Category: Content

One needs to remember certain principles when diving into the accounting world. Utilize these principles to promote profit maximization while finding methods to minimize the losses as much as possible.

An accountant or bookkeeper who keeps this principle in mind would always be content with their choices since they adhere to universally accepted principles.

These are the accounting principles that would completely redefine your accounting game.

The Full Disclosure Principle

The first principle revolves around the ethics that make accounting a success.

This principle states that the data recorded during bookkeeping should be precise and accurate.

Often, bookkeepers fraudulently forge data, which compromises the ethics that go into the task and may also lead to a loss for the client.

The entire disclosure principle exists for this reason and insists on creating an environment that keeps the client in the loop. The bookkeeper or accountant states all data to ensure the client knows the company’s performance.

The Matching Principle

The matching principle focuses on forming a link between a company’s revenue and the costs it incurs. Through this, no expense is unaccounted for, and everyone knows the direction of finances and how the company produces revenues.

For example, if an individual has a pizzeria. They sell pizza, which generates revenue for their business. The selling price of this pizza must reflect the costs incurred to produce the pizza when the owner bought dough, pizza sauce, olives, and cheese. Keeping accurate records allows business owners to identify profits or losses associated with different business activities.

The Cost Principle

This principle is the third and one of the more essential accounting principles.

The cost principle states that when recording the values of each cost, the original price shall be highlighted rather than the current rate.

This method of accounting is significant when real estate is involved—showing the cost of real estate with the initial purchase price rather than the property’s current value.

The value of commodities increases over time, but the accounting books need to be according to the direct costs that the owner of this business had to pay.

The Objectivity Principle

As the name suggests, the objectivity principle focuses on objectivity while bookkeeping.

It states that all the data in the accounting books are accurate and factual because only verifiable data can yield results and identify trends accurately.

The data used in the books must never be subjective and always indicate the facts revolving around the company’s performance.

The Expense Recognition Principle

The expense recognition principles state the exact time when an expense occurs.

At this point, expense and cost become two separate things. The price of an item is when a company receives a good or service. That is the exact moment when an expense is recognized.

On the other hand, a company records costs when it pays for the good or service—tracking expenses when paying the invoice for the goods or services, not when they are physically received.

For example, if a company receives cheese for its pizzeria, its inventory has increased, but the company records the costs when it pays for that cheese.

The Revenue Principle

The revenue principle states that companies must record revenue only when there is a sale for the business.

Whether the business provides a service or sells goods, it generates revenue when a sale occurs. That is when it should be linked to the matching principle and noted in the accounting books to keep a clear record.

Like the expense recognition principle, the revenue principle is often known as the revenue recognition principle as it identifies the moment a company generates revenue.

Conclusion 

In conclusion, navigating the intricate accounting landscape requires a steadfast commitment to fundamental principles that lay the groundwork for financial transparency and success. These principles collectively redefine the accounting game, providing a robust framework for accountants and bookkeepers to maximize profits while minimizing losses.

Embracing these principles fosters contentment with choices and ensures adherence to universally accepted standards, laying the foundation for sound financial management and sustainable business practices.

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 plays an essential role in all businesses. Still, sometimes, small business owners need to comply with the rules and regulations of the accounting standards to sustain day-to-day operations. Accounting, on the other hand, should never be overlooked.

The company should maintain its finances and keep track of all the expenses and future financial shortfalls. Having the appropriate accounting information could save your organization in challenging situations.

Managing Your Receivable Payments and Days

The sales are only sometimes paid in full, so the company must maintain the receivable payments. Business owners do not enjoy maintaining account receivables. When a credit sale occurs, the accountant creates a receivable invoice stating that the customers have to pay the amount on the specified date to clear the outstanding amounts.

Mark the payments as ‘paid’ once the outstanding amount clears. Piling up a large number of invoices makes it more challenging to manage. Customers who aren’t frequently making their payments need to settle as early as possible.

Maintain Your Cash Flows

Cash flows are an essential business element that requires careful handling and management. Poor cash flow management is one of the primary reasons for the failure of failing businesses. The better you comprehend the numbers in front of you, the more likely you are to manage them effectively.

Consider creating a cash flow statement for your weekly and monthly financial evaluations. These statements provide a more comprehensive picture of your organization’s cash movement within (and outside). A cash flow statement essentially tracks the direction of income. It also has a temporal component, allowing you to see payment cycles and seasonal spending.

Keep Track of Your Expenses

The small business owner fails to maintain the expense reports with increased sales. It is crucial to manage all of your expenses as a business owner. Proper expense management can help you lower your costs and increase your profits. Maintaining all the expenses can give you a clear picture of your business.

Keep Your Personal and Business Accounts Separate

It is highly recommended to all business owners to keep their personal and business accounts separate.

It’s simple for you and your accountant or bookkeeper to examine how money flows when you have a separate bank account for business expenses. If you use your account for work, you risk missing out on critical commercial transactions.

As you move forward, keep your business and personal finances separate. Separating bank accounts might entail creating different credit cards and checking accounts for everyone. Ensure that only business accounts are used for business-related expenses when making spending decisions. It’s the same with your account.

Let Professionals Handle Your Taxes

People attempt to save their money by handling their tax filings. Businesses may suffer a significant loss in the long run if they do not hire a professional accountant to handle and prepare tax statements. Business owners might have to pay fines if they fail to adjust any deductions or underpay the bills.

Have Clear-Cut Communication with Your Accountant

When you interact with other experts who manage your books, such as accountants or bookkeepers, the terminology they employ can be bewildering. You must tell them if you don’t comprehend what they’re saying. You are not a financial expert; you are a small business owner. You have no reason to be up to date on the latest banking industry technical jargon.

Considering your accountant and tax advisors as your team members would be best. They should be watching you and providing you with reliable accounting advice.

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.

Less Revenue

The carriages contribute no consequence to the monetary state. They do not help you find a place to live. Automobiles, shortly, might be decaying items that destroy their value after the combination to a significant car expense.

The poor income that exists in our community is a good example. Zero income is when your credit exceeds the total assets, such as a home, property, etc. For example, you might have a mortgage on a property, and your privilege about the house would possibly be intensified in profit, allowing you to enjoy all the benefits when you move.

Consider what one could accomplish with an additional $500 every month. Here is a quick rundown of what comes to mind:

• First, make the most of your retirement savings fund.
• Second, deposit a new home by putting money aside.
• Third, put money down for your kid’s college education.
• Pay off your debts!

Loan Modification for the Bank Loan

According to Experian, an increasing percentage of people are at least 60 days behind on their auto charges. An exploration mentioned several factors for the surge, including the flourishing auto industry and the rise in lenders.

Also, having a high automobile mortgage leaves you in danger if you struggle to pay the bills and endure an economic burden. If you delay, the borrower may seize your property, which varies by region.

Thus, a circumstance can harm the business and lifestyle, and it is not worth the danger because it might damage anyone in the short and long run.

One could be eligible for a loan modification of your bank mortgage to lower your rate of return when you already get a loan for your car or need relief to cut costs. It also reduces the payment and assists you in paying back the mortgage faster – presuming you do not extend the mortgage.

Decorative Vehicle

There is no demand for contemplating and approaching anything to the typical car purchase if you require a fancier vehicle on behalf of the business. Instead, get a dependable and valuable second-hand automobile such as Honda or Corolla and save the money you would have spent on a luxury item vehicle.

No, it is not glamorous, yet what you need would be something to get you through awareness from A to B. The charming part is collecting that cash.

Feasible to Break Away

Breaking away from this thinking is feasible, but it will necessitate a shift in your financial attitude. It entails shifting from a mindset that prioritizes having what you genuinely want in the now without jeopardizing your tomorrow to one that prioritizes the moment at the latter’s expense.

To gain freedom from the new engine attitude and the constraints of a high car loan, you can perform the following in practice:

Purchase recycled. Here, there is no mistake about the recycled vehicle. Also, that could protect so many dollars. But, on the other hand, purchasing fresh might be merely senseless when the reduction may bang instantaneously.

The individual might break up until he could produce his dejected expense or additional vehicle. Then, place the investments for the generative savings version. Also, one could make the savings for cash.

Lending Money

Compare interest rates to search for the best deal. A 1% change in your mortgage income can push it over the top of your expenditure. Many claim that lending money and taking out a reduced loan is terrible. That is true, but a mortgage is still a debt.

You need not, under any circumstances, inform the dealership what you can manage to pay each month. They will use whatever may diverge you to lure you toward a more costly vehicle. Put your wallet near your collar rather than assemble the job quickly for them.

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.

Step 1: Choosing Your Financial Advocate: Navigating the Path to Security and Trust

Your advocate can be your spouse, but you should also designate a reserved person since you will be around the same age as you. Your advocate should be able to manage your daily expenses, monitor your investments, file your financial records, and protect you from potential fraud. 

Choose someone trustworthy, well-organized, and capable of handling money matters. Steve Vernon, the co-author of the Thinking Ahead Roadmap, told me that having more than one advocate never hurts. If you have two children, you can have one pay the bills, and the other manage your investments. If you do not have children, think of a younger relative or good friend whom you know you can trust.

Step 2: Building Financial Stability

Start by developing a financial inventory that includes your assets and debts. Make a list of all your income, including what you get from Social Security and any pension. Then, list your bills, such as utilities, loan payments, and subscriptions. It is also essential that you list all your passwords and keep them in a safe place. Then try to simplify: do you need all those accounts? Do your advocate a favor and get your finances in order.

Step 3: A Conversation of Trust: Navigating the Future Together

You can start by saying, “Your work ethic and financial acumen have always impressed me, and I hold a great deal of respect for how well you manage your finances. As I plan for the future, I find myself considering the possibility that managing my finances might become challenging at some point. That’s why I wanted to reach out to you and ask if you would be willing to help me navigate this aspect of my life when the time comes.

I want to reassure you that I’m currently doing well, but I believe it’s essential to plan for potential scenarios where someone might need to step in. I understand that this is a significant responsibility, and I want you to take your time to process and consider whether you’d be comfortable taking on such a role. If it comes as a surprise or if you need time to think, feel free to take your time, and we can revisit this conversation whenever you’re ready.”

Step 4: Clarifying Financial Intentions: A Guide to Discussing and Documenting Your Priorities

Once you’ve compiled your financial inventory, engaging in a meaningful conversation with your advocate is the next crucial step. Begin by reviewing the detailed inventory together, ensuring transparency about your assets, debts, income sources, and regular expenses. Articulate what matters most to you, such as continuing contributions to a cherished charity or any other specific financial priorities.

This discussion serves as an opportunity to share your values and expectations regarding your financial future. Emphasize what financial aspects are significant and any specific commitments you’d like to maintain. It is highly advisable to document these discussions in writing to solidify this understanding. Creating a comprehensive document ensures clarity and serves as a future reference point for your advocate.

The written record should encapsulate your financial priorities, preferred investment strategies, and any specific wishes related to charitable contributions or other financial commitments. This provides guidance for your advocate and helps maintain alignment with your financial values and goals, ensuring a seamless transition in case they need to step in to manage your finances at any point in the future.

Step 5: Empowering Your Advocate: Navigating Legal Steps for Financial Management

Securing legal authority for your advocate to manage your assets involves completing paperwork known as a “power of attorney for financial matters.” As with the Durable Power of Attorney for Health, financial institutions require this legal documentation to grant access and authorization. In the Thinking Ahead Roadmap, you can find detailed guidance on the process.

It’s important to understand that a power of attorney for financial matters is valid until your death, when the responsibility transitions to your estate administrator or executor. The choice of this individual may or may not align with your chosen advocate, providing flexibility in designating those who will oversee your financial affairs. Taking these legal steps ensures that your advocate has the authority to act on your behalf and manage your assets according to your wishes.

Step 6: Navigating the Transition: Recognizing the Right Time for Financial Support

While the first five steps of the roadmap establish the groundwork for potential scenarios where your advocate may need to step in, recognizing the right time for your defender to act requires a nuanced understanding of critical events. The roadmap provides a comprehensive list of these events, ranging from the overt, such as a diagnosis of dementia, to more subtle indicators, like challenges in bill payment or difficulty managing affairs through technology.

It’s crucial to involve your advocate and others in monitoring for warning signs, particularly those associated with dementia, and acknowledging the difficulty of relinquishing control over financial affairs. Crafting a letter to your defender, specifying the circumstances that signal the appropriate time to assume financial management, can be a proactive step. Keeping a copy of this letter ensures clarity and aligns expectations, fostering a smoother transition when needed. This thoughtful approach empowers your advocate and prioritizes your financial well-being in the face of changing circumstances.

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.

Golden Boy: A Culinary Marvel

In July 2021, the Dutch restaurant De Daltons unveiled the world’s most expensive burger, the “Golden Boy,” priced at an astounding $6,400. The burger featured a cutlet made from Japanese beef complemented by the richness of beluga caviar, Alaskan Kamchatka crab, and white truffle, and all sandwiched between a bun adorned with luxurious gold leaf crafted with precision. The culmination of premium ingredients and a meticulous nine-hour preparation process resulted in a culinary masterpiece, highlighting the fusion of harmonized flavors.

Culinary Records and Burger Legacy

After almost nine hours to prepare, the “Golden Boy” surpassed the previous record holder, a $6,677 burger cooked in Oregon in 2011. This burger shattered financial records and stood as a testament to the evolving landscape of extravagant gastronomy, pushing the boundaries of what is considered indulgent.

Truffle-Laden Fries

Beyond burgers, the extravagance extended to Serendipity3‘s $200 truffle-laden fries from New York. The preparation involved a unique process, including blanching potatoes in Dom Perignon with J. LeBlanc French Champagne Ardennes and crafting a truffle oil sauce with organic heavy cream, Swiss raclette cheese, and a touch of flour. The dish was then elevated with grated Crete Senesi Pecorino Tartufello and 23K food-grade gold dust, showcasing a lavish twist on a classic fast-food item.

“Louis XIII”: The Pinnacle of Pizza Indulgence

The world’s most expensive pizza, “Louis XIII,” is prepared in Agropoli. The dough is made with organic Arabic flour sprinkled with hand-milled pink Australian sea salt, Krug Clos Du Mesnil champagne, and brandy. Sturgeon and beluga caviar up to 2 mm in size with a sweet taste and nutty aroma is used to fill. Lobsters are put in the filling of “Louis XIII.” As a complement to pizza, Louis XIII cognac is served.

Gourmet Hot Dog: Marbled Beef and Gold Leaf

Marbled beef is dried from Japanese cows for 60 days to prepare it. A traditional 1-foot (30 cm) brioche bun is toasted and brushed with white truffle oil, organic saffron ketchup, and French mustard. The dried meat is seasoned with black truffles and placed in a bun—topped with onions, caramelized in Dom Perignon champagne and centenary balsamic vinegar. Add cabbage stewed in champagne and mixed with black caviar. In the end, put a pickle and a leaf of gold leaf.

Fast food originated in the United States and has long become a global business, and developing countries are the main directions of its expansion. At the same time, the Russian marketplace has become the object of specific scrutiny for chain pizzas, Burger King, Cinnabon, and others.

Russian Fast-Food Dynamics: Quality Over Abundance

Russians are still noticeably lagging in income from US citizens: the average family income is forty thousand dollars against seven thousand dollars in Russia. In addition, the income tax for everyone is 13%, and most Russians did not buy housing on credit after the massive privatization in the 1990s and, therefore, do not pay mortgages now.

In Russian fast-food establishments, the average check is significantly higher than in the homeland of fast food: 8.92 dollars (almost two hundred and fifty rubles) against six and a half dollars (about one hundred eighty rubles) in the USA.

For example, a giant pizza with all available additives at Papa John’s pizzeria costs fourteen dollars (about three hundred ninety rubles) versus twenty-one dollars (about six hundred rubles) for a similar pizza in Russia.

Market Overview: Moscow’s Unique Position

In 2010, the entire turnover of the Russian restaurant market amounted to 768 billion rubles. At the same time, the turnover of the public catering market in Russia by the end of March 2011 reached 60.9 billion rubles, according to Rosstat. While the share of international chains in the Russian market is 18.3%, about 30 global chains manage 1170 public catering outlets.

At the same time, according to the given values for the first quarter, more than a third of all chain catering outlets (41.1%) are concentrated in Moscow, and another 15% of chain restaurants, cafes, bars, and street kiosks are in St. Petersburg.

The capital’s fast-food market cannot be called oversaturated: Moscow, with its 13 million population, has only three hundred pizza shops – for comparison, which have a population in Manhattan, with a population of one and a half million, has four thousand plus restaurants.

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.

Payroll tax is the tax that the employer withholds from an employee’s paycheck to pay the government. These taxes are based on salaries, wages, and bonuses paid to the employees. Federal payroll taxes are subtracted directly from the employee’s salary and paid to the Internal Revenue Service (IRS).

As a business owner, you’re responsible for withholding tax from your employee’s earnings. However, you’ll have to include an additional amount. For instance, your employees won’t entirely pay for the Social Security taxes, and you’ll also contribute to them.

Severe Penalties

The Internal Revenue Service (IRS) does provide leverage. Still, if a business owner is ignoring the taxes and not paying them timely, they deliberately identify the scenario and react to it. However, being indebted to the IRS can be pretty daunting.

Because the IRS is a versatile authority appointed by the United States Federal Government, and on filing taxes promptly, the IRS can even withdraw cash from your bank account without requiring any legal documents. Moreover, you’ll lose ownership of your private funds, social security benefits, official bank accounts, and account receivables.

Both employers and employees are responsible for collecting the payroll taxes on time. The employers probably retain the taxes on behalf of their workforce, but the employees have to sort it out individually. By any means, if the IRS discovers that you’ve intentionally avoided the payroll taxes, they will seize all of your belongings and put you and your potential employees behind bars.

Systemically, business owners don’t want to get bothered by financial records or tax issues, and they usually appoint professional accountants for this purpose. However, the business owner will face severe consequences if the accountant lacks somewhere.

Making your payroll taxes a priority is of utmost importance. Being an entrepreneur, if you lack in managing the records and unintentionally forget to pay the taxes, you’ll be given a chance to resolve it. However, your business will be shut down with the reasoning below if you ignore the payroll taxes.

Willful Failure

A failure to file or pay taxes is often considered a willful act, irrespective of an accidental activity. Courts recognize that determination is there if the taxpayer is aware of the non-payment and valiantly dismisses the matter of paying taxes. This situation might appear by showing that the business owner has failed to remedy the payroll tax deficiencies immediately upon learning of their presence. They might have favored other creditors over the IRS.

The Outcome of Default

The taxpayers must understand that the IRS is gracious in evaluating the trust fund penalties. The government is virtuous in collecting the payroll taxes, and when not paid on time, the officials anticipate that the government decree has been neglected. As a result, the government recklessly recovers the amount.

For businesses with a diversified workforce, unpaid taxes add up instantly, and the assigned penalties can be equally stressful. Furthermore, the defaulter will be considered a criminal. Luckily, the IRS withholds criminal charges for the terrible cases where entrepreneurs utilize the tax amount for personal use.

Criminal Charges

As mentioned, a business owner who utilizes tax amounts for personal needs is generally accused of the law. However, the IRS will stop the proceeding if the accused business owner meets all the requirements to fulfill the loss. Moreover, the financial condition of the accused business owner wouldn’t be considered for determining the willful failure of taxpaying.

One of the most common issues business owners have to deal with includes local, state, and federal taxes. While many companies hire professional accountants and bookkeepers to handle tax-related issues, acknowledging the tax system is necessary for those responsible for carrying out the tax obligations. However, ignoring the payroll taxes demoralizes the FICA and is often connected with keeping other’s belongings.

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.

Within a few years, artificial intelligence has gone from a clunky, half-baked technology many wrote off as a fad to an industry standard for many businesses to leverage. Here are a few ways companies are using artificial intelligence in 2024 and moving towards the future.

Automation

Automation has always been about using technology to do what man can’t, and this has never been truer than the advent of artificial intelligence. AI doesn’t just perform tasks faster and more efficiently than humans; unlike the old machines, it learns as it goes. This form of machine learning makes AI a valuable asset for companies that are set to appreciate in the long term rather than depreciate. 

Nasa was one of the first major companies to embrace AI automation and one of the most successful. Their accounting, IT, and HR departments are now optimized thanks to artificial intelligence, with 86% percent of transactions across these three departments taking place without human intervention. 

Cognitive Insight

Data collection has always been one of the industry’s most critical and resource-hungry practices. Artificial intelligence can perform data collection faster and more effectively than any computation technology that came before it. 

AI opens up new possibilities for business growth and innovation by analyzing data more deeply than some ever thought possible and finding new profitability and business optimization methods than human data analysts ever could. 

In an era where marketing, advertising, and communication are moving farther and farther toward digitalization, artificial intelligence isn’t just a fancy perk but a necessity. This is the only technology, and certainly no human, that can perform the computation and data crunching required in modern industries. If businesses hope to survive in the modern economy in the future, they have to embrace AI, at least to some capacity. 

Cognitive Engagement

Cognitive Engagement refers to the use of AI in communication. As internet speeds get faster and broadband technologies like 5G become commonplace, we need systems that can allow us to communicate with each other quickly and consistently. 

In modern society, people like to stay connected at all times, and such communication is vital for business. Various communication methods between firms, customers, and other industry partners leverage AI. 

One typical example of such technology is AI chatbots. AI chatbots have revolutionized the customer service experience. They can solve customers’ problems faster than the average human. Still, they also learn over time, allowing them to develop new and better solutions and adapt to new issues that customers may face.

E-commerce

It may seem like a long way away, but cryptocurrency will permanently replace paper money one day. It isn’t just a baseless conspiracy anymore, and it’ll happen sooner than we all think. 

The market is already preparing for the day it happens. Still, when it does, artificial intelligence will be a necessary means of calculating complex data processes across millions of virtual transactions worldwide at any given time. Banks and other finance-based businesses are already taking the first step toward this brave new world becoming our eventual reality. 

Examples of Companies Using Artificial Intelligence Today 

Many companies already leverage AI’s power in their products and end-to-end processes. 

• Of course, the most famous is Tesla, whose cars feature self-driving AI and are manufactured using AI-powered robotics. 
• Speaking of robotics, Hanson Robotics uses AI to create its state-of-the-art ‘social learning’ robots. Hanson Robotics believes their robots could eventually replace on-screen actors and social media personalities. 
• Pathai specializes in producing new technology solutions for pathologists using AI. Their products aim to help pathologists diagnose accurately and provide better treatment options.
• Pager is another player in the medical industry. They use machine learning to deduce every client’s best possible healthcare option. Their AI platform also makes medical appointments and carries out payments.

Conclusion

For years now, skeptics have parroted the fear that AI will cause an economic collapse due to mass redundancies and layoffs, but as markets worldwide have embraced innovation, this has proven far from the truth. Artificial intelligence is creating new jobs every day, jobs with more market value than those made obsolete. Thanks to AI, the future of the global economy is looking brighter than ever. 

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 chart of accounts is created in a business’s general ledger to record all the financial transactions and balances. The chart of accounts acts as an index and lists every account in the general ledger in subcategories.

A chart of accounts is used to organize all the financial balances to make it easier for bookkeeping and for stakeholders to better look at the finances. The chart of accounts index is created to categorize each account differently by giving them a name and a brief description of the category.

Most of the time, the categories are also given an identification code to locate the accounts quickly. For startups or small businesses, the chart of accounts is a foundation for all the bookkeeping and double-entry systems.

For small businesses, including many different accounts in the chart of accounts is not essential as it will complicate and confuse things. A chart of accounts helps a bookkeeper identify what account to perform the transaction in.

A small business chart of accounts mainly consists of five major categories. The main types of accounts a chart of accounts include are Revenue, Expenses, Assets, Liabilities, and Equity.

Revenue: As the income statement already includes the revenue, the revenue account in the charts of accounts is almost the same as the income statement. The revenue account keeps track of all the incomes the business earns, such as sales, rent receivable, or other charges for your services.

This account will help you determine the errors performed while bookkeeping and will identify the difference in balances. The revenue account also includes the cost of sales, and it is essential to remember to include this in your revenue accounts. It will consist of the discounts the suppliers offer you, along with the transportation costs you charge or the ones charged to you.

Expenses: The expenses account in the chart of accounts includes all the expenditures you perform in your organization to generate sales, such as wages and salaries, utilities, and rent. An easy and efficient way to record your expenses is by using the IRS’s Internal Revenue Service tax form, readily available online.

The Internalnalnue service tax forms report financial information to the Internal Revenue Service. This form is efficient as it can be used for two purposes: filing taxes and recording expenses in the chart of accounts.

Assets: The assets account in the chart of accounts is listed below the balance sheet accounts. This is called a balance sheet account, as assets are essential while creating a balance sheet. Assets are valuables a business has that are used in the process of generating revenue for the business. Land and buildings, Equipment, Inventory, and Cash are a few examples of assets.

Liabilities: Liabilities are also listed below the balance sheet accounts. Liabilities are debts that go to another party, which can be in the property or any equipment. Examples of liabilities are loans from banks, trade payables, and mortgages.

Equity: Equity or capital is the difference between the aa businesses and the liabilities, representing the leftover funds in the business after the liabilities have been subtracted from the assets. The equity includes all the investments made in the business. For a sole trader, the capital they invest in the business is called Equitequityity and identifies its value after all the calculations are made.

The chart of accounts helps separate the major accounts into different categories to help you have a better look at the financial situation. You can identify what part of your accounts needs more attention and improvement and work on it specifically.

It gives you an idea of what is going on in your business. You can provide the information from the charts of accounts to your stakeholders, especially potential investors or shareholders. The chart of accounts can also be used in the decision-making process. The accounts mentioned above are the major and the most important accounts to include in your chart of accounts index.

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.

You cannot have too many tools to ensure you get the best rates and financial deals regarding finances and accounting. Several tools and financial calculators will determine loan payments, interest, debt tolerance, and many other financial calculations you need to make sound financial decisions. Here are eight financial tools and calculators and how they work.

Loan Calculators

The operation of loan calculators is similar whether it is mortgages or not. Remember that the differences between a personal loan or consumer and a mortgage are that the amounts are higher in the mortgage, and the guarantee offered by the borrower is the home acquired.

Within the loan calculators, there are several utilities:

Debt Capacity Calculator

It indicates the maximum amount to request according to our current financial situation (incomes and balances already committed, such as existing debts, fixed expenses, etc.) since the foremost indebtedness credit institutions allow is usually 35-40% of our monthly net income.

Here, it will be easy to calculate the monthly installments, as the interest will remain fixed throughout the life of the loan. Knowing the amount requested, the fixed interest, and the number of years to return it, we will know the installments (monthly, quarterly, semi-annual, etc., as the case may be) fixed until the end of the loan.

For Variable Interest Loans

This calculator is much more complex than the previous one, and its results are not exact because it is an estimate in which we predict how interest rates will vary.

The necessary data are capital granted, term, initial interest, rate of variation of that interest, periodicity of the installments, periodicity of the type reviews, and reference index (EURIBOR normally).

In any case, these calculators are handy for comparing loans since variable data, such as the interest rate, will be the same at the time of comparison.

Financial Tables to Calculate Quotas

These are tables in which various types of interest appear in a column, and in rows, the possible terms of the loan so that the different monthly installments to be paid can be cross-checked (for example, for every 1000 euros of the loan). So we can have a rough idea of ​​the fees we will deliver.

Therefore, the loan calculators help us know what maximum amount they will grant us, what fees we will pay in the future, and most importantly, they help us compare different options.

Pension Plan Calculators

We can estimate the total amount of the pension plan at the end of its term, knowing the annual contribution, the increase that we will make of that yearly contribution each year, and the term of the plan, always bearing in mind that it is an estimate as the profitability varies annually.

In addition, many of these pension plan calculators also indicate the expected annual fiscal savings according to the taxable base in the IRPF of the person making the calculation.

Investment Calculators

As in mortgages, we will distinguish the investments with known and safe returns from investments with variable and uncertain returns to calculate the returns on investment.

Investments with Safe Performance

For safe yields (bonds, fixed-rate deposits, etc.), knowing the amount to be invested, the type, and the term to obtain the annual, monthly, etc. yields will be enough.

Investments with Variable Yield

The calculators are meaningless for uncertain investments (stock market, mutual fund, currency market, etc.). Known as the past phrase, profitability does not presuppose future returns, and we can only calculate the gains or losses already incurred.

There are indeed mixed investment funds, which combine investments with certain returns and other equities, guaranteeing (except colossal economic collapse and massive bankruptcies) yields in a possible range. We can then calculate the different profitability of these mixed products as the variable income part evolves.

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.

Startup businesses usually start with high costs limited revenue, and fail to enter the market correctly. Many startup businesses struggle to form an image and a reputation along with their brand name. For small business owners who are always trying to cut down their costs and expenses, it is hard to pay taxes, especially if they are already in tax debt. Businesses must pay taxes to the government as the government needs funds and resources to increase economic growth.

The five types of significant business taxes are gross receipts, corporate franchise, employment withholding, excise, and value-added taxes (VAT). Businesses pay income, property, and sales taxes, but these aren’t explicitly considered business taxes. All types of small businesses have to pay 19.8% of the average tax rate. Small businesses with one owner pay an average 13.3% tax rate, and those with more than one owner pay 23.6%. New companies have higher costs than old businesses because of the startup costs incurred to make the business functional.

In contrast, stable businesses are already operational; hence, they don’t require as many operational costs as startups. And to top all of it, the IRS releases new business tax laws almost every year, which gets quite challenging for new businesses to handle. New or small companies sometimes fail to pay their taxes on time, face late fees or penalties, and are put on faulty taxpayer lists. Many small business owners work hard to achieve their profits, only to pay a significant portion in taxes.

Tax season is always hectic for business owners as you have to be very careful of the tax calculations and ensure you are not overpaying your taxes. For new business owners, it can be hectic and confusing at the same time as they probably have no idea how to file taxes and what the requirements of the IRS for tax-paying are.

Here’s what you would need at the time of paying tax:

• Old tax records from previous years. (If this is your first year operating, skip this step.)
• Bank statements, credit card statements, and other bank-related documents
• Payroll documents
• Partnership agreements (if you are not a sole trader)
• Financial statements and documents such as Income Statement, Balance Sheet, and Cash Flow Statement

How to Calculate and Pay the Taxes?

If you are running a small business, the chances are that you will have to pay taxes every three months. Quarterly tax payments are allowed for small companies, as paying a large sum of tax at the end of the year can be challenging for small businesses. Delivering payments four times a year can also be beneficial as your business can avoid penalties, and you can maintain the cash flows of your business.

To calculate your business’s quarterly tax, you have to evaluate your business’s gross income, taxable income, deductions, and credit. The IRS also provides new companies with an estimated tax worksheet if they do not file their taxes.

Another way you can calculate your taxes is by dividing the income tax expenses by the earnings (or income earned) before taxes and then further dividing it by four.

You can pay your taxes by filling out Form 1040 ES, and then you can mail a check or pay online using the IRS payment site. For big corporations, the Electronic Federal Tax Payment System is the way to pay taxes. 

There are employee-related taxes that a business has to pay, too. To pay those taxes, you will have to fill out Form 940. You are also required to calculate each employee’s share of Medicare and Social Security taxes, along with filing Form 941 and matching each of their contributions.

The four standard dates to pay the taxes are the 15th of four months- January, April, June, and September. You can also find tax deductions over vehicles, contract labor, depreciation, wages, supplies, and operational costs.

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