts will prevent possible errors and identify potential issues.

Avoiding sales tax:

Many business owners often forget to report the sales tax in the bookkeeping. Neglecting sales tax or not reporting it to the account might lead to significant fines and penalties. Alternatively, inaccurate data entry might result in a higher sales amount and increased sales taxes.

Poor communication with the accountant:

Keep your accountant informed about your next move related to financial operations. It is essential to develop a cordial relationship with your accountant; only then you’ll be able to communicate with them without any restrictions. However, some business owners forget to implement this gesture and couldn’t apply the potential strategies smartly.

Not having substitutes:

We live in the advanced era of technology where any issue can arise unexpectedly. There will always be room for human errors, and it can harm your confidential data, so you need to be prepared beforehand. As a business owner, you’ll be providing justifications to your monetary team and management.

Hiring an unprofessional accountant:

Hiring an unprofessional accountant can create numerous financial problems that can go beyond just producing blurred resolutions. If you’re being stingy and don’t want to spend a valuable sum of money for the insurance of your financial operations, then you’ll have to face severe audits and penalties.

Not accepting your flaws:

While managing the financial accounts all by yourself, there comes a time when you need to seek professional help. It’s acceptable to confess that finance might not be your field of expertise, but not getting professional service when required can be a significant blunder. Being a business owner, you might don’t want to show that you lack finances. However, there’s no shame in hiring an external accounting to manage the finance.

Carelessness in cash management:

Every time a cash withdraw occurs from the business account, fill out a cash slip for any purpose. While removing the money, employees often forget to ask for the cash slip, which lets them get away with the cash without keeping accurate records of the transactions.

Wrongly categorized accounts:

There are some standard categories for every account. However, errors occur when adding expenditures into the wrong type or numerous categories. Try to follow commonly accepted accounting practices to stay on track.

Accounting is the most critical aspect of every business. Unfortunately, business owners often underestimate the importance of accounting. Even the tiniest accounting mistakes can be expensive, chiefly when they result in refusal. Business owners should make sensible decisions to maximize their accounting resources and prepare them for the future growth of the business. When nothing works, you can always seek a professional hand for help, such as an accountant or financial adviser.  

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.