Author: Complete Controller

Organizations today cannot get by simply offering fundamental advantages like medical coverage. They should go well beyond and furnish representatives with a commendable involvement with the work environment. The representative experience is the aggregate of the considerable number of associations your workers have with your organization. It includes the way of life, benefits, physical workplace, and instruments to accommodate worker achievement, which may be very well connected to income. Indeed, organizations with high worker commitment pull in two and a half times more payment than organizations with low commitment levels.

The employee experience designates all the employee’s feelings when he is in the company from his recruitment and even until his departure. It is a concept that is often found in the field of HR Marketing. It is, therefore, a question of finding strategies that put themselves at the service of employees. Here are five essential tips for their experience in the business to be successful.

East Asia Employees

HR must set up services to improve the working environment, the information system, good salary, or employee benefits. You should also include employees in the various projects that will affect them. It must be done in advance so that the employee is not surprised by actions that will impact him.

Create a Corporate Culture

Employees should not feel that the values ​​put forward during the recruitment process when entering the company are different internally. When joining the company, the employee must tell himself that he has made the right choice. It is a means for HR to serve the company’s employer brand, which is essential today. Thus, each project that concerns the employee must always respect the values ​​and culture of the company. It is quite simply a relationship of trust built with him, which must last.

Singularize the Employee Experience

It is more than ever-trendy advice. The employee does not wish to be an individual, among many others. He hopes to be considered by the company as someone unique with his qualities, faults, and skills. A successful experience will make the employee feel that his recruitment was not trivial.

Streamline the Employee Experience

The employee’s daily life must be fluid and not experience any obstacles. It is, therefore, necessary to optimize the employee’s tools, mobility, and processes. Therefore, the HR department is an entire organization that must be thought out and implemented to facilitate employees’ work. The organization needs to be more “agile.”

Giving Meaning to the Work of Employees Without Neglecting Ethics

Managerial practices must have meaning for the employee. The latter must understand the objectives and the outcome of his actions. In addition, the company must set an example on several fronts. It must conduct a solid CSR policy, conduct prevention for its employees, or even ensure specific diversity and parity in the company. Simply put, you must be flawless so the employee has nothing to complain about their experience. Of course, these policies must involve employees by making them participate.

Individual connections are the most significant factor in the worker experience; representatives explicitly connect with their directors. When administrators do not have the foggiest idea of rousing or speaking with their workers appropriately, it causes a loss of profitability. It inevitably finishes with the representative securing another position. Administrator preparation should show assignment, relational abilities, time the board, objective setting, and viable approaches to applause and criticism.

There is a good connection between representative experience and client experience, and numerous workers feel euphoria from helping clients. Permitting clients to give criticism and offering it to representatives can support workers with certainty and give them a feeling of direction in their activity. Client input ought to be communicated throughout the association, perceiving that the organization is succeeding, yet the representative is.

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.

WordPress security is a topic of interest and concern for almost every website owner. Google blocks thousands of websites daily due to malware and phishing aspects. If you are serious about your website’s security, you must follow some best practices to keep malware away. You have many ways to keep hackers and malware away regarding website security. The last thing you want is someone else taking control of your website. Today, we will share some strategies and tips to help you increase your website security.

• Using secured hosting

Not every web hosting service is made equal, and in fact, any of the vulnerabilities of website security come from hosting services. When choosing a hosting web service, do not go for the cheapest one. Do some research from your side and ensure the site is well-known and follows strict security rules. A company that keeps a track record of safety and security is the one you should consider. It is always worth paying some extra for lasting and reliable security measures to have peace of mind knowing your site is in safe hands.

• Keep your site updated

With every Update of WordPress, the company releases various fixes and patches to address potential vulnerabilities. You may leave yourself open to potential dangers if you do not keep your website updated. Many hackers target multiple websites that have older versions and have known security issues. Always watch the Update Now button, and do not ignore these messages when prompted. This same aspect applies to themes and plugins, so make sure that you update them to the latest versions whenever they are released. You are less likely to get hacked if you have everything updated accordingly.

• Use strong passwords

There is a reason that every online service urges the user to generate strong passwords. According to statistics, most of the websites that are down are due to weak passwords. Suppose your password for your dashboard is like “your name” or “Abc123”; then you need to change them as soon as possible to ensure security. Use a password that is easy to remember for you but hard to crack for anyone else.

• Install website security backup solution

Backups are an essential and effective defense against WordPress attacks. It is a fact that nothing is 100% secure, but backups allow you to restore your website in case anything wrong happens. You have the availability of many free or paid plugins. The most crucial point to consider for backups is saving full site backups regularly to a remote location, not your hosting site. You can use Cloud services for this purpose and save everything necessary.

• Never use the username “admin”

There were many brute force attacks against websites with the username admin. The hackers used the username with a bunch of common passwords and gained access to websites very quickly. If your website uses “admin” as a username, you are in great danger of cyber-attacks and must change it immediately. Until version 3.0, WordPress automatically sets the username as admin by default. After 3.0, you can select the username as you please. You can fix this issue by setting up another account with a different username and deleting the admin account.

• Limit login attempts

The number of login attempts also gives hackers plenty of chances to crack passwords. Such people need all the time they can to guess passwords, and limiting login attempts will enable you to restrict such attacks. If there are a limited number of logins, the attempts to gain access stop after two or three logins; this thereby secures your website from anyone besides the owner to gain access.

Final Word

Securing your WordPress website is necessary to ensure that only you have access to your website. You have various ways to ensure your website remains secure and out of harm’s way. You must keep your website updated and prevent potential hackers from gaining access. Remember the various methods discussed above and have your WordPress security-enhanced against intruders.   

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 for inventory refers to the act of noting down and keeping track of the purchases that happened as a part of your business. The items you intend to sell away are most likely in the inventory. You need to list everything you have in stock and keep track of all the new purchases you make for the shop.

It means that you keep track of all the money spent on the items you put on the shelves. A business owner needs to stay ahead of the trends and keep their shop laced with whatever the market is raging about; this would mean going out of your way to procure stock for the customers to enjoy.

Now, you may be thinking, here we are rambling on and on about accounting for inventory without explaining how you can go about it.

Let us quickly go over how you could set up an accounting system for your inventory.

How to Set Up an Accounting System for Inventory?

There are two ways to have an accounting system for your inventory. Business owners have used both methods for years and worked flawlessly despite varying aspects. You can look at the breakdown of both below and decide which would work better for your budding business.

1. Periodic inventory accounting

Periodic inventory accounting caters to your inventory accounting needs through a systematically divided pattern. As the name suggests, the accounting of your inventory should happen periodically.

The business owner does not account for each sale individually during this method. Instead, they focus on getting their digits together at the end of a season. It allows a seasoned business owner to compare their monthly results with the previous month to realize where they may be lacking.

2. Cost of sales inventory accounting

Unlike periodic inventory accounting, cost of sales inventory accounting deals with the calculations for each sale made in the inventory. A more short-term-focused ideology often helps business owners stay ahead in their accounting game.

The Profit and loss report plays a huge role in this type of inventory accounting. With every sale, the equation of assets on the balance sheet is disrupted but accordingly increases on the profit & loss report.

Why is Accounting for Inventory Important?

New business owners often fail to understand that the inventory they have set up for the business is one of their greatest assets. Whatever you spend is noted as an asset in the accounting books.

It means that the inventory’s value equates to some part of the asset value that the company is enjoying. The more you spend on your inventory, the higher the worth goes. Knowing the value of your stock would allow you to understand its worth.

This asset value on the balance sheet signifies how much wealth has been invested in the business. When you purchase your inventory, you are technically growing the asset value of your business.

Maintaining a journal for your accounting system would help you compare your sales to your inventory, which could play a defining role in analyzing the profit or loss your company has faced.

Conclusion

After discussing the hows and whys of inventory accounting, we hope you have received a rough idea of what it is, how it could benefit your business, and how you could go about it.

Always remember: the first step to being a successful business owner is to have your accounting system neatly set. If the bookkeeping, profit & loss reports, balance sheets, income statements, and accounting statements are in shambles, believe me when I say, very soon, your business will be in chaos, too.

Make sure to pay attention to your inventory to calculate the asset value of 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.

It is important to reconcile your company’s bank accounts every month, just as you reconcile your personal account. This involves matching your credit card transactions with your bookkeeping records to ensure that credit card statements are accurate. Reconciling is a crucial step that helps business owners identify any discrepancies and take necessary action.

Reconciling your credit card statement every month helps ensure that any discrepancies between your credit card statement and bank account are resolved promptly. For example, you may notice a bank deposit with the wrong amount, fraudulent activity, or theft from your card or account. If you see a purchase on your statement that you did not approve, you can inform your bank to investigate the issue.

How to Reconcile Your Credit Card?

When the credit card statements are received, accountants match every statement with the company’s internal system. It includes both inbound credit card payments from customers and outbound transactions to suppliers and service providers.

You can take proper steps to investigate the case if there are any discrepancies. After performing all the research and gathering information, this data is saved for audit purposes.

Is There Software to Help With the Process?

Credit card reconciliation software automates all the required steps in the credit card reconciliation process. It imports data both from ERP or general ledger systems and credit card files or statements. Then, the software compares both files and looks for discrepancies so the accounting team can investigate them.

It makes credit card reconciliation easier as you don’t have to match each transaction manually, and this whole process also speeds up.

Steps to Reconcile Credit Card

1. Get all the transactions of credit cards: The first step is to obtain all the transactions of your company’s various credit card accounts. You can do this by importing credit card transactions with the help of software or manually uploading bank statements into your accounting software. For more accurate results and to save you time, we highly recommend importing these transactions with the help of software instead of manually doing it.
2. Assign expenses to a specific employee or team: First, sort out all your company expenses and then decide which employee or team will be responsible for various fees in your company.
3. Gather and arrange data for various expenses: In this step, you must collect important documents, reports, receipts, and credit card statements. It can be a difficult and time-consuming process. After that, you must arrange data as per your company’s requirements.
4. Draw comparison: Compare the transaction amounts on expense receipts with the outgoing quantity in the corresponding account. Now, this is the time to validate your expenses. Thoroughly check all the costs that took place by your company and ensure they comply with its policies. It will help prevent fraudulent activities or mistakes that could lead to legal woes.
5. Discuss any policy violations with the offending party: If you notice any policy violations in your company, it is crucial to address them immediately. Discuss them with the offending party to know whether it was a mistake or some fraud activity. It rarely happens, but it is essential to highlight the issue to prevent the company from such activities in the future. A simple conversation will help to clear up any misunderstanding and to help the future reconciliation processes.
6. Process credit card transactions in the general ledger: Now that you have sorted out all the expenses and addressed any potential issues found, it is time to add your transactions to your company’s general ledger.

To ensure that the general ledger remains a solid and accurate foundation for your company’s financial system, it is essential to validate and address issues before adding expenses to your ledger.

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.

Running a business in today’s world is challenging, especially after the pandemic. Many companies suffered devastating losses. Many of them had to shut down. It taught many business owners a lesson that not just internal factors but external factors play a vital role in keeping your business up and running. Many businesspeople learned this hard, but the world doesn’t end there. Let’s take this pandemic as a starting point to understand what other factors could influence your cash flow.

Political Instability or Changes

In economics, political instability is the number one factor affecting a region’s businesses. Whether small, medium, or large, any business will suffer political instability or constant change in the political environment. It is one reason companies experience rapid or slow growth rates during election years. Most major corporations of the world try to minimize their business activities during this period and wait for new policies to emerge. Then, these businesses adjust their internal procedures accordingly. Therefore, entrepreneurs should always watch for any political change that could adversely affect their business.

Economic Ups & Downs

While most major corporations of the world tend to enjoy the ups and downs of the economy, most small and medium businesses suffer significantly. If you are in the business of import and export or are selling imported products, then the chances are that the regular increase or decrease in dollar prices might affect your business’s cash flow. If your country’s currency’s exchange rate is down, then your overall business landscape might suffer.

Social Norms & Influences

Society plays a vital role in shaping a country’s demand and supply situation. Fashion, trends, and taboos can hurt your business directly. For instance, during this recent pandemic, face masks became a significant business. Many widely known apparel and sports brands dove into the business of manufacturing face masks simply because their other products weren’t doing well enough. Almost the entire 2020 was in a state of lockdown. It advised people not to do luxury shopping. Therefore, apparel and fashion accessories were not doing well. For many such businesses, the only viable option was switching to producing face masks and gloves.

Technological Advancements

For businesses that deal with technological products and services, staying up to date with the recent trends is a dire need. For instance, Nokia was the most considerable cell phone manufacturer ten years ago, and today, the company is not even in the top five. Why? Simply because they could not keep up with their consumers’ technological demands. While the world was moving towards Android & iOS-based smartphones, Nokia was trying to compel them to switch to Windows smartphones, which backfired, and as a result, the company almost went bankrupt.

Social Media Influence

Social media is probably the most powerful tool in human history to shape our choices and mindsets. People use Social media worldwide to express their pleasure and displeasure with products and services. One wrong move and your business will appear on Facebook or Twitter with a negative review. Regular social media management and reputation management are essential to avoid such instances.

How to Prepare for External Factors to Better Manage Your Cash Flow

Feeling helpless is natural when you cannot control the external factors that can adversely affect your cash flow. However, while you cannot control the facets themselves, you can manage your reaction to them and be better prepared. Maintaining a backup cash flow is crucial in today’s business climate. Of course, this might not be the best solution for every business, but restraining your spending and being flexible with maintaining your cash flow usually works for most companies. Adopting a flexible cash reserve strategy with pre-determined goals can help you have enough cash reserve for rainy days. 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.

With the evolution of technology, manual processes have lost their stage in business operations, especially finances. These tedious tasks are too time–consuming, leading to an uneven workload and escalating frustration.

To avoid this, you must automate the tiresome manual work that requires too much effort. A well-organized automated financial process reduces risk exposure and grants confidence in the reporting consequences. The resulting efficiency frees up your accountants to focus on more concerned areas, which are the core reason they pursued this profession in the first place. Handling properly can lead to a sound workplace environment and directly influence your company’s prosperity.

Automation of accounting operations is not a new term for those officials who work in the accounting field. However, the dawn of artificial intelligence has raised tons of recent queries, and many CPA officials and accountants worry that the automation procedure might adversely modify their profession altogether.

What is the Role of a CPA?

CPA stands for “Certified personal accountant.” However, this individual is like a toolbox containing every essential tool, from tax preparation to financial statements and internal auditing. The CPA’s primary function is to make a business successful. Where a CPA is an accountant, not every accountant serves as a CPA.

A CPA has earned a certified degree as an accountant. However, those who perform any financial task consider themselves accountants.

Let us evaluate how the availability of accounting automation can be a tremendous advantage for CPAs.

Increased Productivity

The first benefit that accounting automation delivers is saving valuable time. With financial automation, a CPA can eliminate repetitive manual tasks, including spreadsheet work and shift audits. With the merit of time-saving, a CPA can be redeployed to acknowledge more strategic studies, and the workforce can scale to support growth without additional headcount.

Automation Allows Internal Insights

Accounting automation allows a CPA to collect data quickly and continuously. It enables more instant exploration of trends and insights without waiting for the closing period. Additional time for the analysis and quality insights means that a CPA is qualified enough for vigorous decision-making.

With automation, CPAs can quickly generate reports and dashboards adjusted to new income streams, cost centers, and other business alterations. CPAs cannot rely on IT for maintenance to head to fresh initiatives without worrying about unnecessary bottlenecks.

Protection of Data

Manual financial activities require utmost attention and spreadsheets that contain minimal security, lack preventive measures, and increase cyber-attack risks. Accounting automation fully reflects the manual tasks and allows a CPA to concentrate on other valuable areas.

Auditors can easily access confidential information rather than ask permission to review the flash drives or other guarded documents if required.

Improved KPIs

KPI stands for “key performance indicator.” A kind of policy that helps measure performance over a specific period assigns targets to teammates to gauge progress and insights that assist employees across the company in making better decisions.

Undoubtedly, what gets measured often gets in a timely manner. As CPAs consider modernizing their processes, scale forth growth, and provide feasible insights, financial automation platforms acknowledge the underlying procedures and enable tracking.

CPAs can monitor KPIs like unrecorded adjustments, unattended tasks, and late journal entries with a sole point of collaboration for accounting. This determination leads to enhanced decision-making and can also be utilized to drive accountability and alter throughout the accounting organization.

Increases Client Detention

Your business’s clients are not interested in how you do the job well. They are just delighted to be the beneficiaries of it. More specifically, better monetary analysis and increased efficiency lead to cheerful clients.

When CPAs can focus on consulting with clients, they provide competent and helpful advice. Happier clients will also increase the productivity of the company’s services, and CPAs will enjoy embarking on this financial venture. Automation can be a more significant asset to a business than it can ever realize. 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.

For forever, accounting was considered the most tedious part of a business. Even though accounting is the heart of a company that takes the oxygen and distributes it to the various parts of an organization while maintaining a record of it, it is still unfortunately considered irrelevant to business planning, management, and growth. Surprisingly, that point of view is shifting towards a more progressive approach, thanks to the recent developments in the accounting sector that have entirely revolutionized how businesses connect with their accounting department. Today, an accounting department is more than just responsible for maintaining financial records and doing the math. It is also responsible for participating in the planning and development of a business.

What changed? What brought such a paradigm shift in the accounting sector? Well, you are about to find that out. Here are the top 10 trends of 2023 in the accounting sector that have helped revolutionize the relationship between a business and its accounting department.

Accounting Ecosystem

First and foremost, ecosystems are the fad of 2023. Whether marketing or production, every business sector is moving towards a central system for all their needs. Similarly, the advent of ecosystems in accounting has exponentially transformed this department’s productivity and usefulness. With a centralized ecosystem, businesses now have the luxury of having all their financial information in one place. These ecosystems connect with accounting software, inventory management software, invoicing software, and others. All the financial statements are in one place for the management to analyze, interpret, and understand data easily. It helps businesses to be more accurate with their planning and forecasting.

Artificial Intelligence is Taking the Wheel

In 2023, the most unique and unseen development in the accounting sector was the advent of artificial intelligence. Artificial intelligence is currently newfound and is still developing, yet the fruits it bears are magnificent. With artificial intelligence, accounting departments and management can now focus more on the essential tasks required by human intelligence, such as planning, managing, forecasting, and executing, instead of wasting resources on mundane and useless tasks such as reconciling balance sheets manually, making multiple journal entries of the same transaction, and the like. With AI, the accounting software automatically performs mundane tasks while humans do the more critical tasks.

Superior Data Analytics Tools

From marketing to management to even accounting, data analytics tools have taken the market by storm. With these tools, it has become easier to analyze your business’ performance, plan, and maintain a constant check on the daily happenings. In relation to accounting, data analytics tools have helped streamline how management visualizes, plans, and forecasts its financial performance. Coupled with AI, these tools have greatly helped accounting teams shift their direction instead of doing mundane, repetitive tasks.

Compliance with Workplace Wellness Policies with State Laws

The COVID-19 pandemic opened the eyes of companies and law authorities worldwide to maintain the health and wellness of employees. The pandemic and the recent spike in stress and cardiac issues among employees in the United States have forced authorities to impose laws limiting companies from using their human resources or putting medical facilities as part of their overall package. With these ever-changing policies, an organization’s accounting department needs to be up to date to manage employees’ payroll and medical expenses swiftly. Legal action might bring the entire operation down if the accounts department is not updated with these policies.

Data is More Secure than Ever

Since most of the world is working online due to the pandemic, data security has become companies’ most significant concern. Luckily, in 2023, most accounting software companies switched to cloud–based backups, putting companies at ease that their data is secure on a cloud server and that no one without proper authentication can access it. Also, these servers are highly secure, so there is no stress of the data being hacked into or being prone to virus attacks. 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.

When joined together, several different avenues form a foundation for a successful business. Marketing, management, sales strategies, and budgeting are all different compartments of the same company. All of these bring bits and pieces to the table to give a finished look to the business. Similarly, accounting is another compartment that deals with the organization of the financial side of your business.

Accounting can be defined as a thorough analysis of all profits and losses, loans, investments, payrolls, and the inflow and outflow of cash. Accounting is one of the most stabilizing departments of a business that assists it in staying afloat as the market fluctuates.

It is no secret that businesses with an effective working system pay close attention to sorting their financial affairs. Accounting is a stepping stone for success, whether the business owner wishes to cater to these themselves or have a whole team to look after their financial affairs.

So, read on to understand why your small business needs accounting.

Remember: your choices today will inevitably impact the success of your business.

Strategize Your Decisions

With your financial situation in front of you, you would see any loopholes in the system. It includes different routes to help you make tiny changes to the business model to attain maximum profit. Likewise, you could shuffle a few things around to save your business from facing a massive loss soon.

Accounting allows you to strategize your decisions according to the needs of the hour. Finances are the wheels of a business, which means that the company starts crumbling when the finances become a mess. If you want a snapshot that would allow you to predict the future of your business, you must take the time out for accounting.

Budgeting

A budget refers to an expenditure put aside to cater to monetary requirements. When you can analyze the company’s financial health for the foreseeable future, one takes extra measures to ensure that all their costs are covered by the funds they have set aside.

Finances and all monetary affairs are sorted as a part of accounting. It provides ample information regarding the costs you may incur in the future. For this purpose, the business owner must consider all requirements and develop a budgeting plan that better suits their business.

Record of Inflow and Outflow

Consider accounting for a track record of all the transactions in a specific period. Transactions include customer payments, loans that must be returned, payrolls, and investments. Keeping a record of these in a systemized manner would save you from any fraud in the future. This record would also aid you in being aware of all the inflow and outflow of cash that would otherwise not be documented.

Performance

You can investigate how your business is performing through the scenario set by the accounting department. Key indicators help the business owner identify their progress or the lack thereof.

It would also assist business owners in comparing their progress to their past results to understand if the business has been performing better or would still require improvements. If appropriate changes happen to the business model, the performance could be improved manifold.

Legal Matters

Businesses are required by the law to be very clear and concise regarding their financial matters to avoid getting into a legal fix. Keeping their accounting department tucked would help business owners prepare for their taxes when it is time. It also ensures accountability for the business owners to remove doubt from the equation altogether.

These are just the five main reasons you need to have a proper accounting system for your business if you already do not. There are many reasons why you should not take accounting as a nuisance. Instead, we should consider it a safety net that could save you from fraud and losses. Staying vigilant and being aware of their business’s financial situation has always given business owners an advantage. 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.

Keeping the finances of a business sorted and in place is the dream of every business owner. Regardless of how big or small the company is, bookkeeping is an area that all business owners must pay keen attention to as they take their business along. Knowing how much profit your business made in a certain period and preparing you for the tax season, bookkeeping has got your back.

At this point, bookkeeping is not even an option anymore. It is a necessity each business should have. To uncover the true potential that your business holds, you must first dive deep into the company’s financial situation. It would help you realize how far you can take your business and assist you in making sound decisions in the future.

However, before we get into the whys of bookkeeping, let us first understand what it is.

Bookkeeping a Financial Record

Your business’s finances, including profits and losses, inflow and outflow of cash, assets, and liabilities, must be appropriately tracked. Recording your company’s financial activity is essential because you may need to refer to your documents to assess how well your business may perform. Bookkeeping is your best friend in keeping track of all the financial records.

Your income, profit, employee payroll, payments, and loans must be neatly accessible and organized through bookkeeping. It would be best to do it before the mess was too hot.

Why is Bookkeeping Important?

As mentioned before, bookkeeping not only makes you aware of the financial health of your business. It also allows you to legally bind your business by staying in sync with your taxes.

Different aspects of bookkeeping go into giving a complete picture. Additional financial statements include balance sheets, cash flow, and income statements. Keeping your bookkeeping prim and proper would essentially cater to your business’s financial affairs. Further analysis and assembly are the accounting department’s job that caters to such aspects.

How does bookkeeping benefit your business?

Read on to understand a few of the many advantages bookkeeping has for your business’s well-being.

Strategic Decisions for the Future

While it organizes and brings a neat outlook to your business, bookkeeping is also a snapshot of your financial health that allows you to strategically maneuver your way around in your future endeavors. It happens because bookkeeping would give you a thorough analysis of the financial status of your business. It would inform you of the profits you could enjoy or the losses you may face if you do not make certain decisions at the right time.

Record of Payments

Bookkeeping is a systemized record of your finances which keeps you in line with your payments. Despite this, it is a luxury that only a few understand its worth.

Being a business owner, it is your moral and legal duty to have a clean record of all the payments you are to receive and all those due. If a record of payments is maintained, you will always have a transparent mode of getting the payroll out for your employees. Other expenses, such as payments to vendors, loans to be returned, and the cut that investors would be receiving from your business, are all made easy to tackle if bookkeeping is a skill you have mastered.

Each business owner must take the time to invest in this skill to save themselves and the stakeholders any inconvenience later.

Preparation for Tax Season

The art of bookkeeping would keep you prepared for audits.

Tax and audits are legally binding aspects of bookkeeping. If your bookkeeping game is on point, you will not have to worry when the tax season rolls around. With your financial situation already cared for, your taxes would be calculated to ensure timely payments. It would save you from getting stuck in a legal hiccup. 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.

Different types of businesses, small, new, large, or old, face fraud, leading the company to debt or severe losses. Customers, suppliers, or employees can commit those scams or frauds. Fraud customers include fake billing, false claims, and receiving counterfeit money. Businesses that run over the internet face fraud from customers the most. Those frauds are when a customer claims an appropriate and proper sale to be unauthorized. It is the reason that some businesses choose only specific payment terms for their sales to prevent fraud. Payment terms include different methods of payment that a company selects from and create the conditions that they will only receive payments through those methods. A few other ways a business can prevent fraud are by creating strict laws against crimes and fraud in the industry, by keeping a check on their employees and keeping them under supervision, and by handling the complex accounts by themselves or under the owner’s watch by conducting audits.

What are Payment Terms?

Businesses provide their buyers with invoices, and the types of invoices can depend on the method or multiple methods of payments your company has chosen to accept. Different payment methods include receiving payments in cash, checks, debit cards or credit cards, online transfers or mobile payments, and electronic bank transfers. Every business should have a bank account because you can make many different decisions if you have a business bank account. The most common payment terms are payment in advance, receiving all payments at the end of the month, cash on delivery, conducting only cash sales and no credit sales, money in advance, cash before shipment, prepayments, half payment in advance, and installments. It is essential for startup businesses to set up clear and concise payment terms from the very beginning to create a culture of your business. If you plan to receive payments through bank cards and mobile banking, you must hook your business up with merchants to avail of merchant services. Get your business’s point of sales device to make the other payment methods possible. Payment terms are important because you can track your receipts and include them in your cash flow statements.

How to Use Invoice Payment Terms to Protect Your Business

A business applies or includes payment terms to its financial systems to improve cash flows. Payment terms ensure you get your payments as early as possible and work in a way that will not offend or make it inconvenient for your customers. Make sure to use the payment terms which will help you achieve your goals and aims. Ensure you also include your payment options and the payment time in your invoices. It will prevent confusion in the future, and you can get paid on time. You can invest in software like Smart Invoices, which allows customers to pay online whenever they want through pay-enabled smart invoices. Customers can pay using credit cards, debit cards, and automated clearing house (ACH) bank transfers with Smart Invoices.

Some challenges you might face while setting up the payment terms include payment security, which means you can never be too sure if your chosen payment platform is trustworthy. On top of that, you must ensure you are providing your customers with good quality and good services. Managing and tracking the payments and invoices can also get hard. If you are running your business on a larger scale, then managing payments can be more hectic as there will be different channels and different types of buyers, and keeping a record of each type can become hard. Even after putting up many payment terms and regulations to prevent fraud, you may still have a few unpaid invoices. Unpaid invoices are more common for small businesses as compared to large companies.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.