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Business Finances - Complete Controller

Accounting and bookkeeping are essential tools for keeping business finances in order, but first, there are other issues you need to address as a business owner. The first step to the financial health of your business is to separate business finances from personal ones.

It is a common mistake of a business owner to mix both business and personal finances. It’s natural since, in most cases, the start-up capital, or at least some of it, was from the owner’s personal savings or salary from another source of income. This mix of business and personal finances should be addressed early, and the separation was done as soon as possible. Check out America's Best Bookkeepers

It is impossible to determine the company’s actual profit and losses if you are supplementing the income of the business with personal finances outside of start-up capital. It’s not to say that you can’t use your personal finances to fund the business, but you should be treated as any other investor and should pay yourself back from profits.

Separating the finances is not the only step you should take. It would be best if you also made your business a limited liability company. This simple move will protect your personal finances if your business goes bankrupt, is audited, or has a lawsuit filed against it.

In addition to separating your business and personal finances, here are some other ways you can keep your business finances in order. Check out America's Best Bookkeepers

Get organized

Use a professional accountant or bookkeeper or use accounting and bookkeeping software to keep organized when it comes to your finances. This organization will help you to observe the due dates of invoices for on-time payments. Lack of organization can result in lead to late fees, high-interest payments, or loss of business.

Know Your Fixed and Variable Expenses

Fixed expenses are those you must pay every month, such as water, electricity, telephone, payroll, and taxes. Variable expenses are those costs that aren’t consistent and vary in cost and change or cease to exist. The knowledge of both your fixed and variable expenses will keep your finances in order and make bookkeeping easy and accurate.

Billing Strategy

Many small businesses struggle with finances due to billing issues. Accounts receivable is often a place within a small business where improvement is needed. There are several ways you can address billing issues. You can require the customer to pay in full upfront. In some businesses, demanding payment in full may not be suitable for getting and retaining customers. If that is the case, you can still get more invoices paid by offering customers a 2% discount on the total bill if they pay in full within ten days and make payment in full due within thirty days. These incentives are often used by clients of companies who implement the practice. Check out America's Best Bookkeepers

Track Your Books Closely

If you are working with a bookkeeper, review and monitor your books daily or monthly. This monitoring of the books will help to avoid negative surprises. Knowing your books will help you formulate strategies for increasing profit and lowering expenses, and it can also help identify fraud.  Even if you hire a professional accountant or bookkeeper, you, as the business owner, should always be aware of what is happening when it comes to your business finances.

Make Good Financial Habits

Being aware of your business finances and having a hand, at least to some degree, in your company’s bookkeeping is a great habit to get into, but you can do more. Set aside time every week or month, depending on your business’s volume, to go over your books and to strategize as needed to keep your business finances in order.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Small Business Owners - Complete Controller

When starting a small business and even in later phases of operations, there are mistakes you want to avoid to have a successful business. Knowing what the typical mistakes are for small businesses and how to avoid them will spell profits and success. Here are the common mistakes made by small business owners and some ideas on how to prevent them. Check out America's Best Bookkeepers

No Business Plan

A business plan is a must for every small business before start-up, and every year the business operates. A business plan pinpoints the company’s mission statement, which is the foundation for the rest of the plan. Planning also lays out financial needs, marketing plans, supplies and equipment, projections, and summarizes. These plans are essential for the business owner and potential investors or lenders.

No Market Research

No amount of market research will be too much. The more you know about the market, the more chances of success at both start-up and throughout the business. Market research is essential for pinpointing your target customer. This should be done every few years to ensure there is no shift in your target demographic unless what you sell is specific to the same demographic. Check out America's Best Bookkeepers

Building the Wrong Team

A small business’s success often depends heavily on the supporting staff as it does on the owner. When hiring staff, you must make choices that will work well within the business dynamic and other staff members. It is also vital that the team members have skills to serve your business best and fill the various positions needed for your business type.

No Website

In today’s heavily digital world, not having a website for your small business can be a fatal mistake. Every business needs to be searchable by people who don’t know about your business but may search that will lead them to you. Most small business owners don’t have a site because they think the cost will be too much. However, having a website designed is not as expensive as you think, and there are even sites that you can build your own site for little to no money. However, you make it happen; getting a business website operational from the beginning is crucial.

Lack of Financing

Many small business owners fail to get the proper financing in place before opening. This lack of financing can cause problems that become insurmountable quickly and sink the business. The way to avoid these points back to the business plan. A financial overview of your business can let you know how much financing you need and when to obtain it.

Underpricing Your Products or Services

Some small business owners have difficulty coming up with prices for products and services. The greatest fear is that people will not bring the business to you if it’s priced too high. To deal with this issue, first, do research and set a price comparable to the market. Another rule of thumb to follow is to figure out what the bare minimum is you need to make to pay bills and staff and do what needs to be done in the business and set your prices to match this need. Check out America's Best Bookkeepers

Failing to Invest in Marketing

In today’s digital world, marketing is not as expensive as it used to be. In many cases, marketing is free when using social media platforms to market. If you have the solid foundation of a business plan, marketing, and its costs are built into the plan, there would be no surprises regarding planning and costs.

Ignoring Accounting and Bookkeeping

There are a lot of reasons accounting and bookkeeping needs focus. The main reason you need to focus on accounting and bookkeeping is always to be aware of your business’s financial health. Whether you use a professional (recommended) or use a bookkeeping or accounting software and do it yourself, it is essential to take control of your business’s accounting and bookkeeping.

Conclusion

Starting and running a successful small business is not for the faint of heart. It requires dedication and intelligence. These are common mistakes new or small business owners make. If you know what they are and have a plan, you can avoid these mistakes for your business’s lifespan.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Finance and Accounting Processes - Complete Controller

By outsourcing the finance and accounting processes, organizations can have several benefits. These benefits help them to gain revenue and profits. Benefits that can be achieved by outsourcing the finance and accounting processes include: Check out America's Best Bookkeepers

1.   Strategic Redeployment of Staff:

The accounting staff of many countries has to work with workforce limitations, which eventually becomes a problem. Companies should realize that few people cannot cater to the immense quantity of data that accounting of the company requires. An outsourcing company, expert in finance and accounting, may have an excellent team for different accounting processes. These organizations will assign qualified specialists to work on the data, which can eventually be a win-win condition for everyone. However, in several cases, the client-company accountants may proceed to a guiding role that can merely entail dealing with the service-provider company and make sure that either the tasks are accomplished or not. In addition to this, outsourcing finance and accounting lets the companies provide relief for their staff from daily operations associated with the accounting processes and reassign them for work that can bring more business and add value for the customers.

 

2.   Monitors Accounting Rules and Implementation:

It is difficult for companies to pursue continuous changes in accounting rules. But some of the organizations devote themselves to financial process outsourcing. These companies keep track of all changes and also implement them when they are required. They make sure that the service provider company is always in the good books of governors associated with the financial market. However, an outsourcing company must follow the guidelines and standards of accounting, including GAAP and IFRS. Check out America's Best Bookkeepers

3.   Best Accounting Heads on the Job:

Sometimes, the position of a specific company may not allow them to get access to experienced accountants. In this regard, outsourcing models can be a solution to such difficulties. The service-provider companies, located in the city or country and regularly produces the most exceptional financial minds, this can result from tapping the talent pool efficiently. The client company can have such a highly qualified accountant through this business model while looking after their books. Outsourcing companies assure that the quality of operations associated with finance, accounting, and bookkeeping is error-free. 

 

4.   Advanced Technological Know-how:

Technology is making an immense impact in every field, which also includes accounting and finance. Many of the companies are not aware of the available applications in the market. Applications that are suitable for their business and some are too expensive for them to buy. Outsourcing in such cases can provide benefits to the companies as these external service providers are eager to invest in the technology as they know which type of application is best for which kind of business. They also profitably invest in the whole line of new applications as they are providing services to different clients with different needs.

 

5.   Protects Company in Adverse Economic Situations:

Due to advancements in technology, companies are continuously making significant changes in their workforce by aligning it with the economic situation changes. However, it is a challenging and resource-intensive process. Companies can be protected by outsourcing functions and processes such as finance and accounting. As the managing responsibility of the assigned talent to the project lies with the outsourcing company, the client company does not have to make any decision associated with their internal workforce or pay huge compensations in the retention pay. Check out America's Best Bookkeepers

 

6.   Flexibility and Scalability:

A client company can gain several benefits by selecting a specialist finance and accounting outsourcing company as their partner as it provides solutions customized for their requirement. They can even scale up or down the process regarding finance and accounting operations as per customer requirements. In this way, outsourcing can be advantageous for the business.

 

7.   Security and Confidentiality to Ensure Business Confidence:

A professional outsourcing company strictly follows the standards and guidelines pertaining to maintain the confidentiality of the information and data protection of clients. Through this activity of outsourcing companies, the client company can rest assured that their finance and accounting data would be handled and stored safely.

 

8.   24×7 Operations:

Companies can confer a time-zone advantage by outsourcing the functions of finance and accounting to an external service provider with operations provided daily. These companies assure that their finance and accounting tasks would be accomplished within the scheduled deadline.

 

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Grocery Store Accounting - Complete Controller

A grocery store refers to a retail trade in which the sale of food products is carried out directly to the consumer to meet personal needs. Bookkeeping in a local grocery store can be a challenging task at times. Sales in the store, which is a stationary outlet, are processed by issuing a cash receipt for the purchase, reflecting the purchase amount. After the verifications from the cash register, the cashier enters the amount of the daily revenue in the cashier-operator book. Every day, information from this journal should be recorded in bookkeeping entries that reflect the daily income received from the sale of food products.

Bookkeeping in the grocery store should be conducted based on the correct combination of synthetic and analytical accounting. Synthetic accounting should be maintained in the “sales” section. In the column “credit” of this account, the selling price of the goods sold, including VAT (Value added tax), is reflected. The column “Debit” indicates: Check out America's Best Bookkeepers

  • Expenses for the procurement of goods
  • Expenses for the organization of trading activities
  • The amount of VAT
  • Excises

At the end of each month, the store bookkeeper must enter all this information into the bookkeeping documents and write the expenses from the total amount of revenue received to determine the amount of the monthly gross income from retail food. The specifics of determining the number of write-offs and gross profit will depend on the methods of valuing commodity stocks, which can be carried out at purchasing or sales rates. Check out America's Best Bookkeepers

Operations of sales accounting when determining the purchase price for purchase prices

When organizing a retail sale of products, the consumer does not prepare invoices for goods that indicate the purchase price of the goods sold and its quantity in keeping records of transactions. When determining the discount price, a bookkeeper must compose a formula that will allow him to make calculations necessary for bookkeeping.

The total value of sold goods is calculated by summing the commodity balance in the accounting prices at the beginning of the month, and the accounting prices’ received goods during the reporting period. From the obtained result, it is necessary to subtract the balance of the commodity mass in the accounting prices, formed at the end of the reporting period.

 

To determine the accounting prices of incoming goods, the bookkeeper must use the primary accounting documentation based on which the inbound goods are accepted. The balance of accounting is determined by using an inventory, or a procedure for removing balances. Inventory is carried out at the end of the month. This is so that the balance at the end of the reporting month always corresponds to the balance of the next reporting period at the time of its commencement. Check out America's Best Bookkeepers

Features of accounting for goods at retail rates

The bookkeeping for calculating the total monthly income of a retail outlet at retail prices is done more simply by using computer technologies, barcodes, and scanners that accept digitized information about goods. With the help of such digital technologies, automation of the sales process is carried out. In the end, the manufacturer uses a barcode on the product packaging. This barcode contains all the necessary information about the product, the manufacturer, the seller, and the commodity characteristics.

When accepting goods, employees enter all this information into the store database using a unique reading scanner. If the product does not have a barcode, you have to enter data into the computer manually. When buying goods, the cashier can read all the information reflected in the final check in the form of the total daily revenue received from the sale of products at discount prices.

At the end of the month, the store bookkeeper must draw up an initial balance sheet and compare the credit and debit turnover amounts received on the synthetic account. Calculation of the high cost of the commodity figure is carried out when using sales prices as discount prices, and it is carried out by subtracting the trade markup on the goods sold from the selling price.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
EA or CPA - Complete Controller

When people talk about tax, they mean two things.  Tax planning (planning transactions before they happen) and tax compliance (filling out forms, applying for credits, calculating, etc.).  There are four choices: EA, CPA, tax attorney, and non-credentialed accountant.  There are differences in what each professional will do for you or your business. Check out America's Best BookkeepersIf you are in the habit of getting your bookkeeping done by a CPA, they offer tax service, and they seem knowledgeable, it probably won’t hurt to have the CPA do your taxes.  They know all your financials anyway, and it’s easier to have it all done by the same person.  For complicated, out-of-the-norm things, though, it might be better to tread with caution.  A CPA who does small business is probably good at things like personal taxes and low business tax compliance.  Any more than that, and it depends on how up-to-date they are in their CPE.

It’s hard to say without knowing what you want your tax person to do.  We’re going to assume that all four are equally competent and ethical.  If you want someone to file your taxes, then the EA or NCA will be more cost-efficient.  (Tax software or doing your taxes is the MOST cost-efficient, but if you’re looking for a tax person, you have already decided you want someone else to do it.) 

If you want to think about a more complicated scenario, then it starts getting a little confused.  Estate planning and need to figure out the most tax-efficient way to pass your millions on to the next generation? Incorporating a partnership?  Dissolving a business? Do you need to be clear what your needs are? Check out America's Best Bookkeepers

EA vs. CPA: A Note

Some of the EAs are accountants that decide to go for an EA exam instead of the CPA exam because they are mostly not interested in auditing and attestation work. They are most often compared to CPAs in terms of experience and knowledge. In addition to this, an EA can be an acceptable substitute for a CPA within an organization’s tax branches.

For all that, though, EAs are looked down upon, because the requirements to sit for the exam are… zero.  If you think you want to take the SEE, go for it; all you need is to be 18 years old!  If you’re going to take the CPA exam, you have to complete specific college or certification courses.

For example, if a person is MS in Accounting and is having over 150 hours of college and graduate education by the time they graduate.  Their graduate GPA is almost 4.0.  However, they are ineligible to sit for the CPA exam because the specific courses they took in college don’t match up to the CPA requirementsCheck out America's Best Bookkeepers

Moreover, they could go to a different state and take the CPA exam there instead. If the CPA is living and working in another country, and they don’t have any interest in audit or attest work, they should get the EA license instead.  If you want to make partner in a firm, you will ultimately have to get the CPA license down the road (legal requirements having to do with firm formation/partner qualifications), and clients respond better to someone with CPA behind their name. 

Last Words

The accountant credential doesn’t necessarily matter, but it’s a useful shorthand for their experience/education/background/training.  Ultimately, choosing a good accountant is like choosing a doctor/lawyer/dentist/any other professional.  Get to know them and what they specialize in or like to do.  Make your choice from there!  Above all, find a financial professional you can trust.  They’re going to know a LOT about some very private details of your life.  Pick an accountant the way you’d pick a reliable partner: think carefully, throw away arbitrary requirements, and go with what works best for YOU.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
QuickBooks

QuickBooks is the top recognized accounting software used to manage customers, inventory, vendors, and finances. It is necessary to keep precise financial records, whether running a small business or a large organization. People are adopting this new technology to make their finance system more efficient, but it is essential to know whether QuickBooks will be beneficial for your business or not? There are some pros and cons of using QuickBooks, and they are as follows:

Pros: Check out America's Best Bookkeepers

  • User-Friendly:

QuickBooks is well renowned for being the most user-friendly accounting software for beginners and advanced accountants alike. This software can be easily used by people who do not have an accounting background while also containing all the functionalities and features that a pro accountant needs.

  • Integration:

QuickBooks can combine with other applications to handle accounting records efficiently. Also, a CSV or Excel file integrates into QuickBooks without any difficulty. The use of this feature allows you to make accurate accounts by creating several reports for multiple organizations.

  • Cost Efficient:

QuickBooks can be a great choice, especially for Small and Medium Enterprises (SMEs). It can be a less expensive approach instead of hiring a bookkeeper or accountant. The use of QuickBooks will help you to minimize your organization’s expenses.

  • The best option for Small Businesses:

For small businesses, QuickBooks can be an ideal choice and integrate with other programs. When your business is at its initial stage, it doesn’t require complex accounting. For such reasons, QuickBooks can be the ideal choice to opt for the following: Check out America's Best Bookkeepers

  • Supporting Network:

QuickBooks is considered a popular software for accounting purposes and has an extensive support network. This support network means that if you are facing any difficulty or any accounting issue, you can log into QuickBooks forums where you have access to experienced members. They can guide you through the stuff you don’t quite understand. They will help you to sort out your problems instead of contacting the manufacturer to resolve your issue.

  • Basics:

The first or initial version of QuickBooks offers various accounting features as per the requirements of small businesses. These features include accounts payable and receivables, inventory, payroll, and invoices. Also, you can process credit cards and create checks using QuickBooks software. Moreover, to check whether QuickBooks is perfect for your business or not, they offer a free trial period, so you don’t need to spend any money upfront.

Now let’s discuss some of the cons of using QuickBooks:

  • Not a perfect choice for Larger Businesses:

QuickBooks is not a perfect choice if you are running a large organization. If you have a company with more than 100 employees, then surely QuickBooks will not be able to serve you in the best way. For large organizations, there’s a need to develop internal software that can easily handle intricate reports and interlink to other departments within the organization.

  • QuickBooks is not a Robust Software:

QuickBooks does not come equipped with advanced features related to bookkeeping, which is the basic need for any considerable organization. These advanced features will help organizations run their businesses smoothly, but QuickBooks fails to provide such services.   Check out America's Best Bookkeepers

  • Limitations:

QuickBooks’ basic form is designed especially for the user who has limited needs both for finance and accounts. Hence QuickBooks do not propose all types of accounting processes that are being used by a qualified accountant. Also, QuickBooks has area limitations, including the number of items you can add to inventory drives.

If your business has complex accounting procedures and methods to manage inventory systems, then QuickBooks, for sure, is not a good choice as it may fail to meet your requirements.

Here are summarized Pros of using QuickBooks:

  • Efficient
  • Easy to use
  • Account reports regenerate easily
  • Flexible
  • Large support network
  • Low cost

Cons:

  • File size issues
  • Security
  • Upgrade costs
  • Limitations
  • Missing business-specific features

 

QuickBooks is user-friendly and well-known. It is used primarily for small businesses as it lacks advanced business features. The software has limited support for large organizations as far as sophisticated accounting methods are concerned. We hope that these pros and cons will help you to decide how to use QuickBooks in a way that meets your particular business needs. Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
construction company accounting - Complete Controller

Accounting is a significant aspect of administration and management in business. It is essential to have an accounting team accurately track the transfer of assets into and out of an organization that comprises numerous moving parts. This will ensure both profitability and transparency. When it comes to finances, contractors and firms related to the construction industry encounter distinctive challenges. This article will take a look at the challenges and determine what differentiates construction accounting from regular practices to help you manage your finances in a way that suits your business. Check out America's Best Bookkeepers

What is different about construction accounting?

It is necessary to realize that construction accounting is not the same as regular accounting. A usual business, such as a grocery store or restaurant, utilizes the ordinary principles of accounting. They work flawlessly for firms like these as it involves selling from a fixed position. The business recognizes the cost of every item sold, and any expenses/overhead are somewhat constant. However, when it comes to construction, the company is mobile and involves customized work in a different location daily.

For this reason, it is required for construction companies to monitor completely different cost categories: mobilization costs like equipment and packing tools, travel time, material delivery to the job location, and also removing any excess materials from the job site once the work is done. In a way, construction business does not have any fixed location, and it requires moving to wherever needed by the customer, including the materials essential for the job. The Percentage of Completion Method is also utilized by construction businesses, which considers revenue based on the contract’s estimated profit and the completed percentage of the project. Thus, it is even more critical for construction companies to make use of cost-accounting methods that would track expenses accurately to calculate profit and loss precisely. Check out America's Best Bookkeepers

Significant Differences between Construction and Regular Accounting 

  • Sales: Typical accounting involves taking sales into account, and the services and products offered by regular accounting can be classified into one to five categories. Whereas, a wide range of service categories are provided by construction businesses such as consulting, service work, labor, engineering, physical products, design, and materials.
  • Cost of Goods Sold: Regular accounting involves simply recording the cost of the sold product. However, in the construction business, it is not that simple. Every job involves direct and indirect costs that are further divided into various categories.
  • Expenses/Overhead: Expenses and Cost of Goods Sold are distinguishable when it comes to regular business accounting. However, this is not the same when it comes to construction. A lot of items that would be considered “Overhead” when accounting, for instance, a grocery store, maybe categorized as “Cost of Goods Sold,” but when it comes to construction accounting, they may be connected to the client’s project director.
  • Break-Even: It is easier to calculate break-even points in regular business accounting due to the direct relationship between expenses and income. However, when it comes to construction, it can get difficult to determine the break-even on a project as there is a wide range of item categories. Moreover, the majority of the projects are exclusive customized jobs, with specific detailed requirements and a variety of costs associated with them. Check out America's Best Bookkeepers

Accounting for a construction business is significantly more complicated as compared to other regular businesses. It is essential to be able to track, record, and classify costs and expenses in construction business accounting to understand bidding on projects, determine profitable projects for the business, bill clients fairly and accurately, and make most of your firm’s resources.

Improving the accounting of your construction business begins with understanding the various costs you can face on a specific project. After that, it is essential to effectively categorize these costs, taking into account the nuances between the cost of goods sold and expenses.

One of the best ways to make sure the accounting is accurate is by implementing a software solution that enables your employees to effortlessly provide data related to cost from a platform integrated with the software you use for accounting.

This can not only save a significant amount of time but will also ensure that your relevant data never gets lost, which will, in turn, make your business more profitable.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
outsourcing accountant - Complete Controller

Outsourcing is an effective cost-saving strategy, which helps businesses delegate duties, which saves time and money. Outsourcing is adopted when companies are unable to handle different aspects of the business processes internally. In the future, outsourcing will provide several benefits to the accounting operations of the organization.

However, when it began, it was restricted to low-risk functions like processing of payroll and data entry, etc. Now, customer service operations get outsourced on a larger scale. This expansion has resulted in bringing the cost benefits of outsourcing to the forefront, and numbers of companies are taking an interest in outsourcing their accounting processes. In the future, it will provide increased benefits to the companies who wanted to leverage the outsourcing cost benefits. Outsourcing reduces labor costs for companies and has become the key business strategy for accounting operations in small and large business enterprises. In the future, outsourcing will benefit the organizations for their accounting processes in the following way: Check out America's Best Bookkeepers

Improvement in Data Management

In the future, outsourcing will help companies in their business operations quickly identify the vast amount of financial data to make better decisions. Outsourcing will provide a wide range of benefits to the organization, including revenue assurance, working capital analytics, etc. Clients will be able to control their data so that the accounts receivable portfolio improves while maximizing the cash flow.

 

Provision of Integrated Solutions Check out America's Best Bookkeepers

Outsourcing will help to deliver integration and holistic approach in the future. Its value proposition will aid the organizations to expand further in the bottom line. It will ultimately target the top-line performance of clients directly.

 

Transformative Technology & Tools

Some of the transformational technology and tools essential for companies include reporting, business performance, process efficiency, and transparency can improve through outsourcing. It provides the ability to access different tools that will enhance the existing technology by taking advantage of developing technologies.  Companies can achieve better insights and can improve their productivity by using these tools. Companies can manage their business’ finance and accounting operations through outsourcing as it assures them to concentrate on other essential factors that are significant for the company’s growth. Outsourcing helps the companies to provide an approach that is strategic and value-added, which can provide ultimate benefits regarding their accounting processes. It can also enhance business efficiency as outsourcing ensures that accounting and financial data are secured so that companies can focus on other company operations. Check out America's Best Bookkeepers

 

Trends of Outsourcing in Future

  • Outsourcing will help build relationships that would be more standardized, and process and people drove rather than price-driven. This change will level the playing for outsourcing companies in the future.
  • The pressure of the cost will cover the way for custom outsourcing contracts that would be flexible in their Service Level Agreements (SLAs) and scope of delivery.
  • Smagiveness corporations will experience a higher adoption of outsourcing so that the operational efficiencies can reduce and time for the business can increase.
  • It will also help resolve the issues associated with rising raw material, transportation, and oil costs as outsourcing could keep their operating costs low.
  • In the last decade, more high-end critical business functions used outsourcing to complete. As businesses move towards cloud outsourcing, support, and development would also increase.
  • Organizations would move to cheaper destinations to take advantage of low labor and operating costs. Furthermore, the outsourcing of accounting operations will also help to manage the accounts more efficiently and effectively.
Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
hiring a CPA - Complete Controller

Some businesses think that it is expensive to hire an accountant or CPA. However, full-time accounting professionals offer midsize and small businesses a high Return on Investment (ROI). In addition to general accountants, CPA also uses many other hats such as compliance officers, tax advisors, business analysts, budget forecasters, and financial inspectors. Below are ten reasons why companies should hire a CPA:

Reduce costs


Accounting with good value is well correlated to specific areas, products, or services. These specialists regularly analyze economic data and look for places to be cut and wasted. Some examples in this regard are high costs, surplus stocks, and excess staff. Therefore, the cost reduces, and profits increase higher profits. Check out America's Best Bookkeepers

Increase in revenue


All companies rely on stable cash flow in their stores. CPA can help optimize and standardize income sources by improving debt collection, controlling credits, and providing recommendations for intellectual investments. Trained CPA can also check the market price of their product or service and adjust prices to maximize revenue.

Jumpstart stagnant growth


In some countries, companies often experience a slowdown in the first few years. During this “second-year recession,” the use of CPA staff can help the company restructure its debt, identify unprofitable companies, and change the prices of goods and services. CPA has played a significant role in providing management consulting services to improve a sound strategy and return to the growth model. Check out America's Best Bookkeepers

Makes the time Free


Managers and entrepreneurs have a sufficient workload without taking care of compliance, taxes, insurance, wages, rent, and internal control details. People should focus on earning instead of signing checks or preparing budgets. Controllers can perform these essential and time-consuming operational tasks, allowing innovating products, expand the market, establish strategic alliances, and manage changes.

Processing of tax problems


When the business is lean and small, the organization may already be able to manage their annual income and quarterly payments. However, as the company develops, wages and taxes become more complex. There are more variables and rules applicable at local, state, and federal levels. For organizations with an international presence, taxes become even more taxable. T Tax accountants keep pace with legislative changes and help organizations maintain compliance. After learning more about how to minimize deductions and minimize taxes, one can save money. Hiring a good CPA can pay his fees several times. Moreover, if there are any audits or disputes, they will be with the organization.

Regulatory process’s navigation


Taxes governed by government agencies are not the only aspect of any business. Small and big companies face a growing regulatory burden. Only 2% of financial professionals interviewed during the audit meeting for financial reports and functions indicated that the compliance burden would reduce for the next three years. Experienced managers or management consultants can create a system to ensure compliance with the new rules and plans.

Create a forecast


The CPA is trained to analyze large numbers of data series and have recommendations on what managers could expect soon. Regardless of the needs of staff or the attractiveness of investors, qualified accounting specialists can create models and formulate data support forecasts in the next quarter or fiscal year. With better forecasts, one can make better decisions. Check out America's Best Bookkeepers

ROI monitoring


The CPA can calculate the level of marketing success by analyzing the number of new customers and sales data and the total cost of work awareness. Along with this knowledge, the organization would not spend money on constant efforts to increase profits.

Recruitment and training of staff


As the business grows, the organization required to add support staff to manage additional workloads related to calculations, human resources, loans, billing, inventory, and purchases. Controlling and recruiting new accountants or CPA for the company’s growing needs is also a job of control staff. It then presents their new employees with their financial systems and corporate culture.

Consult suppliers


A smart meter can help you get a better price, and you can get a big discount, whether one upgrade IT support or buy in bulk. The financial expert can also examine the various suppliers, receive requests from each supplier, and collect comparisons between apples and apples to make an informed decision.

For companies of any size, the use of CPA in almost all sectors is a wise transfer of funds. When it comes to society, you work hard to create, as you grow up, trying to cope with your financial problems can cost a lot.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
excel to accounting software - Complete Controller

In most of the cases, small businesses begin their work using Excel. However, Excel is a practical choice, but up to certain limits. Therefore, organizations are required to evolve their software and grow. Excel is effective software and provides a large number of functions quickly. This ease is the main reason that in the world of business, Excel has great significance. However, whenever the application becomes sturdy, the spreadsheets created while no one using it. Therefore, most of the company is moving to accounting software for swift processing and working. Accounting software provides a large number of options for dealing with the financial information of an organization in the current age.

Business accounting associated with Excel’s Problem Check out America's Best Bookkeepers

There are specific problems with excel for business accounting, discussed below:

  1. Most of the small businesses forget this aspect of excel. The use of excel is quite common, and almost every individual using it; therefore, its usage does not restrict up to only experts. Moreover, the number of excel users made false judgments concerning their expertise in excel.
  2. It is a lengthy process to create excel spreadsheets that fulfill all the financial needs of the organization. The setting of invoice tracking and expense report also takes time. The employee often gets stuck in the situation of consistent making changes in the information set on the spreadsheet.
  3. Excel requires appropriate plan and knowledge, prior beginning work on it. Moreover, there is no flexibility in excel for later configuration. The individual should know that which cell be working for which part clearly. 
  4. It is quite easy to make changes in Excel spreadsheet without tracking the individual, who made changes. Therefore, it is not reliable. It can make a significant loss as well, for instance, if an employee replaces $1,00,00 with $10,000.
  5. While working with a large number of spreadsheets and data, excel often show performance issues. The system of excel becomes overload. Excel does not integrate with other business applications, which help make the business run.
  6. Another issue with excel is that it does not recognize double entries. Hence, it further makes trouble for its users. Check out America's Best Bookkeepers

Reasons for Betterment of Accounting Software than Excel

Specific reasons make accounting software better than excel.

Accounting software gives confidence to the user because its dashboard is quite easy to use. The individual will have a clear view of their financial status that makes it easier to make informed business decisions.

  1. There is a central place in accounting software for real-time financial data of the organization in the online cloud. All the lines of the bank statements are fed into the software automatically and rectify double-entered data and potential mistakes of the user.
  2. It turns longer waiting time for reports into shorter and provides most of the reports in just a few clicks. Additionally, it is quite easy to share and view budget and real-time reports. Similarly, many tasks, such as returning sales tax, could be accomplished in minutes.
  3. It creates information that investors can notify immediately. The small business of an individual will be well-equipped for the management of its finance accurately. This software is especially significant during tax hours when exchanging data with financial advisors or accountants. Information on business taxes is always up to date and ready to provide at any time.
  4. All the historical data that your investors might need will be at their fingertips. The appropriate control documents ensure that the data are not affected. Accounting software also records every transaction. This record includes sales contracts, payments to employees, and much more. A complete audit trail allows investors to understand the company’s effectiveness and meet the needs of tax authorities.
  5. Cloud-based software allows sync of financial data. Invoices, inventory management, and others would take time and avoid problems with a small business.
  6. It allows any member of the team to work from anywhere on its online data system. This software enables the user to share financial information with a financial advisor, account, and bookkeeping. Check out America's Best Bookkeepers

Accounting software makes the Business Grow

Although it is often difficult to change the way of doing business and accept the intervening changes; however, in such situations, the potential rewards are quite vast. Excel is not designed to replace accounting software. There is a particular drawback of the consistent use of excel that resolves by moving from Excel to accounting software. Therefore, it would be slightly better to move and make the business processes easier than going for a redundant option.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers