Author: Complete Controller

Your time is precious whether you are a CEO of a big company or if you have a small-scale business to run. In business, we hear the phrase, “time is money,” and money can be either gained or lost depending on how you spend your time in the working hours. Managing the bookkeeping of your business can be very hectic, time-consuming, and expensive as well.

What is outsourcing?

Outsourcing is a business practice in which an organization recruits an outsider to perform undertakings, handle tasks or offer different types of assistance. The external organization, known as the third-party provider, arranges its staff or PC frameworks to carry out tasks or administrations either on-site in the premises of the recruiting body or external premises.

Outsourced bookkeeping can be beneficial to the company. It can help the business to gain the confidence and tools that require for future growth. Outsource bookkeeping provides a business owner with:

• A better and detailed understanding of the financial condition of the business.
• Less burden and more free time to focus on the other matters of business.
• Proper counseling towards the financial goals and growth of the business.

How do you know if your business is ready for outsourced bookkeeping?

It is essential to know that whether your business is ready to outsource accounting functions to flourish. Some of the questions listed below will help to assess if your business is prepared for outsourced bookkeeping.

1. Are you spending too much time on accounting processes and have less time left for other business work? If you are glued and tied up to your company’s daily bookkeeping and other accounting work, this can be a red flag that business owners should never ignore. You may find losing the focus on your expertise and the main areas of your business. The business owner should always invest his time and efforts where his true passion lies to help grow the business.
2. Do you find it essential to keep your accounting information confidential? When an entrepreneur is running a company, privacy and security are always a cause of concern. Nobody wants their privacy to be invaded, especially confidential matters. Outsourcing skilled employees for bookkeeping will prevent the internal staff from staying involved in the bookkeeping work and other accounting information. Hence, it will also limit the employees from discussing any confidential business information with anyone.
3. Is managing everything a struggle since your business is growing and expanding in different locations? Developing and extending your organization requires extra staff and integration of; processes and controls for more than one location. Outsourcing bookkeeping measures offers the adaptability of increasing your bookkeeping or down depending on the situation.
4. Does your Business Process need to be updated? You can always hire an outside accounting team that will help you increase your business’s operational efficiencies. The outsourced team can plan an arrangement of integration and automation to convey better monetary detailing. Also, automation of billing and collection can save time, lower mistakes from the human blunder, and prevent the risk of any fraud taking place by providing better workflows and transparency.
5. Do you keep repeating the same errors all over again? You can make countless accounting mistakes if you do not have an experienced accounting professional. Repeating the same errors can be problematic for the business and can be hard to track and identify. Moreover, suppose you can’t pull a profit and loss statement on request if you’re doing double entries of every transaction, or then again in case you are way behind on updating your bookkeeping work. In that case, it’s an ideal opportunity to look for help.

Think about the above-listed questions and, if the answer to most of them turns out to be “yes,” you need to move towards outsourcing for bookkeeping services. Outsourcing these tasks can help an organization in numerous ways; in fact, much more benefits as compared to; working with a traditional in-house bookkeeper. Moreover, outsourced bookkeeping can relieve the burden and, you would no longer ignore the critical areas of business. Therefore, as a result, a company will prosper.   

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.

Businesses of all sizes depend on accounting, but small business owners, in particular, tend to put it on the backburner as they try to manage and maintain day-to-day operations. Though it’s important to keep accounting in mind, it should never be an afterthought.

A healthy balance sheet can help you plan for the future financially and warn you of any potential financial shortages. In a financial crisis, the appropriate accounting insight could even help you save your organization.

The benefits of functioning with clean accounts will become apparent as soon as you achieve them.

Be particular about the receivables

Making money is the best aspect of owning a business because you get paid; managing your receivables is not nearly as much fun. As soon as you send out an invoice, you create a receivable, which means you’re recording the fact that a customer owes you some money. You can tell if a consumer owes money by reviewing this list.

Payments received from customers should be credited to their account and marked “paid.” Managing large orders does not seem as easy as it sounds. Reconcile customer deposits immediately to avoid forgetting or running out of time since there are never enough hours in the day. The result is a lot of consumer deposits in your revenue account and a report of your receivables that don’t match.

Keep an eye on your cashflows

When it comes to accounting tips for small businesses, education is critical. When it comes to managing your finances, the better your chances are, the more you grasp the figures.

Consider creating a cash flow statement as part of your weekly and monthly financial evaluations. If you’d like to grasp better how your organization’s money is moving in and out of the company, these statements can help. A cash flow statement is essentially a way to keep tabs on the direction of the company’s income. As a result, you can see payment cycles and seasonal expenditures in a transparent manner.

Sort your payments and expenses

It is essential to keep a backup of all expense reports and receipts if you are not already using finance management software. A failure to maintain proper financial records can increase tax payments by missing deductions and creating accounting errors due to inaccurate financial statements.

Looking at a bank statement and finding an unrecognized transaction means you know the bookkeeping issues and other accounting records.

One strategy to deal with this issue is to keep a receipt for every purchase your company makes. Although it may appear to be a lot of effort, a few accounting ideas can help.

Keeping Track of Cash Expenditure

When you’re a business owner, you must keep track of all of your spending. When filing your annual taxes, expenses are the best method to reduce your tax exposure and increase your retained income.

Most often, business owners fail to track expenses when making small purchases in cash. To ensure that all expenses are recorded, request a receipt from your vendor or report the cost right away. Accurately tracking all of your business’s small cash purchases will provide you with a more realistic picture of your year’s overall profitability.

Receipts and Invoices

Small business owners frequently mix up invoices and receipts, causing accounting problems. It is essential to understand the difference between generated invoices and payment receipts for a seamless accounting function.

A bill that is issued to customers after they have received your services is known as an invoice. Consider invoices to be detailed bills that reflect everything a customer has received from your business. An invoice serves as a gentle reminder to customers that they owe you money. They help accelerate cash flow, maintain financial records, and ensure that you get paid.

A receipt is evidence that a transaction took place. It’s what you give your customers when they’ve completed a transaction.

Accounting may be a pain if receipts and invoices get mixed up. When it comes to balancing your books, you’ll have a lot of trouble if you can’t identify what’s finished and what’s in process.

Check the entries recorded twice

Although most organizations now use accounting software rather than paper books, the double-entry accounting principles still apply. The central premise is that anytime you purchase your business, you should keep track of the cost and the profit.

Unless your money is genuinely misplaced, this kind of bookkeeping will be the most accurate representation of where your money is going. As a result, you’ll be able to make the most significant decisions for your company.

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 career in accounting is a good choice that ensures professional growth and a high salary. No matter its scale, every business requires an accountant to manage and audit its finances and record all transactions. Accounting has a broad spectrum of careers to choose from. An accountant can enjoy the liberty to select any desired career path in any industry.

Accountants prepare and organize financial and tax documents for individuals, small businesses, large corporations, non-profits, and government agencies. The statistics given by the Bureau of Labor, employment in financial occupations anticipate boosting up to 10% by 2026, resulting in the creation of over 773,800 new jobs in different industries. 

Here is the list of careers that accountants can pursue in different industries:

Tax advisor

Tax advisors are individuals that leverage their knowledge of tax laws and legislations to offer consultancy and advisory to their clients. They monitor the tax payments and get benefits from tax relief. Individuals, businesses, and other organizations hire tax accountants to prepare federal, state, and local tax returns.

There are two types of tax advisors: personal and corporate.

Personal Tax advisors give advisory to individual clients to ensure that they are not paying any more tax than necessary.

Whereas Corporate tax advisor works with companies with significant assets, some of whom are private clients. 

Economist

Public sector organizations such as Government financial services, regulating bodies, and banks hire economists for researching and collecting vast amounts of data. That gives insight and helps design a policy, regulation, or a survey in Taxation, employment rate, interest rates to energy, health, education, and global development. 

An economist uses specialized software and high-tech statistical analysis techniques to analyze the data and deliver forecasts of economic trends and recommendations for increasing efficiency.

Auditor

An auditor is a detail-oriented individual. External auditors send or invite inspect or scrutinize the accounts of an organization. Their responsibility is to ensure the records are 100% true and foolproof. 

Some businesses hire internal auditors to scan for any financial risk. They also keep the company in compliance with updating and existing tax regulations. They investigate the existing working system and suggest areas for improvement. And potentially coordinate internal process improvement.

Budget analyst

In most Companies, money is spent without a planned budget or supervision, which risks fraud and overspending. A budget Analyst efficiently Monitors & distributes funds and confirms that every department is spending responsibly within the budget. They also make plans for future budgets keeping in mind that every department gets its fair share. Also, Establish guidelines for the annual budget.

Credit Analyst

A credit analyst evaluates a loan applicant’s ability to repay the loan and recommends whether the loan should be approved or denied. Banks, credit card companies, credit rating agencies, and investment firms hire credit analysts.

Accounting professor

If you have a doctorate in Accountancy and adequate experience in the finance industry, you can be an accounting professor. In addition to other sectors education sector is expanding rapidly and opening gateways to advanced business programs. 

The primary responsibilities of an accountancy professor are to teach courses, publish relevant research studies and be part of educational communities.

Forensic accountant

With the alarming increase in financial fraud, the need for a forensic accountant has increased. They train financial investigators.

Forensic accountants assist investors in accomplishing due care by analyzing transactions to detect potential fraud. They investigate bankruptcies, mergers, and acquisitions to make sure everyone involved is playing fair. Forensic accountants assist law firms in divorce proceedings by uncovering any financial skeletons in the closet. They also function for insurance companies, verifying whether claims are legitimate and determining how much loss the company will take on specific clients.

Public Finance Accountants

Public sector accountants make sure that the public money is being used fairly. They are responsible for administrating & usage of public funds. For example, they work for public organizations, federal or local government, publicly funded organizations like charities.

Accountants are employed primarily by health authorities, local government authorities, and central government organizations.

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.

Reconciliation is crucial to balance the cash and revenue spent with the digits mentioned in the transaction details. Furthermore, it is a critical way to avoid every possible chance of cheque bouncing.

What Is Bank Reconciliation

Verifying internal cash records and bookkeeping systems with the transaction details and actual bank statements is bank reconciliation. You should be performing these appeasements monthly to avoid human errors around the line. Unfortunately, many business owners are not aware of the list of benefits a proper bank reconciliation has. Technically speaking, the bank accounts closing is a great relief as compared to the heaps of your general ledger. After you go over your internal accounting with the original banking statements, ensure that both the records end up mirroring each other.

Importance Of Bank Reconciliation

As mentioned earlier, the reconciliation of the banking statements can significantly assist you in resisting the cheque bouncing situations. Furthermore, the periodic verification of the records helps the authorities detect and resolve employee theft or other cash frauds. Therefore, regular and strict reconciliation can also be a more thoughtful way to save the company from unnecessary and potential loss of money. If a company performs bank verification and reconciliation regularly, it is most likely to experience the following benefits:

Aces Of Bank Reconciliation

Businesses looking to prevent intra-company frauds and scams rely heavily on bank reconciliations to provide the following benefits:

More Investors – Conducting detailed reconciliation will help the company develop a book of cleaner records with more accurate financial statements. In addition, it will work as bait for the investors, attracting maximum investors towards your business, forcing them to invest in your company.

Availability Of On-Hand Cash – On-hand cash is one of the pillars that make a business more substantial enough to compete with the hungry giants of the corporate world. Bank Recs enable the company to verify, analyze, rectify, and correct each financial error that might invite scammers to nibble your company’s revenue.

Prevents Employee Theft & Financial Scams – While making reconciliation or performing a monthly audit, there are significant changes that you may discover a trail of employee theft or any other potential scam going around within your office under your nose. Unfortunately, you might get your hands on the culprit trying to magnetize money from your accounts.

Accurate Accounting – Keeping a firm eye on the financial statement of the company time is essential to run a mature and prosperous business. Accurate accountings can be an umbrella to protect you from devastating embarrassments like cheque bouncing. It is an understood fact that it also gives you a chance to keep a hawk-eye on each digit mentioned in the company’s internal financial statements.

Proven Tricks to Create Efficient Bank Reconciliation Statements

Apart from the above-listed benefits, some proven tips to create competent bank reconciliation statements are listed below:

Before heading forward towards any step, ensure to have every formal documentation in hand. So, on a final note, if you have gathered all of the information on your accountings and financing, you will get a chance to experience things in a better way.

Assists in Avoiding Accounting Errors and Miscalculations.

Any duplicated entry is prevented and deleted automatically during reconciliation.

Closely view the minor errors of dots or commas; they can be a significant threat at times, very great.

Analyze entries in the general ledger and the bank statements.

Compare e the digital information present within the cash books and the banking books.

Revise your financial records regularly to witness more profit with decreased financial loss.

While heading towards the bank reconciliation, ensure to verify the updated cash books with the bank accounting books.

Concluding Paragraph  

Reconciliation of the accounting books is way too necessary to run a revenue-generating business with minimum loss. Every person manages their cash book, which contains the credit and debit details that a person has made in a fiscal period.  At times, the total amount mentioned in the cash book does not match with the digits present in the statement prepared by the bank. It may cause potential loss for the owner. So, to avoid this, it is very crucial to manage your accounts periodically. The article contains the benefits and tricks regarding bank reconciliation. Ensure to enlist all that you find significant to remember.

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.

Cloud computing is the storage, management, and processing of data on a network of servers hosted remotely on the internet. It has grown in popularity among organizations because it provides significant cost savings while providing excellent security, massive capacity, and a slew of managed services. Cloud hosting offers several benefits to organizations, and we’ll look at 10 of the essential ones in this piece.

Cost-saving: The bottom line for every company considering adopting new technology is whether it provides excellent value for money and a decent return on investment. What’s nice about cloud computing is that you don’t need your gear because you can access everything on your provider’s servers. This flexibility implies that you may save money on hardware while also eliminating the overhead of hosting your own data center. You will not be required to pay for space, power, physical security, insurance, or air conditioning, nor will you be required to fund the costs of continuous upkeep.

Pay more when you upgrade the package: If you have your data center and need to expand computing capacity, you will need to purchase, install, and configure a costly new server. With cloud computing, you can manage your short-term demand by buying a small storage capacity on a cloud server, saving you the cost as well as optimizing your storage solutions quite quickly. For starters, you’re purchasing something that may be inactive for the majority of the time, and if demand arises suddenly, you may not be able to get the server up and running in time to cope with it.

Competitive advantage in competitive situations: Cloud computing has a near-zero deployment time. Critical applications for growth and success may go up practically quickly, providing you a strategic competitive edge over competitors who have not yet implemented cloud technology.

High-speed performance: To remain competitive, cloud service providers must constantly upgrade their technology to match the needs of their clients. Consequently, cloud computing provides high-performance servers with cutting-edge technologies such as solid CPUs and lightning-fast SSD storage.

Additionally, when servers are busy, the load is dispersed so that no one server suffers from performance issues. Because a cloud provider has so many servers at their disposal, they can continually optimize performance.

Online plugins and apps: Before introducing cloud computing, new apps might take a long time to be up and running. Cloud-based apps, on the other hand, have significantly decreased the time necessary for effective implementation. The majority of cloud-based apps may be utilized immediately after signing up.

This quick access provides several benefits to enterprises. One example is that organizations who relocate to the cloud may start using AI and machine learning apps within hours of signing up.

High data security: Cloud hosting protects your company from hackers, viruses, and internal data theft. To secure their clients’ data, cloud companies must adhere to a slew of strict security requirements. These requirements involve employing robust firewall technology with intrusion prevention systems and in-flow virus protection. These prevent attacks from reaching your server by detecting and isolating them. With comprehensive VPN options, you can even expand your workplace into the cloud.

Flexible operations: Cloud hosting safeguards your organization against hackers, viruses, and internal data theft. Cloud service providers must meet a plethora of stringent security criteria to protect their clients’ data. Security measures entail utilizing innovative firewall technology in conjunction with intrusion prevention systems and in-flow virus protection. Cloud servers identify potential threats and prevent them from reaching your storage server, thus aiding in the security of your data. You may even expand your workplace into the cloud with extensive VPN choices.

Future of clouding: Cloud’s scalability puts smaller businesses on an equal playing field with larger ones. With the expansion of the Internet of Things, the quantity of big data that organizations gather and handle will rise rapidly. By far, the most cost-effective alternative for storing and processing massive amounts of data is cloud computing. Furthermore, it enables the simple deployment of the apps required to carry out this processing.

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.

Many small enterprises have evolved to embrace remote labor as a result of COVID-19. As constraints in countries around the world begin to ease with Covid-19 subsiding slowly, many corporations are announcing hybrid models that allow employees to work partially remotely during the week.

If your company allows remote work or considers converting to a hybrid model, you must consider security. Why? Because regulations and culture are your most effective deterrents to cybercriminals.

It can be challenging to develop a new security policy that covers all of your employees and the many locations where they may be working. But there’s no need to be concerned.

Create your manual: Create your security guide as the initial step. This digital document should contain all the instructions, which should be altered and tailored for your company. The goal is to develop a resource that all employees can use, regardless of their work or what devices they use. Any team member who has a query or wants to double-check a policy should go there first.

Computing systems: Your company may provide everyone with a computer and phone, or it may require everyone to bring their own. In either case, you must have complete faith in the tools that everyone uses at work. The first step is to make sure that everyone’s gadgets are current. Employees should only use the most recent versions of Windows, macOS, Linux, iOS, and Android. Nobody should use an operating system like Windows 7 that is no longer receiving security updates.

A strong password, PIN, or a reliable biometric solution, such as Face ID or Windows Hello, should be used to secure devices.

Internet connectivity: The first rule of connection is straightforward; Make sure your routers are up to date. Team members should sign up for automatic updates or check for new security patches regularly. The second golden rule is also self-evident; You should use strong, one-of-a-kind passwords to secure routers. Secure a document containing the router password and the Wi-Fi password, both necessary to adjust various settings.

Outside the home, employees should exercise even more caution. Attackers can access employee hardware and potentially steal critical data using public Wi-Fi networks with weak protection. To avoid this, staff should use a VPN and stay away from networks with questionable names.

User Software: Everyone in your company should use strong, unique passwords to safeguard their accounts. If someone logs into everything with the same set of characters, they’re putting your organization at risk. With Single Sign-On, you can reduce the number of passwords that consumers need to remember (SSO). As the name suggests, SSO allows employees to enter into numerous apps and services using the same credentials, minimizing the number of unique passwords they must remember.

Working environment: You can’t, or shouldn’t, monitor everything your employees do at home. Instead, create a security culture – a shared desire and obligation among your employees to safeguard your company through sound security practices. It won’t be easy to change your company’s culture, but if you listen to your employees and provide them with the tools and training they need to thrive, you’ll gradually build a different kind of workforce. One who, while operating outside of your company’s control, has the expertise and willingness to make sound, confident decisions.

Training and development: Training and development are essential if you are changing the working environment. It would be best not to presume that everyone can use a password manager or upgrade a router manually. You can combat technical issues by setting up webinars and informal calls where individuals may ask questions and learn more about working safely both inside and outside the office.

Revise and make improvements: What is effective today may not be effective tomorrow. Regularly review your handbook and ask yourself if you have the necessary policies in place. When required, make modifications and explain your reasoning to your team. If you provide your employees with the right tools, training, and expertise, they’ll do everything they can to keep your company safe, no matter where they work.

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 the study of assessing, communicating, and estimating financial information to make the right judgments and decisions. Accountants ensure that their organizations understand their legal obligations and financial performance and that they can create budgets and plan for the long term. Managers use accounting information to make decisions about buying and selling, investing, and pricing.

Accounting is not a homogeneous field. It has many different sides to it. An Accounting Whiz may work as an auditor, bookkeeper, certified public accountant, or payroll accountant if someone aims to become an accountant. Then they must understand the diverse types of accounting in every industry and then choose according to their interest. 

Distinct categories of accounting are:

Public accounting:

Public accounting deals with examining financial records & accounting systems o their clients to make sure that the statements match the financial results. They are giving an analysis of the overall financial positions of an organization.

Public accounting refers to businesses that offer accounting assistance to clients depending on their specific requirements. They can work in audits, help with tax returns, counsel on methods for installing technology or computer applications, and provide legal guidance.

Management accounting: 

Management accounting is also known as managerial accounting. It is the type of accounting that is studied to obtain statements, reports, and documentation that can aid the supervising authorities in making better decision-making in terms of business performance. Management accounting is not subject to the same stringent accounting principles as traditional accounting. It is for use for internal business. The primary goal of managerial accounting is to assist a company in efficiently completing its tasks of planning, organizing, directing, and controlling.

Financial accounting:

Financial accounting completes lenders and investors and GAAP in mind (accepted accounting principles). If a firm is looking to fund a new purchase or initiative, using standard accounting standards allows investors and lenders to get an accurate read on its financial health.

It also aids businesses in being transparent by disclosing management’s income. However, small enterprises are usually not obligated to follow GAAP and its accrual process. According to the IRS, any business that manufactures, purchases, or sells products must follow GAAP. Larger companies frequently use in-house accountants to assist them in adhering to these conventional accounting rules.

Auditing

Auditors investigate a company’s transactions and processes to uncover flaws, examples of fraud, waste, or mismanagement and report their findings to business leaders. Professionals begin as internal auditors and work their way up to become internal auditing managers.

Forensic accounting

Forensic accounting is an investigative approach that analyzes financial records and transactions, traces assets, and investigates incidences of fraud, bribery, money laundering, and embezzlement. Forensic accountants specialize in various areas, including securities fraud, identity theft, compensation disputes, and trademark and patent infringement.

Law enforcement agencies, such as the Federal Bureau of Investigations (FBI) and the Internal Revenue Service (IRS), frequently rely on these highly skilled individuals to locate and evaluate evidence used to investigate and prosecute financial crimes.

Government accounting

Governmental accounting is a collection of distinct accounting systems, standards, and processes designed to meet the needs of municipal, state, and federal governments and their agencies.

Governments operate in a different operational environment, with their own set of considerations. Governments, for example, collect and spend tax revenues in what is known as non-exchange transactions with citizens. It lays a greater focus on openness and transparency.

Tax accounting

Tax accounting refers to the processes and policies used to prepare tax returns and other statements required for tax compliance. It thus provides frameworks and rules for calculating taxable profit.

Accounting information systems

An accounting information system or AIS is a systematic procedure of collecting, storing, and analyzing financial and accounting data to report information to investors, creditors, and tax authorities. This system disseminates company-related information to the appropriate stakeholders, which is critical for faster decision-making.

Cost accounting

Cost accounting is a type of accounting that captures a business’s entire development costs by evaluating the variable costs of each production phase and the fixed costs.

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.

It is a fact that a business needs money to strive. But not just investing money would make your business grow but managing the cash flow would help. Your business health depends upon the steady flow of capital into it. Any company without proper cash management eventually fails, No matter its scale. Cash flow is an essential rule for expanding your small business. About 60% of companies are profitable on paper but end up in bankruptcy since there is no balance between the cash going in and out.

Undoubtedly, “cash is the king in any business” but, without cash flow management, an enterprise will not be able to compete. Or they must invest more and gain less.

For instance, if you have used up more of your working capital than planned. Then you will face a hard time, and you’ll not be able to pay up the suppliers, salaries, and purchase materials. Cash flow management can prevent this delay in making cash and receiving cash.

Setting limits to spending working capital can help you make it through this gap and continue operating your business.

Cash flow management refers to delaying outlays of money while encouraging your customers to pay off as soon as possible.

Here is a guide to the Basics of cash flow and how it can benefit your small business:

What is cash flow?

To manage it, you first need to know what it is. Cash flow is the amount of money that goes into or out of business. One can track their cash flow either on a daily, weekly, or monthly basis.

There are two kinds of cash flows:

Positive cash flow: the money is coming from sales and receivables. Positive cash flow is greater than the money leaving your business.

Negative cash flow: negative cash flow is the money you use to resolve issues in your business. When the cash flow going out of the company is more significant than incoming cash. One can fix negative cash flow by making strategies like cutting business expenses.

Be patient with scaling your business:

To have a sustainable positive cash flow, you must be patient with your business growth. Do not act in the spur of the moment by overdoing your business potential. Wait for the development organically ad then think about expanding your enterprise. Don’t burden your work capital with more hires and credit cards but plan your every move.

Profit is not always positive cashflow:

You cannot get a good grip on your cash flow by simply looking at your profit and loss statement. Much other financial information, such as accounts receivable, inventory, accounts payable, capital expenditures, and taxation, play a role in calculating your cash flow.

Effective cash flow management needs laser-like emphasis on each of these cash flow drivers, in addition to your profits and losses. Accounting rules define profit as revenue minus expenditures. On the other hand, a wise business owner understands that knowing whether you made a profit is not the same as knowing what happened to your funds.

Know about the breakeven point of your business:

What is the breakeven point? It is that point in your business growth where cost and revenue become equal. At this point, a business has recovered its initially invested cost but has not made a profit yet. If you are a small business owner, you must know the breakeven point of your business. That way, you can know when your business will become profitable. However, it does not have any impact on your cash flow. But it sets an early goal and a target area to project your future cash flow. You can do a breakeven analysis by the data of your income and expenses as well.

Planning and record-keeping:

Before cash flow management, one must know the working capital a business requires to run smoothly.

Better cash flow management needs planning and tracking your capital, sales, profits, and expenses. One must keep records of the business’s positive and negative cash flows, from sales to expenditures like insurance, wages, taxes, and loan payments.

A resourceful planning system can make budgets and then review them weekly or monthly to improve and expand a business.

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 paycheck doesn’t come with instructions on how to use the money. We are left to figure it out on our own. But if we spend it all on just one thing, we will not meet our other needs. It depends on your money management skills. Where to spend your cash and how much? It doesn’t matter how much you earn but what matters is how you spend it.

When it comes to money management, budget is the foremost step. However, budgeting can sound a bit frustrating to some people. But if done correctly, it can give you peace of mind and pay you living expenses, save extra money and keep you away from debt and money anxiety.

A budget is your plan to spend money according to the choices you make and priorities. You can manage your current expenses, save some bucks, and plan your future expenditures as well.

The current economic troubles have every person nitpicking over budgeting and saving to avoid a potential financial crisis. Here are some basic rules you can follow to make your budget:

Practical Goals:

First, make sure you are spending less than what you earn. If you’re Overspending, sit down and think about ways you can minimize it. Setting up realistic goals can help. Track your spending habits and categorize your expenses by priority or necessity, such as rent, mortgage, utilities, groceries & entertainment. Find out where you can cut down your cash flow and save it instead. Ask yourself where you wish to see your finances in a year, and you’ll get an answer to this subject immediately.

Track your income and expenses:

Keep a track record of the income generated and the expenditures on a weekly or monthly basis. Jot down every penny you spend in your journal, and you’ll eventually find out what you’re missing.

There are many free programs online for tracking down your income and expenses. They offer excellent tools for budgeting that categorizes all your income and payments coming in and out. Due to this, you will note the areas where you are spending a little more than in the regions that need it.

Net income Estimation:

Your net income is the amount of money you have left after paying all your bills. You want it to be a positive number so that you can utilize it for repayments, savings, or other financial goals. Subtract your monthly expenses from your monthly income to calculate your net income. Even if the number is negative, write it down.

Differentiate between needs and wants:

Try to differentiate between your needs and wants. There might be something that you want badly, but you can live without it as well. There are wants, and some things are needed to function in daily life; these are needs. Prioritizing needs over wants can make your budget fruitful and promising.

Building your budget:

While building your budget, look for ways to save some money while spending. Accommodate all your expenditures within your income. The budget cannot always remain the same for a family or even a single person. It keeps changing given the trends or needs. Review your budget from time to time to see where your expenses have increased and where decreased.

Make lists before you shop:

It is one of the best ways to stick to a budget. Always jot down the items you need on paper before going to the store. Only purchase the items noted in the list.

Buffer cash:

Besides some fixed bills and rent or taxes, there are some expenses that you don’t pay for every month. These are variable expenses like an annual membership fee or a coursebook that can arise without prior notice. Keep an account of these variable expenses too in your budget.

Be patient:

Getting on track with this budget might take a month or two, but it can be rewarding and worthy of all the effort once you make it a habit.

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.

Risk management is essential for all businesses alike but is quite crucial for small and medium-sized enterprises. With limited cash flow, a restricted number of clients, and lower revenue, it is vital for SMEs to have a robust risk management strategy that helps mitigate risks at hand and keeps the business owners prepared for any sudden loss or risk.

Most such sudden risks occur when the economy crashes suddenly, changing policies causing a rise in interest rates or simply harsh weather conditions. You can manage internal risks of your organization, such as employee theft, information breach, or non-compliance to policies by your employees internally and in time. External factors, as discussed earlier, will send you tumbling downhill if you don’t have a proper risk management plan in action. It is primarily because the SMEs don’t have vast cash reserves and operate with thinner margins. Thus, it is reasonably necessary to have a solid reinforcement plan in your risk management strategy to forecast, avoid and combat risks to your business.

If you are starting a new business or have already ventured into something of your own, it’s high time you put a risk management plan in the document. Here are some of the top expert tips before you document your financial risk management.

1. Keep your record updated:

It is imperative as it contributes to avoiding cash leakages in your company regularly and allows you to make accurate projections for your company, thus helping you make decisions that might otherwise seem financially risky. To keep your records updated, hire a bookkeeper or outsource your bookkeeping to a consulting company.

2. Identify your strengths & weaknesses:

Risks could simply be losing an important client or an irreplaceable vendor when you least expect or changes in the exchange rates. Whatever the cause, it is crucial for you to prepare in advance and identify your strengths and weaknesses. Don’t rely on a single retainer client; try acquiring more clients, and the same goes for vendors.

3. Release clients with poor credit history:

Clients that delay payments or have a poor credit history are not your best bet. Let go of such clients gradually as they will only pile up your pending receivable charges, pushing you down in debt.

4. Don’t expand vertically at the start:

Maintain lean operations in the starting phases of your business. Closely observe the trends of your industry and see where your finances take you. A vertical growth or expansion can expose your company to undue risks.

5. Consider external risks:

As you study the market trends, you are also likely to identify the areas of risk in the general market. Consider global economic changes as well as weather and other climatic & environmental factors. For financial crisis and market trends, set up a credit facility to mitigate and keep a reinforcement plan ready for environmental factors.

6. Don’t merge your personal and business finances:

It is one of the biggest mistakes small business owners make and end up losing all liquidity. Please keep your personal and business accounts separate right from the start to avoid cash leakages and their impact on your overall financial health.

7. Review & revise your payment terms:

Your payment terms set the route to your financial progress. For all receivables and payables, make sure you are not on the risky losing end. Devise payment strategies that help you get paid in advance and pay once the job is complete.

8. Get insurance:

Another important measure that you could take is getting insurance for your company. Choose from full operations insurance, life insurance, employer insurance, and other plans that might be on the offer to manage the risk better.

9. Prioritize risks:

Before you put that plan in the document, make sure you prioritize the risks in order of the likeliness such risks can occur. Plan for risks that are most likely to affect your business first and then bring those which are less or least likely to occur

10. Get a risk management team:

 If you are already in a good position, it’s best to hire a proper risk management team that can help you devise a better risk management plan.   

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.