Accounting and bookkeeping are critical functions in any business. Accounting is the systemic and comprehensive recording of financial operations in a business. Business bookkeeping is the recording of financial transactions as a part of the accounting process.

Entrepreneurs and owners often do not realize that common small business accounting problems constitute a significant threat to the growth of their business in the long run. Here are five common small business accounting problems killing small businesses.

The Vital Role of Accounting Software

Manual work is always the hardest and is at significant risk of errors. A small accounting error can lead to considerable losses in the business. Accounting software according to your business size is as important as funding your business. Depending on company specifics, small business owners can also get specific software to meet their needs.

Working on a spreadsheet is less productive than working on accounting software.

An important and challenging step in business is to choose the proper software for your business needs. Consider its cost, usability, and extra features when choosing suitable software for your small business.

Features of accounting software must include:

• Inventory management
• Sales tracking
• Contacts management and contact history tracking
• Account to accept credit card payments
• Generating Invoices
• Financial statements, cash flow statements, and balance sheet
• Budget planning
• Payrolls
• Taxation matters

The Importance of Monthly Financial Statements 

In a small business, producing financials quarterly or bi-annually is often thought appropriate. However, monthly financials show investors that you are closely monitoring your business.

It can lead to a negative balance if expenses are incurred, but the income statement is not updated. Invoices that need to be paid may go unnoticed, leading to a bad reputation for the company. It can end terms with the suppliers. Business growth could even be halted or significantly reduced.

Not producing financial statements every month is a common problem that small businesses encounter.

The Perils of Incorrect Financials 

Incorrect financials is a threatening small business accounting problem in your business. If your financials are wrong, it may sink your funding round in your business.

Any error in financial statements leads to significant losses. Business bookkeeping and other business operations will be disastrous if you do not keep your financial data current. Your accounting statements must be clear and transparent. Income and expense statements must be clear and related to cash flow and balance sheets. Also, delayed data entry can be a big risk for fraud.

Separating Personal and Business Finances

Business owners often mix their finances with business expenses. Keeping these two finances separate is of utmost importance. If these two finances (personal and business) are not segregated, then what was intended for business vs personal matters will be intertwined, leading to problems. The profit generated from invested capital cannot be estimated correctly.

Often, a business credit card is utilized for personal expenses. Later on, this amount will be paid from the company’s income.

During purchase orders for company inventory, purchases are also made for personal or private use.

Covering small business expenses out of pocket without recording it happens as it can be more accessible. However, if it is off the bookkeeping record, your company’s income could appear larger than it is. 

Navigating Payroll Issues

Small business owners must organize their payroll section, or their company could become debt with increasing interest. You can enlist the help of payroll companies to avoid errors. Payroll issues can have significant consequences for small businesses. Managing payroll accurately and efficiently ensures employee satisfaction, legal compliance, financial stability, and overall business success. Small business owners often opt for professional assistance to avoid errors and streamline their payroll processes, which ultimately contributes to their business’s overall health and growth.

Conclusion

Small business accounting problems start with infrequent bookkeeping and accounting functions. It will not give an accurate picture of the business and leads to the inability to make wise decisions for the company. Failure to use accounting software may lead to unintentional manual errors. When running into accounting problems, small business owners may have to get loans to pay for timely expenses, such as paying for their employees‘ salaries. If small business owners focus on these accounting problems, their businesses can be stable and experience exponential growth. 

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.

Why the Need to Save Money?

In simplest terms, saving money can help an individual or family become financially secure and more stable. The portion of income saved over time can help you pay for unexpected events and emergencies. Money keeps you going, and whatever you save for yourself each month grows your bank balance. This extra cash or wealth can later be converted into valuable assets such as cars, housing, furniture, and other similar things.

Dramatic Shift in Spending Habits

Saving money in a world of instant gratification where we barely notice our purchasing patterns, especially when shopping has become increasingly difficult. Pros use superior marketing and merchandising techniques across different print and digital media channels, which is why people fall prey to impulse buying. Keeping within a budget has become even more complex than ever because our spending habits and buying behavior have changed immensely as a country.

7 tips that will allow you to Save Money every month

Put At Least 20% of your Income into a Savings Account

Saving money sounds great, in theory, but saving substantial money for an uncertain chain of events is no easy feat. You have to cut down on your monthly expenses to save something for your rainy days. According to studies, at least 20% of your monthly income should go into your savings account to maintain a healthy financial life cycle. It signifies that to save money for a healthy flow of financial activities, we need to create a budget and strictly follow it–without getting distracted.

Create a Monthly Budget and Follow it Strictly

Let’s face it: Everyone struggles to maintain a healthy balance in monthly finances. The reason is apparent: our never-ending needs and desires. People often find themselves miserably stuck in continually creating a monthly budget and trying to follow it sincerely, only to fail. Families know that if they fail to maintain any kind of order in their finances, they will all suffer eventually. Moreover, household expenses and monthly paychecks should be appropriately divided into utilities, food/groceries, health, transportation, clothing, home maintenance, and other miscellaneous expenses like car insurance or maintenance.

Spend Less on Food/Groceries Items

Over the past decade, the world has witnessed a 180-degree shift towards superior retail merchandising. To save money, you need to cut your daily expenses. It can be done by making a list before going to any retail store or at least a rough spending plan. Pick only the essential items from the racks, redeem monthly points in retail stores, use discount vouchers and coupons, limit your visits, and other similar things. Moreover, you can save money by taking lunch from home, skipping the daily latte, or slicing and shredding food.

Postpone all Non-Essential Tasks

No matter how much you earn each month, spending on non-essential tasks like planning a holiday trip, buying a brand-new car, and other lavish things can be postponed. To save money, you need to cut extraordinary costs. Therefore, whatever you would save for the month by doing so will keep you more financially secure and stable than ever.

Buy Inexpensive Subscriptions for Entertainment

Instead of buying expensive DVDs or music, you can enroll in inexpensive subscriptions for entertainment purposes like watching movies/programs/reality shows online, perhaps on Netflix or other emerging dynamic platforms. It might even be time to cut the cable with so many options available now.

Avoid Paying Interest

Interests eat a significant portion of your monthly paycheck without letting you know. So, avoiding using credit cards to purchase essential or non-essential items is better. It would allow you to save money!

Watch for Occasional Discounts

There are two rules for asking for discounts. Rule#1: You must learn to ask for discounts on everything. Rule#2: Do not be afraid of Rule#1! What’s the worst thing when you ask for a deal? You already know the worst-case scenario! Don’t you? They might say ‘NO.’ Come on, when you are already on a mission to save tons of money or cut monthly costs/expenditures, this shouldn’t bother you too much. 

Similarly, it would help if you looked for promotional or occasional discount offers that clothing, retail, and home maintenance companies may offer. It allows you to save money and cut costs quite significantly.

Conclusion

If you add up where your monthly paycheck goes, you would probably notice that it goes predominantly into food, entertainment, and utilities in the budget list. To save money, you need to sensibly plan a cost-effective budget that is not hard on the wallet.

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.

Regrettably, recent developments at the IRS bring less-than-welcome news for business owners: the tax authority is intensifying its efforts in audits and collections, with a keen focus on those who own businesses. If you’ve been receiving IRS notices about tax debt and hoping they would somehow vanish, it’s time to face the reality that action must be taken to address these issues. Otherwise, the consequences could lead to unwelcome complications and added stress, affecting both your business and personal life. The IRS wields considerable power, including the ability to seize your assets. In this guide, we’ll explore steps you can take to navigate IRS tax debt effectively and emerge with your financial health intact.

Know Where You Stand

It’s crucial to meticulously review all correspondence from the IRS and thoroughly examine your tax returns for potential errors or discrepancies. The reason behind this diligence is twofold. Firstly, the IRS occasionally makes mistakes, and errors in their calculations or assessments can lead to an inaccurate tax debt amount. By carefully scrutinizing the IRS’s notifications and your filed tax returns, you may identify such errors and have the opportunity to rectify them.

Secondly, seeking assistance from a qualified tax professional can immensely benefit this process. Tax professionals possess a deep understanding of tax regulations, audit procedures, and the intricacies of the IRS. Their expertise enables them to navigate the complex tax system and advocate on your behalf to resolve any inaccuracies or discrepancies. The potential savings you can achieve by correcting errors are often far more advantageous than paying additional fees or interest on an inflated tax debt. In essence, consulting a tax professional provides peace of mind. It ensures you pay what you genuinely owe to the IRS, minimizing the financial burden and mitigating potential long-term consequences of tax debt.

Negotiate the Penalties

Penalties can spiral out of hand very quickly. For this reason, you must act very swiftly when dealing with IRS debt. You may also consider negotiating with the agency to lower, and sometimes even eliminate, any penalties if you provide a reasonable cause. Examples of this may include serious illnesses, difficult financial circumstances, and the destruction of your home or the business you are running. Furthermore, the IRS also has a program that offers relief to those facing the consequences of the agency for the first time.  

Establish a Payment Plan for Business Debt

You can quickly create a working plan after you become aware of what you owe. One of the most common approaches is to set up an installment agreement. This arrangement can be as long as six years, and all payments should be made monthly while interest or penalties continue to accrue. Remember, this kind of agreement stops actions such as liens and levies. This process is viable if you are indebted $50,000 or less. It can also be done online; however, you must comply with the IRS, ensuring that you make the proper tax filings, deposits, and withholdings.

Reduce Business Expenses

Take care to consider your operating costs carefully. Figure out the expenses you might cut out versus the services required for the daily operation of your business. For instance, must you pay for a subscription that you use infrequently? Can you temporarily suspend some professional memberships until you get your finances back? Consult a professional accountant or utilize accounting software to predict the financial impact of cutting ancillary expenditures.

Exploring Other Options

You most likely have seen TV advertisements where a representative claims you can settle your IRS debt with “Pennies on the dollar!” Does this sound too good to be true? Unfortunately, this is most often the case. However, the IRS does have a program called “Offer in Compromise,” or the OIC. It allows you to pay off business debt at a discount. This process also involves releasing financial information with the forms 656 and 433. It will determine the amount the IRS considers livable without causing financial restraints on the users. Keep in mind that the IRS rejects numerous submissions. Therefore, consulting with a tax professional with complete knowledge of filling out paperwork and navigating the IRS bureaucracy is beneficial. 

Conclusion 

In conclusion, proactive and informed steps are crucial to managing the situation effectively when facing IRS tax debt as a business owner. Ignoring IRS notices or allowing penalties to accumulate can lead to significant financial and personal challenges. By knowing where you stand, negotiating penalties, establishing a payment plan, reducing business expenses, and exploring options like the Offer in Compromise program, you can navigate the complexities of IRS debt while preserving your financial health. Consulting a tax professional with expertise in IRS procedures and paperwork can be invaluable, ensuring a smoother journey toward resolving your tax debt and maintaining financial stability.

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

A financial planner is a professional who helps you manage your finances and solves financial matters on your behalf. When managing finances, saving and investment projections, retirement plans, and other long-term financial aspects, devising effective strategies and execution plans becomes necessary if you expect to be on the right track. You may have little knowledge of such matters, but a financial adviser has the knowledge, skills, expertise, and experience in handling money-related matters. A financial planner gets things going for you and helps you achieve financial goals and objectives faster.

Increased Demand for Financial Planners

According to a report by the American Psychological Association, money is the leading cause of stress among most Americans. Moreover, it revealed that health and family relations have primarily been compromised due to financial pressures. It signifies that creating and maintaining a perfect balance has become more or less like an alien job. A recent survey conducted by APA, out of a pool of 5000 adults from the professional field, discovered that nearly 39% of adults (both male and female) find it extremely hard to handle money-related matters.

It indicates that the need and demand for professional financial planners has intensified significantly, opening doors of opportunity for people who are good at giving sound financial advice.

A Financial Planner works more or less like a Therapist

Fighting against all odds and saving money for hard times has become challenging. Looking at the low-income level, people have lost the motivation to save money for their rainy days. Perhaps they had to blame something for not saving, so they found the reason. One study found that ‘financial crises are the root cause of all stress.’ It can come from medical emergencies, job crises, divorce, bankruptcy, unusual spending, or extraordinary lifestyle.

Financial Planners Help You Regain Strength and Control over Financial Matters

Regardless of the cause, the repercussions are:

• Often emotional and mental stress.
• Current and future financial concerns.
• Lack of motivation and confidence.

In a crisis, regaining strength and control over yourself is necessary to mitigate all financial issues. You can do this by taking concrete action. Hiring the expertise of a professional financial planner may be a tough job initially. Still, once you can find the right strategic fit, you will notice a significant difference in the quality of the advice you receive. Plus, a financial adviser or planner works just like a therapist who will get things fixed—the first time.

Converting Emotional Instability into Rationality

A financial crisis can cause a great deal of emotional and mental turmoil. According to reports, young couples find it quite hard to balance their finances, which often leads them to boil over into a heated argument. Not surprisingly, such heated arguments and fights over financial issues often lead couples to file for divorce. It is the hidden trait of a great financial planner to play an intermediary role and make things work for people, especially for young couples, to know not to be involved in such indecent acts. Hiring the expertise of a professional financial adviser seems to be a fair trade, as they may help you craft a sound game plan, which may solve financial shortcomings right away.

Overcoming the Fear Factor

Often, people find themselves stuck miserably in severe financial crises. The ‘fear factor’ is predominant in restricting people’s potential to make the right decisions. It is a human tendency to show a lack of commitment to anything that doesn’t interest them at first glance. So, hiring a professional financial planner to think and act on your behalf becomes mandatory to get things moving along. Not everyone is privileged enough to get their economic equation right. So, it’s better to procure professional help, which will help you overcome your financial fears.

Turning the Confusion into Clarity

A financial adviser’s job is to help their clients devise a sound game plan for meeting their financial worries. Any financial planner must clarify all the confusion a client may have regarding managing their finances effectively. So, to make things work for their clients, a financial adviser must have a clear picture of their financial status. 

Conclusion

Psychologists listen to and understand their patients well before entering a therapeutic session. They need to create a sound game plan for their patients so that they can recover from personal traumas. However, a therapist can only empathize and sympathize in getting their patients out of financial trauma. For proper saving, investment, and money-related choices, a financial planner is qualified to help. You must hire the right person for the right job to improve your financial health.

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.

Over the years, companies have saved millions of dollars through professional advice and counseling. With success comes the added responsibility of managing your resources well. On their ladder to success, small business owners might fall into spending more and not practice being frugal entrepreneurs. The vital lesson to learn here is to squeeze the last drop out of your every dollar to continue climbing the ladder.

Frugal Entrepreneurship: Thrifty Success Strategies

Being a frugal entrepreneur doesn’t necessarily mean that you have to save money at any cost. Making good budgeting decisions will differentiate your business from others. Most people start their business with a bare minimum, but their focus is to improve the business’s operations and not to impress people. Even when your business grows, this same mindset will keep you going and out of trouble as well. The point is to offer all your employees a comfortable, not luxurious, working space. Everyone needs to be on the same page and understand the value of every dollar used.

Balancing Workplace Equality

If the boss sits in a lavish office and enjoys all of the perks while others are sitting at their old desks and putting their blood and sweat in for the cause, it certainly doesn’t equate to a cohesive working environment. A simple office can do the job as well as any other. If you are worried about impressing others with your “stuff,” you cannot sway your clients with your results.

Wage gaps and other terms like these make employees quite aware, and by leading a luxurious lifestyle, you not only attract unwanted attention but can also cause resentment from your employees. However, this is not to undermine the importance of all of the basics. You must have the basics and deserve to have them because you have put in a significant effort in the overall scheme of things.

Navigating the Pitfalls of Success

With success comes the added responsibility of micromanaging your finances as you tend to overspend more often. You will be inclined to buy what you would not have bought otherwise because you will convince yourself that you deserve some credit for your efforts, which boosts your ego. There is nothing wrong with treating yourself occasionally, but if you start doing it more often, it can affect the other walks of your life, including the business.

Experts call it an opportunity cost, which could have been done with the same amount invested elsewhere. No matter how much success you achieve, there will always be an opportunity cost for your decisions. Being frugal means making intelligent decisions as you have the capital to finance your desires for the business and yourself. A frugal entrepreneur is always sharp in choosing the most cost-effective ways.

Building Financial Resilience

Prudent financial management will provide a safety net for challenging times. Remember that you will not stay at the top; hard times always follow success. A business always ebbs and flows. When times are hard for your business, you must be ready to face it. When you are accustomed to leading a simple life, you will not be so shockingly affected by a recession or increase in competition in the market. You will survive and bear the burden with an open heart and enough courage to continue and make it to the top again.

Strategic Spending

Being a frugal entrepreneur does not mean you are not ready to spend big when the opportunity comes. In your business, you must decide to spend on a new asset or invest in a lucrative project. Go ahead and take the risk if you have researched the results in your favor. The mindset matters, which should be firm and frugal, even when you are at the height of your success.

Conclusion 

In conclusion, embracing a frugal mindset as an entrepreneur is not about denying yourself or your business essential resources but making prudent and purposeful financial decisions. Being a frugal entrepreneur can lead to more efficient resource management, promote a cohesive work environment, keep you sharp in decision-making, and prepare you for the inevitable challenges of business success. It’s a mindset that empowers you to navigate the complex terrain of entrepreneurship with resilience, adaptability, and a keen eye for long-term 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.

Most important to any start-up is undoubtedly ‘time’ and ‘money.’ Both play an essential role in defining the fate of a new business. Gone are the days when people could afford to launch a new company with a common idea and still make profits. They can never expect to survive without a brilliant idea backed up by a failure-proof plan, as both go hand in hand. Business adventurists have different priorities, and they try to put their best knowledge and skills to task right from the beginning to yield intended outcomes.

Why do New Businesses Fail to Survive in a Challenging Business Environment?

According to statistics, 3 out of 5 business ventures fail to survive in the first year of their launch. The reasons may include lack of experience, knowledge, skills, and expertise, managing critical business affairs like cash and inventory management, marketing, and the strategic balance between demand and supply. It indicates that the reasons could be internal and external, and one needs to keep a close eye and focus on changing corporate dynamics to ensure long-term survival in terms of profitability, sustainability, and growth.

Capitalizing on Score Strengths and Avoiding Risks

Starting a new business is no easy feat. Your thrilling adventure may turn into an awful experience if you don’t create and follow a unique strategy. Moreover, entrepreneurial business ventures are often threatened by risks. At the core of every start-up business lies risks and uncertainties. Those who can fight them well and capitalize on their strengths can achieve their short and long-term targets and business goals. With so much entrepreneurial knowledge and professional guidance, fighting against the odds has become more accessible.

Money, Money, Money

It wouldn’t be wrong to say that ‘money’ is one of the main reasons most commercial ventures fail to survive long term. According to studies, the success or failure of any business is usually determined by how well it can manage its money. For any new business to survive and succeed for long, it becomes necessary to manage money-related tasks effectively—the better they are, the better the results! A solid game plan must be in place, and priorities must be set to avoid risks and uncertainties to complete business failure and mismanagement of money.

5 Crucial Money Tips to Failure-Proof Your New Business

Manage Your Money

Starting a new business requires a hefty stack of hard cash. To ensure a smooth flow of a financial life cycle, you need to keep track of business transactions daily to avoid discrepancies for the whole month. You must know your financial status exactly, the influx and outflow of cash. Since our academic and professional careers began, we have been learning that profits keep the business running. However, we’ve focused little on the ‘effective cash management’ behind every successful business.

Entrepreneurs may have a fantastic idea to launch their new business, but they usually significantly lack cash management knowledge, skills, and experience. Hiring an expert bookkeeper or accountant to manage money-related tasks is a smart choice for ensuring optimal results. It will give you a clear snapshot of your business’s financial status. Moreover, it lets you focus on core business matters while your accountant manages the finances. Investing in a professional accountant will surely save you time and money strategically!

Diversify Your Business

Any new business needs to keep itself updated with the latest trends. Companies fail to keep their competitive advantage and market share if they rely solely on old customers. The sole reliance on one single client is a secret recipe for disaster, as you may never know when that big client might change their direction. When you want to keep your new business up and running, you need to evolve with time and find new clients to maintain and grow your business.

Don’t Overpay Your Taxes

Most start-ups often make this serious mistake when they overpay their taxes. Tax returns must be filed carefully, and you must only pay what you owe, not more! It is better to procure the expertise of a professional accountant who may turn things to your advantage, which is a tax reduction. Any new business feels the heat to save as much as possible, so hiring the expertise of a professional will lower your concerns about mismanagement and calculation.

Know Your COGS and Margins

COGS is the cost of goods sold, which refers to the total cost incurred on the goods produced and sold. Knowing the total production costs of different products or services is essential to setting a price that will bring you significant rewards or returns. For example, if a product costs $20, you won’t sell it for $20. You will need to sell it for more to earn a return.

Time Is Money—Both Must Be Allocated Wisely

Any new business start-up has little time to make a mark. Creating a perfect balance may be challenging in the initial phases of business development. However, to attempt things correctly the first time, you must make a sensible judgment and realistic analysis for allocating time and money to your business. No business can survive without being productive for long, so you must wisely give your hard-earned money and time. Spending too many resources on a single person or employee can be dangerous for a new start-up, as you may never know when they may leave the organization.

Summary

For a unique business idea to survive and thrive in the market, money tips to failure-proof the new business can be implemented and applied to give the business more time to create an impact. It all starts and ends with effective money management—the better that is, the better the result!

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.

Public cloud environments like AWS, Azure, Google, and Microsoft are cost-effective for IT infrastructure. It doesn’t happen each time because of the continually increasing complexity of what the cloud offers its users. Due to a lack of knowledge and visibility about cloud environments, most organizations fail to deal with the cost and unknowingly overfill money into public clouds. It is one error that makes it difficult to control or fix.

Here are five mistakes you should avoid when increasing cloud instancing optimization and resource efficiency without affecting performance risks in new environments.

Optimizing Cloud Workloads: Understanding the Impact of Workload Patterns

Not all workloads need to be designed, regardless of which public cloud you’ve been hosted with. You meet the error when you go deeper into cloud instance selection. To select the cloud instance, you must be well-informed about the reason for the workload and the use pattern.

The system of a batch workload is different from the usual application. In apps, constant varying from peaks to valleys occur. While in a public cloud, the workload works at least once at the end of each day. Please select the correct cloud instance and resources to understand the workload pattern between the days and its variation over a business cycle.

Making Cloud Migration Seamless: The Power of Data Normalization

‘Like for Like’ is a common approach to resource allocation when migrating from one cloud environment to another. There is a dire need to use targets to standardize the workload information. It gives a clearer idea of how the workload will perform in the new environment. This way, you can expect enhanced performance on the new platform, which has better hardware than the previous one. In simple words, normalizing the data is the only way to make an apple-to-apple comparison.

Balancing Sizing and Modernization for Cost-Effective Cloud Performance

While sizing is essential, it shouldn’t be the only focus. When you migrate to an environment running on more advanced and powerful hardware, you can also reduce costs by modernizing workloads. Compared to the savings delivered by right-sized instances on the public cloud, modernizing can add 20% more value.

Modernizing requires a proper understanding of the workload, catalogs, cost, and ability to normalize the data. It all adds up to performance optimization. Analyzing these aspects should be ongoing, especially for regularly updated apps.

Breaking Free from the Bump-Up Loop

One of the major culprits behind overspending or over-provisioning is the infamous bump-up loop. Specific workloads will use as many resources as they are provided. When more resources are provisioned, those apps will take more of it and do it for short cycles. It is the bump-up loop, which can hog resources and multiply the spending.

You must analyze and understand each workload’s behavior and pattern to prevent this expensive situation. This way, the overall resource allocation and utilization will be optimized. 

Unmanaged Zombie Cloud Instances

Zombie instances occur when the short-term instance is deployed but not shut down. A single zombie instance may not cause much harm, but a pile of them can send the cost skyrocketing. A reasonable approach to avoiding such waste is to monitor the workload pattern across a certain period, i.e., a monthly or weekly cycle. Tools that cannot provide long-term visibility into the workload are usually incapable of identifying zombie instances.

Conclusion

In conclusion, the potential cost-effectiveness of public cloud environments, such as AWS, Azure, Google, and Microsoft, can be harnessed with a strategic approach. However, the increasing complexity of these cloud platforms presents challenges for organizations. The lack of knowledge and visibility often results in unintended overspending, which can be challenging to rectify.

Avoiding the common mistakes discussed, addressing these challenges, and enhancing cloud instancing optimization and resource efficiency without compromising performance is crucial. Organizations can navigate the cloud landscape more effectively by gaining command of detailed application workload patterns, meeting benchmarks for data normalization, and focusing on factors beyond just sizing. Additionally, understanding and mitigating the bump-up loop and identifying and managing zombie cloud instances are essential to optimize cost and performance.

By steering clear of these mistakes, organizations can make the most of their cloud instances, ensuring that they minimize costs and enhance overall performance.

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 Role of the HR Department in Every Organization

The Human Resources (HR) department plays a crucial role in the success of any corporate organization. Without an experienced team to support HR operations, companies can never expect to grow their employee base or get competent resources from the pool of potential candidates. In short, the HR department makes or breaks the game for any company because it becomes nearly impossible to make staffing assessments and projections without them. Based on growing business demand, they have the knowledge, skills, expertise, and experience to make employee-related issues happen for the company.

The Significance of Cutting HR Costs

In today’s economy, companies encourage each department operating within the organization to cut costs or trim expenses at the individual level while demonstrating the overall value that it provides to the organization. An HR department in each organization is no exception, which means it has to cut HR costs without impacting the employee experience. HR professionals and experts from across the globe have invented ways in which the costs of HR can be significantly shortened. Some of these ideas work, some don’t.  

HR and the Employee Experience

Organizations can’t survive without a solid and effective workforce. Retention is only possible if you provide an extraordinary experience to your employees. Gone are the days when the employee experience did not matter, but now, it matters! One little strategy to cut HR costs could be a disaster for the whole company. The rightful creation and execution of strategy to cut costs are essential in the corporate world. Employees generally feel threatened by changing compensation and benefits policies, which is a significant cause of concern for most employees.

The employee experience has to be ensured at all levels, and an HR department plays a significant role in keeping employees’ morale high while catering to their needs and expectations at the highest level. The mantra of employee performance and productivity is simple: the better the strategy, the better the results! Creating a balance between HR costs and the employee experience may be challenging, but there are ways to achieve the strategic fit. HR experts can use several tactics to cut costs without sacrificing employee experience and satisfaction.

Here are four ways to maintain HR Costs without impacting the employee experience.

Employee Wellness Programs

Improving the working conditions of employees or giving them a suitable and balanced environment to work can boost the productivity of a business. Employee wellness programs don’t necessarily have to be expensive. Looking at the bigger picture, employees are the real assets of a company, and investing in them seems like a fair trade. It indicates that whatever you do for the betterment of your employees is healthy for your business.

Creating a healthy culture and lifestyle is essential for your business from every angle. Practically speaking, employee wellness programs cost less than hiring and training a new employee. Integrating them into your organization is an intelligent choice. This way, the employee experience will be elevated, which will further encourage them to work in the company’s best interest.

Learning and Development

By initiating cost-effective training programs, you will cut HR costs and see a significant rise in the performance and productivity of employees. Often, mentors within your company exist who have the knowledge and skills to help increase performance and productivity. This way, a positive culture will be developed within the organization, and everyone will feel encouraged to have a say and dive deeper into the employee experience with top executives or superiors.

Employee Benefits

Healthcare costs and other fringe benefits comprise a large portion of company finances. As employees increase, the cost of benefits increases, which means you have to allocate resources proportionally. After establishing a budget that fits your company, you must work closely with the finance department to ensure timely payment schedules. When the employees receive reimbursements and benefits, the employee experience is increased.

Use of Technology

Undoubtedly, most businesses have gone digital in managing their daily operations. However, some people still trust a pen and paper entirely. Companies can save many resources once they integrate technology into their operations. Regarding employee experience and HR costs, the HR department can save significant money by integrating advanced yet cost-effective platforms into fostering, training, and development activities. It is a one-time HR cost, but these digital platforms continue to serve the purpose for a long time. The centralized software for managing HR, benefits, and payroll makes things convenient for the employees. Moreover, it helps employers eliminate paperwork—using cost-containing options.

Conclusion

Creating a balance between HR costs and employee experience is never easy. The HR department has to play a significant role in making the right strategic plan to maintain a healthy working culture. No matter how hard it may sound, the HR department has to make optimal use of resources and cut costs whenever possible.

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.

Natural abilities in productivity and efficiency fuel some individuals. They make a list of tasks prioritized by most to least important and power through them every day. They seamlessly move from one task to another, dealing with significant issues and speed bumps during their task execution process. But others look at their to-do lists with a sense of wonder, jealousy, and a little anger about how they’ll be able to do them all in one day.

A business-building to-do list fears that the manager can fail to follow it and get everything done day-to-day. The habit of procrastination is one of the biggest reasons for failure. Do you find yourself a victim of this habit? If so, do not worry! Here are four great ways to stop procrastinating and start growing your business. 

The Power of Preparing Tomorrow Today

One of the most powerful business-building tricks is to begin your day knowing what you must do, even before reaching the office. Take just half an hour to prepare your to-do list for the next day before you leave the office or go to bed.

Planning for tomorrow prevents you from spending the early hours of each day when your mental and physical energy is at peak levels, figuring out what to do. Also, it helps you to stop procrastinating and start doing. Assign every activity on a priority level from most pressing to least urgent and significant. Also, estimate the time required to finish each task individually to ensure optimal efficiency in your task execution process. Take caution; starting with high expectations may easily create stress and make you fall short of your organizational goals. So, allow yourself to learn this process instead of expecting perfection. Consequently, it is crucial to set reasonable limits, as your time is also limited. 

Email Management for Productivity: Don’t Let It Derail Your Day

If and when something is urgent, whoever requires your assistance will contact you via phone. Checking your emails first thing in the morning distracts you from your business-building to-do list. If possible, it is good to delay checking your email to an hour before lunch. Also, having your assistant update you with only the most important emails at any time you prefer at the workplace is a much better idea. It will save you time and make you more focused on your work with enhanced efficiency. Of course, some may not have this luxury. It’s essential to do what’s best for you.

Breaking Down Tasks for Morning Success

Every task mentioned in your business-building to-do list may be subdivided into smaller tasks. Sometimes, the primary task is so big and complex that you have to distribute the tasks into smaller chunks to handle them more easily. Opt for a challenging task in the morning when you and your staff are most energetic. On the contrary, leaving such a task to be handled at the end of the day will end up on the next day’s to-do list. 

Managing Unfinished Tasks

It is expected to see specific tasks unfinished for the day for many reasons, such as handling an urgent task or postponing a scheduled meeting. Being stressed about an uncompleted task will not produce a solution; you are wasting your time and creative abilities.

When preparing your business-building to-do list, you should consider such unplanned situations and adopt a three-level categorization. The tasks categorized as the third level should be those that can be delayed. Also, discard your to-do list and create a new one at the end of the day. Make the most of today’s experience in revising your time estimates so you no longer burden yourself with over-loading tasks.

Conclusion

In conclusion, productivity and efficiency vary among individuals, but the struggle with procrastination is a common challenge. Overcoming this hurdle is crucial for business success. Planning ahead, minimizing distractions, breaking tasks into manageable parts, and avoiding undue stress over unfinished work can boost your productivity and work towards your goals effectively.

Embrace these strategies, and you’ll be better equipped to tackle your business-building to-do list and achieve success. Remember, success is a journey; these techniques will help you stay on the path to 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.

Going into debt has forced most households to struggle to make ends meet. Without evaluating the repercussions, they keep borrowing money from different sources over and over again to fulfill their dreams and desires. There comes a time when they find themselves stuck miserably in financial obligations, and it becomes challenging for them to meet their debt repayment schedules. This indicates that debt levels among poor, marginally poor and moderate-income households have increased over the past decade or so.

Even high-income households are not that far behind poor or moderate-income level households. According to a study, the highest-income households carry the largest amount of debt. This is an alarming situation for all us, no matter how well we are managing our debt repayment schedules. Once you get into it, it can feel that there’s no way out! The study further revealed that people don’t borrow money for fun; they borrow it for meeting financial uncertainties. The need for going into debt is forced by economic factors, such as recessions, high inflation rate, internal/external financial mismanagement, etc.:

Debts—Tackle Before You Retire!

Money does not discriminate. It doesn’t matter if you make $25K or $250K a year, you will never win a race against high-interest debt. If you want to enjoy complete financial freedom, you need to spend less and save more for your rainy days. They will never tell you before coming—they will show up any time when you’re least expecting it. As far as the debts are concerned, it would help if you tackled them before you retire, or you’ll probably find yourself surrounded by a retirement crisis.

No matter how much you earn through your working years, loans, or outstanding amounts always raises serious concerns around managing your finances. Even slight mismanagement in finances can cause you a great deal of stress. Loan repayment requirements, during your working years, will restrict or prevent you from saving more for retirement. Deal with your loan obligations or repayment schedules within your working years to save more for your retirement. Here are four debts that you need to tackle before you retire.

Credit Card Debt

Winning a race against high-interest debt is no easy feat; you have to be careful whether you can afford a credit card or not. Getting a credit card is easy, but repaying it is a lot harder than anyone can imagine. According to accounting data, about 1 in 3 American adults use a credit card, which means that its usage is quite extensive. This doesn’t make it hard to see why most Americans are strangled in debts. Thus, you must get rid of it, as credit card debt typically carries a high-interest rate.

Moreover, you will have less money to put in retirement funds or savings. It is something that eats your retirement savings without even realizing it. Hence, you must handle credit card debt, or it could even raise serious legal and financial issues.

Student Loan Debt

It gets tough for baby boomers to save money, especially when they are liable to make debt repayments. According to a survey, those who carry student loan debt find it difficult to save money for retirement. This is why paying them off within your working years is a big plus for you, no matter how much one may argue. The ultimate goal is to maximize your retirement savings, so you have to be careful in dealing with student debts. You must not miss your repayment schedule.  Ensure that the record is well-maintained for dealing with any sort of discrepancies.

Mortgage Debt

Mortgage debts are a huge stress for most American households. Most people die before paying their mortgage loans, especially those who start a mortgage plan a bit late in their lives (let’s say in their 40s-50s). However, those who start at a relatively younger age (in their 20s-30s) manage to pay their mortgage loans by the time their retirement rolls around.

Nearly 75%  of people fail to meet their monthly mortgage repayment schedule. This indicates that people find it extremely difficult to pay off their short and long-term debts. It would be best if you devised a repayment mechanism to make scheduled payments. A mortgage loan is one of the most important loans that you must tackle before you retire, or it will eat up your retirement savings.

Medical Debt

Medical loans acquired at any stage of life must be repaid in time. If not, expect to face a possible financial crisis at the end of retirement. Some agencies may finance your medical needs but look out for those who offer easy and smooth repayment schedules. Medical loan debts are very burdensome on those who are near their retirement age. Therefore, you plan and tackle these before you retire or be mentally prepared for facing financial difficulties at the end of your career.

Conclusion

People across the globe face extreme difficulties in meeting their financial debt obligations. Debt loans can help us to meet uncertain financial situations. But, paying them off, in the long run, becomes extremely challenging for the entire family, especially when you are near your retirement. You must prioritize and tackle your debts before you retire to have a financially secured retirement life.

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.