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Earn extra Income - Complete Controller

Every person aspires to make more money to afford a better standard of living, but few can accomplish it. This lack of accomplishment is because people often think that the effort needed to make extra income is not worth the time and energy put into it. Instead, they focus on curtailing expenses, which is not necessarily bad but can certainly have negative repercussions on their quality of life. Most fail to understand that to save more money; one must find ways to earn more money while keeping expenditures in check. In today’s fast-paced world, opportunities to make extra money are often all around you. This article explores different ways one can earn extra income without having to spend significant amounts of time and energy.

“Working smart is harder than working hard. It’s just less visible, and we care too much about what others see.” – smart cuts Check out America's Best Bookkeepers

Freelance Work

We all develop specific skill sets in our professional lives that can be quite valuable for others. There is quite a large market for individuals with professional skills who are looking for some freelance work. Growing one’s professional network helps in acquiring freelance gigs. If you don’t have an expert system or anybody interested in hiring you for your skills, there is no need to despair. Online freelance platforms like guru.com, fiverr.com, and freelancer.com allow individuals with professional expertise to offer their skills to a variety of clients. Freelance work will enable individuals the luxury to work from home and make their hours. One also works within their skillset, which means that there is no need for further training or development. All one has to do is build a respectable profile, and if your work is viable, people will come looking for you. Professional work always pays more than unskilled labor, and that is why freelancing is one of the best ways to make extra income. Check out America's Best Bookkeepers

Part-Time Jobs

They are specific part-time jobs that pay a good chunk of money without taking up too much of one’s time. When looking at a second job to compensate for some extra income, one must be careful. Choosing a job that pays the most for the least amount of time can be challenging. However, there are specific jobs that will ensure a higher return than others. Working as a part-time bartender or waiter on nights and weekends will result in a lot more money than working that same amount of time as a cashier or clerk. If you think the best way for you to make extra income is by taking on another job, our advice is to look for employment in the service industry. An Uber driver, delivery boy, valet, or even a caddy is likely to make a lot more money in tips that work the same amount of time at another menial job. Part-time jobs hardly ever lead to career jobs, so when looking for one, the primary focus should always be on monetary reward. The job that pays the most is the one that you want! Check out America's Best Bookkeepers

Odd Jobs

If you don’t have the necessary professional expertise to do freelance work and don’t have the time to commit to a part-time job, then the best way for you to earn extra income is by taking on odd jobs. Odd jobs come in a wide variety of forms, from mowing lawns to walking dogs. These jobs can be a great way to earn quick cash without having to make any prolonged commitments. Shoveling snow in the winter, for example, is a great way to make extra income if you have free time. Other odd jobs include collecting bottles and cans for deposit money, running errands, cleaning homes, and babysitting. These jobs can be found on various platforms from newspaper ads, Kijiji, Craigslist, and social media sites like Facebook. An even more natural solution would be to go door to door and ask people in the neighborhood if they have any odd jobs they would like you to do. Odd jobs are an easy way to make some quick cash even if you lack professional expertise.

Financial Management

It is always best practice to evaluate your finances every month to have an idea of where your money is being spent. Keeping track of income and expenditures helps in identifying ways to cut down expenses. More importantly, it provides a clear picture of how much extra income is required to fulfill one’s financial goals and objectives. Consulting a financial manager can help provide further insights into reducing expenses and increasing income, savings, and investments. 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
Bankruptcy Time - Complete Controller

Businesses, especially small and medium enterprises, are sometimes unable to run operations successfully for various reasons. A few reasons cited by leading experts and scholars are related to the owner’s authority and control. Not all start-ups will succeed, but companies with substantial capital and management structure are vulnerable to global turmoil and economic recession as well. Check out America's Best Bookkeepers

If such circumstances arise, then it is prudent to declare bankruptcy in the eyes of debtors, investors, and financial institutions. Bankruptcy is an option when a business overburdened by external debt and financial obligations, is going down the slope and is unable to meet its financial obligations.

Before proceeding, it is vital to understand the business’s organizational structure at the time of establishment. There are generally two categories of business entities. The first is known as an Unlimited Liability Company, and the second is referred to as Limited Liability Company. In the former type of business, the business’s liability is stretched to the personal asset of the business owner, such as a house, car, and other personally held assets. In the latter type of business, the liability is restricted to the assets of the business and its company, such as fixed assets, plants, shops, machinery, commercial vehicles, office furniture, etc. Check out America's Best Bookkeepers

It is suggested that business owners of small firms should only think about bankruptcy if their assets are at risk of being liquidated by individual creditors and financial institutions. However, if only the business is liable, bankruptcy should be weighed against the benefits of going out of business.

New business owners should register their firms as Limited Liability Corporation (LLC.) This registration will provide the business owner a safeguard for their personal and individual assets from creditors and financial institutions. Small business entities that run themselves as proprietorship or partnership firms are at significant risk of exposing their assets. However, even when the business entity is a limited liability company, the personal assets of the owners or directors may still be at risk in the event of recourse, provided if the directors of the corporations have provided personal guarantee as part of security and collateral to the creditors and financial institutions. Check out America's Best Bookkeepers

One mistake that leads to bankruptcy is when the owner does not draw a line between business operations and personal finances. In this scenario, the court will give out the verdict that since the business owner did not deal with the operations of the business and personal needs separately, the assets of both the firm and personal belongings will be considered as one. It is another matter and debate that creditors and financial institutions are skeptical in providing any financial security to such business entities without any proper tangible collateral.

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
overhead expenses - Complete Controller

Overhead costs are the expenses, which are difficult to recognize with specific activities or products. Unlike materials and production labor, the overhead cost is the unseen part of the refined product.  In this regard, the overhead cost is considered a necessary input to production, similar to the raw materials. Understanding the nature of overhead cost assist the business managers to use strategies and control the expenses. The documentation and proper allocation of the overhead cost among products or the departments help managers understand the production cost of an organization. The manager also needs to consider bookkeeping to accurately verifying the overhead expenses. Appropriate allocation of the overhead cost is also likely to contribute to ascertaining the extent to which each of the products of the firm has helped with prosperity. Check out America's Best Bookkeepers

The small business owners used the overhead cost control for monitoring, distributing, and reducing their overheads. Overhead cost includes the administrative, as well as rental expenses, the office supplies, subcontractors, depreciation, as well as advertising. The costs considered as overhead are expenses in the business processes; however, it does not necessarily mean that these expenses are essential. Controlling for the overhead cost is a complex process. The overhead cost distribution is vigorous for the organization to possess more than one activity or possess more than one department. The allocation of overhead costs is also essential if the organization has been considering adding, drop, or change the levels of business actions.

Steps to Control Overhead Expenses

Organizations use different techniques for decreasing overhead costs. The steps include. Check out America's Best Bookkeepers

  1. Reduction of Working Capital

Working capital refers to funds associated with production and inventory from beginning to sales.  The appropriate management of inventories, raw materials, and the accounts receivable results in the decrement in the working capital required by the firm, resulting in the decrement in the overhead cost. In most cases, the overhead is fixed; therefore, the increment in sales also results in a reduction in per-unit overhead cost.

  1. The Implementation of Total Quality Management

Ambiguities resulting in rework and the incorrectly filled orders arise in the increment in the cost, causing a reduction in the saleable units—payoffs resulting from the implementation of a total quality system results in the sales volume. For staying in the business world, the firm needs to adopt customer-oriented strategies. However, the organization must also control the cost associated with the promotional activities and the cost associated with the effective utilization of the funds. The implementation of total quality management is likely to contribute to controlling the overhead expenses. 

  1. Strategies to Control Sales Costs

Organizational management can implement a range of strategies to control the sales cost and increase sales volume. For staying in the business world, the organization must be customer-oriented; however, at the same time, the organization must also control the created due to sales and promotional activities. The utilization of funds in an effective manner is one of the most commonly used business strategies which are used to control the sales cost. Managers can also decrease the value by relating the service incentive to profitability compared to the product’s sales price. Check out America's Best Bookkeepers

  1. Consideration of Maintenance Costs

In light of the accounting expert’s experiences, it is essential to develop effective and long-term advertising and promotion of a product or services. The repairs and maintenance increase the lifespan of the equipment. The general objective behind the support is to keep equipment in running condition for fulfilling the production goals. Remedial maintenance is making minor changes in the design or materials of equipment. On the other hand, predictive maintenance involves sensing, measuring, or controlling devices to identify and correct technical ambiguities before break-down.

  1. Reduction of Transportation Expenses

The sales efforts are sometimes unpredictable and fail to accomplish significant results.  A careful analysis of sales expenditures permits reduction and reallocate of sales expenditures, increasing advertising efficiency simultaneously. The transportation expenses can be controlled up to a certain extent and are likely to decrease overhead costs. Establishing a fixed schedule for transportation can also contribute to controlling the overhead cost.

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
financial reporting - Complete Controller

Considering the present economic climate, several countries are facing challenges in stimulating the growth of fragile economies. In this regard, financial reporting is deemed to be essential. However, financial reporting must be based on some standard criteria as transparent and effective reporting is imperative. Both the large scale and small scale businesses are competing for capital and credit. The financial institutions and banks are cautious while making decisions for investment. Check out America's Best Bookkeepers

Different businesses must be financially effective and transparent. In this regard, the government must develop a strong regulatory environment for various companies’ financial reporting. In the case of limited financial resources, different businesses require investment for achieving high returns on the money. Financial transparency and efficiency can assist the business organization in attracting some investors to invest in their companies.  The businesses giving effective and transparent practices of financial reporting can receive good prospects. Thus they can earn credits and investments from banks because of a good reputation and financial record. Check out America's Best Bookkeepers

Financial transparency and efficiency can also transverse the borders. The financial crisis has highlighted that the high volume of trade at the intra-regional level makes the economies more interdependent and interconnected. Keeping efficiency and transparency as the prime characteristics of the reporting system helps businesses expand at the national and international levels. Transparent and efficient reporting can assist the companies in developing and adopting a common framework, compiled according to regulatory factors.

The transparent and efficient reporting system can ensure that the business follows auditing and accounting practices and standards and complies with all standard procedures. Ensuring efficiency and transparency of the financial information is a practical approach for imposing market discipline, providing an opportunity for the businesses to grow. Evaluation of business organization success indicators has also presented the significance of financial reporting. Financial reporting affects different operational activities of companies as it has a significant association with the activities of capital, firm managers, and directors. In this regard, the management of transparency and efficiency of financial reporting can bring significant strength for businesses.

There are some approaches, which can be used for transparent and effective financial reporting by business organizations.

Bookkeeping Check out America's Best Bookkeepers

One of the approaches, which are used for transparent and effective financial reporting, is bookkeeping. Bookkeeping is a complete record of sales, purchases, payments, and receipts of the businesses, thus maintaining transparent and effective financial reporting. The significant aspects of bookkeeping are transparency, efficacy, and accuracy of up-to-date records.

Automated Reporting

Another approach that can be used for transparent and effective financial reporting is the use of an automated reporting system. The use of automated reporting can keep extensive records of the financial transaction about different business activities. Using rules and guidelines for automated record keeping can be useful in securing a lot of data with less time consumption.

There are some important benefits of financial reporting. It can communicate information from a business to customers, shareholders, creditors, and the public. The transparent and effective financial reporting, therefore, becomes crucial to the integrity of a business. Open financial reporting can reduce the risks of errors and can develop a consistent system. Improved efficiency and regulatory compliance are the major positive factors associated with financial reporting. Though it is a complicated and time-consuming procedure, it is beneficial in attracting investors. This gain can provide competitive advantages to the businesses and assist in short-term and long-term financial and non-financial benefits.

 

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
boutique retail store - Complete Controller

It is essential to know that boutique business financing is not only necessary only at the initial stage. But, one will have to keep the record of money transactions carried out during the whole period of the activity and be capable of examining their efficiency and requirements. Additional boutique business financing helps the enterprise in surviving the crisis moments without any unique problems. First of all, determine the essential funds for the effective operation of the boutique retail business. However, it is crucial to keep in mind that you have to adjust the plan for your boutique retail business and financing more than once. Check out America's Best Bookkeepers

What are the sources of boutique retail business financing?

  • Income from the sale of shares.
  • Profit from the activities of the boutique retail shop.

If the boutique retail shop already gives profit to its owners, then after a while, the boutique business will still have to be extended, but for this purpose, only net profit will be insufficient.

Retail business financing

Boutique retail business financing is said to be the receipt of additional funds to the enterprise. To successfully develop your retail boutique business, you need to be able to find the money for it. The main reason for the collapse of any retail boutique business is the lack of free cash. Before considering the financing of the current retail boutique business, it is essential to know how the retail financing process in the boutique business plan is reflected. Check out America's Best Bookkeepers

The last section of any boutique retail business plan is always a financial plan. It carries information, extremely important for the future enterprise and potential creditors (investors) of the retail business project. The form and content of the boutique retail shop’s financial plan always depend on the contact audience, which will read this business plan in the future. The financial plan is drawn up to identify the sources of business financing and analyze the ratio of the revenue and expenditure side of the funds raised. To achieve this goal, when preparing a financial plan for your boutique retail shop, it is essential to:

 

  • Find out the conditions for obtaining maximum profit for the boutique business
  • To optimize the capital structure to achieve financial stability of the boutique retail shop
  • Create an investment attractiveness for the retail boutique
  • To develop an effective mechanism for financial management through tax
  • Accounting
  • Dividend
  • Credit and depreciation policies of the boutique

 

Plan of incomes and expenses

 With the help of income and expenses plan for the boutique, you can determine the size, sources of creation, and changes in the financial result from the retail boutique’s activities. With this plan’s help, the boutique retail business can identify its profitability, profitability, production and non-production costs, and forecast net profit. For keeping the financial records, bookkeeping can be used. Check out America's Best Bookkeepers

 

The plan of cash receipts and payments

This plan helps to determine the liquidity of the boutique. The movement of cash depends on the characteristics of the boutique’s activities and the discrepancies between the periods of receipt and cash disposition. It is essential to understand the differences between the movement of financial flows that do not lead to cash flow and the expenditure of clean cash. The first includes devaluation and special funds, and the second consists of:

  • Proceeds from the sale of clothes and services
  • Advances received, funds from the sale of securities that are fixed assets
  • Financial investments
  • Loans and credit.

 

Plan for the sources and use of funds

It is compiled to describe the sources of receipt of funds, their use, and changes in the retail boutique shop’s assets in a particular period. It allows you to establish a link between the projected sources of funds and negotiable sources. With its help, the boutique’s managers and likely investors have the opportunity to analyze the boutique’s financial condition and the effectiveness of its fiscal policies and economic performance.

 

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

A crucial first step in securing financing for your business requires a well-designed business strategy. Once you have formed a business strategy, then comes the vital step to make a decision related to the financing plans for your new business. While looking for finance options, an entrepreneur must decide the debt-to-equity ratio of the company. This relates to the association between capital borrowed and capital invested in the business. The more money an owner has invested in the business, the more his business will be lucrative for the financiers.

Public Financing

Check out America's Best Bookkeepers A publicly traded corporation is a limited liability business that offers its securities for sale to the public, over a stock exchange, or with the help of market makers functioning over the counter markets. A new business might face difficulties securing debt financing such as a bank loan, that is why businesses at their first stages prefer to go for public financing. This turned out to be the major reason behind the importance of publicly traded companies. Before their existence, it has been challenging to secure a large volume of capital for private enterprises.

Generally, the security of a publicly-traded company is owned by financiers that is why publicly traded companies are capable of generating capital and funds via the sale of their securities.  In some circumstances, where the securities of the company are offered to fewer financiers, you might not have to get into more paperwork. Still, if a business has opened itself to broader public trading, the amount of paperwork would surely overwhelm its owner. Check out America's Best Bookkeepers

Debt Financing

In case you consider not having an investor and want the full authority of the business to yourself, you might need to pursue debt financing to speed up the start of your business. In such circumstances, business owners would try to bring in their sources of capital in the form of personal loans, home equity loans, and even credit cards. In some cases, there would be a possibility that your close friends or members of the family might wish to loan you the much-needed funding at a low rate of interest and acceptable terms for repayment. Further, options may include applying for a business loan.

Debt financing empowers business owners to take responsibility for their decision related to the business. But, the drawback of borrowing money for a new business would be overwhelming. The owner would have to make significant repayments for the loans promptly to commercial banks and credit cards, or you could destroy your credit rating if you didn’t do so. This would cause difficulty in the approval of further loans or maybe a rejection of the loan application. Bookkeeping services could further help out in planning the financial requirements to drive the business where the bookkeeper would evaluate the actual amount of funds as well as capital.  Check out America's Best Bookkeepers

Final Note

The answer to the question, which could be the most suitable choice between public financing and debt financing, would rely on the circumstances. The factors that might impact your decision include the kind of business you are planning to start, the financial capital you initially have, and your credit standing.  It also includes business strategy, your tax condition, and your possible financiers.

 

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

Every retail business has an unsold inventory that collects over time. In practice, retail functions by selling products, but no retail business operates at 100% efficiency and sells out everything in the inventory. Little do we know that unsold inventory can directly affect the amount you pay for taxes. To put it simply, your taxes depend on how much profit you generate during the year. And the profit you make is a function of inventory purchased and sold out. Hence, inventory has a direct impact on the tax you’d pay. In this article, we have broken down all the details you need to know.

 

Inventory Value- The Retail Method

Every retail business should value inventory at the end of the year. Here’s how to use the retail method of valuing inventory: multiply the unsold inventory with average markup percentage. The retail method of valuing inventory works if you have a consistent markup percentage. Once you have figured out inventory value at the end of the year, subtract the value from the total inventory you have purchased during the year. This gives you the cost of goods sold. Evaluating this is an essential step towards computing your taxes. Check out America's Best Bookkeepers

 

Inventory and Profits

Your sales make your total revenue. The cost of goods sold is subtracted from total revenue to figure out profit. The taxes you pay are based on this profit. How you will report your profit depends on the kind of business you run and the structure you follow. The corporate structure you follow is based on how your assets are protected.

 

Inventory and Tax

The value of your inventory depends on its purchase cost. Worthless items must not be counted as inventory. The higher the cost of goods sold, the more deductions are made from your total sales revenue, lower your profit and the tax that you will have to pay.  Check out America's Best Bookkeepers

You get no tax advantage in keeping an inventory that is not needed for running a business. Inventory purchases are not deducted from tax until the inventory becomes useless, is sold, or is removed.  On the other hand, keeping less than necessary inventory does not help in reducing your taxes. Some companies use “just in time inventory” method to conserve cash. By trying to time the inventory with the production process, some companies can save some money and avoid excess facility costs.

 

Get your sheets right. Record everything

The significance of creating sheets is evident because it produces accountability. The primary purpose of any business is to earn profits. A measurable way for businesses to regulate the financial and economic profitability of an investment project is the capital budgeting process and keeping their records straight. The processes involved in the capital budgeting process are:

  • To develop and formulate strategic goals.
  • To find out innovative investment projects.
  • To evaluate and forecast future cash flows.
  • To facilitate the transfer of information.
  • To Monitor and Control the Expenditures 
  • To make a decision

 A balance sheet is used to account for the financial position such as liabilities, amount of assets, and the stockholders’ equity of an accounting unit at a specific point in time. Check out America's Best Bookkeepers

 

The income statement can be explained by the statement of the earnings, statement of the income, or statement of the procedures. It pertains to the accountant’s key evaluation of the progress of a business, proceeds fewer costs throughout the accounting time.

 

The statement of cash flows splits cash inflows and outflows (receipts and payments) into three basic groups of cash flows in a business- cash flows from investing, operating, and financing events. The name of the entity, the title of the report, and the unit of measure used in the statement is classified through the heading. This statement is similar to the income statement; it includes a particular period that is the accounting period.

Consult a Specialist

Consult a specialist who can guide you in the best way you can reduce paying additional taxes. A consultant will help you decide the right method for organizing assets and managing inventory.

 

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

Putting all your eggs in one basket will never be considered a good business strategy when it comes to financing your new business. Expanding your sources to finance your business will help your start-up better withstand potential downsides and improve your chances of getting the right financing tailored to your specific needs.

 

Never forget that bankers do not necessarily see each other as a single source of funding. Moreover, lenders will consider you as a proactive entrepreneur if you have sought or used various financing methods.

  Check out America's Best Bookkeepers

Whether you choose a bank loan, an angel investor, or a business incubator, each has specific advantages and disadvantages.

 

Here is an overview of seven typical sources of financing for start-ups:

 

Personal investment

When you start a business, you should be the main investor – whether investing your own money or putting up assets as collateral. You prove to investors and bankers that you are committed to your project in the long term and that you are willing to take risks.

 

Money of family or friends

This is money lent by the spouse, parents, other family members, or friends. Investors and bankers view this method of financing as patient capital, that is, money that will be repaid later, as your company’s profits increase.

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If you are thinking of borrowing money from your loved ones, remember the following:

 

  • Family and friends can rarely provide a lot of money.
  • They may want to own a stake in your business.
  • A business relationship with family members or friends should never be taken lightly.

 

Venture Capital

Venture capital is a form of early-stage investment run by companies with strong growth needs and significant capital requirements. It is provided by venture capital companies or institutional investors rather than individuals.

 

Venture capital is not for all entrepreneurs. Venture capitalists seek to invest in high-tech companies and highly promising companies in sectors such as information technology, communications, and biotechnology.

 

These investors also take a stake in the companies they finance to help them realize a promising project, but with greater risk. This means that the contractor must transfer part of his business to a third party. Venture capitalists also want a good return on investment, which usually happens when the company starts selling shares to the public.

 

Angel Investors

Angel investors are usually wealthy people or of retired business executives who invest directly in SMEs belonging to others. They are often leaders in their field. They provide the company with their experience and their network of contacts, but also their technical knowledge or their management know-how. Angel investors tend to finance businesses in the early stages of development, and the amount invested ranges from $ 25,000 to $ 100,000. Venture capital companies prefer to invest large amounts in the order of $ 1 million.

 

In return for the risk they run by investing their money, angel investors reserve the right to supervise the management of the company. This often means that they sit on the board of directors and require transparency assurance.

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Business Incubators

Business incubators typically target high-tech start-ups at various stages of development. There are also local economic development incubators, which focus on job creation, revitalization, as well as service provision and sharing.

 

Incubators often invite nascent or emerging companies to share their premises and administrative, logistical, and technical resources. For example, an incubator can make its labs available to new businesses so that it can develop and test its products cheaply before starting production.

 

Bank loans

Bank loans are the primary way of financing SMEs. Banks offer different benefits, such as personalized service or flexible repayment terms. Compare to find the bank that can meet your specific needs.

 

Banks typically target companies that have a proven track record and excellent credit history. A good idea is not enough. It must be based on an effective business plan. In addition, start-up business loans normally require contractors to provide a personal guarantee.

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

Now that you have retired, you have to care about the extra expenses. You will think twice before spending your money on movies. If you plan right you can easily live your retirement life happily. There are a few steps you should follow in order to live the retirement life you have always been dreaming of.

  1. Get a Job:

    That might come out as ironic but getting a job is the best thing a retired person can do. Firstly, it helps you in leaving the financial stress behind. Moreover, a retired person has always been used to going on a job. A sudden change is exciting for a few days but is stressful later. Getting a light job that is not related to your previous career is refreshing and will help you tackle the financial issues too.
  2. Volunteer:

    Since you are free this week, you can go for volunteering in any not-for-profit. You can teach children for free or help out in some shelters. This is the best and most popular activity among the retirees who try to find some work to prevent them from laziness. During the era of inflation where every organization is trying to cut back the cost, a free helping hand would be the best for them. Choose volunteer work that suits your mood and goes for it!
  3. Sports!

    We all know for whom golf is famous for. Go for some sports which are popular for elder people. It will help you feel pleasant. If you are wondering what to do with your life, try golfing. You wouldn’t realize how fast time will go by. During your job life, there must be a point where you would have felt that you had missed out on learning sports. Now it is your chance! You are free and alive. You can enjoy your life doing whatever you like!
  4. Start a Business:

    Sounds full of trouble, but it isn’t. You can even find a hobby and start a business from it. Taking care of pets, taking care of children, guiding people about destinations, repairing bicycles, among others, are the things you can always go for if you are fond of any. These businesses require minimal to no investment. You can start a daycare even at your home if you like and grow the business after earning a few bucks.
  5. Travel!

    Traveling is the best way to keep yourself entertained. Everyone loves traveling. Just buy a motorhome and take your bed and kitchen with you wherever you travel. You can live wherever you want. You can spend any amount of time anywhere you like. It is your retirement and you should use it to fulfill all the wishes you have been hoping and wishing for.

After retiring, you can do a lot of things to keep yourself entertained like taking care of children, joining a fitness club, starting a business, remodeling your house, moving to the country, going into public service, getting a part-time job, or write a book. You can also spend your time learning new skills like playing the guitar, learning a new language, or getting skilled in a specific computer program. You can use your retirement however you want. It is your gift after the hard work you have done in your life. Now sit back, make a list of all the things you love, and enjoy!

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, 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, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. 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.