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Business man launches a new profitable project.
The secret to making a business profitable lies in bookkeeping and accounting because this is where you can set yourself apart and position your business to be on the right track. The right tools of the trade, coupled with advanced bookkeeping approaches and techniques can help ensure a profitable business. People often chase their business dreams with obsolete tools and practices that kick them out of the competitive race. But, little do they know, the secret to a successful business actually lies in bookkeeping. Accurate bookkeeping records play an integral role in defining the success of a company. You need to realize its significance as early as possible to give your company a positive start.

A close interaction with your bookkeeper can help build a much stronger relationship that will cultivate a culture of continuous prosperity. Sometimes, we would rather look around to find the answers to multifaceted aspects of the business. We often forget that the secret to a successful, yet profitable business actually lies in a simple and more comprehensive system that revolves around bookkeeping and accounting. The right bookkeeper can serve the needs of a business and, if they are somewhat creative and loyal to their profession, they can devise a system through which effective recording and tracking can be done.

Hire a Bookkeeper Who Is Sincere With Your Business

Building a strong connection and communication with your bookkeeper is very important. Why? Because you can only expect to get accurate results if you are willing to work in a positive environment. The sincerity is reflected by the amount and level of work your bookkeeper does and this must be kept in mind when hiring a bookkeeper for your business. In simplest terms, businesses can only grow and make sensible accounting and financial decisions if their bookkeeping records are accurate and the bookkeeper is sincere and loyal to your business.

Formulate Effective Business Strategies In Lieu Of Bookkeeping Records

Turning a business into a profitable business may seem hard at first glance. However, when you get down to it, you will be able to formulate effective business strategies in lieu of bookkeeping records that will put your business on the right track and make your business profitable. According to studies, competent staff can ensure both short and long-term success. Therefore, you need to hire an individual as your bookkeeper who will help you come up with an effective plan that will create a positive platform for you to grow.

Hire a Bookkeeper Who Has the Proper Knowledge and Experience

There are a countless bookkeepers and accounting professionals who are ready to serve you with the proper bookkeeping knowledge, skills, and experience. All that you need to do is hire the right individual to get the job done. Although some argue that a bookkeeper’s job is easy and anyone can fulfill the bookkeeper’s responsibilities, that is not at all true and this perception needs to change once and for all. A bookkeeper’s job is not only to record day-to-day financial transactions, but they are also responsible for maintaining a track of vendor’s receipts and payments, customer’s receipts and payments, calculating and clearing wages, payroll and much more. This indicates that they need to be professional and should know the art of turning things around for the business, especially in a crisis situation. By finding the right person for the job, you can turn your business into a profitable business.

Don’t Complicate the Simple Things

Sometimes, things are not that hard as they may seem. Instead of over-imagining, you need to give more focus to your business and work on how to get things right—the first time. No one is a born genius; your attitude and commitment is what yields intended outcomes. Keeping things simple and straight forward is more effective than complicating things, and that’s where the actual success of a business lies. In order to turn your business into a profitable business, you need to be on your toes at all times and hire a bookkeeping and accounting professional who can ensure continuous growth and profit.


Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Businessman being depressed by accounting in his office
Accounting and bookkeeping are the key jobs in any business. Accounting is the systemic and complete recording of financial operations in a business. Business bookkeeping is the recording of financial dealings as a part of the accounting process.

Small business accounting errors range from minor errors to big accounting and bookkeeping errors which cause grave danger to the business. Accounting problems start with irregular bookkeeping and accounting. This will not give a true picture of the business and no good decisions can be made. Entrepreneurs/owners often do not realize that common small business accounting errors are a major threat to the growth of their business in the long run.

Here are some common accounting errors that actually damage the businesses.

NOT USING AN ACCOUNTING SOFTWARE

Manual work is always the toughest and is at risk for errors. A small accounting error can lead to big damage in businesses. Small and medium-sized businesses should use an appropriate accounting software according to the type of business they run. Cloud accounting is an emerging technique in accounting software and has its benefits in small to medium-sized businesses. 

Manual accounting is time-consuming and the chances of errors are much higher. While using an accounting software not only diminishes the chances of errors, the software also take much less time for accounting operations.

Choosing an appropriate software is an important and challenging step in business according to your needs. You should consider its cost, usability, and extra features when choosing a suitable software for your small business.

Features of an accounting software must include

  1. Inventory management
  2. Sales tracking
  3. Contacts management and contact history following
  4. Account to accept credit card payments
  5. Producing invoices
  6. Financial statements, cash flow statements, and balance sheet,
  7. Budget planning
  8. Payroll
  9. Taxation matters

INFREQUENT BOOKKEEPING

Bookkeeping and accounting statements must always be kept up to date in any business. Running behind in bookkeeping and submission of entries of the expenses or sales will not produce an up to date picture of the business and allow you to make timely decisions. It can lead to a negative balance if expenses are made but an income statement is not updated. Invoices that have not yet been paid by the company may go unnoticed and it can lead to a bad reputation for a company. It can end terms with your suppliers. Business growth is ceased or significantly reduced. Not producing financial statements monthly is common in small business accounting problems.

MIXING PERSONAL FINANCES WITH THE BUSINESS ACCOUNTS

  • Business owners combine their personal cash with business expenses. It is of utmost importance to keep the personal finances and the business finances separate. If these two finances are not isolated then it cannot be known what was planned for business and what was consumed personally. The amount of profit that was produced out of the invested capital cannot be assessed properly.
  • A business credit card is operated for personal expenditures during a holiday trip or other payments. Later on, this sum will be funded from the company’s income which is a bad idea.
  • During purchase orders for inventory of the company, procurements are also made for private use.

COVERING SMALL EXPENSES IN A BUSINESS OUT OF POCKET

Business owners take it upon themselves to pay small expenses for the business out of pocket as it saves their time. However, these expenses are not listed in the business bookkeeping. The business looks stronger in income when this accounting error is done. While in reality, the business is not that strong.

INTERESTS ON DEBTS FOR MANAGING PAYROLL

Small to medium-sized businesses get loans at the time of monthly payroll. The income of the business ends up paying back the loans with interests. Sometimes, the debts increase as well as the interest on those debts. Businesses, instead, can get the services of payroll companies to avoid heavy long term loans.

CONCLUSION

Small business accounting errors range from minor errors to big accounting and bookkeeping errors which cause grave danger to the business.Accounting problems start with irregular bookkeeping and not using accounting software.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Person using a futuristic head up display (HUD) interface screen with data and key performance indicators (KPI) for business intelligence (BI) analytics, concept about financial dashboard, technology and virtual reality (VR)
Financial dashboards for businesses are essential for evaluating daily business operations on a regular basis. Financial dashboards guarantee to keep the business on the right track. It is one of the most vital elements of any business. Businesses may use various techniques to invest in a proficient financial management program to ensure that the best practices for proper inventory management are followed.

Financial management is a major part of any business’s supply chain management, manufacturing, customer relations and every business activity. The stock inventory management aims to have the correct products available for sale. Tracking inventory in real time is effective in streamlining the entire operations process.

The dashboards help the business to have the correct products available at the right time. It prevents out of stock products and funds from being tied up in surplus stock. Moreover, stock inventory management helps your business ensure that all products are sold in time to prevent spoilage. It also saves millions.

Benefits of a Financial Dashboard

Financial dashboards provide a complete and detailed overview of an income statement with net profit, revenue, and other relevant performance ratios. Each dashboard represents four crucial financial indicators such as the operating profit, net profit margin, OPEX ratio, and gross profit margin.

The revenue is found in determining the selling price by calculating the total cost of goods sold without including details considering any other taxes and expenditures. The dashboards allow businesses to consider certain costs associated with their operations on a daily basis for bookkeeping.

One of the main metrics for these dashboards is the inclusion of income before interest and taxes or EBIT. The dashboards consider calculating all expenses and costs before interests; then the applicable taxes are included in the overall cost to determine net profit.

Calculation of Gross Profit Margin by Dashboard

The Gross Profit Margin for any business is essential for determining the total sales percentage with the revenue that remains after the bookkeeping of all direct costs with goods and services. The gross profit margin is useful in estimating how much the company has to invest, determines spending on research and development, and how effectively they can contribute towards earning a profit.

Top 3 Financial Dashboards for Your Business

Entrepreneurs are preoccupied with daily business operations and, often, they do not have sufficient time left for handling their finances. Many financial dashboards are available to help business owners effectively handle their finances. Most dashboards offer easy to read charts with colorful graphics. The most effective step for start-ups is to use online dashboards that help them track their finances as they are unable to hire an expert bookkeeper to manage business finances.

Here are some affordable business dashboards that will determine how to handle the finances of any business.

inDinero

inDinero was launched in 2010. This financial dashboard is suitable for start-ups. inDinero gathers all business transactions from the bank history as well as credit cards details and other financial documents are efficiently organized. The business owner does not need to spend hours in data entry. Just save the account number and bank information and it automatically categorizes transactions. Some of the categories of transactions are:

  • Advertising
  • Payroll
  • Dining and refreshments
  • Another spending for every month
  • Accounting reports

BodeTree

BodeTree was introduced as a financial dashboard in 2011 in partnership with Intuit, the company that launched QuickBooks. BodeTree relies on QuickBooks to assess different financial information from those who rely on QuickBooks for bookkeeping. It needs to be connected to the QuickBooks account. Once the connection is complete, it categorizes and generates a breakdown of all activities and expenses associated with each operation.

The BodeTree dashboard is named after the legendary Bodhi Tree, where the Buddha reached nirvana. Similarly, the dashboard will be able to determine a benchmark for the business depending on their algorithm based on the transaction and expenses history.

Corelytics

The Corelytics financial dashboard was launched in 2005; this dashboard works by importing all of the financial information associated with the business. It gathers information from different accounting programs including Sage, PeachTree, MYOB, and QuickBooks, among others, for the financial dashboard. After all of the information from each accounting platform is collected, Corelytics will get to work by categorizing every metric. These metrics, once generated, can monitor every transaction. Some of the metrics are:

  • Expenses
  • Gross margin
  • Revenue
  • Receivables
  • Owner compensation
  • Profits

Financial dashboards allow setting goals and objectives for each of the metrics above. The Corelytics financial dashboard highlights every single metric with different colors. The colors determine when each metric is not performing according to the standards of the business. This financial dashboard is one of the most useful for every business. It comes with a mobile application, allowing the business owner to monitor the activities on the move for better bookkeeping. It also won the Showcase award for the best dashboard.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

A Satisfied Customer Is The Best Business Strategy of All sign
The customer is an asset to the business. Business can only grow if you have customers. Without customers: no profit, no business. The customer should be the focused and central point of a business plan because he/she is the individual who is going to purchase your product or avail your services. 

The customer is the most valuable and central point of every business who must be focused upon while formulating strategies to improve the business success rate. Establishing and maintaining excellent customer services is the critical step in a successful business plan. Customer services require that all customers are equally valuable and you have to understand the expectations of customers. Your products and services should fulfill the needs and wishes of customers. All customers should be dealt with respect and attention. Communication with customers should be effective and business owners should listen to them whenever they need your help.

Issues of customers should be resolved promptly and they should always be asked for feedback. Everybody believes that their opinion is valuable. When you ask customers for opinions or suggestions, they feel themselves valuable and privileged to be customers of such a high standard company. Take their opinion as advice for improvement and make adjustments. In case of any loss or damage, a compensation policy should be there for customers.

Happy customers are assets of a successful business and should be tracked by using CRM software. This software is used to track sales.  Respond to all emails from customers immediately.

The two steps to excellent customer service are as follows:

1. Training the Team for Outstanding Customer Service Delivery

The first step is training of the whole team to deliver excellent customer services. This training should emphasize the following points:

  • The value of customer service for the business.
  • Expectations of the customers.
  • How should these expectations be fulfilled?
  • Ways to satisfy and make customers happy.
  • What are the roles of each employee in delivering excellent customer service?

This training is an ongoing process. All new employees should be trained step by step while refresher training should be scheduled for seasoned employees periodically.

Train employees in such a manner that they show commitment to deliver customer service at their best. The more you emphasize wonderful, committed customer service, the more satisfied your customer will be.

2. Consistent Emphasis on Expectations of Customer Service

Once the entire team is well trained, begin reinforcing the value of customer service expectations. The more you emphasize your expectations of customer service, the more committed the employee will be in delivering excellent customer services. Bookkeeping data will help you trace the value and size of transactions made by various customers and how each customer’s buying is affecting your business. Use CRM software to track satisfied customers. Providing them great services ultimately increases the growth of the business.

Any flaw or weakness in customer service is the failure of business planning. It has many reasons. Either all employees didn’t get enough and appropriate training to deliver services according to customer expectations or employees are not well aware of the value of customer service due to lack of emphasis and reinforcement by the trainer. Another reason is that the company doesn’t have the proper well-established system for customer service monitoring related queries and feedback. Also, any employee that failed to deliver customer services efficiently that have not been fired by management is a failure in business planning. Analyze shortcomings and overcome all to flourish your business.

Any errors related to customer service can be forgotten and forgiven if the customers you have see that you have improved your systems and processes.

Develop Standards

Classification or grading of customer service cannot be done without having standards. Develop standards and train employees accordingly. Unsatisfied or grieved customers often leave your business without complaining. This is the real loss of your business. The satisfied customer will remain your customer for a longer duration and refer others to you. This is the key to success of the business.

Conclusion

Customer service should be excellent to win the loyalty and trust of the happy customers. This is crucial for the growth of the business.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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There are various factors in businesses that define its growth and sustainability. These factors drive profits for your business. These factors may be identified as business drivers.

Recognizing and watching the key drivers of your business is crucial to boosting up profitability.

How to Identify Key Drivers of a Business

A wide range of business driving forces exist as internal and external factors that affect the performance of a small business.

To identify the key economic drivers in your business, focus on the factors that:

  • Reveal the performance and growth of business
  • Can be measured or calculated
  • Can be compared to a standard, such as a budget or last year’s figures, or an industry average
  • Are in your control

Economic Drivers in a Business

Small business owners are always working hard to move forward and focus on bookkeeping and other business operations. But they accomplish their real success when they completely understand the crucial factors that drive profit in their business and then focus on those economic drivers.

The Four Basic Drivers of Profit

  1. Price
  2. Variable costs (depends on the production and sales. Increase with increase in production and/or sale)
  3. Fixed costs (also known as overhead. Such as salary of employees and bills to be paid every month.)
  4. Sales

Price is a key factor that, with a slight change in pricing, may affect the profit margin greatly. Increases in price immediately increase the profit margin. Many entrepreneurs focus on sales. Increase in sales volume, however, increases the variable costs. Increase in variable costs will lead to lesser profit if prices are not increased.

But, another factor is that decrease in variable costs increases profit margin but it will not raise the total revenue. Fixed costs have the least effect on profit.

Each key economic driver in a business’ economics is unique but each key driver is dependent on all of the other drivers. One cannot be affected without influencing the performance of the other. These key drivers are an economic force behind the business growth and profitability. Small business entrepreneurs/owners must interpret these drivers in relation to each other to make their decisions. Employees also need to understand the key drivers in a business as, in the long run, they think strategically and advance in their careers.

Maintaining a good gross profit margin is very important. If gross profit margins are falling, then focus on other key drivers that can affect profit margin to a downfall. There can be a number of reasons for a decreased gross profit margin. These reasons can range from input costs are more, too many discounts are being given, production is not up to the mark, or prices of production materials is increased recently. Take corrective action after the realization of the reason.

The Major Profit Mistakes of Businesspersons

  1. Entrepreneurs focus on increasing revenue through prospective customers and partially forget their existing customers.
  2. They do not promote their product and market the brand image so they often miss the chances to increase prices while their competitors do.
  3. Marketing is an investment tool. They cut costs on marketing and hence they cut investment in business virtually. Marketing attracts more customers.
  4. Increasing price of a product in comparison to another similar product with lesser price can affect the market share of the product.

Conclusion

Price, variable costs, fixed costs, and sales are key driving factors in a business. It is highly undesirable for a business to focus on one driver and not interpret the other economic drivers in a business. Strategic marketing of your product is equally and essentially important and will help to attract more customers and generate more sales and increased net profits. It will also build a brand image of your product and its price can be increased to increase the profit margin. Make decisions in strategic ways that will upsurge the business in the long run.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Photo of various stacks and rows of coins isolated on white with INVESTMENT concept related words imprinted on metal surface
Reducing overhead expenses can be tricky as modern business has many new aspects to handle. However, for it to make a difference, saving costs matter greatly. To be able to contribute beneficially to all commercial endeavors, arresting any unwanted or unnecessary costs is the key to good management skills. In the global markets today, being cost-effective is definitely a magnificent step.

 8 Strategies for Reducing Overhead Expenses

  1. IT Resources And Its Costs

IT resources can eat up energy, so being energy efficient and reliable are two things that are mandatory for modern IT shared resources like printing and email. Switching to equipment that helps things run with low costs is highly advised. Large screens consume more electricity and so does an older version of motherboards and drives. The latest technology allows more cost and energy savings. For example, converting your business needs to cloud computing is a little costly but, once implemented, it saves many resources and is always feasible in the long run.

  1. Reducing Overhead Expenses with the Internet

Using internet telephony is a marvelous way to save on business communication costs in the shape of reduced phone bills and other expenditures incurred for different services that are offered on a mandatory basis by the phone company. And, living in the 21st century, it’s wise to utilize all that is available.

  1. Monitor Payment Services

Some banks deduct charges from the merchant account. If that increases and the turnover isn’t worthy of it, stop using it. If sales are poor and the only sales that do occur are online payments, that means partial profits. For reducing overhead expenses, insist on cash wherever applicable.

  1. Daily Vital Activities

The digital era has turned offices paperless. Vital daily correspondences, for example, between vendors and field agents like engineers, for specific material requests can be conducted and stored as PDF on digital storage media much easier as compared to printing paper for a file. Having a centralized database of correspondences would be a good idea if the situation is as described. However, other expenditures such as electricity and heating expense must be supervised. Employees who wish to work from home are welcomed to do so, reducing overhead expenses, cutting utility charges, and other related expenditures. Even on premises, make sure an advisory system of politely requesting all equipment to be placed in standby mode to become more cost-efficient. Avoiding high frequency lighting and providing energy efficient light such as low energy bulbs offer a significant sigh of relief when billed.

  1. Outsourcing

Some businesses require minimized accounting or IT services which can easily be received by consultants or service providers. By outsourcing such departments, businesses can benefit with employing interns or freelancers. Temporary staff is effective for specific projects. Businesses like vending or merchandising eradicate the need for mass training of staff and help in reducing overhead expenses. 

  1. Outdoor Calls

Traveling for campaigns requires cost-effective methods such as using teleconferences instead of taking a team of marketing whizzes on a three-day product introduction workshop. Using business tools for communication like Skype should be the first mode of all such conferences. With technology and the evolution of the web, it’s a smart business tool that is always an influential ally of a business. Traveling lightly or traveling only on essential trips that are necessary help to economize by reducing overhead expenses. 

  1. Business Gatherings

It is always a great idea to know business contacts but it’s even smarter to form joint venture partnerships. Some businesspersons welcome such projects and, with the experience it provides, the portfolio of a business shines bright! Sharing projects leads to consortium which helps provide an influx of revenue while sharing tasks between entities. This approach is rampant in construction, oil and gas, power generation, etc. This practice leads to win-win situations which are of mutual interests. Carrying assigned tasks per project description helps in reducing overhead expenses on both sides, while delivering quality and ensuring a greater profit.

  1. Smart Decisions – Buy Versus Rent

Some business owners have to deal with this often. Renting versus buying; which is better. It’s always a great idea to procure small equipment like pumps, which are easily handled by trained staff. It’s a little more difficult with high power industrial pumps which can be rented in dire circumstances. But, it’s always preferred that the continuously needed hardware should be purchased.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Five marble pillars of islam or justice on blue cloudy sky background, details, front view. 3d illustration

What is an excellent company? What are the features that identify business excellence? Whether we want to achieve this degree of excellence or identify large companies to work with, what are the values ​​we have to take into account?

Axesor marketing intelligence believes that there are at least five factors that we can take into account when assessing the type of companies with which we do business with. We will discuss the five pillars of excellence below.

Financial Management

Good financial management raises companies high above their competitors.  This includes account profitability, risk, and stability beyond the short term.

By comparing the structure and evolution of a company’s income statements, in addition to other key indicators, excellent companies can be determined and compared with others based on their commercial segment and sector.

Thus, the most healthy, stable, and with less risk of default societies are identified. These are truly attractive entities when proposing new commercial agreements.

Management of Human Resources

Over time, the staff of a company becomes one of its defining features. Therefore, in order to locate an excellent company in its management and organization of human resources, it is essential that it has an efficient composition of employees.

The distribution of the number of employees in different departments and the volume of expenses that it presents are some of the key factors in this regard.

Innovation Capacity

The innovative capacity of companies is also a pillar of excellence because they can face new challenges efficiently and identify new possibilities to increase their business.

In order to locate the companies with the highest degree of quality in the field of innovation, it is important to properly assess their investment in R & D & I and new technologies to weight this absolute data as well as the productivity ratios resulting from these investments in comparison with those of the competition.

Degree of Leadership

Larger companies are not always the most profitable in terms of business since a company with a large volume of profits does not ensure excellent management.

However, the position of a company in the market itself can possibly determine to what extent we are interested in them becoming a client.

To establish this degree of leadership, we must take into account the results, both in turnover and market share, which allow us to segment the entities depending on their level of activity within their geographical and sectoral scope.

Import & Export Capacity

Finally, finding stable companies means locating those that diversify their activity in different geographical areas and are not very dependent on specific local situations.

The capacity of an entity to carry out imports and/or exports depends on factors such as financial results, physical location of the company, or the business to which it is dedicated to.

These and other indicators allow you to calculate both the health of your foreign commercial activity, if any, and the possibilities of carrying out quality business in the future.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Adult man with beard and tattoo working in carpenter workshop using power tools
An Independent Contractor is a person in business who provides services to another person or a business, but is not an employee of the business firm. The independent contractor may also be called a freelancer. Independent contractors can be consultants, agents, professionals or technical staff.

When a business-oriented person or firm provides services to other individuals or companies, this is called a contractor business. It can be a short-term contract between the two parties or this contractor business can be made on longer terms, growing and long-lasting. The contracting entity is called a contractor.

Benefits of a contractor business:

Contractor businesses are a necessity, not only in the economy, but also to many offices and homes.

Building a contractor business is a great career opportunity. It is important to establish a formal business unit that will grow your business before getting clients. With a firm plan in place, you will be able to focus on providing services, not covered up with concerning legal issues. 

Strategies for a long-lasting contractor business:

  • There should be a well-managed system in place for managing business operations, bookkeeping and all business activities. If there is no effective system in place, then important tasks can be overlooked. If there is a well-established system, you can focus on growing your contractor business.
  • Once the business is established, start working on internal assessments. Carry out regular business operations. Carry out, from internal business assessment programs to reaching out to customers and knowing their satisfaction levels about your business. Work on getting a high rating for your business.
  • Social media websites and tools are an easy way to assess customers’ expectations and demands. Surveys can be conducted to know the rating of your business.  It’s also a great way to market your services.
  • Take the time to talk to your employees as well as customers. A proper liaison ensures better outcomes in the long run.
  • Always respond to your customers. Take time to response, if needed, but make sure to respond as much as possible. Responding doesn’t have to mean being on the phone all day. There can be various other ways such as complaint boxes, email accounts, social media activities, and personal meetings with the clients.
  • Clients that give a huge margin must be dealt with personally to ensure their satisfaction with your services.  Treat them well and they will keep coming back for more of your services.
  • Promote your services with marketing techniques. It does attract more and new customers. However, it also attracts and sustains your current customers.
  • Facebook is an easy and inexpensive way to reach customers by creating a registered Facebook page. Facebook is used by billions of people around the world. Using the tools on Facebook can allow your marketing post to reach millions.
  • Attract more financing. Business financing can be found through personal funding, debts, investors and other options. As an entrepreneur, it is your duty to decide which option is best for you. 
  • New entrepreneurs always need assistance throughout their year-round business operations. Take advice and study their pros and cons. Sometimes you will need to hire a consultant on such matters such as bookkeeping.
  • Hire people who are capable and interested in your contractor business.
  • Keep a close eye on your business bookkeeping. Your finances must never get out of hand. Expenses must be supervised and rationalized.
  • Even though you are a contractor business, you should be audit-ready which means an up to date accounting system.
  • Outsource the business. Make contracts with other firms to grow your business. For example, contract with another accounting firm for all of your accounting and tax filing.
  • Always know the actual costs of your services and make your profits accordingly. Prices that are too high can make your customers turn away and prices that are too low will make the business go into a loss. The prices must be profit yielding but services must be according to customer’s demands.

Conclusion

A contractor business is a great opportunity, not only for the individual entrepreneur, but also for the economy as a whole. Entrepreneurs/large corporations continually take advantage of contractor businesses as their needs expand. For running a growing and long lasting contractor business, entrepreneurs must be aware of the best business practices. You can adopt strategies to keep growing your contractor business and ensure that it will take you well into the future.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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Business Funding
/Financing is the course through which entrepreneurs arrange money for investment for business purposes. A investment can be used for starting a new business or to finance current activity in a business that’s already well on it’s way.  

There are 3 main purposes of financing:

  • Funding a business startup
  • Financing for growth and expansion of a business
  • Dealing with unforeseen financial encounters

Sources of Business Financing

  • Self-Funding
  • Giving up Equity
  • Debt
  • Business credit card use
  • Small Business Administration loans
  • Foreign investors
  • Crowdfunding /Selling shares of the business

Are Business Funding Rules Good or Bad?

If you ever turn to economics, accounting or managing the books in a business, there will probably be rules everywhere. Following rules in business are good for running a successful and growing business.

But, experience and personal forecasting and judgment matter quite a bit in making decisions for running a successful business and producing result oriented business operations.

If you ever ask a successful entrepreneur if he is a strict rule follower, the answer will be no. From a study conducted on a course of 30 years and on 12,686 Americans sample size, “Study finds successful entrepreneurs have brains and a history of risky behavior in their teens

7 Business Funding ‘Rules’ to break:


1.  
Think out of the shell. Be rebellious in nature. Being rebellious in business does not mean risking conflict in legal matters. It means to think out of the box. If the market is going down and the overall economy is falling, even then there is nothing bad in taking risks and facing challenges. But, be prepared and get ready before falling into any kind of new challenge. Introducing a product with better taste as demanded by customers in the previous survey can be risky but those who do not try new ventures, do not get new experiences and/or better outcomes.

2.  Be risky in business. If your current growth rate of business is not up to the mark, there is no harm in being risky and going over new horizons in business. Those who do not take risks do not reach to the skies. The large corporations that we now see often started with the least capital investment and a small sized business. Invest money in new ventures and put your efforts in fully. Even if the business goes into recession, it might rise again after using effective strategies.

3.  If you think your previous business history must be spotless in financial bookkeeping, then it is a wrong assumption. Investors are often not interested in previous failures, but they are interested in your new ideas and new business plans.

4.  It is not true that 100% of online lenders are spams or scams. Though many can be, not all are. There are registered tools to find and meet online lenders. Go for suitable interest rates and look at the time in which the loan has to be paid back.

5.  You must always have a confirmed and high-profit yielding business plan to meet lenders. This is again a wrong assumption. It can be true to some lender’s point of view. But, many are just available to lend money and receive it back with some interest.

6.  Do not go for too much loan just to show you need a huge investment capital for the business. This is not the right thing to do. Lenders often have no concern with how large your business is. They are lending money just to get more.

7.  Fail harder. There is no one in the world who never failed in his/her lifetime. Never fear failures. You fall and you rise again. That is the real success.

CONCLUSION

When studying business and financing, we are told thousands of rules during our whole coursework. Accounting consultants and economists are always explaining the rules to run a successful business with an upsurge growth. However, how to fund your business is not always by a perfectly rule-abiding procedure. Use skills, be risky, gather experience from the past, and be  ready to take challenges to ensure a successful business funding and growth.

Sometimes breaking the business funding rules ensures a better entrepreneurship than sticking to the rules as told by books.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Young smiling black businesswoman at the wall with stickers communicating with her colleagues. Mixed team of entrepreneurs
Following are 7 ways that you can ensure the success of your business:

1. Write Down a Business Plan

The first step is to write down a plan. Without a written plan you cannot dream of success. The written plan should not be long. It should focus on a few critical points. These points include budgeting, long term and short term financial plans, objectives and goals, sales and marketing strategies, and the source of finances to run the business. 

Your time can be turned into money by initiating a written plan. When and how you achieve your goals is defined by this plan. Your daily step by step actions determine the progress of your business. Depending on the progress, you can make required changes into the written plan.

2. Adjust the Plan and Triumph

The written plan does not have to be written in stone. Think of this, if even a successful military general can burn their plan and go with the flow, then why can’t a business owner? Review the progress and achievement of your goals as planned and make necessary adjustments if satisfactory results were not earned. Don’t ever marry your written plan. Adjust and win the game. What particular market statistics and market value will be helpful in adjustments?  Be flexible, take critical notes, and make any changes necessary to your written plan.

3. Take Bits of Advice

Egos can wreck havoc over you if you prefer them to other valuable things. This is true for business life as well. A business owner should listen to advisers and other team members. They may have better ideas than you. Your weaknesses may destroy your business if you take them personally and don’t work upon them. When and if you’ve made an error, admit it and carry on.

Advisers are always beneficial to your business. They are the people who assess your progress and work. They highlight your mistakes and make you accountable. Listen to them, they will push you towards greater achievements. Be honest with yourself and keep your ego in the pocket. Your business is more valuable than your ego. Be calm and react rationally to criticism. Learn a lesson and stick to your commitments. This way, no one can stop your business in succeeding.

4. Manage and Organize your Team Effectively

Know all of the employees of your team and clearly define their goals in writing. Assess their progress daily and train them to achieve their goals with consistency. Make decisions according to the daily performance of all team members. Your team is an asset for you.  By utilizing this resource, you can succeed.

5. Effective Organizational Structure

The organizational structure of your business is critical for success. Some business owners try to control each and every function of their employee themselves. Avoid the trap of micro-managing.  This style of management decreases the efficiency of the employee. By doing this, your employees won’t take ownership in their work and they will also never learn. But when you delegate to employees, the results are overwhelmingly excellent. Provide all employees the goals designed for them in writing and train them sufficiently for achieving these goals effectively. Your employee will then feel free to work in his/her own way and will get involved fully in tasks assigned to them. 

Review achievements of each employee and reward them accordingly. Reward systems keep employees motivated and this management style leads to success.

6. Use Technology

Create social media pages to attract customers. Social media has proven very cost effective in marketing. Few skills and training are required to use this media for efficient marketing and progress in the business.

7. Reinvent Business

Separate yourself from your past history and create a new competitive advantage, be it a focused niche or super service, but not by discounting.  Research the ways of successful businesses and take that, along with your own creativity, to introduce a unique business that will attract new consumers.

Conclusion

By using the above mentioned suggestions, your business can succeed. The sensible and logical way will always work, along with a little creativity and hard work.


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About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services 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 and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.