Posts

Interior Of Factory With Empty Work Benches
Cataloging the problems and growth patterns of small businesses in a systematic way that is useful to entrepreneurs seems, at first glance, a hopeless task. Small businesses differ widely in size and capacity for growth. They are characterized by independence of action, differing organizational structures, and varied management styles. However, on closer inspection, it becomes obvious that they experience common difficulties arising at similar stages in their development. These points of comparison can be organized into a framework that increases our understanding of the nature, characteristics, and problems of businesses ranging from a corner dry cleaning establishment with two or three minimum-wage employees to a $20-million-a-year computer software company experiencing a 40% annual rate of growth. For owners and managers of small businesses, such an understanding can aid in assessing current challenges; for example, the need to upgrade an existing computer system or to hire and train second-level managers to maintain planned growth.

Developing a Small Business Framework

Numerous researchers over the years have developed models for examining businesses. Each uses business size as one dimension and company maturity or the stage of growth as a second dimension. While useful in many respects, these frameworks are inappropriate for small businesses. As great as start-ups can be for macroeconomic development, they can also be chaotic for a couple of reasons.

  1. The risk for start-ups is extreme and the total cost can be exorbitant. Founders put in more time, energy, emotion and capital than they ever thought would be required. And, since most fail, the total cumulative cost to launch start-ups that succeed is enormously underestimated.
  2. Start-ups disturb the price structure. While trying to get a position in the economy and before they know what it takes to capitalize business growth, a classic start-up exercise is to enter the market with low prices. This sounds like honest opposition and good for customers. However, established corporations do know what they must charge to sustain their business. And, even after a startu-p runs out of investment and leaves the marketplace, damage to the price structure remains.

Small businesses that lasted the financial crisis and aftermath did so by establishing exactly what it takes to run their business in the leanest and meanest terms. One of the consequences of this trial by fire is that these firms have emerged in better shape than after previous significant economic bookkeeping downturns. Here are six reasons:

  1. Fewer start-ups. There has been less price structure disruption since 2008.
  2. The banking industry has confirmed an unparalleled lack of business loan demand which is ironic in that interest rates have never been lower.
  3. Stronger balance sheets. Reduced debt plus methodical retailing, inventory, and supply chain practices that prevent inventory creep all improve important financial ratios.
  4. More gross profit. Rigorous expense control relieves pressure on gross profit from flat sales and pricing pressure.
  5. Enhanced capital and cash. All of the above practices contribute to profitability which, in the current environment, is more likely to be retained. Retained incomes push capital and cash in the direction of sustained operations and long-term success.
  6. More credit worthy. Firms that grow beyond organic funding will be more worthy of credit and preferred terms and rates.

Signs that your Start-Up is Maturing into a Small Business:

1)   Customer needs do not appear to be evolving rapidly.

2)   Consolidation by leading competitors is reducing economical intensity.

3)   Disruptive innovations and new applicants are gaining share only gradually and top out at relatively low levels.

4)   Marketplace shares of leading contenders have hardened and are changing gradually, if at all.

5)   The price, brand, and/or channel stratagem has replaced product innovation as key value drivers.

6)   Cash flows are progressively turning positive and being returned to investors rather than investment in the market.

Final Note:

Small businesses play an important role in any civilization. When they are first recognized, they represent ways that corporate owners test their business ideas in a market. Small businesses that create jobs for labor, in addition to the owner, offer even more economic stability. Providing a steady source of income for business owners and employees is just one reason they are important.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Wooden cubes with word "Tax" on dollar bills. Isolated on white. Business concept.
Circumnavigating the tax season can prove rough for all companies; nevertheless, small businesses become very vulnerable when we talk about dissecting the issues regarding tax and making optimal decisions regarding the financial health of the company. The time to think about tax season is not at the start of the year, it is throughout the year. The following five strategies will help numerous small businesses plan for a very simple tax season.

 

  1. Invest In Your Retirement Now

If you are a small business owner, you need to create a retirement plan that takes complete advantage of the tax deferral rules in order to maximize your tax savings now and all the retirement savings for later. Rather than trying to tackle all of the various ins and outs of setting up your retirement plan on your own, it is advised that you consult a professional in this field. There are various options available which you could choose from. Let a professional make this choice for you, not only will they help you with your business finances but with your personal finances as well.

 

  1. Make Balancing Taxes Your Priority

Traditional tax planning is comprised of having to accelerate the deductions and the credits. This will occur alongside deferring the income. Numerous taxpayers are “cash taxpayers”, which means that the users get to deduct the expenses when they are all paid and must declare the income once the payment is received. Thus, expediting the expense payments whilst deferring the income payments might improve your current year’s tax position. You need to bear in mind that the inverse also rings true. If the business is anticipating a significant revenue in 2018, it is wise that you collect the income this year and furthermore delay the expenses until the year 2018.

 

  1. Find Silver Lining in Loss as Well

Numerous small businesses finish off with a net operating loss during the initial years of the business operation. The net operating loss leads to a tax deduction bigger than the taxable income, which mostly occurs when all of the various business expenses exceed the earnings. Even though this appears to be very bad news, NOLs (Net Operatin Loss) might be used to recuperate all of the past tax payments and reduce the tax payments in the future. NOLs can be used to create tax relief by applying the loss to the payments and receiving a credit by applying the net loss to the future income tax. The rules will vary based on the business; therefore, understanding how to work them will have a huge impact.

 

  1. Understanding the Taxable vs the Nontaxable Fringe Benefits

All fringe benefits, for instance: a company car and subsidized meals along with insurance, is an amazing way to pay for all of the services along with decorating an even more appealing employee package. Nevertheless, all of these various fringe benefits are taxable most of the time. Having an in-depth knowledge of which fringe benefits lie outside of the taxable demesne might ease the tax burden each year. When small businesses appreciates the benefits, you will also be able to save money on the payroll taxes. The tax rules for every user are somewhat different, therefore it is important to select the correct fringe benefits for your company.

 

  1. Invest in the Counsel to Benefit Small Business

Planning all of your taxes should never be an end of the year scramble. As an alternative, it should involve a reliable and yearlong conversation with a tax lawyer or a professional accountant. It is better for the continued health of the business to work with a professional who has been in the industry for a long period of time who also knows the ins and outs of the industry. You will also save a huge amount of money when you work with a professional.

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

 

Businessman and businesswoman discuss together about there business performance.
Bookkeeping can be painful. Freelancers and small businesses tend to avoid the topic of accounting as it is too exasperating, time-consuming, and boring. Fortunately, there are various innovative companies solving accounting problems for specific freelancers and large enterprises. A big part of bookkeeping is payroll and a big part of payroll is tracking time and validating expenditures. The significance of time-tracking might be apparent. Small companies usually have workers who are salaried hourly. Obviously making sure you know where and how your money gets spent is a must. Similarly, handling and verifying expenses that you and your employees make on behalf of your commercial will help you spend money on what you need and save on what you don’t. And, you still need to trail and categorize your expenses for tax purposes. Have a look at these accounting tools to track time and expenses whilst managing your employees.

1.   TSheets

TSheets is an online labor and time management software program that can save your business time and money. It is an operational and easy to use time tracking tool. You can track time from the workplace or in the field with mobile compatible time tracking applications.

  • TSheets offers a fresh interface free of needless clutter
  • The virtual timesheets are easy to use
  • The retailer provides free training and setup via live chat and phone
  • You can use the online knowledge base to learn the system on your own
  • TSheets automatically trails and updates both time-off requests and accrual tracking
  • If you do not need the automatic system, you have the choice of manually filling in timesheets
  • Email and phone support are offered free of cost to clients
  • Top notch consumer support averaging 4.9 out of 5 rating

TSheets also makes it easy for you to control a shift-based schedule, altering it week-to-week according to you and your operatives’ needs. The publishing supervisor is intuitive and your employees will get notifications when their shifts have been posted or changed. Moreover, you can even accord specific tasks, projects, or jobs to these shifts, minimizing mis-perception and maximizing efficiency.

2.   Expensify

Expensify is a business structure used to manage expenses, transactions, and money matters through its real-time data and reporting procedures. The bookkeeping functions performed by the user-friendly interface of Expensify come handy for many money management issues. It allows companies to maintain summaries of different accounts along with calendars. Transparency can be obtained and different ratios such as debt-to-income ratios can be balanced at the right time, averting any crisis or undesirable situation. Expensify can also track your travel expenses based on the miles traveled or the amount of time spent on a particular project. For international traveling, you can change currencies and it records the information in the accurate text fields. It offers a simple resolution to recording expenses by the information provided through photos.

3.   Neat

Similar to Expensify, Neat excerpts the key information from your receipts and documents. It assimilates with popular accounting and business software and simplifies how you work. Neat lets you scan receipts and financial documents. Neat allows you to use a smartphone, a desktop camera, or a real scanner. You can securely access your files from any device anywhere. Neat also incorporates with your other bookkeeping tools, so you can transfer your expense documents directly. You can build expense reports, track bills, and share financial data with your co-owners and accountant.

With Neat, you can also easily add in contact information and sync these new contacts with your email marketing platform. It gets rid of the slow, laborious manual entry normally associated with expense filing and gives you an easy-to-use online process in its place.

Conclusion

Time-tracking and expense management accounting tools, while a bit more limited in their functionality when compared to many of the apps, can still be an integral part of your suite of accounting tools.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Employee handbook on a wooden desk.
An employer-employee relationship built on trust is one of the most important attributes of any successful business. Creating a strong connection and building effective communication with your employees is what businesses strive to achieve. Businesses who are successful in establishing a point-of-contact with their workforce and communicate their company’s policies and procedures in an effective tone are more likely to avoid potential in-house conflicts and misunderstandings. An employee handbook serves as a blueprint that helps employees know what they can expect from the company as a whole.

What Is An Employee Handbook?

An employee handbook is an important tool that communicates the company’s rules and outlines business’s policies, procedures and expectations of employees. A well-written handbook is absolutely essential for kicking-off an effective communication and creating a robust relationship with your employees. In short, it helps employees know that what the company expects from them is deemed important.  On the contrary, an employee handbook helps companies to know that their employees are on the same page. New hires are generally given a copy of an employee handbook on their very first day along with important forms to sign, acknowledging and agreeing to the terms. A well-crafted employee manual highlights the important aspects of the business that are mostly HR concentrated. These help companies to avoid potential conflicts and prevents costly errors and misunderstandings.

Why Have An Employee Handbook?

It is absolutely obligatory for all of your employees (new and old) to have an understanding of your company’s policies and procedures in-depth. They may be hard to comprehend at first glance but it is important that the employee reads them thoroughly. No matter what, employees need to abide by everything stated in the handbook if they want to be considered a responsible employee.

An employee handbook shows that the company treats every employee equally and the rules apply to everyone. Whatever company intends to include in the handbook must be well-structured and promote the employees’ interests. This will eventually create a positive culture and safe work environment for each and every individual. Companies can protect themselves from lawsuits, wrongful termination, sexual harassment, gender biases and much more.

Provisions Required By Law

Drafting an employee handbook is quite an undertaking. Business leaders need to bring attorneys into the loop prior to writing a handbook, which means that you must become familiar with local and federal employment laws. Some businesses have operations in multiple states, which means they need to abide by local and federal policies providing them legal grounds for drafting different handbooks for employees in each state. Why? Because each state has unique employment laws and companies are required to abide by them. The policies that you need to adhere to in an employee handbook by law include medical leave policies (for a serious health condition, childbirth and more), equal employment opportunities, non-discrimination policies, staff’s compensation policies, and more.

General Clauses Every Handbook Should Include

  • It is important to understand that the handbook highlights crucial areas of the business that employees need to abide by. Agreeing to the form means that the employee will uphold the company’s rules and policies—it makes no promises on continued employment. This indicates that the handbook is not a contract and this disclaimer must be clearly included in the handbook.
  • The policies of the company are always subject to change. It must be clearly mentioned that policies can change anytime with or without notice, as the company deems appropriate and necessary.
  • An employee acknowledgment page must be included which will let the company know that their employees are aware of the company’s policies, rules, and procedures.

What Else Does An Employee Handbook Cover?

Depending on the size, nature, and location of the company, you’re required to include the company’s perspective on  certain matters. Since the employee manual has to communicate the company’s policies and procedures, it must be productive and communicative enough to make an impact on the employees. An employee handbook must also cover employee policies, employee benefits, bonuses policies, paid time-off policies, company’s history, employee evaluation/disciple/termination policies, office procedures, employee behavior, abiding by SOPs (Standard Operating Procedures) and more.



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

 

 

 

Cloud synchronizing between devices concept with a virtual screen showing mobile phone, tablet and laptop computer syncing data and with a business person

Cloud accounting is the same as traditional accounting and bookkeeping procedures, but done on an accounting software. The cloud accounting tool is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud’, where it is processed and sent back to the user. All application functions are done off-site, into the cloud, not on the desktop. The accounting functions are done online and not on the desktop software. The internet or other network is used for the process. Users access the cloud accounting tool through a cloud application service provider. The software has not been installed on a computer. It can be accessed from any place in the world, provided the cloud application service provider is present.

1.  Smart Management and Organization from Anywhere

Cloud accounting tools have multi-user access. A user has access to accounting and bookkeeping data anywhere and anytime in the world. You can spend time on other activities related to business operations or spend your quality time with family. You can go online to access cloud accounting software while sitting at home and keep yourself updated with the accounting and bookkeeping functions in your business. You have an up-to-date view of the financial status of your business to make the right decisions at the right time. All team members can access required information whenever and wherever needed. A better relationship is built with the accountant. You can access accounting data online and then give quality time to your accountant for discussion related to business bookkeeping.

2. Relationships with Vendors Improved

For small business owners, vendors are important. They play a vital role in the success of small business. Small business owners want to have a pleasant relationship with vendors and suppliers. Relationship with the supplier is often disturbed by late payments. A Cloud-accounting tool prevents this situation. A business owner can easily search the status of the bill and can advise for quick payments.

3. Eco-Friendly System

Go paperless in accounting and bookkeeping. This step is eco-friendly too. Paperwork takes a lot of time for accountants and business owners. Small business owners need time to interpret accounting information. Accounting software makes it easy to interpret accounting information. Cloud accounting tools reduce upfront business costs. You do not face regular maintenance and upgrading the system.

 

A Few Cloud Accounting Tools and their Benefits

Here are five cloud-based accounting tools with reasonable prices for small business owners.

FreshBooks

You can access FreshBooks from a desktop computer and mobile phones. You can easily track expenses, make online payments, generate customized invoices, generate reminders of late payments, see purchase history with time-tracking, client records, and management of different projects with different rates.

QuickBooks Online

 QuickBooks is used to: 

  • Generate invoices with the logo of your company and with all details required by the customers
  • Process payrolls according to HR policies
  • Manage all business transactions, including bills from suppliers and vendors
  • Manage Inventory
  • Track expenses

Kashoo

  • Create professional invoices
  • Categorize income and costs
  • Connect with online credit cards and bank accounts
  • Online Sharing of data with accountant

Outright

Outright is an online cloud accounting tool for small business owners and is used for tracking expenses, profit, sales, and customers. Bank accounts and other sites like PayPal, eBay, FreshBooks and web stores can be connected to Outright and data can be easily exported from one app to another.

Xero

  • Dashboard with bank balances, expenses, and invoices
  • Tracks cash flow in real time
  • Data can be shared and is accessible to accountant and others
  • Scheduling of payments and returns

Apple, Blackberry, and Android applications are available. Many add-ons like CRM, invoicing, inventory management packages are also available on demand.

Conclusion:

Cloud Accounting tools make bookkeeping and accounting operations easy and less time-consuming. A Cloud Accounting tool provides small business owners a great feasibility in accounting and bookkeeping at reasonable costs.

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

 

Top view of creative business team sitting at the table at loft office and working. Woman manager brings the document to mixed race group of people. Colleagues discussing the project.
Collaboration is a powerful route to success for small business growth. Collaboration is not limited to a specific type of business. Any business owner can reap the benefits of collaboration with other business owners. Entrepreneurs collaborate, connect with each other, and, together, grow their business to the next level.

Inexperienced entrepreneurs might not know the benefits of collaboration. Typically, they want to grow their business on their own, with no external input of any kind.

Reasons to Collaborate with other Businesses to Grow

  • Collaboration inspires new vision and new techniques for the same old business. Often, entrepreneurs forget to reach out to new strategies and set better goals in the daily grind of their day to day business operations. They forget to try something new in their business. They avoid using new tools, especially those with which they are unfamiliar. Entrepreneurs might have been reading blogs, news, and using media resources to update their knowledge, but the benefits are limited if it is not used practically. Collaborating, having regular meetings, and sharing experiences leads to trying out new techniques and tools for small business growth.
  • Having a huge network is an important tool for growing your business. Small business owners usually have a limited network of their clients. Building your network will develop new contacts. Alliances are made for collaboration building. A network of clients and colleagues is increased. Every collaboration does not ensure a huge network of contacts but it is a way to continue growing your network.
  • Learning comes with collaboration. Most businesses, initially, were small businesses. Using proper resources, funding, business bookkeeping and accounting management, making the right decisions at the right time and in the right direction made those businesses grow into medium sized or even large corporations. When collaborating, not just the business collaborates, the experiences are joined and there is learning for everyone who becomes a part of the business collaboration. Every business owner uses his/her techniques, experiences, and learning in individual businesses. With collaboration, new learning in business dealings opens its way.
  • In many collaborations, expenses are split among firms, the work is sometimes divided, and there is an intellectual contribution from all parties. If a business collaborates with another business for a marketing or promotion of services point of view, revenue can be increased using less resources and at reduced costs.
  • Any business can face difficulties. Through collaborations, entrepreneurs can utilize the expertise and experience of other business holders to overcome their difficulties in business.
  • New marketing strategies can be used for business growth. After collaboration, the experience of other companies is kept under consideration for making any decisions in the business.
  • If ever we face problems, we need someone to rely on. In business, too, many problems can be solved just by collaboration with other businesses.
  • Clients can be referred to other firms with whom there is collaboration in business.
  • Collaboration is good for entrepreneurs if they are told to use the tools of collaboration. They must understand when and how the collaboration is an important step in their small business growth and survival.
  • Small business collaboration can be among two entities that offer related products or services.
  • During collaborations with businesses, proper agreements are made and signed.

Conclusion

Collaboration is one of the best tools to be used by small to medium-sized business owners to grow their businesses together. Collaboration is especially an effective tool for small business growth. Collaboration brings new inspirations for entrepreneurs. Sharing experiences and knowledge among firms who have built the alliance paves the way to a successful business. Small business growth essentially requires collaboration, as small businesses do not have a huge capital to manage all expenses through internal means and hire a huge staff. The collaboration brings knowledge, experience, learning, and motivation for all the business dealers. And, it can be made possible when all of the participants in a collaboration are equally interested in positive outcomes for their businesses.

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

 

 

 

Businessman sitting and using laptop while his colleague standing and helping him
In today’s modern world, an accountant needs more than simply a brick and mortar office. Accountants now need to constantly expand their knowledge while keeping up with the latest, most modern industry insight. They should also be able to share this knowledge with those looking for financial advice. The same stands true for start-ups as well. In order to help your business expand financially, you should constantly keep up with the best accounting practices.

The following seven websites for small business owners offer the best accounting advice for those new to the market.

  1. Accounting Coach

This website was initiated in 2003 in order to allow students, small businesses, and bookkeepers to learn new accounting skills and also increase their present knowledge. The goal of this website is to make educational material available without the expense of books, tuition and all the other costs of formal education. The single requirement is a working internet connection. The Accounting Coach, furthermore, offers a professional version of the program which features interactive tests along with visual tutorials.

  1. Sleeter

The Sleeter Group was created in 1994 in Pleasanton, California. The goal of Sleeter is offering various educational resources to accountants along with small business owners. Sleeter has also assembled a group of more than seven hundred accounting professionals who will serve as consultants for the members of the group and will also offer implementation services. Sleeter organizes annual conferences along with trade shows where the most modern accounting services and software programs are highlighted. Those who are members of the Sleeter group have access to webinars, reference guides along with twenty-five QuickBooks assessments. The members will also have access to the annual conference.  

  1. Skoda Minotti Blog

Founded in 1980, Skoda Minotti has the vision to offer a comprehensive accounting service which helps their users grow and prosper. They recently expanded the services they were offering in order to provide to their client’s litigation services, business valuation, strategic marketing services along with financial services. The blog has a gamut of information on each of these topics. There were significant changes made to the accounting industry by permitting non-CPA ownership along with investments in the CPA Firms.

  1. The Blunt Bean Counter

The author of this blog that offers income tax advice is Mark Goodfield. This blog is not just for small businesses or start-ups. Any individual can benefit from the blog. Nevertheless, most of the lectures available on the blog are relevant to those who own private companies with a high net worth. Goodfield has experience of more than 25 years in accounting and finance and is a chartered accountant by profession.

  1. The Economist

The arena of accounting is a dynamic facet in the world of business but it is only one aspect of the huge field of economics. The Economist accounting blog took this brilliant idea and made numerous entries covering the world of politics, finance, business and also culture to help facilitate it’s users.   

  1. Evergreen Small Business

Evergreen Small Business is a blog site which offers advice for those who own small businesses. There is a section of the blog which has been dedicated to answering questions regarding management, financial planning and tax accounting for small business owners.  Examples of their expertise can be discovered in the recent posts which include “Using the Delphi Method for Small Business Problem Solving and Index Funds and Asset Allocation Even Better for the Wealthy?” Founded by Steve Nelson, who has thirty years of experience and specializes in the field of accounting, the blog is dedicated towards helping small business owners flourish. 

  1. Dear Drebit

Accounting professionals now have an active forum which they can use to discuss and get answers to a number of different accounting and financial issues. Dear Drebit allows all of it’s site visitors to submit numerous questions concerning accounting as it applies to a business evaluation, healthcare improvement, and other financial topics as well. Dear Drebit was produced by Rea and Associates, an Ohio certified communal accounting firm. They have been in existence since 1938 and currently have more than eleven offices across the state of Ohio.


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

Concept of no money

Timely inform employees:

Most entrepreneurs that are struggling are well aware of whether or not they will be able to make payrolls. But, due to embarrassment, they don’t inform their employees that they are not able to pay them. Experts recommend that, as soon as an employer comes to know that they cannot pay their employees, inform them immediately. Don’t handle the situation emotionally, be honest, and realistic. “What I have found in my consulting business is that, more often than not, small business owners are embarrassed and worried about results, so they typically handle [the situation] emotionally,” says Donald Todrin, founder of the Northhampton, MA-based Second Wind Consultants. “This usually means that they don’t tell anybody until 10 minutes before they’re supposed to get their checks.”

Once you have decided to notify employees, start from the upper management. From the seasoned employees to the new joiners. The top-down approach is adopted because the severity of the situation lessens when the news of no payments circulate from upper management to the lowest level.

Search resources for finances:

An employer is liable to many state and federal taxes if they are unable to pay employees. As soon as you come to know that you cannot make payroll, take a decisive and desperate action. Jump into the situation swiftly. Think of all the methods from where you can get the funds. These resources may be carrying out huge layoffs, swift solutions of the business modification for rapid liquidity, or, worse, closing entirely. If all of these plans fail, the owner is liable to penalties and fines. These fines are equal to fifty percent of the annual earnings. 

“Beg, borrow, or sell whatever you need in order to come up with the funds,” says Rod Jorgensen, the director of counseling at the Nevada Small Business Development Center. However, in light of recent restrictions on bank lending, gaining rapid access to cash via traditional bank loans, lines of credit, and mortgages is a thing of the past.

Utilization of the available resources:

Another method to pay employees without making payroll is to utilize all of the available resources. Theses available resources are the inventory and pending receivables. These are the immediate sources of funds. Liquidate the inventory or ask vendors to pay you receivables immediately on discount. You will be able to earn capital immediately and can pay employees.

Avoid confounding the payroll:

Some employers tend to a fraction instead of nothing at all. This method of staggering payments may not be applicable and practical in all states due to legal issues. Once you cannot pay employees, their efficiency decreases and they are likely to flee as soon as getting new employment. 

The other method recommended is reserving some of your most trusted employees the promise that you will pay them as soon as possible. Ask them if you can hold their paychecks for a few days in order to pay other employees timely. If they agree, you will be able to make on-time payments. 

Pay for labor immediately:

The U.S. Department of Labor states that all daily waged employees should be paid the full wage along with their overtime. Otherwise, the penalties and fines will be imposed according to the Fair Labor Standards Act.

If you unable to make payroll, manage to pay labor and daily waged workforce to avoid lawsuits.

Streamline your business:

Once you are able to come out of the crisis and have paid your employees, restructure your business. Necessary modifications are needed immediately to avoid this happening again. Make changes in the business model. Decrease your overhead expenses and restructure your operations. 

Employees are the asset of your business and you are cashing their hard work and honesty. Paychecks are the only source of livelihood and income for them. So, even at the time of crisis, you should be able to manage to pay off their checks so that they can survive. But, in return, they should be empathetic with you. This message should be conveyed to all of your employees.

Conclusion:

Not being able to pay your employees is a dire situation for a business owner but options like selling assets, borrowing money, or delaying some payments, may allow you to pay them, even in the worst of situations.

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

 

 

 

Portrait of happy young barista standing near table while having job in confectionary shop. Job concept
Small businesses are the backbone of every country. They produce jobs, come up with new ways of doing old things, and help keep money in the local community. Without small businesses, we’d be in a bigger economic mess. There’s misperception between the terms Small-Business Owner and Entrepreneur. Both can have small businesses, but they have different styles of leadership and thoughts on running their industry. One is not better than the other, they’re just different. Entrepreneurs take much bigger risks than business owners. Entrepreneurs and business owners have a different relationship with their companies.  Entrepreneurs view their companies as assets…something to be established shaped and readied for market.

Small Scale Business Owner

The proprietor of a small-scale business organizes corporate processes and incurs the risks of running an operation based on the prospect to make a company profitable, similar to what the SBA states an entrepreneur does. The SBA offers the same services to small-scale business owners who qualify for financing. In fact, by virtue of the agency’s name, its job is to assist small business owners in accomplishing their goals. Though, small business owners could be viewed as owner-operators, meaning they focus on sales rather than business development, they’re apprehensive more about functional steps instead of strategic growth.

1.  About 50% of small businesses fail in the first four years.

2.  76% of small business proprietors report facing marketing challenges. The growth of online marketing has increased the intricacy small business owners have to face when advertising their companies.

3.  Private companies continue to be the life blood of every economy.

4.  For a business with less than 5,000 employees, the average employee base is 13 people.

5. Small business owners are getting older. 51% of small business owners are over 50 years old, while only 16% are under 35.

6.  For employees, there are often very tangible benefits of moving to a larger industry. Employees at businesses with over 100 employees make 31% more than employees at sub 100 businesses, on average.

7.  The convolution of financial accounts has changed the way we operate. More than 50% of small businesses now have a CFO or controller managing their accounts.

8.  In 2014, the IRS evaluated $2.1 billion in civil penalties against business income tax filers.

9.  Of the 1.09 million penalties assessed by the IRS, 47% were for delinquent payments while less than 0.5% was for impreciseness.

10.  Only four out of every ten new entrepreneurs are women. This is a gap that has widened slightly since 1996.


How Small Business Owners differ from others

1. Small-business owners have a great idea: They resolve a problem in their community. They know their business and target spectators. They know what will make their clients happy. They serve their customers.

2. Small-business owners hold steady: They like to know what’s coming next and where it’s coming from. They make calculated verdicts based on bookkeeping where the outcome is clear. The result may not be huge, but it will usually keep them moving forward.

3. Small-business owners think about the things they need to finish this week: They have daily and weekly to-do lists. They manage work forces, work with customers, network with new customers, and keep everything rocking and rolling.

4. Small-businesses owners are emotional with their businesses: They never plan on selling or handing their business off to someone else, unless it’s family. They like making the decisions and running the day-to-day decisions and tasks. 

Final Note

To the entrepreneurial novice, being an entrepreneur or a small business owner is interchangeable.  But, they are not the same.  Sure, they are both self-employed, and need to make money (regardless of how they spend it). Almost each and every country needs small-business owners to hold the economy and entrepreneurs to propel it forward.

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

 

Businessman holding a glass ball,foretelling the future.
A business person uses accounting statements to converse about its financial statistics with interested parties, including investors and creditors. No matter how big or small your business is, whether you do your own bookkeeping or you have an entire accounting team, three financial statements must be arranged to deliver detailed information about a business entity’s financial condition at given points in time and its financial performance during particular periods. The following three financial statements cover subjects on everything from assets, liabilities, and shareholders’ equity to net income and cash flows.

Balance Sheet

A balance sheet is a financial report that lists the accounts and balances of a business entity’s assets, liabilities and shareholders’ equity. A business entity reports such financial statistics in its balance sheet at the end of a bookkeeping period, providing a snapshot of its financial situation at that point in time.

Income Statement

An income statement, occasionally mentioned as the statement of profits and losses, reports a business entity’s various profit, costs and expenses, as well as net. Therefore, an income declaration is a summary of a business entity’s financial performance during a given bookkeeping period. An income statement typically is systematized to cover functional activities and non-operating events such as investments and any withdrawn processes.

Cash Flow Statement

The statement of cash flows displays the cash inflows and outflows between a business entity and the outside domain during a bookkeeping period. While incomes and expenditures reported in the income statement involve many cash transactions, they also include certain non cash exchanges. In addition to operating activities, cash flows also come from financing actions and bankrolling activities.

Accounting Statements provide valuable information to a wide range of users:

1. Managers require these statements to manage the dealings of the business by evaluating its financial performance and position and making important industry decisions.

2. Stakeholders use these statements to weigh the risk and return of their investment in the enterprise and make investment verdicts based on their exploration.

3. Prospective investors need these statements to measure the feasibility of investing in a business. Stockholders may foresee future dividends based on the profits disclosed in the reports. Moreover, risks related with the investment may be assessed from the statements. For example, inconsistent profits indicate higher risk. Consequently, financial statements provide a basis for the investment resolutions of potential investors.

4. Financial institutions (e.g. banks) use these statements to select whether or not to grant a loan or credit to a business. Financial institutions gauge the financial health of a business to determine the probability of a bad loan. Any decision to lend must be sustained by a sufficient asset base and liquidity.

5. Suppliers need these statements to evaluate the credit worthiness of a business and determine whether to supply goods on credit. Dealers need to know if they will be repaid. Terms of credit are set according to the assessment of their customers’ financial health.

6. Customers use these statements to measure whether a supplier has the means to ensure the steady supply of goods in the future. This is especially vital where a customer is reliant on a supplier for a specialized module.

7. Employees use these statements for judging the company’s profitability and its significance to their future compensation and job security.

8. Competitors compare their performance with opposing companies to learn and improve strategies to progress their competitiveness.

9. The general public may be interested in the effects of a business on the economy, environment, and the local community.

10. Governments require these statements to decide the correctness of tax declared in the tax returns. The government also keeps a trail of economic development through analysis of financial statements of companies from different sectors of the economy.

Final Note:

Engaging yourself in your business’s bookkeeping can be eye-opening. It’s the best way to see how cash actually flows in and out of your trade and gain the framework you can use to ask yourself, your employees, and your stakeholders the right queries.

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