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Bank Statement - Complete Controller

If you are consistent, while operating a bank account where you deposit your hard-earned money and then habitually withdraw that money from time to time, you must maintain a proper record. It is essential to conduct adequate bookkeeping, in your way, for the number of transactions, deposits, and withdrawals that you make. You may get your bank statement and be surprised to find out that the balance shown is different from what your records show. Now, what can you do in this scenario? Check out America's Best Bookkeepers

It is quite evident that you need to accurately compare the two sets of records thoroughly and find the information that is recorded in one but not the other. A similar type of situation may also arise in a business that has multiple accounts. Maintaining a proper and authentic record for all accounts is a considerable concern for any business. All matters are addressed by keeping a record of all banking transactions. These transactions the company has carried out and is set per the date on which the bank cash book shows the balance.

If there are any discrepancies, the business can and should be able to find the reasons to reconcile the correct balances. That is the reason why it is essential and necessary to reconcile your bank statements. It is also necessary to know how to prepare a reconciliation statement known as the bank reconciliation statement. Check out America's Best Bookkeepers

Reconciling Bank Statements

Reconciling bank statements is essential and necessary, as it can further be used to maintain proper bookkeeping or even maintain your accounts. Here are a few steps in which you can reconcile your bank statement.

Checking Account

Writing the balance from your checkbook and the number of the next unused check on the reconciliation form is a good habit. You should then deduct all bank charges from your checkbook and balance the remaining amount to get your adjusted checkbook balance.

Record and maintain the ending balance precisely as it is shown on the bank statement. You can now compare the ending deposits listed on the bank statement and the deposits listed on your checkbook. You can also put a checkmark beside the amount on the bank statement and the checkbook. List all deposits that you have and then bring forward with a checkmark on the reconciliation form. These can then be your outstanding deposits. To reconcile your bank statement, it is necessary to place every item carefully to avoid double counting properly.

What you have entered from your checkbook must also match the items from your bank statement. Some of these items would not have been added from your bank. In the end, you can total all of the outstanding deposits to the bank statement balance. Check out America's Best Bookkeepers

Proceeding towards the end of Reconciling Bank Statements

You can now compare the deposits listed on the bank statement with the deposits listed on your checkbook. It is important to keep putting a checkmark beside the amount on the bank statement and on the checkbook to ensure that you have not missed any item or amount. List all deposits for which you do not have a checkmark on the reconciliation form. These would be called your outstanding deposits. This further means that you have entered them in your checkbook, but the bank has not yet added them to your account. You can add the total of your outstanding deposits to the bank statement balance.

Moving towards the final steps of reconciling a bank statement, you can now arrange all canceled checks in numerical order and then compare the canceled checks with those that are listed on the statement and the checkbook. Put a checkmark beside the amount on the bank statement and the checkbook as well. Hence, while you are reconciling your bank statement amount, you might want to list all check numbers without the checkmark. These are outstanding checks that you have written, but the bank has yet to receive them, which means they have not been paid.

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
interest rates - Complete Controller

When interest rates stay low for an extended period, it’s a sign that they will rise sharply. This usually happens when the economy is coming out of recession. Fixed-income investors are bound to miss out on an easy chance to raise their income levels. Therefore, you must always prepare in advance and keep a keen eye on the rates. We will try to explore how rates work across multiple investment options and help you make an informed decision about investing your hard-earned money. Check out America's Best Bookkeepers

Pay off your Loans

With any loan that goes up at a prime rate, you should consider paying it off immediately. If you can’t do that, you must at least convert it into a fixed-rate loan. Mortgages, auto businesses, and all sorts of personal loans work on variable rates susceptible to increment at any time. It best to pay them off as soon as possible.

Bond Interest Rates

The bond market is more so affected by rising rates. Anyone who has invested in bonds would lose money in such a scenario. The trend usually continues as rates go up, so it is wise to keep bonds off-limits. However, a bond ladder is something that you can try.

A bond ladder represents a sequence of bonds that mature after regular intervals. The intervals are usually 3, 6, 9, or 12 months. As the interest rates continue to go up, you continue reinvesting these bonds at a higher rate. In the end, you are going to end up with a considerable return on investment. Check out America's Best Bookkeepers

Certificate of Deposits (CDs)

A certificate of deposits allows you to lock money in at a higher rate of return, resulting in not being able to access it for a specific duration of time. There is always a risk with this investment as your money is locked, and you never know when the rates start to jump around. The same bond ladder principle can also be applied to CDs, which is often a good investment option. There is a penalty on withdrawals, and, usually, it’s pretty high. Ensure to check for penalties before locking the money up.

Interest rates on Saving Accounts

Saving accounts respond directly to rising interest rates. Staying afloat in times of inflation is hard for savers, and rising rates can feel like a cold breeze after a humid day.

Don’t Forget the Dollar

People holding up foreign currencies may reconsider beefing up their dollar stacks as rates start to go up. Higher rates mean more foreign capital into investment instruments, which eventually raise the value of the dollar. People most favor Government-owned financial instruments as they are more secure and give away consistent yields. Check out America's Best Bookkeepers

Be Cautious of Inflation Hedges

Gold and other tangible assets do well when the interest rates are low, and inflation is on the rise. Rising rates also affect your investments, which are hedged against inflation; rising interest rates mean a decline in inflation. Other natural resources, such as oil, are also affected by rising rates, and investors should shift their focus to investing in stocks rather than commodities.

Credit Card Debt

Credit card interest rates usually remain high throughout and tend to rise even more when other rates go up. It is never an excellent option to miss a credit card loan payment when the rates are not high. It is one of the smartest money moves you could make to pay off your credit card debt promptly.

Credit History

High-quality credit history is always good, but when the rates are high, it is vital to have a clean slate. Any kind of auto loan, mortgage, and personal loan is hard to get with a red flag on your credit report. Keep your credit report stainless with a steady payment plan.

Invest in Stocks

Invest in stocks of significant consumers that use large volumes of raw material. The prices of raw materials usually tend to stay the same or decline when the interest rates go up. Using raw materials will see a significant decrease in their costs, and their profit margins rise. They can act as your hedge against rising rates.

The real estate sector also sees growth when the rates are up, and the same is the case with beef and poultry industries. Their demand can significantly rise due to the increased spending on low-cost goods. Higher interest rates bring opportunities for those who act quickly and can wreak havoc for underprepared people.

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
control credit - Complete Controller

Cash flow is a lifeline of any business, and it will be affected if you have not devised a plan for controlling credit. Your debt will eventually turn into bad debt, which will increase interest, marginalize profits, and eventually lead to business closure. Yet, in many businesses, credit is the fact of the matter, and, by denying credit, you lose potential customers. By following a few simple measures, you can keep track of your credit, which will lower the risk of uncollected payments.

If you are in manufacturing, wholesale, service, or retail business, and it is indispensable to offer your customers credit, there must be a policy to limit credit losses. Check out America's Best Bookkeepers

Steps to Controlling Credit

Research the Client

Before giving away credit to any client, you must do your research to ensure that they have a good reputation. Ask the client to fill out a credit application. The application highlights key information about the client, including the amount of required credit, who can access credit, credit arbitrator, and other relevant information. All of this information should then be assessed according to controlling credit policies, and the decision should be made whether to approve or reject the credit request. Check out America's Best Bookkeepers

Approve and Invoice Promptly

Once credit has been approved for a client, you should not wait. Generate your invoices promptly, along with a credit approval letter. The letter should state all terms and conditions, including due dates, interest, credit amount, and other primary details. This is a crucial step to ensure prompt payments as the client must know these key details in advance.

Maintain Updated Records

One of the recipes for efficient credit management is to preserve precise and current records. Aging of debtors that includes the time it will take to pay off the debt should be available at all times. If a client has been given special consideration in return for early payments, they must be kept separate for future reference. The way you perform your bookkeeping functions will have a significant impact on the management of your records. Therefore, always use professional services if you are in doubt about your ability to keep everything updated. Check out America's Best Bookkeepers

Defaulted Payments

When running a business, some of your credit offerings will probably default as you are trading with a diversity of clients. Don’t panic, as this is normal in companies that deal with credit. Nevertheless, you are still required to formulate a policy that will accommodate all concerns related to outstanding payments. Typically, a phone call to your client will solve the issue. However, if that doesn’t work, you need to have a backup plan. Just like offering discounts for early payments, late payments should be met with fines or penalties so that the borrower will make a real effort to make the payment on time. Controlling credit requires you to set your penalties at an optimum level so that it does not lose customers or money.

Talk to the Right People

Every business has certain people responsible for making decisions and is in charge of setting the direction. When dealing with other companies, ensure that you are in contact with the right person as others might not have authority. You may end up making a credit deal with a low-level employee who doesn’t have much say in decision-making. One way to avoid such scenarios is by holding at least one face to face meeting with the client so that you are certain about whom you are dealing with. This should be a part of your controlling credit policy to ensure that credit is only offered to the people in charge.

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
Business Loan - Complete Controller

Almost every type of business considers a business loan sooner or later to meet their unique financial needs. People you have hired to take care of bookkeeping for your business will often suggest applying for business loans instead of reinvesting your money. There are several reasons why you should consider business loans. However, not all companies can obtain financing from banks and other options. Check out America's Best Bookkeepers

Whether you are looking to expand, hire new talent, or build up your inventory, a loan will help you take care of it. However, if you are not convinced to take this leap while not having enough capital to meet your business’ financial demands on your own – here are six smart reasons why you, as a business owner, should consider business loans.

You are in Favor of Expanding your Location

There come times when businesses must grow and expand if they want to succeed and overtake their competitors. Whether you are a small business or a start-up, the old saying of ‘you have to spend money to make money’ applies here. You might have to set up a kitchen or make new cubicles to fit everyone. Growing a business means more people will be joining your team. Regardless of the need, if you favor expanding your location, a business loan can help you cover the finances.

You start your business with a dream that it will boom one day and, when that day arrives, it is imperative to expand. However, many people are ignorant about this, which results in a lost opportunity and is primarily because of not having sufficient funds.

There are loans for businesses that exist only for this to finance your short and long-term plans. Check out America's Best Bookkeepers

You are Improving your Credit Score for the Future

Loans for businesses help you improve your credit score for the future. As a business, it is essential to build strong business credit. Small companies and start-ups are usually unable to qualify for a bank loan due to lower credit scores and revenue. These companies typically do not have a strong credit history; thus, a business loan can improve your credit score if you plan for long-term financing. It works well if you take out a smaller loan and make regular and timely payments to build your future credit.

You Require Equipment for your Business

When you buy new equipment for your business, it improves your offerings. You must have enough capital to purchase new equipment and upgrade the older ones to stay ahead of the curve at all times. There are types of business loans, such as equipment financing, that people most prefer to make equipment and machinery purchases. In this type of loan, the equipment will itself serve as collateral, so you do not have to worry about offering your personal or business assets to be approved for a loan.

However, before opting for equipment financing, you must have a clear understanding of your bottom line so that you know what you need. Check out America's Best Bookkeepers

You Want to Invest in your Inventory

One of the most significant expenses of any business is purchasing and bulking up inventory. Financing for inventory is similar to equipment financing, as it has to be done so that you have all the latest and high-quality options available. In case you do not have sufficient funds on hand to replenish your inventory, consider loans for businesses to cover your financial needs.

Yout Have Discovered a Business Opportunity with Fewer Risks

As a business owner, you will have several opportunities on your plate that are too good to pass up. These opportunities happen now and then – for instance, the equipment you needed is available on mega discount, or the inventory is available at a reasonable price in bulk. Thus, it is essential to capitalize on such instances as an excellent opportunity does not knock twice. In addition to this, such discovered business opportunities have fewer risks.

Your Business Requires New Talent

Whether you are a start-up or a large enterprise, as a business owner, you have to wear many hats. Regardless, it is impossible to take care of bookkeeping, marketing, fundraising, and all other things on your own for a long time. You will require talented people to help you run your business efficiently. Going for a business loan will help you cover the salaries of new talent that you are going to hire without compromising on the quality.

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
Accounting Mistakes - Complete Controller

While accounting software has made bookkeeping and accounting less stressful for businesses, it has also caused accounting mistakes to be much more common — erroneously classifying a transaction to doing all of the accounting yourself. Some errors are minor, immaterial, and easy to correct without harmful consequences. However, some mistakes are more severe and could significantly affect your business’s financial position. Over time, lean accounting practices can garble the authenticity of your company’s fiscal position. In more severe cases, recurrent mistakes and bad accounting practices can lead your business towards insolvency or liquidation. Below are some of the most common errors that companies make while handling their accounting. Check out America's Best Bookkeepers

Common Accounting Mistakes

Assuming that Profits mean Cash Flow

Positive cash flow is essential for the survival of any business, and they try hard to maintain the flow of cash in and out of business. While the purpose of a company is to make profits, which ultimately results in positive cash flow, it is a mistake to assume that the profits will result in cash flow. Your business may have taken a project that costs you around $10,000, while the estimated profits are $25,000, and the completion time is two months. If everything goes according to plan, you will generate positive cash flow. However, any delays in the project can cost you more than the estimates. Therefore, assuming the positive relation of profits with cash flows can be one of your biggest accounting mistakes.

Disorganized Bookkeeping Practices

Effectively managing your accounting needs requires you to record everything, from small, petty cash expenses to significant business transactions. This record-keeping will ensure that you have an account of every single financial detail of your business. It doesn’t matter if your business is small or large, taking accounting will ensure that you have updated and accurate records and a reorganized picture of your company’s financial position, which will eventually help you in better decision making. From classifying various assets and liabilities correctly to accomplishing a monthly check of your books, launching a severe accounting system for your business is the key to keeping it financially secure and avoiding accounting mistakes.

Managing All of your Accounting Needs In-House

For small businesses, it can be tempting to handle all of their accounting needs to save costs because of limited budgets. However, if you are not efficient or a pro at it, you might be costing your business some valuable cash instead of saving it. Outsourcing your accounting to professionals can ensure that the bookkeeping needs are catered professionally. You might think that this is costing you more than if you had taken it upon yourself to do the job. However, this might save you more in the form of well-managed books without any accounting mistakes. Check out America's Best Bookkeepers

Specific tasks, such as filing tax returns and other specified needs of the business that require professional competency and failing to realize the importance of handling these tasks, can have severe consequences. A mistake in filing your taxes can result in fines and bad credit scores, which you must avoid.

Poor Communication

Often, the downfall of businesses is a lack of communication between the bookkeeper and owner. Poor communication can cause mistakes in reconciling the statements, filing reports, and inaccurate financial information. Your bookkeeper’s job is to guide you in making key decisions about your company’s future, and, for that, you need to develop a healthy relationship with the individual. Even with the efficient use of technology, some accounting mistakes cannot be avoided because of the “garbage in, garbage out” rule. Whatever is entered into the accounting software will come out eventually in the form of information. So, if someone has inaccurately entered the data, the technology cannot help you in any way possible. Together, you and your bookkeeper will ensure that everything entered into the accounting tool is accurate and thoroughly discussed, without any communication gaps.

Conclusion

Avoiding these accounting mistakes is critical to the success of your business and maintaining a solid reputation.

 

 

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
Improve your Credit - Complete Controller

Improving your credit score is among the most valuable investments you can make in your financial career. Your credit score will determine whether you are eligible for a student loan, auto loan, mortgage, or business loan. Your credit score is also an essential factor considered when applying for insurance, rent, or even purchasing a cell phone. You can see the utility of having a good credit score almost everywhere. However, to improve your credit, you must take certain measures. Check out America's Best Bookkeepers

Track Credit Reports for Accuracy

Due to every lender associating the risk of lending a loan with a credit score, you must keep a close eye on yours. Credit reports are generated separately for each individual and are used as a common way to measure risk. Three major credit bureaus maintain three separate statements for your credit score. Your credit score from one bureau may differ from another, and there may be some inaccuracies. Check all credit reports at least once a year to file for discrepancies, if there are any.

Develop a Financial Track Record to Improve your Credit

You have a financial history and a specific credit score assigned to your name. However, to improve upon this, you must establish a reliable and responsible financial track record. Whether you have paid off previous payments on time or maintained an old credit card account, all these factors will improve your credit. Older credit card accounts are usually a good sign as they demonstrate financial discipline on your behalf and, if you have made all payments in due time, your credit score will already be on the higher side. Check out America's Best Bookkeepers

Do not Open Multiple Credit Cards at one Time

One way to keep a good credit score is to maintain a stable and consistent track record without anomalies. If you open or close multiple credit cards or other accounts, this may result in a hard inquiry on your credit report. This kind of behavior is not considered standard. The point is to avoid making impulsive financial decisions, which can make it hard for you to improve your credit further.

Pay Bills on Time

Paying off your bills in due time is a significant contributor to a positive credit score. Utility bills, loan payments, and student loans should make up most of your bills. Recent payments are weighed more on your credit score. Even if you have missed a payment in the past, you can override it by making your most recent payments. Never miss a complete payment because it can stay on your credit report for seven years. Even if you have a small amount at hand, make sure you contribute something. Check out America's Best Bookkeepers

To improve your credit and prevent missing payments, enroll yourself in an automatic payment plan with your service provider. Additionally, there are specific incentives for students to enroll in auto payments in order to pay a lower interest rate on balance.

Avoid Constantly Switching Employers

Justifiably, this is not always possible. However, if you have the option and ability to retain a specific job, it is wise to seek good credit. Lenders like to see consistency in employment since steady income means that you have a higher chance of succeeding with a payment. Retaining the same employer for five or more years will significantly improve your chances with lenders. Of course, this does not mean staying at a job you are unhappy at just to improve your credit. However, it is essential to remember that stable employment increases your credibility among lenders and reflects positively on your credit report.

Frequent residential changes and having judgments filed against you in court can seriously harm your credit score. For businesses, maintaining comprehensive bookkeeping records also improves your credit score.

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
Funding Your Business - Complete Controller

According to research, more than half of all entrepreneurial ventures close their operations within their first year. The shortage of funding options has been recognized as a significant contributor. The importance of cash cannot be denied for all kinds of businesses. Therefore, your priority should be to find the right channels for funding your business. Whether you are expanding your business or sustaining the current business model, you must have a consistent cash flow and an optimized strategy for acquiring financing.

Whatever your business needs may be, getting the money at the right time will exponentially enhance the chances of your business success. The use of innovative technology is encouraged among new businesses as they have to compete with other players who are already using it to significant effects. Here are some of the tips that will help you reach your potential.

Innovative Tips for Funding your Business Check out America's Best Bookkeepers
Bootstrapping

Bootstrapping, or self-funding is one of the most efficient and suggested means of funding a business. It is hard for new business owners to obtain capital as they are novel and may not have a financial history. Convincing someone to finance your business can be a tough job. Therefore, it could be better to save up enough money to start your own business.

Ask family and friends or find a potential partner who shares the same views as you. These are the people that you trust the most. Therefore, it’s wise to ask them first before looking at other options. You can put your idea out on the internet, find someone interested in your idea, and agree to finance or partner in your business. You can offer shares in the company for their investment. Bootstrapping also allows you to own your business from day one. Gathering and organizing all of your financial resources is key to bootstrapping and funding your business. Check out America's Best Bookkeepers

Crowdfunding

Crowdfunding is an innovative way of acquiring finances for businesses these days. The funds are collected and contributed by many people who are interested in your business idea. You set up a comprehensive narrative of your business plan on a crowdsourcing platform. The account contains all details about the potential business or project: its product offerings, goals, plans on making revenue, and many others. Visitors on these crowdsourcing websites make their judgments about the plan and decide to invest. They then become the stakeholders in the business with privileges.

Funding your business through crowdsourcing is an inordinate way to access capital and promote your business. It is like free marketing for your business, as everyone that sees your idea acts as a potential marketing tool. The response you receive shows if your business idea is sustainable and is going to attract an audience. Primarily, it offers you a broader viewpoint that can be utilized to formulate your future business strategy. Crowdfunding, however, is relatively competitive. To generate interest, you will have to come up with a good business plan. Check out America's Best Bookkeepers

Angel Investors

Angel investors are individuals with surplus cash and a profound interest in financing lucrative business ideas. They usually operate in groups as it narrows down the risk by sharing it with partners. These people are experienced businesspersons who are adept at what they do and have a keen eye for market trends and innovations. Alongside their resources, they offer mentoring and counsel to businesses, which is of enormous value based on years of experience.

Finding angel investors is an innovative option that has helped successful businesses today. They offer their capital and advice in return for a percentage of equity in the business. It is fundamentally a win/win condition for both, making it one of the most rewarding ways of funding your business.

Keynote

While the many financing options have made it easier than ever to get started, smart business owners should ask themselves how much monetary support they need before reaching any conclusions.

 

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
Refinancing - Complete Controller

Are you seeking ways to lower your monthly home mortgage payments, turn your real estate equity into a monetary asset, obtain a reduced interest rate, or switch to a full fixed-rate debt? If any of these situations define you, it is a good idea to consider refinancing your home mortgage loan.

However, before you refinance, it is imperative to comprehend how it performs and assess the advantages and disadvantages of your specific circumstances. For instance, the documentation requirements to obtain approval and the lack of awareness regarding refinancing options are the things that surprise many homeowners. Check out America's Best Bookkeepers

Consequently, knowing the fundamentals of home refinancing and how it helps achieve your financial goals will undoubtedly assist you in determining what mortgage option will be more beneficial for your situation.

What Is Refinancing?

Typically, refinancing is defined as the process of substituting a present mortgage with new debt. Individuals refinance their mortgage usually to lower their monthly payments, reduce their interest charges, or eventually alter their entire debt program from an adjustable-rate house loan to fixed-rate debt. Some homeowners require easy access to their money to pay off different loans or finance house renovation projects and take advantage of the equity from their home to get a cash-out to refinance.

Irrespective of financial goals, the eventual refinancing method works largely in a similar manner as when one applies for their initial mortgage. Therefore, you will have to set aside some time to do the necessary research on your mortgage options, gather the right financial and other essential documents, and promptly send a house mortgage refinancing application to get the approval. Check out America's Best Bookkeepers

Advantages of Refinancing

There are plenty of potential benefits to refinancing your home mortgage, which is included below:

  • Reduce monthly payments: Studies suggest that refinancing may enable an average property owner to save about $160 or more per month. Lower monthly payments allow you to use the savings freely towards other expenditures and loans or the monthly mortgage payments to pay off the loan sooner.
  • Lower the time-period of debt: A thirty-year mortgage may be the most sensible financial decision for property owners who took a housing debt in the initial stages of their professional life. However, lowering the mortgage term can be a good choice for those who aim to pay off their debt sooner.
  • Retire home mortgage insurance: For homeowners who hold enough principal paid off or property, appreciation will not be necessary to bear mortgage insurance that will lower their overall monthly payment. Check out America's Best Bookkeepers
  • Reduce interest charges: Refinancing to a reduced fixed interest rate can certainly decrease your monthly debt payment amount.
  • Switching from a previous adjustable-rate mortgage to a new fixed-rate mortgage: When you have an adjustable-rate house loan, you can adjust your payment up or down with interest rates. Switching towards a fixed-rate mortgage with regular and reliable monthly payments can render property owners the sense of realization that their payments won’t change.
  • Utilizing the equity available in your house to obtain a cash-out refinance debt: You may have enough capital, with rising house values, to get a cash-out to refinance loan that you can use to finance your home improvements, fund large purchases, or pay off loans.
  • Consolidating your initial mortgage and your credit’s home equity line: You can easily simplify your finances and focus on one mortgage by rolling your credit’s home equity line into just one monthly payment.

If you hold a debt backed by the VA, USDA, or FHA, you can benefit from several streamlined refinance programs. Such programs offer a well-simplified approval process by eliminating or lowering several of the credit, income, or appraisal reviews, all included in universal refinance programs. It is imperative to mention here that streamlined refinance mortgages may not offer the ability to cash-out. Also, such mortgages may increase your total cost, like any other refinancing options, over the term of the debt. Even when you have not been able to refinance, mortgage programs and interest rates are always changing. Taking expert advice is beneficial in these matters.

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
Building Credit - Complete Controller

Building credit is not an overnight task as it builds slowly over time. Getting a loan, mortgage, or lease requires you to have a good credit score, highlighting that you have behaved financially responsibly in the past. Good credit reduces risk because you are more likely to make your payments on time. Students and young individuals who are going to start building a credit history must make smart decisions to ensure a safe future. Doing things right from the start has its advantages, and maintaining a good credit score is no exception. Check out America's Best Bookkeepers

Get Help

Anyone in your family who has a good credit history can help you start the credit journey imperiously. Opening up a loan account with a cosigner who has a good credit history is a great way to kick-start the process. The cosigner guarantees the payment if you are unable to make it and should be someone who trusts you. The credit score of a cosigner can suffer as well if you are unable to pay, so all terms must be cleared out to protect both parties before taking this option.

A Starter Credit Card Check out America's Best Bookkeepers

A starter credit card is specifically built for people who are starting their financial journey and usually have lower credit limits of up to $300 – $500. However, interest rates are significantly higher compared to mature credit cards. Student credit cards allow you to gradually build up your credit and upgrade your cards when you build some credit. People with a little bit of credit history can opt for a Capital One credit card, which has a high rate of approval among starters. These cards come with no annual fees and offer better rewards if you keep a good history of building credit.

Watch your Credit Card Balances

Another significant factor in measuring your credit score’s worthiness is how much revolving credit you have versus how much you’re using. For a better credit rating, the percentage should be on the smaller side, and often the optimum rate in 30% or below. Paying off your balances and keeping them low will ensure that this percentage stays down. Consolidating your credit card balances with a loan can also help you score valuable credit points. Building credit with credit card issuers that accept multiple payments throughout the month should be your priority. Check out America's Best Bookkeepers

Leave Old Debts on the Credit Report

There is a general perception that having debt on your credit report is a bad sign and that you should hurry to get it removed as soon as you pay off the loan. While it is true that negative items affect your credit score for worse and generally stay on your report for almost seven years, getting them removed might not be such a bright idea. If you have paid off the debt, you have converted it into good debt, which is useful for building a credit score. Keeping the old accounts that you have a history of paying open is also recommended by credit building experts. Therefore, never try to get rid of old debts that have been paid off.

Pay Bills on Time

If you are trying to make a big purchase related to a house or car, you must plan for it in advance rather than skimping on your regular bill payments and scrambling for money from here and there. A good credit score requires you to invest time by maintaining a steady flow of payments, month after month. Ruining all of the effort and diligence by missing a single payment is never a bright idea because it will take years to build that again. Building credit requires you to have patience and implement smart strategies to keep your financial and bookkeeping needs in order.

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

Financial Health - Complete Controller

Bookkeeping, forecasting, and planning are not just for start-ups. If you do this in an ongoing business, you’re going to grow 30% faster, you’re going to be more prosperous, and your statistics will mean more. Being an entrepreneur requires a sense of self-confidence and firm faith in your idea so that you can have the nerve to capitalize on a dream of your own, as opposed to living someone else’s vision in a regular job. Check out America's Best Bookkeepers

The financial aspect of starting your own company, though, tops the list of elements that need to be considered very cautiously and require proper planning, bookkeeping, and monitoring. There are steps to guide you in better organization of your finances so that you can see your dream to its end without surrendering due to financial issues. Financial ratios are a useful and convenient tool for measuring a company’s performance and its financial position. There are many benefits to entrepreneurship. You get to be your boss, work in an industry you’re passionate about and acquire significant rewards if that business turns into a victory. Unfortunately, entrepreneurship often involves substantial financial risk, and without accurate planning, a failed business can also tank your finances.

Here are seven signs that your company is in good financial health and a few guidelines on how to set yourself up to survive the worst-case scenario of your business failing.

 

  1.    Your Income Is Growing

When viewing your profit-and-loss statement, you must be able to see a reasonably stable increase in your profits month after month, year after year. It doesn’t have to be an enormous spike in profitability, but even just an increase of a couple of percent shows an upward movement and a strong financial viewpoint. Check out America's Best Bookkeepers

  1.    Your Expenditures Are Remaining Flat

In concurrence with your income growing, you want your costs to stay uniform. If your business experiences a substantial growth spurt, then your costs may rise, but, in general, this upsurge should be in-line with your increase in revenue.

  1.    Your Cash Balance Exhibits Progressive Long-Term Growth

While you may be growing your revenue, if you’re taking that cash and simply financing it back into the business, you might find yourself asset rich and cash poor. A low or stagnant cash balance means your business is not maintainable. You want to keep a good quantity of money in the bank so that if anything emergent comes up, you don’t have to incur more debt to meet an unanticipated expense.

  1.    Your Debt Ratios Must Be Low

There are two debt ratios to pay particular attention to a business’s debt-to-asset ratio and debt-to-equity ratio. For debt-to-asset rates, maintaining a 2:1 ratio or lower is desirable. Check out America's Best Bookkeepers

  1.    Your Profitability Ratio Is on the Healthy Side

One of the best ratios to calculate is your profit margin. This calculation includes taking your annual net profits and dividing it by your yearly sales. So, while you may be making sales, your profit margin could still be low depending on your pricing structure, start-up costs, or other elements. Your profitability ratio is measured healthy when it’s on the high side.

  1.    You’re Functioning with New Clients and Repeat Customers

The charge to acquire new clients is higher than the cost to work with the same customers repeatedly. A stable stream of new clients and repeat customers exhibits that your business has multiple options for producing revenue. By having contact with new customers, you can help isolate your business from changing attitudes and buying patterns.

Final Note

Evaluating the health of your business’ finances can be as simple as reviewing a profit-and-loss statement or as complicated as analyzing all of the different elements of your business bookkeeping. There is very little doubt that fully understanding your business finances is a sure way to remain successful and profitable.

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