When we create a company, we prepare for the worst. However, it is not only necessary to know how to manage failure; we must also learn to grow. There comes a time when the business begins to bear fruit and progress, and it is necessary to make certain decisions that can change the company’s direction forever. The dark side of triumph is that success can also die.
Recently, we opened the year, and one of the most repeated goals among entrepreneurs is to grow: increase customers, hire more staff, and start selling abroad. Being ambitious and setting goals is fine, but if you know how to leap.
What are the Risks of Business Growth?
You must grow with your head, and for that, the first step is to know the risks or inconveniences that can maximize your business. Then, you will have to create an expansion strategy, which gives you room to maneuver and learn how to act when the time comes to grow.
These are some of the most frequent errors in business growth:
Making bad decisions
When the goal is to grow a lot, and quickly, they end up hurriedly making big decisions. Remember that to achieve sustainable growth, it is necessary to analyze each movement very well, which takes time.
To be indebted more than the account
“To make money, you have to spend money.” How many times have we heard that expression? In a way, it is correct. The thing is that you need to invest to be able to grow. However, you must be incredibly careful with the risks you assume, even more so if you are autonomous. Remember that with this legal form, you have unlimited liability. That is, you respond to the debts with all your assets. Do not play roulette!
Oversize the business
You grow, see that the company works, and want to continue growing to infinity. But what if your business model has peaked? Many employers mistake hiring more staff than they need, expanding a workspace they will never complete, or buying more products than they can sell. If you do not want the same thing to happen to you, go step by step.
Worsen relationships with customers
Sometimes, we want to be like Juan Palomo, especially if we are alone in the business. However, “I eat it, I eat it” has limitations. Accept that you are not a superhero and will need to share your efforts. When all the activity is focused on the expansion plan, it is easy to worsen the quality of the products or services and personal relationships. Loyalty to customers must be a priority. Otherwise, you may manage to grow on one side, but you will be losing on the other in the meantime.
Hire the wrong people
Human capital is essential in a company. The problem is that the rush can lead you to neglect this aspect. If you need someone quickly, one solution is to start with a temporary contract or even with an external collaboration that allows you to evaluate the quality of the worker.
Manage the organization in an inoperative way
This is a frequent difficulty, especially for businesses that sell products instead of services. A small error in the supply chain can have profound consequences, such as excess or lack of stock, loss of income, waste products, etc. In this sense, it is advisable to increase the business progressively and not underestimate this type of task. Growth requires expanding the means to manage the supply chain, from personnel to technological resources.
Chaos management
Many great people and civilizations in human history did not become great overnight. A famous saying goes around: “Rome wasn’t built in a single day, but they had to work for it every single day.” Also, these great people and civilizations were extremely good at chaos management.
Lack of chaos management can eventually become a significant hurdle to your business growth. An entrepreneur or manager should have this characteristic of managing well in chaotic or uncertain situations. Many people panic when the situation becomes challenging to manage. But that is the death of business growth. One should never panic in tough times. Instead, they should maintain their calm and make decisions with utter composure.
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.
Likely, your afore is not enough to survive only from your pension. If you want a good retirement, it is best to build an investment plan. We give you some options.
Retirement implies the finish of acquiring a period for some, except if one decides to function as an expert. For retirees, utilizing their retirement corpus that would assist in keeping charging risk under control and give a standard pay stream is of prime significance. Building a retirement portfolio with a blend of fixed salary and market-connected ventures remains a significant test for some retirees. The test is not to outlast the retirement reserves – one resigns at 58 or 60, while the future could be eighty.
If the Retirement Savings System remains unreformed, those whose savings are managed by an afore will face a complicated reality in their retirement since their pension will be equivalent to only 26% of their last salary.
The above is a scenario in which life expectancy has increased. By 2050, the number of older adults will increase to 32.4 million from 10.06 million in 2016, according to estimates from the National Population Council.
The task of saving and investing seems complicated in an environment in which 61% of workers earn between one to three minimum wages per month, that is, $2,695 at $8,085 and only 4.6% enter more than five salaries a month, that is, $13,475, according to INEGI figures.
However, if you can allocate a percentage of your income to invest for retirement, it is best to plan it now.
Currently, two out of ten people of retirement age must receive help from their family or acquaintances to pay their expenses, according to the 2015 work history survey conducted by INEGI for the National Commission of the Savings System for Withdrawal (CONSAR).
If you already have savings, the first step is to know the different investment products in the financial market and advise you with a specialist, such as an independent investment advisor certified by the authorities or with a stock exchange intermediary.
Both should help you know your risk profile to make the most appropriate investment decision. Below, we list several options:
Investment Plans with Life Insurance
Insurers sell it, this instrument deducts a monthly amount from your bank account, and options range from $1,000 per month.
Personal Retirement Plans
All financial institutions offer it; like the insurance investment plan, it is tax-deductible. The asset they have is forcing you to save; it is one of the big problems that negligence beats us.
Investment Funds
This instrument charges you a commission; you can buy and sell it whenever you want.
Exchange-traded Fund, or ETFs
They replicate some value or index behavior; you can access them from the Stock Exchange. Although the amount of contract opening depends on each stock exchange intermediary, some electronic platforms open them from $100, while in others, the minimum ranges from $10,000 to $25,000.
To Open an Account at a Brokerage House
They will build a portfolio according to your profile if you take this option. Suppose you do not have the appetite to tolerate the risk of shares. In that case, it can be a combination of stocks and bonds and obtain a return that will be a little more moderate,” says Ezquerra, who indicated that, although this option used to open generally for investors who already have $1 million, there are currently electronic platforms to invest in the stock market, which can be operated with an account starting at $1,000.
When one resigns, and there is a probability of the non-gaining period reaching out for an additional two decades or more, at that point, contributing a part of the retirement assets in value-supported items accepts significance. Remember that retirement salary will be dependent upon swelling in any event during the resigned years. Studies have demonstrated that values convey higher surging balanced returns than different resources.
Naming your business may seem like an effortless thing to do, but it is not. You must produce an impactful name, as a firm business name greatly helps lead generation. Customers are unconditionally attracted to solid business names and prefer to shop from them more often. One must think it through before producing their business name.
When a business starts, most plan a lot of details but always leave one of the most critical factors for the end, choosing the venture’s name, and at that moment, there is total panic. You must have several things in mind, such as the sector in which you will specialize, if you want it to be striking or personal if it will have a significant meaning behind it, or if you want people to identify it quickly.
Do not worry anymore. Here, we will leave several tips that can help you greatly in this crisis where you do not know what to do and think everything is lost.
Tips for Choosing the Name of Your Enterprise
Having a good name makes the difference between boosting the business and slowing down the success process; sometimes, it can lead to failure. Do not be scared after having read that because we are going to tell you everything you need to know to avoid catastrophes; you must follow all the tips that we give below:
Must sound aloud
When you are writing your multiple options, be sure to tell them several times aloud, on separate occasions, or as if you included it in a conversation, so it will be easier to notice if it is suitable for the purpose you have in mind.
An excellent technique to achieve this is using a compound that begins with the same letter, as is the case with Coca-Cola. It does not make any apparent sense, but it sounds good when you pronounce it several times, besides not being too much. It is complex to remember and avoid confusion with other products; it is understood in any language and is easy even for people with speech problems.
Avoid the 3.0 syndrome
Indeed, you do not understand what we are saying, but understanding is effortless. At some point, you have seen on social networks or web pages that the names are missing several legal words and vowels, to the point that they seem written by a dyslexic person. An example would be VSCO Cam, a popular Photo retouching App that very few influencers understand how to pronounce.
Forget the initials
We will not deny that some brands, such as 3M or IBM, have achieved enormous popularity, but this is due to their significant effort and quality. The reality is that using acronyms is not very striking. It limits creativity in advertising and does not say anything about you or your business.
You will only have a small business, not a great international company. Having realistic ambitions, trusting the most notable names, and attracting potential clients is essential.
Make sure you can register it
If you want a sizeable long-term brand, investigate whether it exists in the market. It does not matter if it is in another continent and you believe nothing will happen. Plagiarism is not a good option in any case.
For this, you can get a handy tool, Google AdWords, to see the local and global searches like your chosen name.
In addition, you will know if, when searching, your company appears between the keywords or in similar phrases in a different heading. You can also find out if making a slight change in the name that this consideration can give you a better position on the Internet and even take the first step necessary to be the first SEO of your future online site.
Creating the name of your endeavor may seem extremely complicated at first, but you should not despair or start thinking about the worst. You should just take a break and follow all the advice we have given you in this post. You will see how you do much more quickly to find the best option for your 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.
Victorious bookkeepers instantly identify that client satisfaction should be their topmost priority as it’ll ultimately prosper their company. For business owners, bookkeeping can be a tremendous hassle, and multiple issues arise during the entire process just because of the lack of general comprehension. Therefore, companies always consider their client relationship as a partnership, even when their journey is challenging.
Many clients are calm and easygoing and appreciate the efforts made by bookkeeping advisors. Also, they acknowledge the dynamics of the trade. In this regard, clients usually compensate the bookkeepers based on mutually agreed-upon policies before working together.
However, there are times when bookkeeping firms must deal with complex clients, but the ratio of their appearance is low. These clients are demanding and become rude or angry even on the slightest issues. At times, they can consume much of a bookkeeper’s valuable time.
For these reasons, differentiating between the potential clients is of pivotal importance. Here’s a short guide for understanding the nature of such clients.
Aggressive personality
The aggressive clients intend to impose their perspectives on bookkeepers and are very strict about deadlines. Such clients get angry instantly and are often verbally abusive.
Over-efficient
The kind of client who appears to showcase his wisdom about a bookkeeper’s services as if he knows everything better than him, and in the wake of displaying such services, such a client becomes highly arrogant.
Complainers
The clients who are always unhappy regardless of satisfactory services are the complainers. It is because they feel like they are being treated unjustly.
Confused clients
The confused clients kept asking the same questions about a particular service and couldn’t decide on their own.
Top four strategies to handle bookkeeping client issues:
Undoubtedly, dealing with demanding clients is tough, and the main challenge is dealing with their superiority. Usually, we reciprocate the behavior we get. However, this would lead to losing valuable clients and the goodwill of your bookkeeping firm. To solve any conflict, we must deal with them gently and patiently.
The following ways can help you resolve the issues with the bookkeeping clients.
Listen to the client’s queries
In case of disturbance in providing the services, clients often get frustrated. However, there are situations when the issues don’t arise from your end. In such cases, clients expect bookkeepers to listen to them attentively, and they also want the problems to get resolved without any delays. As a bookkeeper, you must answer their queries with utmost patience and vent their exhaustion.
Comprehend and apologize
It is a significant part where many bookkeepers falter. When a bookkeeper faces a complicated client, he usually starts challenging the client or makes excuses. He tries to end the dispute instantly to ease his distress. Remember that when clients get irritated, they expect an apology from the advisor to put things right for them. For this purpose, identifying what has disappointed the client instead of making excuses would be more feasible.
Analyze the problem by asking questions
The most appropriate way of handling a rude customer is by showing compassion. A cordial speech would be enough to mellow down the client’s anger. Once he gets calmed down, ask him questions regarding the current issue. This activity will present your concern about the challenges faced by the client.
However, the questions must be relevant, and you should also provide reasoning. Also, keep the conversation precise and positive. If you can’t handle the case single-handedly, you can always opt for better professional advice.
Generate creative strategies for their cases
Since demanding clients behave incorrectly, they won’t hear your explanations, even if they don’t occur on your platform. They don’t care if you’re stuck, too; they want to get their problem resolved. As a bookkeeping consultant, you need to acknowledge their concerns and develop effective solutions. There is a possibility that you must go the extra mile for their contentment, which includes asking for their suggestions and ideas.
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.
If you want to keep your account records clear and straight, you should record all the purchases made during a specified period. While recording inventory purchases, keep a few factors in mind: original purchase price, trade discount, purchase return and allowance, transportation cost, and ownership and transfer fee. Inventory is a significant aspect of almost any company or business. Buying and selling inventory is very important. You should track the primary activity, purchases, and sales of your inventory items with the unit’s inventory accounting system. In the language of business, the term inventory describes the products and materials held by a company for the ultimate purpose of resale.
Inventory entries
Inventory works as a kind of asset. An asset refers to any property a company owns, physical or non-physical, that helps add value to their business. Assets increase if you have debits and decrease if you have credits. Debits and credits considerably impact many accounts that record journal entries for inventory—such as accounts payable, finished goods inventory, raw material inventory, and merchandise inventory.
Manufacturing of a product
While manufacturing a product, you have to look at multiple inventory journal entries. You should review physical inventory levels at the end of the year to calculate the cost of the goods sold. It is advantageous to make a physical inventory list at least once yearly, write down the date the transaction was completed, and mention it in the left column of the given account’s balance sheet.
Establishment of inventory controls
The most critical step when managing inventory levels is safeguarding your inventory from theft and damage. Ensure that those workers who perform your financial management, manage inventory controls, and perform accounting entries know those inventoried items well. Make access limited for inventory supply and apply specific procedures for shipping and receiving products. Also, label inventory before storing to access the items quickly. Lock areas where you hold products when operations are closed. Being overly organized will help you access these items when needed and minimize losses to theft or carelessness. You must keep damaged products separately and keep a record of damaged products on the waste sheet.
Goods for resale
Implement purchasing and receiving procedures because you must add goods intended for resale to inventory through the receiving process. When receiving the goods, make sure that the packing or receiving slip matches the invoice and materials. Debit the inventory account to record the inventory purchases. If a person knows about COGS accounting, he should understand that COGS is how much it costs to produce goods or services. The cost of goods available for sale equals the starting value of inventory plus the cost of goods purchased. The cost of goods sold also equals the cost of goods available for sale, less the ending value of the merchandise.
Physical inventory
Perform physical inventory audits on an annual basis. While conducting a physical inventory audit, it is of great importance and very vital to create an accurate balance sheet. Physical inventory reserves directly impact units’ cost of goods sold, profit, and revenue. Also, it affects the information on the financial statements. There are two systems to account for inventory. These include the perpetual system and the periodic system. So, the company uses one of these two systems to make a journal entry for inventory purchases. In the journal entry of inventory purchase, the difference between the perpetual and periodic systems is just on the debit side. The amount of inventory purchased in the perpetual system is posted to the inventory account while it is assigned to the purchase account under the periodic inventory system instead.
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.
An official audit is a documented explanation of whether or not a company’s financial statements are materially accurate, along with the standards, assumptions, and evidence used to conduct an audit. Suppose the IRS audits your business tax return. In that case, the platform carefully examines whether your business included the total income or applied only the tax deductions and credits allowed by the law.
The IRS audits are not random but a planned procedure. IRS selects such tax returns with errors based on complicated criteria. After filing a tax return, the IRS has three years to begin and finish an audit. However, these officials are professionals, so they consume less time than expected to complete the process.
During this time, the IRS will require financial information and documents explaining the position of your business tax return. So, providing them with the correct details is your responsibility.
Internal and External Audits
As an entrepreneur, acknowledging the differences between internal and external audits is paramount. This is because both the audits serve different purposes.
A CPA consultant has to perform an external audit, and it is only responsible for the auditing process and doesn’t involve taxation matters. However, many consider them to be a more reliable platform than others.
On the contrary, the employed accountants or bookkeepers double as internal auditors. They might perform the same activities as the external ones but also handle minor financial tasks. In some cases, the external auditors rely on the internal ones to manage monetary functions.
For a sound auditing procedure, you must take every step attentively. Here’s a step-by-step guide for managing your firm’s finances, ultimately leading to a smooth auditing procedure.
Step 1: Strategizing
For the successful execution of an audit procedure, creating a strategy would be the most feasible option. The planning phase might include scheduling and group meetings with your audit officials. In most cases, the department manager must provide all the necessary information.
Step 2: Reviewing procedure
Next, the assigned internal auditors will review your generated policies and financial management/ the purpose of this activity is to ensure that your written strategies perfectly align with your company’s standards. To avoid any inconvenience, you have to identify the departments ignoring the imposed policies made by the organization.
Step 3: Fieldwork
During this period, the auditor physically visits your company to examine if you’re working legally or not. Your workforce must follow the rules and regulations to pass this audit. If any employee alters roles within the platform, you must adjust immediately. Fieldwork includes meeting with the management and employees and enquiring them about the regular activities and tasks.
Step 4: Follow up
During the report inspection, the auditor often finds missing information. For instance, if any notice gets misplaced, the officer will ask for it immediately.
If an employee fails to provide an authentic justification, he must clarify it in the board meeting. However, most auditors explain the situation before submitting the findings.
Step 5: Reporting
Once your auditor examines all the provided information and completes the review process, he will issue a draft report, which delivers audit results.
The reports include an independent evaluation of your company’s strengths while stating the weaknesses and recommendations for corrective execution. The internal auditor will make sure that the information has no additional issues. After reviewing, the auditor proceeds with the final report.
Step 6: Looking for errors
If you find any hidden issues within the report, you need to track the source immediately and implement accurate internal controls to alleviate the problem with written documentation. It appears to be a simple process. So why do companies find it hard to make audits a priority? This is because an audit is a highly time-consuming process, which makes it a draining procedure.
The demands of managing a business can be pretty overwhelming, and it might not be easy to prioritize among tons of tasks. Hiring an accountant to review your finances is a significant decision. Undoubtedly, auditing is an exhausting procedure and consumes valuable time and cash, but the benefits of this process outshine everything.
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.
In the wake of COVID-19, work-from-home (WFH) has become the norm for most organizations in the corporate world. Working from home may sound like a dream to many, but the fact is that it comes with its fair share of problems that require using the right tools to overcome.
We have narrowed down the list to a total of 7 tools you must have to ensure the smooth functioning of the work you carry out. These tools are essential and could ultimately make or break your productivity.
Internet Calling System
Working remotely requires you to always stay in contact with your coworkers. That is the only way to promote efficacy within the organization. You need to have a system of communication that allows you to stay in touch with your coworkers.
Open communication is incredibly efficient in international parties because it makes completing tasks very easy.
Nextiva is excellent for internet calling.
Project Management Tools
As the name suggests, companies use project management tools to track and manage ongoing projects.
It can often be difficult to manage many projects all at once, which would add to the complexity of the already strenuous task. Project management tools allow the user to keep track of all the functions at hand and meet all deadlines.
The tools also can send reminders when a deadline is close, which would be very convenient for those working remotely.
Hive and Monday are great options for those looking for project management tools.
Help Desk Tools
Companies use Help Desk Tools to help all the clients and customers affiliated with the organization.
Customer service plays a significant role in how your business or company is received in the public eye. Your organization will likely flourish if the customer service is quick and apt. So, these help desk tools will make the task easier regardless of your location.
Guru focuses on problem-solving while also making the job easier.
Internal Knowledge Base Tools
Although less used, these tools could completely upscale the functioning of your operation by creating a communication system, especially when onboarding, to give out instructions and ensure that all the group members can communicate effectively.
A confluence is a good option for this purpose.
Video Call Tools
Video conferencing is the most crucial part of working from home. These virtual meetings ensure the workforce discusses all agendas and you distribute information to the correct people.
These tools are a quick but secure way of getting into conference video calls so that these meetings can take place virtually and the work does not lag, no matter what.
Zoom quickly rose to fame after the onset of COVID-19, which makes it a good option.
Collaboration Tools
The primary purpose of these tools is to allow you to collaborate and share with your teammates.
These tools are excellent for handling projects that require working with their group members.
For this purpose, collaboration tools are used by those who need to work in a team.
Discord and Slack are well-liked options in this area.
Time Tracking Tools
This one is a no-brainer.
These tools allow the user to keep a proper check while they work. Such devices are used mainly by the managing staff to keep track of the rest of the employees, assisting them in tracking the working hours of all employees so that they receive payment accordingly.
The primary purpose of these tools is to prevent any dodging on the employees, which can sometimes be the case in the corporate world.
TimeDoctor is an excellent tool that gets the job done.
Using these tools would improve and upgrade your working experience. Working from home is often associated with low productivity levels, but you won’t complain once you have these excellent tools to assist you.
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.
Embarking on a new business venture may seem like a daunting journey, especially without prior experience. Yet, the dedication and long hours invested will undoubtedly yield rewarding results once the business takes off. It’s crucial to pursue a business idea fueled by passion. It’s a proven truth that individuals who love what they do tend to achieve greater success and happiness. Stay motivated and inspired, as the journey toward establishing a thriving business will be immensely fulfilling!
The entrepreneurial spirit is a common aspiration among many individuals. The desire to establish and run one’s own business is a goal that resonates with countless people. The first thing a person needs to do is choose what kind of business they can do. Finding the right business can be challenging, so it is always better to pick something currently in demand in the market. Once the idea is there, it is time to start implementing that properly.
Below are a few handy tips that will teach a person how to choose the right business for them:
Identifying Strengths
Embracing your strengths is the key to thriving in any endeavor, especially when launching a new business. Although venturing into entrepreneurship may seem daunting, it’s an exciting opportunity to explore uncharted territory. Before you embark on this journey, it’s crucial to confidently recognize your strengths and pursue an endeavor that truly resonates with your abilities. Let’s leverage your strengths and passion to make your business dreams a reality!
Passion vs. Consumer Need
Pick something exciting is one thing. However, to be truly a success, a person needs to choose something that is in high demand. A person needs to ensure the business is about something people want and will pay to get.
Choosing the Right Market is Important
It is very important to choose the right market when starting a new business.
If the business is about cars, make sure it is located near a car market. If the business is about food, make sure it is located near a food marketplace. If a person feels like the space they are located in is not a good spot for their business, switch immediately.
Knowing Financial Limitations
Regardless of how great a business opportunity is, a person should never go above their financial limitations. According to experts, it is better to calculate the main startup cost for a business and the time it will take to start earning. A person should only start a business that fits under their financial capabilities.
Always Think Long-Term
A good commercial chance should only be based on a long-standing tendency instead of a short one. Do the research and look at that business from every angle. Is that a growing industry? How much competition is there? Once a person has everything properly evaluated, it’s time to go for it.
Test a Business Idea Before Fully Implementing It
Regardless of how much experience a person has, they should do whatever they can to take their business idea through the trial phase to find out whetherthat idea is worth a shot or not. Sometimes, an idea looks great at first, but after it is properly implemented, it seems dull or fails to meet expectations. It is cheaper for a new business first to try it and see what happens before jumping in with both feet.
Conclusion
Embarking on a new business venture is a thrilling adventure, brimming with exhilarating highs and invigorating challenges. It’s natural to feel a mix of emotions, but the key is to embrace the excitement and face the fears head-on. Every aspiring entrepreneur will encounter tough days, but it’s essential to stay resilient and take ownership of both the successes and setbacks. It’s okay to consider the worst-case scenarios, but it’s equally important to harness your passion, ambition, and unwavering dedication.
Experts affirm that successful businesses are born from the perfect blend of passion, determination, and hard work. Trust your instincts and let your inner drive guide you, but ensure that it’s supplemented with strategic planning. Establish clear business goals and methodically work towards achieving them. By embracing this advice, you are certain to enhance your chances of success. Stay focused, believe in your dreams, and enjoy the journey towards achieving your goals!
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 global mining industry is under immense pressure with the current economic climate and worldwide challenges. In the short term, commodity prices are falling, slowing down the cash flow for mining companies.
Existing mining businesses face declining ore-body-replacement rates in the long term, while new mine-development rates are increasing. The overall statistics of mining operations have fallen 28% from their productivity in the last decade.
The mining industry is now focusing on improving productivity by utilizing existing assets, but how long will that last? Mining will need to transition into new operating methods to thrive and grow. Sound technological innovation is essential to achieve this transformation.
Technological Transformation in Mining
The technological advances that can be used in mining are affordable and will improve productivity, propelling the long-standing industry into the future. This new technology must be comprehensive, understand the resource base, materials optimization, and equipment flow, and anticipate failures in the system.
These technology advancements are only possible through reliable automation and real-time performance monitoring. The technology must also incorporate the high safety standards required by law for mining businesses.
Current State and Future Outlook
The present analysis shows that global mining operations have significantly decreased by 3 to 5% last year. This analysis covers mining across all geographic areas, commodities, and mining businesses. Researchers cannot agree on the cause of the decline. However, they all agree that the decline is occurring and that something has to be done to save the mining industry.
The overall deterioration in the mining industry has caused most companies to have reduced operations. This reduction could be the only way to save a mining company suffering from the current economic climate and any future economic issues.
To improve productivity and save the mining industry, companies have to improve productivity by embracing current technology. Mining businesses are severely behind in technology, so to bring companies into the modern age, they must embrace mining technology and automation advancements.
Technological Advancements and Operational Challenges
Mining differs from other industries in that it continues to use heavy machinery and core resources to operate. Also, mining occurs in extreme and remote environments, adding to the dangers other industries don’t have to face.
Because mining requires heavy equipment and often operates in these dangerous and remote locations, transporting the necessary equipment involves bringing it in by roads that are not ideal and sometimes by air. This type of transport can be costly and time-consuming, causing financial strain on mining companies.
Equipment maintenance can also be challenging because of the extreme environments in which mining occurs. Therefore, modern technology can provide better equipment and transport and automate some processes, making it safer for workers, the equipment, and the environment.
Smart Planning and Advanced Analytics in Mining
Smart planning is necessary to improve productivity and eliminate variability holding back the mining industry and related businesses. Advanced analytics has improved complex ore-processing operations. Therefore, mining operations in copper, phosphate, nickel, and platinum brought $20 billion to $50 billion yearly since adding the analytics.
Mining has been one of the oldest and most profitable industries for centuries. Mining-related businesses have provided a great deal of wealth to owners, stockholders, and other investors. However, mining was also falling behind other industries in technological innovation.
Navigating Challenges Through Technology
The uncertainty and variability in resources, the environment, and weather make it one of the most challenging industries to navigate. Therefore, technology and the advancements it offers mining are the keys to its continued growth and profitability to stakeholders in mining-related businesses.
As we progress in technological advancements that will allow mining businesses to continue growing and thriving, we will see that it is possible to use technology in one of the oldest industries worldwide. Embracing the technology and making it work will leave mining in an excellent position for the next generation of mining businesses, owners, and workers.
Conclusion
The mining industry is facing a critical moment due to economic challenges and global uncertainties. Commodity prices have fallen, and ore-body-replacement rates are decreasing, leading to a 28% decline in productivity over the past decade. However, there is hope for transformation through technological innovation. Embracing affordable and comprehensive technological solutions that optimize resources, anticipate failures, and prioritize safety can be the industry’s salvation.
Global mining operations are experiencing a 3 to 5% decrease, prompting a sense of urgency for action despite unclear causes. Mining companies must overcome technological inertia and adopt modern technology, automation, and smart planning to secure long-term prosperity. The use of advanced analytics has shown promising results, contributing billions annually.
Despite being a profitable industry, mining has been slow to innovate technologically, making adopting technology crucial for continued growth and profitability in the face of complexity. Amid the uncertainty, technology is the compass guiding the mining industry toward a future that ensures its resilience and relevance for the next generation of businesses, owners, and workers.
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.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
Managerial Accounting Insights: Key Strategies for Success
Managerial accounting insights provide the internal financial intelligence businesses need to make strategic decisions, optimize costs, and drive sustainable growth through data-driven analysis of operations, budgets, and performance metrics. These insights transform raw financial data into actionable strategies that help business owners identify inefficiencies, forecast cash flow accurately, and align resources with strategic objectives.
Research shows that only 19-25% of companies currently use advanced forecasting tools like rolling forecasts, leaving massive opportunities for businesses that embrace modern managerial accounting techniques to gain competitive advantages. Over my 20 years as CEO of Complete Controller, I’ve witnessed firsthand how businesses that master these insights consistently outperform their competitors by making smarter financial decisions faster. This article reveals the exact strategies we’ve used to help thousands of businesses transform their financial operations, including proven techniques for cost management, cash flow mastery, and strategic budgeting that you can implement immediately.
What are managerial accounting insights, and how do they drive success?
Managerial accounting insights are internal financial analyses that guide strategic decisions, optimize costs, and improve operational efficiency
Cost management strategies identify and eliminate waste while preserving essential business functions
Performance metrics track progress toward strategic goals and highlight areas needing improvement
Strategic budgeting aligns resources with business priorities and market opportunities
Understanding Business Costs: The DNA of Profitability
Every dollar saved through smart cost analysis drops directly to your bottom line, making cost understanding the foundation of profitable operations. Traditional cost accounting often masks inefficiencies by spreading overhead evenly across products or services, but modern managerial accounting principles reveal the true cost drivers that impact profitability.
Activity-Based Costing (ABC) revolutionizes how businesses understand their expenses by assigning costs to specific activities rather than broad categories. A manufacturing client of ours discovered through ABC analysis that 20% of their costs stemmed from underutilized machinery during third shifts, leading to an annual savings of $2 million after restructuring workflows. This granular approach to cost management strategies exposes hidden inefficiencies that traditional accounting methods miss.
Fixed vs. variable cost optimization
Understanding the distinction between fixed and variable costs empowers strategic decision-making during both growth and contraction phases. Fixed costs like rent and insurance remain constant regardless of production levels, while variable costs fluctuate with business activity.
Strategic cost management involves:
Negotiating long-term contracts to lock in favorable fixed costs
Converting fixed costs to variable when possible (outsourcing vs. hiring)
Identifying semi-variable costs that can be optimized
Creating cost behavior charts for scenario planning
Strategic Cost Management: Cutting Fat, Not Muscle
Smart cost reduction preserves core capabilities while eliminating waste, requiring surgical precision rather than across-the-board cuts. Data from CV XYZ’s implementation of activity-based costing revealed 15% undercosting in their product lines, transforming their pricing strategy and profit margins overnight.
Variance analysis serves as your financial early warning system by comparing budgeted versus actual costs to identify deviations before they become crises. When we transitioned Complete Controller to cloud-based operations, variance analysis revealed we were spending 30% more than necessary on redundant software subscriptions—money we redirected into growth initiatives.
Margin analysis for product profitability
Product-level margin analysis reveals which offerings truly drive profits versus those that merely generate revenue. This analysis considers:
Direct material and labor costs per unit
Allocated overhead based on actual resource consumption
Customer acquisition and service costs
Opportunity costs of production capacity
Breaking down margins by customer segment often reveals surprising insights—sometimes your biggest clients generate the smallest profits due to service demands and pricing concessions.
Cash flow projections serve as your business’s financial GPS, showing exactly when and where money moves through your operations. Industry standards indicate that forecasts achieving 70% accuracy are considered reliable, yet many businesses operate with far less precision, creating dangerous blind spots.
Scenario planning transforms cash flow from reactive scrambling to proactive management by modeling multiple futures simultaneously. Best-case scenarios help identify growth opportunities, while worst-case models reveal vulnerabilities requiring contingency plans. A global media company improved their forecasting accuracy to 85% using automated tools, cutting bank fees by 30% through better cash positioning.
Advanced cash flow techniques
Aging analysis provides granular visibility into receivables and payables, enabling targeted collection efforts and strategic payment timing. Key components of effective financial performance analysis include:
Categorizing receivables by age and collection probability
Negotiating extended payment terms with reliable vendors
Implementing early payment discounts to accelerate collections
Rolling 13-week cash flow forecasts provide the optimal balance between accuracy and planning horizon, updating weekly to reflect new information and changing conditions.
Budgeting for Agility: Turning Plans into Action
Traditional annual budgets become obsolete within months in today’s dynamic business environment, making agile budgeting essential for success. Zero-based budgeting forces every expense to justify its existence, eliminating legacy spending that no longer serves strategic objectives.
Research indicates that businesses using rolling forecasts respond 40% faster to market changes than those using static annual budgets. These dynamic budgeting techniques update monthly or quarterly, incorporating new data and adjusted assumptions to maintain relevance.
Implementing zero-based budgeting
Zero-based budgeting starts from scratch each period rather than adjusting previous budgets, forcing critical evaluation of every expense. Implementation steps include:
Identifying decision units (departments, projects, or activities)
Ranking activities by strategic importance
Building budgets from zero up to available resources
Documenting assumptions for future variance analysis
Common pitfalls include neglecting to adjust budgets after major events like product launches or market shifts, leading to misaligned resource allocation that hampers growth.
Decision-Making Processes: Data-Driven vs. Intuition
Successful decision-making blends quantitative analysis with experienced judgment, using data to ground choices while respecting factors models cannot capture. Break-even analysis provides clarity on minimum performance requirements, calculating exactly how many units must sell to cover fixed costs.
Capital budgeting techniques like Net Present Value (NPV) and Internal Rate of Return (IRR) enable objective comparison of investment opportunities. These tools account for time value of money and risk factors, ensuring resources flow to highest-return projects.
Framework for strategic decisions
Structured decision frameworks prevent emotional choices and ensure consistency across the organization:
Define success metrics before analyzing options
Gather relevant data from managerial accounting systems
Model financial impacts of each alternative
Consider qualitative factors like culture fit and strategic alignment
Document decisions and assumptions for future learning
The key lies in using data to inform rather than dictate decisions—numbers tell what happened, but judgment determines what happens next.
Advanced Techniques for Competitive Edge
Modern managerial accounting leverages technology and innovative methodologies to create sustainable competitive advantages. Constraint analysis identifies bottlenecks limiting growth, focusing improvement efforts where they generate maximum impact.
The balanced scorecard approach, while less popular than its 2006 peak of 70% adoption, still provides value when adapted for modern businesses. Today’s version incorporates real-time dashboards and predictive analytics rather than quarterly reviews.
Emerging technologies in managerial accounting
Artificial intelligence and machine learning transform managerial accounting from historical reporting to predictive insights:
Predictive models forecast customer behavior and market trends
Natural language processing extracts insights from unstructured data
Real-time optimization adjusts pricing and inventory dynamically
Performance metric customization ensures each department tracks progress against relevant objectives—sales teams monitor customer acquisition costs while operations focuses on throughput and quality metrics.
Final Thoughts
Managerial accounting insights transform businesses from reactive firefighting to proactive strategic execution. The combination of cost mastery, cash flow precision, agile budgeting, and data-driven decisions creates a powerful framework for sustainable growth.
Success requires commitment to continuous improvement and willingness to challenge traditional approaches. Start with one area—perhaps implementing activity-based costing or rolling forecasts—then expand as you see results. The businesses that thrive tomorrow are those that embrace these insights today.
Ready to revolutionize your financial strategy? The experts at Complete Controller specialize in implementing these managerial accounting insights for businesses ready to scale. Visit Complete Controller to discover how our team can help you build a data-driven financial foundation that powers sustainable growth.
FAQ
How does managerial accounting differ from financial accounting?
Managerial accounting focuses on internal decision-making with forward-looking analysis, while financial accounting creates standardized external reports for investors and regulators based on historical data.
What are the core benefits of managerial accounting for small businesses?
Small businesses gain cost optimization capabilities, improved cash flow management, data-driven strategic planning, and early warning systems for financial issues before they become critical.
What tools are essential for effective managerial accounting?
Essential tools include spreadsheet software for analysis, ERP systems for data integration, specialized cost allocation software, and dashboarding tools for real-time performance monitoring.
How can I improve budgeting accuracy?
Improve accuracy through rolling forecasts that update regularly, zero-based budgeting that challenges assumptions, variance analysis to learn from past differences, and scenario planning for multiple possibilities.
What role does managerial accounting play in strategic planning?
Managerial accounting provides the quantitative foundation for strategic decisions by revealing true costs, projecting financial impacts of different strategies, and tracking progress toward long-term objectives.
Sources
Accounting Insights. “Managerial Accounting: Key to Strategic Decision-Making.” 18 Jan 2025.
Yazdifar & Sharifi. “A Study of Factors Influencing Management Accounting Innovations.” Salford Repository, 2025.
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.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
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.
