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Want to Prevent internal fraud? Follow these simple steps!

Each year an average company loses almost 5% of its annual profit just because of employee fraud. In 2019, Global Fraud and Risk Report, around 38% of frauds in business are internal frauds. Small and medium-sized businesses face a greater risk of internal fraud than larger organizations due to many factors. So businesses need to implement best practices concerning employees to control the enterprise’s everyday risk management procedures.

Types of Business Fraud

The type of fraud that a business deal with can be divided down into three categories; asset misuse, theft, and financial statement fraud. Misuse of assets, although being least priced, makes up 90% of fraudulent activity. It’s crucial to have a fraud prevention plan to prevent and detect the loss of a company. Preventing fraud is much easier than recovering the loss after the fraud.

But there are few steps like implementing several procedures and controls to minimize the fraud occurrence.

How to prevent internal fraud?

Train Employees To Prevent Fraud. 

Every employee within an organization must know about the fraud risk policy including the warning signs of fraud, types of fraud, prevention skills, and the consequence related to it. Each of them must train to report any suspicious behavior/action by customers and clients to higher authorities. This kind of awareness affect the staffs, creating an anonymous reporting process is also set to ease to report about some fellow worker. By this, employees in fraud-prone areas also become aware that management is watching. In every business there should a code of ethics, that clarifies that any kind of unethical action will be considered as a punishable offense.

Maintain Internal Controls.

To detect and prevent fraud, every organization needs to create and maintain internal controls. It is a plan/program to safeguard the assets by ensuring the integrity of the financial records to deter and detect the fraud. This involves several layers of review and restriction to access financial transaction or account data, listed access, creating multi-person sign-off on any payment reimbursements, arrange overtime, all check writing functions, and other accounting or payroll functions, and arranging independent overview of audit logs of company’s financial record to ensure the integrity of the books.

Segregate Accounting Duties.

Segregation of accounting duties is one of the important components to deal with internal fraud. In many businesses, only one person is completely responsible to handle all the accounting duties such as processing payments, paying the bills/invoice, handling cash, and recording the activities in the accounting system. That makes the path easy for any fraud to remain unnoticed. On the contrary, a business should engage at least two-three employees to handle these functions to keep the cash handling and account registering separately. This process is effective to reveal any kind of discrepancies in accounting.

Audit the Books Regularly.

Irrespective of the size of the company, one must audit regularly. Audit in the areas that deal with cash, product returns, refunds, accounting functions, and inventory management. At times occasional non-scheduled audit is of more help to detect frauds in critical business areas.

Get Expert Help

If your business needs more extensive review and audit then you may think of going for a professional accountant. This way you can implement more efficient fraud prevention steps. Certified Public Accountants (CPA), Certified Fraud Examiners (CFE) are certified in Fraud forensic(CFF). And can provide extensive help in initiating antifraud policies and procedures. But while opting for external hiring accountants or expert professionals, it becomes important to ensure that these individuals have the experience and reputation to provide the best quality service.

Final thought:

Fraudulent employees do not discriminate against the nature of industries or the geographic location of it. As an owner, you might face economic deprivation such as huge financial loss, damage to the company’s reputation, legal costs due to internal fraud. So, having an appropriate strategy can efficiently reduce fraudulent activities. The best way to deal with internal fraud is to know your employees better and check the background of them who will be going to handle cash or managing payments. Remember the expense you are bearing to prevent fraud is much lesser than the price of fraud that gets committed.

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You are a good CEO if you have these qualities?

To be the CEO, you need a lot of hard work with dedication. An effective and efficient leader is highly important for the team’s success. So, what qualities do you think one must have to be a good CEO? A good CEO needs to capable to deal with numerous critical duties along with being a trusted decision-maker. Apart from having leadership skills, confidence, and communication ability, you must gather a few extra characters to become a true officer. So, if you are imagining to justify your ground as the first in command or if you are thinking to set off a good CEO, you may appraise these 5 less-than-tangible skills.

Reliability

Irrespective of your rank in your workplace, you need to reliable. As a CEO, there remains always a possibility of losing the trust of the employees, if you can’t provide what was promised or just make an incorrect decision in a critical time. The culture of building mutual trust must be created by the CEO so that he can trust his subordinates and colleagues. So, to be reliable is one of the most having qualities of a CEO. 

How to be reliable?

Being reliable is not rocket science.

  • Understand expectations
  • Planning and prioritizing
  • Communicating
  • Taking initiative and closing what we start

By following these FOUR steps you can make yourself dominant to the people around you –the person others promote. respect, and value.

Ability to forecast and learn from the previous experience

As a CEO, you must learn from past experiences and utilize those lessons for the future to check the same blunder from happening again. And you also must have the critical thinking ability to judge future planning and outcomes. As a CEO, these abilities are important as you will deal simultaneously with a large number of business activities, money, and investors. So, with these merits, you can prepare your business for any possible results and guide it in the right direction.

How to foresee and learn from mistakes?

You can follow these steps to gain these above-mentioned qualities;

  • Understand the pros and cons of each decision
  • Think outside of the box

Coordination and Communication with Teammates:

As a CEO you must effectively coordinate and communicate with your team members. You need to explore the ideas and suggestions of your fellow members to make proper decisions and strategies. And rather than designing strategies as CEO, one must be open-minded enough to consider staff member’s ideas. As the CEO of a multinational business company, you require extraordinary vocabulary expertise to communicate with fellow team members.

How to coordinate with the team?

This quality of a CEO involves;

  • Active Listening
  • Asking for Feedback
  • Posing the right question
  • Choose the right person to speak to

Building relationships

The respective and productive relationship between a CEO and other colleagues is most important for the development of the company. One of the greatest quality of a CEO is to read his employees and adapt management style accordingly. A good relationship with your employees, collaborators, investors, and your customers will not only create a positive work environment but also help to build loyalty and a better image for you and your company.

How to create a good relationship?

Quality relationship is more about understanding and mutual applause; this process needs genuine empathy, effort, and time.

Here are the few key tips to build a healthy work relationship with your fellow members;

  • Merge the gap with communication
  • Appreciate your employees
  • Show value, be empathetic
  • Appreciate your employees

Willing to take a calculated risk

A CEO must be able to take calculated risks; that shows your confidence and helps to enrich as a business leader. Sometimes unexpected opportunities come only after taking a risk. But as a leader you first have to do an in-depth evaluation of the expected outcomes associated with both profit and loss that comes with this decision.

How to take calculated risks?

Success always not come in a silver plate, some time you have to embrace risk by overcoming the chance of failure.

  • Identify the risks
  • Anticipate mistakes
  • Determine what you can afford to lose
  • Develop a detailed plan
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5 steps to save your business amid COVID-19

Keeping your company afloat in the middle of a pandemic followed by an economic crisis is a tough nut to crack! Businesses in every field are being tested for any downturns and disruptions. Sadly, few won’t survive this, and the majority of them will experience a downfall in terms of revenue collection and profits. To address and prioritize upcoming issues in this changing business environment, leadership teams have quickened their decision making processes to help their employees and communities.

Top companies have set their first goal towards health and Safety, Set up war rooms to mitigate problems, adjusted operations to meet demand. More than 70% of the companies have given work from home to all their employees. Industry-based companies like Reliance Industries Limited are operating with 10-20 % of employees.

With stock markets plunging, all their businesses know the fact that they will fall short on cash and, at this very fact, threaten their survival. Alas, there is no wolf of Wall Street that will come for their rescue.

Companies will come across a lot of problems as they shift their priorities to prevent any mishaps; there are steps that businesses can follow to help themselves.

Opt for unpaid leaves instead of laying-off.

If the impact of COVID-19 is not something your business can take and you have reached a point where you have to lay-off, think again. When you take out your company from the crisis, there will be an additional cost of restraining and rehiring that you will have to undertake.

Instead of laying-off employees, you can choose employment in installments and unpaid leaves with the employee’s consent. You can give 30-40 percent of the salary for the employee’s survival. Employees can rotate in terms of unpaid leaves or can choose to get their pay at the end of the year or in installments every two months. It is essential to safeguard the company’s liquidity in times of crisis.

Preserve Cash for your business.

Immediate decisions to reduce spending can be implemented. These decisions can be mandated until the next financial year or till the crisis subsides. Few examples like a review of the expenditure on marketing, a reduction in travel expenses, and freezing hiring.

Cash war rooms.

Create a war room exclusively to tackle problems involving cash outflows under CFO’s guidance.

The war room team typically has employees from the finance department, sales, HR, and purchase. Moreover, this approach enables real-time and quick decision making and lets leadership groups focus on urgent cash needs and preservation techniques.

Check on the liquidity position of your business.

Make a cash-flow forecast of the days when your company operations will remain shut due to lockdown. Let’s say ten weeks to diagnose your current scenarios in the market. Plan, monitor, and forecast cash inflows and outflows as much as possible and regularly compare it with real-time data.

Make a disaster-proof policy and set up work from home operations.

This pandemic took everyone by surprise. Thus, a lot of companies need a few policies, which are disaster-proof to save them from the next big thing.

In fact, a good plan would be preparations for remote work, investment in tools and software to perform the tasks, tackle travel issues, meetings, etc.

Covering business insurance plans is very important. Projects like finding out supply chain alternatives, finance alternatives should also be included.

Coming to work from home – this one needs a good internet connection, laptop, and phone also. Most of the employees will to have it; a few of them might have lower bandwidths. Companies should be ready to bear these costs and also. Invest in software to conduct meetings efficiently.

Conclusion

No matter how many preventive measures or backstops you take, your business will take a hit. Finally, while the government is making sure to help out by giving economic benefits, you have to be prepared for the worse.

“Be optimistic, keep sailing, and wait for the economy to soar again!”

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Impact of Covid-19 on Consumers’ buying behavior

The COVID-19 pandemic has changed the world around us. It not only impacts the lives of individuals and communities but also consequences manufactures and retails around the globe. Most retailers are striving to keep their products on shelves; as the supply chain is under huge pressure. Consumers are holding tight to many of the usual behaviors, as the pandemic is reconstructing the retail business in real-time. This article is about how we will endure new consumer behaviors post-crisis. It will permanently change how we live and work, how and from where we shop, and most importantly what we value.

Following the Coronavirus pandemic, how consumers’ purchase behavior has changed?

In reference to the survey of the National Retail Federation (NRF), some of the essential consumer buying behaviors have already changed:

  • 9 out of 10 customers have revised conventional shopping practices.
  • About 50% of consumers, those are normally purchasing things from stores, are now preferring to order products online.
  • 6 out of 10 consumers are expressing anxiety going to the shop and supermarket due to the worry of getting infected.

Some of this change in consumer behaviour is temporary but others are going to be permanent.

Transition to Digital

In the past 10 years, the most crucial consumers’ behavioral change in retailing business was the transformation to digital shopping. Whereas the COVID-19 pandemic just accelerates the shift to digital commerce more rapidly. As most of the retail shops are closed to maintain social distancing, consumers prefer to go for e-commerce orders for food, groceries, and other essentials. In the last two months, many families had given a shot to online shopping for the first time. And most likely, this rise in digital commerce is going to sustain post-outbreak.

This rise in e-commerce tendency makes us believe that retail is now at an inflection point. And depending on how the retail companies work and how consumers buy, this is about to appear in “A New World Order” in retail.

Challenging times for brands and consumers:

The spread of Covid-19 has changed the game faster than any brand could have ever imagined. The huge amount of advertisement by the brands could ever do something so moving in consumer’s behavior. The crisis has made the customer o change their “preference” completely; which are stubborn and most of the time impervious. Consumers are more thoughtful about what they are buying. They are trying hard to limit food waste, buy sustainable options, and become more cost-conscious. 

Consumer precedence has now concentrated on the basic needs that widen the demand for necessities like hygiene, personal care, and cleaning. The non-essential commodities have completely collapsed. All together the changed behavior lowers the overall brand loyalty and the “shop local” trend accelerates. The preference of buy local is high in both the way they shop and on the products they buy (e.g. small scale and locally sourced).

This automatically hit the brands. According to a leading skincare brand in India they were about to receive 19,000+ online orders per day before the country-wise lockdown, whereas now they have seen only 2500 orders per day. 

In-Homing

The overall situation constrained people to spend their maximum time at home. While quarantined at home, most consumers have learned how to cook. And the daily Starbucks habit of customers that broke during this crisis, will not return soon. The media subscription during the quarantine period can be expected to continue. Lots of workforces are facing a permanent shift to work from home. So all together this in-home practice will heavily shift our demands for various services and goods.

Looking Ahead

The spread of the COVID-19 pandemic makes financial security, food, and medical security, and personal safety in our leading priorities. The spending power of consumers has reduced due to pay cuts, job losses. This situation will continue until the consumer’s sentiments climb back again. The speed of digitization has to observe a sudden exponential increase. Retailers have to be smart enough to help consumers traverse between online and offline experiences seamlessly. Amid this uncertainty, huge changes will come in both consumer’s and retailers’ life.

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Restaurant accounting: How it’s different from other industries!

Restaurant accounting is based on factors related to the food and beverage industry, which makes it a bit different from other forms of accounting. Though it’s relative and quite similar to standard accounting practices, some key differences diversify the accounting methods from industry to industry. Restaurant accounting practice uses normal cost accounting strategies, income reports, and profit-loss statements which is maintained by several other industries. Here we have listed some unique features which set restaurant accounting apart.

Accounting methods employed by restaurants

The restaurant industry also uses cash or accrual methods for accounting, just like any other industry; but though there are slight differences.

Cash method

This is the most accounting method for restaurants mainly for those who generate less than $1 million per annum. It’s popular as customers can pay for the food and services provided immediately. While this method is easiest, but not considered as most accurate as by following this method of accounting restaurants left with no account receivable balance. Activities are only recorded when a payment is received.

Accrual method

This method is a more accurate outlook on how to initiate income and how to sustain the expense. It records all the transactions despite the method and timing of the payment. Along with that it allows several analyses of activity and can compare income to expense. So, if your restaurant generates more than $1 million per annum you must use this method of accounting.

Tips

Tips are considered as a part of employees’ income, not the restaurant’s income. This is not going to report as the restaurant’s revenue. But that does not mean that one doesn’t need to consider tips while working on the accounting process. As standard tax consideration also includes tips, so each of the restaurant staff has to record the amount of the tip, and both of you and they have to pay taxes on them.

Restaurant occupancy expenses, labor cost, and operating expenses

Restaurant businesses do have fixed and fluctuating expenses but they are a subtle difference from other kinds of business. Here the rent, insurance, utilities, loan payments, employee’s salary all known as fixed expenses. And whereas fluctuating expenses cover food costs, daily wages for staff; and as they change frequently these are more difficult to handle. With a busy and slow week both your expense and profit vary.

Monitoring weekly reports

Most of the other industries take stock of their inventory on a monthly, quarterly, or even yearly basis. But in the case of a restaurant, you need weekly monitoring to know that what item is in demand, how you spent your money. Along with the historical data, weekly reports help to forecast future trends or demands. To deal with the same reason, cash flow reports for the restaurant industry should also be more frequent.

Cost Of Goods Sold(COGS)

The cost of goods sold (COGS) is a crucial part of inventory management. This indicates the total cost of making a product that means low COGS is equal to more profit. This is the cost of all ingredients you have used in a particular menu and doesn’t include the labor costs or utilities. You can easily calculate COGS at the time of weekly accounting;

Beginning Inventory – Ending Inventory = COGS

Prime Cost of the restaurant industry

The prime cost of a restaurant is COGS + labor costs, which is 60-65% profitable. This includes all the ingredients used in a menu, the salary of staff, taxes, and benefits; i.e. the prime cost constitutes the majority of the restaurant expenses.

Important restaurant ratio

Low-cost-to-sale (Food/beverage) ratio is important to keep your business healthy. The restaurant industry wants to put the expanses on an average of between 26% – 36% to keep the business profitable. Revenue per seat is also an important ratio for the restaurant industry which is simply dividing the revenue of a given day by the number of seats. If the ratio is lower over a while you can downsize the available seating for that time. Downsizing an area can cause notable savings as you need less staff and fewer utilities.

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Truck Owners: The COVID-19 has shown its impact on them

The transportation and the trucking industry is going through a difficult phase amidst the COVID-19 crisis. While supply chain demands have noticed a drastic change by high demands of essential goods, this nationwide emergency has put dispatchers and truck drivers in a jiffy. With having to work for long hours to meet ends, truck drivers have a big question mark upon their health and safety.

As the state department of motor vehicles closed its door for overcoming pandemic, new truck drivers haven’t had a chance to get new permits. All their concerns were addressed by the US department of transportation and were provided with Federal regulatory relief and stop reliefs. The sudden increase in demand to deliver essentials seems like a small lived dream as the consequences are now raining on the industry like knives. With orders flowing in from various regions of the country, trucking companies are doing their best.

How do we go about addressing the growing concerns of businesses that are running the trucking services to meet the emergency demands? Here are a few suggestions from some of the experienced industry experts.

How the COVID-19 pandemic has shown its impact:

Nobody forecasted this pandemic, and so businesses need to start thinking out of the box. For people into landscape businesses, situations are going to get worse in the coming months. They need consultancies for diversification, redeployment, budgeting, and revisiting business plans.

Recession is on its way. Having a trustworthy business advisor can help you top the game. Moreover, work from home is becoming a new trend, the resource allocation work could be quite hefty and confusing. Trucking firms, with a sudden increase in demand, will have to utterly careful. They are the most vulnerable during this time.

The right business solutions can be one of the main reasons for your early exits from the crisis. Not only will it help them forecast what lies ahead, but they can also know what to expect from the freight industry in the coming months.

What Mfhills Services can do for you:

Cash flow forecasts

Rebuilding a financial model for the trucking firms has become the need of the hour. Cash flow forecasts act like a warning for all future endeavors. Our company makes sure that your company prepares well in advance for any atrocities.

Cost cuttings and maintaining finances

Small scale trucking firms are in dire need of this. As they struggle, they should consider cutting down their costs for surviving in the market. Moreover, with merely any money coming in, truck companies should start streamlining their organization. Setting targets for a reduction in cost could also help. Although these measures are quite known, there are other necessary steps like maintenance policies for trucks, prevention of the intangible costs, etc. are often ignored, thus leading to a failed strategy. Our company doesn’t let you go into the never-ending vicious cycle of spending. It can help you recover fast by giving the best of solutions.

Bank Reconciliation and accounting

This task can end up eating a lot of your valuable time, especially in times of crisis where the load on your company is immense. Finally, give us your worries, and we will do everything for you. In fact, from tracking fuel price to marinating monthly profit and loss statements, we do it all.

Payroll reviews

Talking about payroll activities; we trace payroll activities up to the last six months to catch the trend of finances. It gives us useful insights on saving cash outflows and get more inflows. To assure drivers and motivate them to keep working, you must regularly carry out driver pay reviews and process it as soon as possible.

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Looking for financial support for your startups?

Cash is the most important factor to raise and sustain any kind of trade. Most of today’s business startups begin with investor confidence and real high hopes. The long careful yet energizing journey from the plan to income-producing business needs capital. As per recent reports, over 94% of new startups come up short during the first year of starting. The need for financial support is one of the common reasons. That is the reason, at every phase of the business, business owners, entrepreneurs come up asking – How would I account for my startup?

When you require funding capital, it depends on which genre of business you’re in. Here in this article, we will discuss one of the sources of finance choices for start-ups and businesses that will guide you to raise capital, whenever you feel the requirement of fundraising.

In this post, we will take a look at the growing trend of start-up incubators and Accelerators and also discuss what are the prospectives and constraints of this approach.

Business Incubators and accelerators:

In early-stage businesses, as a funding option, you may consider Incubator and Accelerator programs. These programs assist thousands of startups every year in almost every major city across the globe.

These two terms though have used interchangeably and are synonymous, but have slight differences;      

Business incubators act as a parent to a kid that helps/nurtures/assists by training, providing shelter tools, support, and guide and helps to grow the network of the business. It allows companies to jump-start the business. Whereas, accelerators help the startup who already have developed an idea or a foundation to fast track the businesses.

But ultimately both of these are designed to support a business at a different stage of it. It requires a time commitment from your end and normally runs for 4-8 months. Through this, you will also be able to create better bonding with the investors, mentors, and other fellow startups who are using the same platform.

But are these hubs best for your business? Let us list down the pros and cons:

Pros:

Provide a free or low-cost workspace

You have to count all the small things when running a business. If your workplace is not well equipped it’s just a wastage of money and time. Business incubators and accelerators provide a low-cost workplace with free resources like Wi-Fi and IT equipment. This may look small but it’s significant support that is crucial for the earliest days of your business when both the time and budget are tight. 

Networking with fellow startups

This is the most obvious benefit of choosing such a program. The network effect is incredible. You get a chance to connected with advisors, mentors even to the former alumni companies. By this, if you need to face any challenge either you get direct support from the hub or connect with someone who could help in that matter.

Offer business development programming (workshops and panel discussions)

Apart from benefits like seed funding, accounting assistance, and legal guidance, these hubs also provide development programming like training and monitoring schemes too. Through the workshops and panel discussion, you got a fair chance to interact with people who were once an entrepreneur, and know-how to build a business from scratch. You can develop your business vision and strategy from the personal experience shared in such a program. 

Cons:

Giving up a chunk of your business:

Incubators and accelerators take a percentage of the equity to get an advantage of their funding. Sometimes the idea of giving a significant piece of your company may stink as the program only have a maximum of six months’ influence. It may look like a tough call to take. But it’s said that the effect of such a program is long-lasting, the connection to such a network is for life and this connection is beyond price.

Aligning your business needs with incubator and accelerator’s needs

Once you enter such a program, you will face a lot of pressure. These hubs put a lot of stress on fundraising and dealing with investors. At the end of the day, if you’re looking for outside fundings, these programs are the best.

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Startups downfall: an impact of COVID-19 pandemic?

Covid-19 virus pandemic causes a countrywide lockdown that has pushed most of the running businesses and startups coming to a halt. Few of the sectors dealing with consumer goods, logistics, and tech have remained untouched but others have to plan enough to cope up with the long-term economic impact of COVID-19 on your startup.

Which one hit the Worst?

This pandemic is leaving some impact on each of the startups. But particularly those startup operating in the business-to-consumer (B2C) stage faced the worst hit. According to a survey, around 60% of B2C startups are facing zero revenue as the business is forced to shut down due to lockdown.

Let us summarise the severe impact of COVID-19 on early to middle stage startups;

Around 92% of startups are facing declining revenue generation. 34% of startups are facing the worst condition facing revenue declination more than 80%. And the remaining 60% of them are facing a revenue declination around 40%.

Around 30-40% of B2C startups are planning a temporary halt or a permanent close down

70% of them have a runway of fewer than three months.

With the urge to conserving cash in hand, the total business growth comes to a standstill. According to most of the investors and entrepreneurs, this is the worst crisis of the economy since the great recession.

To maintain the business for a longer runway in this uncertain situation, most of the startups are forced to think about severe cost-cutting measures, such as slashing salaries (sometimes up to 80%), cut down the project expansions, or laying off employees to preserve the cash flow in hand.

Flight, hotel booking firms, travel, and transport startups are the worst hit. And the consumption and the perception of the whole industry has changed completely. In fact, it is expected it will take a much longer time to come back to the pre-pandemic situation.

Which are secure?

In the business-to-business (B2B) space, the revenue declines are still less severe. Video conferences providers, online education hubs i.e. the tech sector is seeing continuous growth in their business.

How to overcome the impact of COVID-19?

The biggest challenge for every business in whatever stage it be will be the fundraise and cost rationalization. As it is not just the revenue that has hit badly. Amid this crisis, 65% of startups are facing a significant negative impact on fundraising. This funding shortage may cause a long term impact on the sustainability of the business.

How to gear up to face the post-COVID situation?

In the context of fundraising, fintech and agritech startups are most affected. As the consumers are not into traveling or upgrading phones, and the focus is completely shifting to save money in hand. 

Only 3% of startups are witnessing a favorable funding environment. And this part is consists of mainly the health tech sector.

The sectors that are seeing an emerging opportunity, are innovating to restructure the complete business models. Also, they are trying to collaborate with other businesses to stay in demand. The current situation is in the favor of health sector expansion. Thus, most of the startups are figuring out their digital strategy to make a significant structural shift to digital services.

To deal with this severe funding crunch, startups are considering several measures like seeking government support. And capital infusions from new and already existing capitalists or investors. Some of them are even considering loans from governmental banks and non-banking financial institutions.

Qualitative Growth vs. Quantitative:

Being a startup owner, you have to aware of where the next financial support will come. And few of the startups are focusing on quality as it directly connects with better economic growth. Companies mostly dealing with mobility space are utilizing this time to ensure quality and focus on involving IoT thing. So whenever the situation comes to a normal, they can offer better services and products.

Boosting Employee’s Morale

Most startups across industries are facing one biggest challenge right now; that is how to boost up the employee’s morale amid this crisis. Moreover, as hikes and bonuses are no longer in a near-future bucket list, startups must ensure motivation for their employees enough to get through this tough time. The whole team must be motivated and engaged and step up their efforts as no more hirings are possible in the short term.

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Handle your late-paying customers by following these tips!

How to deal with late-paying Customers

Business owners always have to struggle with some customers who don’t pay their dues on time. Most of the small business owners face such problems very frequently. To collect that money, small business owners need to follow up on some steps to connect with the clients. In this article, we will highlight those steps that must be taken by a business owner to collect the dues. If your requests do not get you paid, then you may opt for legal options or can consider hiring a collection agency. So, here are a few steps you must consider getting yourself paid. 

Tips and steps to collect money from late-paying clients:

Small business owners and entrepreneurs at some point in their journey are likely to face the problem of not getting paid on time. But don’t worry, we got you covered this time. Follow these tips to collect the dues from late-paying customers.  

Send well-mannered reminders

The very first step you must take is so sending a reminder email after the due date politely requesting to pay their dues. You may also consider sending a payment reminder emailer template which must be designed professionally and politely. This will increase your chances of getting the payment soon. Let your client know every detail of the invoice including the purchase date and due date along with the amount due for payment. Mention the payment methods you accept in the email and also highlight the late fee policies if you have any. And for reference, attach the invoice file with the email. 

Call the customers directly

After sending a polite reminder for payment, if you still have not received your payment, then opt for calling the customers directly. Here also just like the email, you must talk politely with the client. Ask the client whether he/she is facing any difficulty in financial conditions which is making the payment delay. Try to solve the issue with the customers as a friend. If possible then confirm your payment date over the phone otherwise ask the customers to fix a due date by which they will complete the payment. 

Never try to threaten your customers or be abusive

At this point, your only focus is to simply figure out where the problem lies and how can you get the payment. Analyze how much the customer is important to you. Also, how you can recover from the current situation, and how much money does the customer need to pay. Consider these to offer the customer an installment plan if he/she is facing difficulty in payment from his/her end. This solution might help you to charge interest or a late fine. But if it is going to make it hard for customers to pay then you should charge according to the original invoice only. 

Terminate future works with the client. 

If you think that previous steps have not given you any success, it is the proper time to cut off the client from any future works until the payment is clear. This move will not only make them pay to carry on with the works but also make you stronger in dealing with an unreliable client.

Consider hiring a collection agency:

Before taking any legal step against the client, consider having outside help to collect your money. Before hiring make sure that collection agency has a reputation in this field. Collection agencies have the success story at collecting the dues from the debtors but their fees are often very high. 

Take legal steps

If you are still struggling to get the money you owed, then you must drag the case in a courtroom. Sue the client and take them to courtroom trials. Small courtrooms are generally less expensive and quick. And if the client does not appear before the court then you win the case by default. Depending on the amount of money you owed, you can sue the client in a higher court. Hire a lawyer to represent you in the court but remember this process may take several months to get justice. 

Ask for advance payment:

To protect your business from financial losses in the future, make sure you ask the client for some prepayment before signing a contract. It will be completely okay if you ask for 25-30 percent of the total contract as an advance deposit. 

Conclusion:

Every entrepreneur and business owners struggle to deal with this issue of non-payment. But, no matter what happens at some phase of your initial days of starting a business, entrepreneurs must use the experience as a learning process to safeguard their invoicing policies in the future to deal with late payments in the future.  

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Prefer Outsourcing a CFO remotely than Inhouse

When you are running a business, you operate on leaner budgets, and outsourcing certain functions can be proven to be helpful to keep the quality up along with downside costs. In the past, only larger companies thought to hire financial reporting specialists from outsourcing. But today, more and more companies are choosing to outsource over in-house to deal with financial issues.

With the improved financial automation solutions along with the use of cloud-based systems, all types of companies, irrespective of their size are now taking advantage of what it can offer to their businesses.

1. Time-saving through outsourcing:

Financial reporting i.e. bookkeeping and accounting takes a lot of time. If you choose to outsource your financial department then you can save your precious time and resource to increase the revenue instead of dealing with complexities of running an entire financial department on your own. And the entire process is handled by an expert who is exclusively focused on finances.

2. Finances get exclusively focused attention:

If you choose in the house to deal with the financial department, then often is left with a lesser importance. As the primary focus of most of the in-house stuff is to generate revenue. But whenever you outsource financial specialists, the financial department also receives equal attention as the rest of your business. The main motive of the finance and accounting Services Company is to manage the finance sector of its client with ultimate importance.

3. Minimal Errors due to expert outsourcing team:

It is important to settle financial statements at the end of every month to detect errors and frauds. As in most cases, in-house don’t have much experience with financial departments. So finding errors at any stage with in house is time-consuming and extremely expensive. But when you are outsourcing financial reporting San Francisco, you can use the multiple layers of review in their built-in process that allows you to catch most of the error on time.

4. Outsourcing can save Money :

While running a business, you can only be allotted  2 to 5 percent of its revenues generated to train its in-house for accounting departments. And the business owner knows it’s not a huge amount to spend on something to get the best out of it. So whenever you are choosing to outsource, you lower your overall expanse as with outsourcing you have not to think about training, employee benefits, office supplies, accounting software, and hardware.

And the chances of making mistakes are also low. So, overall bringing an outsourced provider like Financial reporting San Francisco can cost lesser than mishaps like financial mistakes at any stage of your business.

5. Access To The Latest Technology

When you are running a small and medium enterprise (SME) it’s pretty normal to lack the latest technology for accounting. Going to outsourcing another external firm that is having expertise in that technology, you can easily overcome such a problem. As compared to the cost of upgrading the technology, the task can be easily outsourced at a much affordable price.

6. Automate Financial Solution and Reduce Paper

Do you have the idea that outsourcing your finance can reduce the carbon footprint, wasted paper, time, and space?

Financial reporting San Francisco can provide you all the information electronically. That readily reduces the cost of maintaining printers, copies, papers, and a fax machine.

7. Privacy

The internal financial records of your business are one of the most confidential parts of the business. Your topmost concern lies around how to keep them secret. If you hire any local accountant for accounting and financial tasks it may result in conflicting the required privacy. But professional outsourcing firms can maintain the privacy of your records.

8. You Can access The Financial Data Anytime, Anywhere

Most of the professional Financial Reporting in San Francisco provides cloud-based accounting applications to you. This new technique allows you to access all your financial records and data online. You can easily access any information related to the cash balance from anywhere at any time so that you can make a more informed and confident decision spontaneously. With all the accounting reports on your fingertips, you have a clear picture of the financial health of your business.

9. Getting a neutral viewpoint

You need your financial record in your hand when you are trying to make any important decision by analyzing the current financial scenario. Here, outsourcing Firms can give you assistance and suggestions from a neutral viewpoint. As a result, you have to face any biases that may exist in in-house. With the help of a professional, you can outsource any reports to get a better insight.

10. Overall Confidence and Peace of Mind

Outsourcing provides you with timely and accurate accounting data that helps you get better visibility of the financial health of your company. And with that, you get better peace of mind while making important decisions. By outsourcing with Financial reporting San Francisco, you can rest assured that all the financial information is correct and your business is out of any potential threats or fraudulent activity. No matter what is the size of your company, hiring financial reporting specialist from outsourcing just provide a better business sense. It provides you security as well as the confidence to focus on the growth of your business.

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The productivity of employees can be improved with simple steps

Working for more hours does not necessarily mean improvement in employee productivity. As an owner of a start-up, you must think about taking the necessary steps to help increase employee efficiency at your office by motivating them towards their job.

Any business will run smoothly only when the employees are well educated as well as motivated. Some business start-up owners make the mistake of thinking to give prizes to boost employee efficiency in the workplace. This is not the right way to motivate your employees.

Motivation among employees should come from inside which will a productive way to bring up the working efficiency level. Here are some tips for business owners to increase employee efficiency at their workplace. Implementing such strategies can lead to employee satisfaction. And can boost the company’s strengths because if you have educated and motivated minds in your team. So you can reach your company goals faster.  

Make a clear mission and vision of the company

If your company does not have any goal to aim for then you can’t motivate your employees and colleagues to be efficient. If there doesn’t exist any defined mission and vision of your company then employees will not be motivated. Employees must be informed about what type of output you are expecting from them. Make specific and realistic goals for your start-up. Build a smart mission and vision to keep your employees focused and dedicated to their job.

Identify their skills: 

Try to match the tasks you assign to your employees matches with their core skills. As an owner, you must be well informed about the technical skills of the employees you hire. And be aware of their behavioral styles for maximizing efficiency at the workplace. If you offer a creative or out-of-the-box thinking employee a detailed or rules bounded task, then he/she might not find it easier to perform the task. And increases your company’s probability to lose potential clients.  

Before assigning a task to any section of the employee, you must reconsider whether they are skilled in performing the work. Do not pressurize them to be excellent at everything. They might not find it encouraging and ultimately will hamper your company’s productivity. Instead, assign the tasks to someone whose style and skills match your needs.   

Make regular communication with employees:

Routine communication with employees increases productivity in the workplace. In the current situation when the coronavirus pandemic is at the peak, using technology for communication purposes will be beneficial. Technology has enabled us to contact each other with just one click of a button. So, you may think to communicate with employees via emails. But a recent study shows that emails can be a time-consuming activity for workers as it takes almost 28 per cent of employees working time. So instead of relying on emails, try to connect with employees on social media groups for faster team coordination. Making phone calls for settling urgent matters will save more time than forwarding threads of emails.  

Do not hesitate to assign tasks: 

Instead of checking on every other employee’s work by yourself and wasting time by doing this, you must consider assigning the responsibilities to qualified employees. It is very obvious that as an owner you love your company. Thus, want to have a direct hand over every department’s work to check on the quality of the employees regularly. But this is a time-consuming task. Thus it is recommended to trust your employees hoping that they will perform well. This will provide your employees with the opportunity to showcase leadership qualities and gains skills in this field. Provide them proper space to prove you their skills at a workplace which will ultimately benefit your start-up company

Provide proper training and development spaces:

You can’t force employees to learn all the skills on their own without providing proper training. That would backfire and result in inefficient behavior. Assign a proper routine for the employees to train them with proper guidance. Instead of having employees struggling to perform the tasks by hook or crook, teach them with necessary skills. A small investment towards their training will ultimately help your start-up to grow. And have a good reputation among business competitors. Training will set them ready to accomplish their tasks faster rather than making small mistakes each time. 

Continue to have employee development programs in the workplace to motivate employees to expand their skillsets. And build a strong workforce by using their capabilities. The measures you can take to encourage employee development include offering online courses, conducting webinars as well as individual training workshops, and as earlier mentioned, increase their responsibilities. These events will allow employees to gain additional managerial skills too. 

Conclusion: 

Every organization nowadays is aiming at increasing productivity. To increase productivity every start-up and established companies must adopt some measures to motivate and increase the skill set of their employees. A business with knowledgeable staff observes maximum productivity compared to other competitors. Productive employees will bring glory to the company and make a positive impact on the economy as a whole. 

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Streamline your Accounts Payable process

Accounts payable is one of the essential tasks for managing any modern startup or business. After all, business owners need to maintain a good relationship with their suppliers. For this purpose, the startups or business firms need to ensure the availability of a good accounts payable system. Having a perfect accounts payable process and managing the invoices punctually reduces the risks of losing business confidence. In this article, we have got you covered with the accounts payable process and its management to run any business and startup efficiently. 

What are accounts payable? 

In simple words, the accounts payable process includes everything that a supplier or creditor owes from your business. The accounts payable process is the accounting procedure that deals with paying off the creditors or vendors within a timeline after your company has purchased products and services from there. In a company, the accounts payable department has the responsibility to make payments owed by the company to vendors and creditors. 

Usually accounts payables refers to those things you need to pay off within to the supplier within a year. This process is a liability of your business. For a startup company, this is a high stake job to manage and it is very important because it helps in maintaining business confidence of your company to pay your company’s debts on time. This also increases your company’s reputation among the creditors and suppliers.   

What exactly accounts payable process mean?

In any established company, the accounts payable team have a list of methods and procedures to follow for making creditor or supplier payments. Pre-planned guidelines are essential because of the volume of payments within a period. The accounts payable process includes:

Receiving the bill: 

When you purchase goods and services, the invoice helps to track the quantity and description of the product received. You can know the validity of the bill during this time.

Bill review: 

The accounts payable department must recheck that the bill received contains the supplier name, authorization, date of purchase matches with the purchase order description. 

Update records in the database: 

Update the financial accounts based on the bill amounts along with the company expenses. Usually, the data updates after the approval from the management team. 

Making the payment:

As per previous deals with the suppliers the company should process all the payments before the due time. Before payments, the documents need to prepare and verified again. The accounts team needs to verify the details of payments entered on the cheque, bank account details of the suppliers, and payment vouchers. Proper scrutiny is needed for the original bill and the invoice details. Here, you need the approval of the management team again.

The accounts payable process should have access to some internal controls of the company to:

  • Make sure the assets of the company are safe
  • Avoid paying inaccurate invoices
  • Prevent paying the supplier multiple times
  • Reduce the risk of fraud invoice payment
  • Make all the invoice details recorded in the database 

To improve the internal controls, your company may consider seeking professional help. 

The accounts payable process team of a company should also be efficient to make the financial statements accurate and precise. If any mistake arises due to the double-entry of a supplier invoice this will lead to incorrect amount calculations. In fact, for such a mistake, the accounts payable process is liable to

  • Omit the balance sheet 
  • Omit the repair expense from the income statement

In other words, if the accounts payable process of the company is not up to date, the management team and other financial statements will receive wrong feedback about the company’s performance.  

Other drawbacks of poor accounts payable process include:

  1. The company may miss discounts even after paying the bills earlier. 
  2. The supplier-owner relationship is strained if the supplier invoices are not paid on time.
  3. If the company is already cash strapped, this could lead to bitter consequences. 
  4. Vendors may demand cash on delivery.

Conclusion: 

The account payable process is one of the important tasks for any startup. Poorly processed accounts payable not only hampers the relationship with suppliers but also increases the risk of fraud. Finally, for the best shot at accounts payable process for your company, seek help from experts, and improve your system. 

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Bootstrapping finances with its pros and cons

Bootstrapping a start-up company is a situation where the owner starts the start-up with seed money in hand. Every successful company has a history of bootstrapping. Before the management team accepts the venture capital or any means of external funding, they have entirely bootstrapped the company. Bootstrap financing company is an attempt to create a financing company with personal funding or through the revenues of the newly created company. Generally, self-made entrepreneurs are very rare. To start a financial company or organization, entrepreneurs need to have confidence in taking risks and must be self-disciplined and determined. In simple words, bootstrappers collect some ideas and with their skills and knowledge, they create a business without any funding from external investors or with any high amount of capital. 

Examples of Bootstrap financing: 

There are numerous examples which fall into the category of bootstrap financing. One of the common method to bootstrap financing company includes operating with vendors via credit letters or through documents acknowledging debts which does not include providing the cash. Let’s take an example of you being an entrepreneur and you want to provide delivery of steel to a real estate developer. Now for this purpose, you would need to buy steel from the vendor or the maker. You can do this by providing the manufacturer with a letter or credit or you can take a loan for buying. Suppose the maker agrees to provide you with the steel and then you can do the shipment of steel to a customer. Now after receiving the money from the customer for the steel you delivered, you can go to pay the manufacturer who gave you the steel. 

Suitable bootstrap financing company:

Bootstrap financing can be is best for those companies which operate as middle-man. With documents that acknowledge the debt, or with a letter of credit for the customers or vendors these companies can exchange products and services. Further, those start-ups whose customers can pay quickly have an upper hand for making bootstrap financing work. Companies like real estate developers, experience late cash flow issues when they launch products in the market so, they will not find bootstrapping a decent model to work on. Furthermore, only traders, import and export companies will find a quality advantage with this model   

Advantages of bootstrapping finances:

Operate costs involved efficiently:

With bootstrap financing your company, you get involved in a model of business where you can get more aware of the cash flow and the regular costs involved in making the business grow. You can start operating the business on a lean business strategy. 

You are the boss 

With no external investors, the owners of the company can take over the control of cash flow. Now the founders of the company will be deciding all the crucial strategies required to operate the growth of the company. Also, This model of the business ensures that business is growing as planned as the owner’s values and vision, without any external funding and they can ultimately keep the profit for themselves. 

Concentrate on the core idea:

No external investment involved is one of the major advantages. This saves time for concentrating on the core idea of the business. Also, due to less amount of cash in hand, asset re-financing becomes a major part of bootstrapping. Moreover, the financial foundation of your business could be a potential attraction for many investors. In the business world, investors prefer those companies whose owners have shown promise and commitment since the initial days of the working. 

Disadvantages of bootstrapping finances: 

Cash flow crisis 

A major disadvantage of a bootstrap financing company is the cash flow issue due to the lack of enough capital that a company needs to generate and grow. In fact, inexperienced business owners are more likely to cause disaster to the company if they take inappropriate decisions.

Imbalance of decisions:

If the startup has two or more founders, then it is more likely to have a dispute regarding decision making. This depends on the founder’s experience, priority as well as the amount of cash invested which can ultimately create revenue collection issues. 

Higher risk of failure 

Along with the pleasure of self-control on the cash flow of your company, you may experience failure and losses too. Also, one thing that haunts bootstrapped companies is the shortage of revenue. The profit generated each time is not enough to compensate for all costs. 

Some successful bootstrapped companies

Many bootstrapped companies around us had to struggle at their initial stages. But they prevailed and all this was possible because of their amazing service and product management. These companies are:  

1. Dell computers

2. Facebook 

3. Apple Inc.

4. Coca-cola 

5. eBay

6. Cisco Systems Inc.

7. Microsoft corporation

8. SAP

Conclusion: 

Bootstrap financing will be a success if you can provide attention to proper financing management and produce the revenue your company needs. Be cautious when you buy. Moreover, closely monitor your expenses. Don’t jump for buying an expensive product when you don’t have enough assets. Finally, try to negotiate terms and conditions with the vendors with proper documentation. You can expect a profitable cash flow when you can execute a routine cash flow with each shipment or order. 

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Small Business accounting software: The essence of a company

When you are starting a small business or startup it is quite normal that you would need some small business accounting software to manage your budget and needs. Accounting software allows you to manage and monitor your business transactions accurately. This application software stores and processes the transactions as per the program designed. This computer software can vary widely according to the purpose of accounting needs. Some accounting software is programmed for small bookkeeping purposes. And some are designed to maintain the whole financial processes of large business organizations. Accounting software helps the small business companies and startups to use limited resources in the accounts section and avoid the chances of bookkeeping mistakes.

You might wonder where to start and what features you need or whether they are suitable for your startup size. We have got you covered in this article by putting together the benefits of small business accounting software. 

Thoughts you must have while choosing accounting software:

There are many accounting and bookkeeping software but finding the best one that suits your business size is a challenging task. The range of business accounting software available for small businesses is increasing regularly. The categories under which this application software are available to include small business payroll, full-service financial management application, web-hosted applications, as well as some free applications. To choose a business accounting software you need to understand the fundamentals of accounting needs. Also, look into the assets and resources available currently in your business. 

Here are a few points to remember while researching for a bookkeeping or accounting software that will suit your small business.

Recognize your company needs:

Ask yourself whether you need the software to track inventory or you need to track invoices. Make a list of your priorities in business accounting accordingly. Before you start to search for a software solution, check whether the software meets all your needs. You may get fascinated with several useful software that may help you to solve many bookkeeping issues but don’t get distracted from your priorities.

Let’s be honest with the budget:

While you continue your research, identify the assets and products you have already. And how much you can afford to invest in accounting software. After you have considered your budget, try to spend less time on selecting the software that has all the bell and whistle but won’t serve your purpose. If the accounting software is going to cost you more than 25 percent of your budget, then you must let that option walk away.

Research the app features:

It is extremely important to realize what features you need in the accounting software to meet your needs. It is easier to get an ideal small business accounting software. If you are looking for application software for global accounting services and you have a region-specific small business; then you must drop the idea of spending on it. Do not think other than your priority list and get the best accounting software that serves the majority of the purposes.

Advantages of using accounting software:

Improvement in accountant accuracy:

Using a proper small business accounting software, startups and small businesses can increase accounting accuracy by eliminating manual errors in calculations. Any wrong calculation may have a great impact on the balance sheet. A computer program meant for calculations can be immune to human errors provided the data entry and codes are correct. 

Faster processing:

With accounting software, processing business accounts becomes a lot easier and faster task to complete. Using the concept of business process automation, larger organizations and companies are using accounting software for increasing efficiency of work every day.

Cutting overall costs:

It is observed that with increased efficiency and accuracy, comes a reduction in overall costs. This means even a smaller accounts team will be able to do larger tasks in a short amount of time. This will save the organization’s payroll costs for an accounting department.

Produces accurate reports:

Accounting software helps small businesses to provide accurate data and information for financial works. Creating a report on cash flow manually can be time-consuming. Thus, many accounting software has features to create such reports in just one click.

Reduced stress for tax filing:

The tax filing process is a time-consuming task for small businesses. The tax filing process requires close tracking of business transactions. One major benefit of using accounting software is ensuring all your accounting details remains at one place on the record. Some software also allows you to calculate tax returns on the platform itself thus reduce the frustration of accounts team. 

Conclusion:

Now it is all up to you! Which small business accounting software will suit your expenses. Also, the size of the company will be decided by you as an owner. Prioritize your accounting needs then choose the software that meets most of the needs. 

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Why an accurate balance sheet and income statement are a must

The income statements provide the CEOs with information about the revenue they collected and the profits made by the company. The income statements allow the managers and owners to get a better idea about the profitability of their organization. Thus, managers prefer to analyze income statements at the end of every month. But the income statements do not reflect all the details of profitability. Financial managers thus analyze the balance sheets along with income statements to get a detailed picture of profitability. Balance sheets and income statements go hand in hand. And that is why accountants need to have a precise balance sheet to get accurate income statements. Some mistakes like not providing accurate expenses and assets data will result in generating both balance sheets and income statements inaccurate. 

A brief explanation of the Balance sheet and income statement:

The balance sheet and income statement look the same thing. Both provide insight financial data but each of them uses a different set of variables and factors. The balance sheet provides a snapshot of your business at a point in time. Thus, also called a statement of financial position. The balance sheet is a statement of your organization’s assets, net worth, and liabilities prepared at the end of every accounting period of month or year. In contrast, the income statement is a cumulative statement of your income over an interval of time. The assets include inventories, cash, office furniture, and all those things that your company owns. Also, the liabilities include bank debt, accrued expenses, accounts payable, and everything that your company owes to others.

The net worth or equity is the amount that is left with assets reduced by liabilities. Your net worth amount helps the manager to analyze whether the business is making a profit compared to last months. Now problems may arise in calculations if the data entered is inaccurate. Suppose you record expenses as assets on the balance sheet, this will reflect on the income statement. The income statement will be overstated and shall make the CEOs incapable of quickly assessing business growth. 

How the income statement and balance sheet work simultaneously:

Suppose you need to send some employees to an event where having an iPhone is a must. Now you spend INR 3 lakhs on iPhones but the bookkeeper records this amount as an asset instead of recording this as an expense. As a result, the balance sheet will show more profit made than actual and lower expenses. The error will cost you badly the next time when you goto price that job. You will not provide the correct bid because the true costs were not recorded. 

Why an accurate balance sheet and income statement are a must!

Many business owners complain about the cash flow crisis and can’t do precise cash flow forecasting. The answer is probably hiding in their balance sheets. If your company buys iPhones as an asset taking the money from profit amount; then it is not reducing the profit but the cash is flowing out. The company managers must look into their balance sheet regularly every month. They should compare it with last month’s balance sheet to avoid discrepancies regarding the cash flow crisis.

What Mfhills Services Can Do For You:

One of the best ways to deal with the finance sector is to outsource all the accounting and bookkeeping needs. This will ensure that you receive an accurate number at the end of each month. Outsourcing accounting professionals can provide you with seamless reports to ensure more revenue generation and overall business growth. Mfhills allows you to pick which sector of your controller section, accounting, and bookkeeping you need to outsource. We work with your internal employees to ensure your business need is under proper surveillance. And would provide a financial report at the end of each month. The cloud-based technology along with the latest accounting software helps you to address where you have to focus. Along with outstanding client services we also provide additional service when required to run your business. We can provide the ultimate solution with

  • Cash flow forecasts 
  • Cost cuttings and maintaining finances
  • Bank Reconciliation and accounting
  • Payroll review
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Sort the accounting of small businesses efficiently.

Whatever the size of the business that you own, you need to prioritize your accounting on top. If you don’t give the proper importance to it, you will end up with unnecessary issues and obstacles that could slow down or even halt the growth of your business.

You have to keep a track of all the expenses, collect payment in time, monitor, and assess the accounting report thoroughly. As you already have several responsibilities, so we have sorted out seven tips to make your accounting less stressful and far easier.

Monitor and Assess All Business Expense Receipts

You don’t have to do much to keep an eye on all the business expenses. The main issue with it is, most of the small business owner is not consistent enough with it.

With today’s modern technology the process of automatically record each of the receipts has become less time consuming and less hectic. Once you acquire the habit of tracking, immediately it becomes a habit. And you must have used a cloud accounting platform that allows you to store each detail in it. The process is simple, and you have to worry about misplacing any paper receipt anymore.

Switch To The Accurate Invoicing System for accounting

With accounting the more organized you are, the fewer headaches you will leave with. And to create a reliable invoicing process in today’s technology-driven era, the first step of yours should be choosing the right accounting software.

As there are lots of options available, so it is crucial to choose the right option depending upon the integrations and features according to your need. The software you choose must be competent enough to scale with business growth.

Go for Secure and Complaint Software

You have to make sure that all your accounting data and information are in a secure hand while using a third party for accounting software. Make it certain that your accounting software receives the data which is protected with SSL encryption. And the server that is used by the software is under continuous scan for any vulnerability.

Go For a Seamless Payroll System

One of the vital parts of your business is your employees. So you just have to deal with a payroll that though appears seamless on the surface, but deep down its complicated part of the business owner.

While talking about payroll, you will be left with two options; either install software by yourself and deal it with in-house else hire a professional payroll company. They can handle each component of it; starting from calculating the proper withholdings, taxes to deposit salary to your employer’s account on their own.

Maintain Current P/L Statements for better accounting process

Profit and loss are always the two important metrics of any business, irrespective of its size. Many factors can lead to an uncontrolled situation if you only pay attention to the P/L statement quarterly. You have to prepare for all rushes and dips all over the year. Maintain an up to date P/L statement to analyze the overall health of your business. A proper P/L statement must include all kinds of operating costs, operating income, revenue, net profit, gross margin, and costs of goods sold. These are the most important number of your business that you must know every time.

Come Up With Solutions to Improve Cash Flow

Optimizing the cash flow is also an important factor in your accounting. Whether you are a freelancer or a big house corporation you have to find ways to improve the cash flow.

Adjusting your payment terms on time. Send the invoices regularly. This will help to collect revenue faster that can be hugely beneficial for the operational side. Cope up with the tricks on how to deal with your slow-pay customers so that you can bring back the cash faster.

Don’t Mix your Personal And Business Account

Operate your business financing with a separate business bank account. Even you are handling a start-up as an independent contractor or freelancer. This is always a good idea to separate all kinds of business-related payments separately. This readily helps you to match the bank statement and accounting.

Final Thoughts

To keep the finance sector organized and on track, you can follow these simple yet efficient accounting tips. Preparation and organization the main key of all sectors of a successful business, and this is true for accounting also. Spend your time and effort now to organize the finance. So that you have not to end up with any mishap that can cost you.

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Payroll Processing is a big challenge for startups.

Being a part of a start-up is hectic, as things are moving around a hundred miles in a minute. You have to take all quick decisions, and follow a strict routine to complete all your work. And while involving in such real responsibilities, it is quite normal to not to focus on the accounting part. We all know start-ups are rule-breakers. But if you are messing with paycheques or the salary does not credit at the right time, your team will not going to work for you longer. It is highly expected to ensure that all staff gets their payment on the same date of every month. And you may likely slip that out of mind. And you will end up a bunch of unhappy teammates to work with. That  Reportedly, in 50% of cases, employees start looking for a new job just after two payroll program!

And even if you are dealing with lenient teammates, if your start-up does not comply with HR laws and payroll, you may even face serious financial and legal consequences. Moreover, penalties are so severe that you have to think about shutting the business down. In one line, payroll is a big thing. In this article, we have put together, the most common five payroll mistakes that you must avoid.

Misinterpretation

It’s very common for companies to promise more than they can deliver, especially when they are in their initial stage. But being an owner you have to give equal importance to profit and sustainability. So, before promising, you need to analyze every aspect of pay. And while doing so, you must have to consider the other external factors like labor contribution, tax, and so on.

Mixing business and personal finances

This is the most common financial mistake a startup can make. While you are in the initial stage of your startup, you have to a challenging and unorthodox financial decision to run your business seamlessly. When you use your personal account to pay off your employee, you will end up with all sorts of complications. And in the time audit, the situation becomes worst. The presence of a blurry distinction of business and personal expenses can cause the owner’s personal assets vulnerable to court seizure. So to avoid any complication, maintain a good financial practice by separating your personal account from your business.

Lack of experience

Though you have a vast knowledge about how to make the trade, that does not mean that you are well experienced with HR-related stuff too. If you are trying to manage every factor of your business, mainly managing accounts and HR division becomes expensive and slow. And in your initial stage, you must not want to deal with disputes and legal complications.

Going out of the budget for Healthcare and Benefits

Starting a startup today is fierce. To attract the best of the talents, you have to offer unique and excellent benefits mainly medical insurance. And dealing with this, you may go over budget as the insurance plan. That will look good and can be expensive for a startup, as you have to pay more or less cover.

If you have any outsourced professional support, your employers can form a larger group with the rest of the agency’s co-employers. So, you can offer the same health benefits to your employers at the rate of large companies.

Managing Compliance With Payroll Services

Payroll is hard to do. To manage the payroll tax obligations at the local, state, and federal levels need someone experienced and dedicated. Even if you are running with a couple of employees. That’s why you need to use a payroll service. While managing a startup, you have to deal with other employment-recruitment related stuff, like unemployment insurance, worker’s camp, new hiring reporting. And to deal with all this you need someone experienced to manage payroll efficiently and help startups comply with all the employment regulations.

Final thought:

So, to deal with payroll, you need to outsource a qualified and experienced third-party HR Agency, who can deal with the stress and legal complications. According to a recent survey, outsourcing CFOs or HR agencies are most fruitful when it comes to development and recruitment. The expertise and skill of agencies can help out any business irrespective of its size to manage with all complicated tasks. And using payroll best practices are the best decision that you can take for a new start-up.

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Getting bad customer reviews? Here’s how to improve!

Negative business reviews are every business’s nightmare. Bad customer reviews online can turn away new customers who wish to engage with your business. These bad reviews can drastically hurt your business if you do not follow some simple strategies to minimize the damage. A few negative reviews are bound to appear while running a business but every entrepreneur must take them as an opportunity to learn and grow. Most of the negative reviews are because of unmatched expectations or few events which go uncontrolled.

According to various surveys, most of the customers make their opinion about business after reading the reviews about the company services available online. Responding to every business review, apologizing for the mistakes from your end, and describing the changes you make to solve the customer’s issue are some small steps that can turn a negative review into a better user experience for satisfying customers. But if the customer is giving overstress claims which significantly are hurting your business then you can sue the customer for leaving blistering reviews and defamation.

Be it a new entrepreneur or an established one, everyone receives negative reviews sooner or later. New entrepreneurs should not consider this feedbacks as the end of their world rather learn from mistakes and use it to make the business even better. In this article, MFhills will provide you best practices to minimize the damage and turn negative reviews into positive actions for your organization.

Monitor your business reviews regularly and reply promptly:

Negative reviews can turn your potential customers away very easily. There must be a system for monitoring your business reviews regularly and reply to each of them on time. If you reply to negative reviews this will spread a message that your company values customers’ opinions. It is an opportunity for satisfying the person who had a bad experience with your service and attracts new customers. Make a formalized process for handling and respond to customer reviews. Track the negative reviews on reviews on review platforms, Google alerts, and on your social media pages. 

You can use the gathered data from negative reviews to better engage with customers. Analyze the collected data to sort out the repeated complaints resolve the issue for which your customers are suffering. Assign the responsibility to particular employees at every department for tracking and managing the specific types of problems.

Be polite and apologize:

Customers pay attention to the way they are getting responses from the company’s end. Whether the company is trying to resolve the issues or not. Apologize to the negative reviewers politely saying that you are sorry for a bad experience. Also, explain how and when your company might fix the issue. Also, respond by saying that you are thankful for their valuable feedback and provide your contact details for their convenience. Promise the negative reviewer that your company commits to providing consistent heights of excellence. Note that you should be polite during conversations and apologize without blaming the reviewer. When you fix the issues, thank the customers for raising the concerns with your organization.

Take necessary actions:

Analyze which part of your services needs improvement and then brainstorm the possible solutions and predict the outcomes. As mentioned earlier, learn from bad customer reviews. Use them to fix any core business problems which are causing trouble for your customers and clients. Customers will trust your business if they know your business will always respond to them if anything goes wrong. If you can build a strong trust among your customers, they would try to contact you directly in the first place instead of posting negative reviews for addressing their concerns.

If anyone the company is its manager or some employee has good experience in handling customer complaints then assign that person the responsibility to track reviews. You can also offer the customer some discounts or special deals whenever he/she places the next order. Control over the business reviews are site-dependent, some sites allow full control over reviews. Meanwhile, others do not allow any company to respond to the customers directly. In such cases, you can connect to the concerned customer offline and tell that your company is working on it.

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Bookkeeping services: Choose the right one in San Fransisco

Many perfect bookkeepers in San Francisco can easily handle daily and monthly financials. But it is difficult to find the best bookkeeping services in San Francisco if you do not have enough understanding about what a bookkeeper’s job is. The right bookkeeper will become your colleague whom you can trust and can depend on his experience. All bookkeeping services in San Francisco have sufficient teams of professional bookkeepers in San Francisco who can offer the best advice and guidance to grow your business and finances. This article will tell about the duties of bookkeepers and how to choose the right bookkeeping services in San Francisco.

Duties of a professional bookkeeper:

Bookkeepers play an important role in deciding the fate of your organization. Bookkeepers need to record all your financial transactions and him responsible for:

  • Paying the company’s bills to ensure cash flow.
  • Collecting debts and managing the customer’s payments.
  • Submitting payroll reports and verify labor hours.
  • Managing cost-cutting, staff salary, bill payment at maximum efficiency

A qualified bookkeeping service reduces the workload of the management from many responsibilities which allows them to focus on the key business model. Selectingthe right bookkeeping service is not so easy but we atMFhills will guide you to choose the best bookkeeping services in San Francisco.

Tips on how to choose the right bookkeeping services:

Search for an established bookkeeping services with relevant experience:

As a business owner, you will need to have employees with the following experiences:

  • Accounts payable and accounts receivable
  • Payroll processing and management
  • Monthly bank reconciliations
  • Sales tax returns and audits
  • Annual financial reports

Also if you are using some computer software for accounting needs, you will need bookkeepers who are experienced with that software. Every business model is unique so you would like to have bookkeepers who have experience in your industry. Bookkeepers in San Francisco with professional experience will help you with their understanding of the challenges of your business.

You can also hire someone with experience servicing a huge number of clients, which is a positive sign that they can manage your financial needs for your business growth. When you approach a bookkeeping service in San Francisco, ask them about the rate at which their clients have grown over the years and how they can help you to support your business growth. 

Consult local business association:

Small businesses are the lifeline of the nation’s economy. You can consider consulting local business associations to help you find the right bookkeepers in San Francisco to serve your company. You can take advantage of your local business connections and community and community organizations for referrals. Reaching out to community organizations, you can take advice from other local business owners. Because they are currently using or have experience working with bookkeeping services in San Francisco. Often they would recommend qualified bookkeepers in San Francisco with whom you can outsource your accounting services.

Use social media platforms:

For professional networking, LinkedIn would be a nice platform to start. Make a LinkedIn profile and use it to search and connect bookkeepers in San Francisco which are recommended by your local business network. Also, Facebook is another great platform for searching for qualified bookkeeping services in San Francisco for your business. Use LinkedIn, Facebook, and Instagram to search and gather information. You can gather information like qualifications, specializations, and experiences of various bookkeeping services in San Francisco.

Find a bookkeeper who can save your money and resources:

Bookkeeping services sometimes offer services other than managing your payroll and reconciling your bank accounts. Experts at Bookkeeping services are very proactive. After reaching out to any bookkeeper, ask them if they can provide any strategy to save you money and business resources. That too in the current period and also in the future. Choose a bookkeeping service that not only focuses on managing your finances but also suggests ways to save your assets and resources while enabling business growth.

How MFhills can help you with bookkeeping services that help grow business:

At MFhills, we have experienced staff who can save your business time and resources by not only turning your receipts into complete financials but also enabling you to make accurate business decisions. Moreover, we would love to help you by solving your financial problems and help clients grow their business. So let our team handle your books while you can focus on your business.

Final thought:

A bookkeeper is someone who gets involved in the daily management of your business finances. He/She becomes an integral part of the organization. Finally, finding a perfect bookkeeping service is a decision that business companies should take seriously. You need to trust and rely on someone when you need them. Thus a qualified and experienced bookkeeper is needed who can help grow business while saving your money.

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Marketing strategies to find your prospective customers

Are you struggling to develop the lead generation of your company? But you are not getting any plan about how to initiate this? Here we have listed the overview of five best lead generation methods that will promote your business and boost the revenue generation.

Email Marketing

Many of the big brands in the world use email marketing strategies to attract customers. However, the concept of email marketing as an online marketing strategy is not centered on big brands as it does not ask for a big budget. The email marketing strategy is the best method available to grow your network in a much strict budget consideration.

According to a survey, around 60% of leading B2B marketers appreciate that email marketing is the most efficient way to connect with potential clients and customers and boosts to generate revenue. Through email marketing, you can offer a certain number of details about the product or service you as an organization can provide. The biggest trend of today’s technological innovation is “marketing automation”; this is the software that allows marketers to create perfect email campaigns. This software can be connected to your system CRM and can send thousands of emails to the target audience in a single shot and thus helps to increase the revenue generation accordingly. In fact, marketing automation adaptation assists to expand the surge in leads, readily decrease the lead conversion time along with a drastic rise in revenue.

Email marketing Benefits:

  1. Create a nice understanding between you and your clients/customers
  2. Assists to develop your distinctive brand name
  3. It provides you with lead generation marketing strategies in a reasonable budget and time.

Content Marketing

Whenever you come across the term content marketing, the first image that comes to your mind is blogs and articles available on social media. But this is not all it’s about. It uses content as a lead magnet to expand the reach of your business. It does not matter what is the domain of your business, content marketing will be satisfactory for your company. Content marketing is a long-term method to generate and provide content (in various formats like articles and blogs). It helps to create a better relationship with your audience, improve brand recall, and finally improve overall engagement.

In fact, this is a marketing strategy used by most of the B2B business (around 80%) to drive leads through blogging, articles, social media, e-books, and infographics to get impactful customer engagement. By creating SEO friendly content, with the keyword searched frequently in Google, Yahoo, etc., the chance of getting qualified prospects to your online page increases.

To connect with your audience through the content, you need to share important details, pass on knowledge through them before asking the customers to buy products. As a small or medium-sized business owner, you should realize that over 70% of your potential customers will reach to your organization through content marketing over any kind of advertisement.

Content marketing Benefits:

  1. It helps to expand your reach to a greater number of audience
  2. Through lead nurturing you can make a strong relationship with your customers.
  3. It helps to boost organic search visibility

Social Media Marketing

Social media provides you a unique platform to widen your business. Using social handles you can interact with your current customers more generously. And also through this, you can engage more traffic to your brand. Nearly one-third of adults use social media—such as Facebook, Instagram, LinkedIn, Twitter; thus making it a vital part of any business strategy.

Moreover, the most interesting thing about going for social media marketing is that lead generation through these mediums is not expensive or scary. Also, even without hiring a dedicated team, you can use this marketing strategy to promote your product/service and to attract more visitors to your site.

Social media Benefits:

  1. It gives a brand recognition.
  2. With less expensive advertising you can target and retarget your ideal consumers.
  3. It helps improve your search engine rankings.

Tele – Marketing

This is the most used method that all marketing companies use to connect with potential customers. With cost-effective outbound telemarketing, you are able to make a direct good relation with your audience. Similarly, there is no doubt an effective marketing strategy where you end up with a handy script that helps you through the entire exclusive conversation about your product. In this methodology, you will get direct feedback for implementing detailed business campaigns, and helps to make a better bonding with them.

This strategy not only allows to make sales calls, but to do prospecting, upgrade mail orders, or helps to speed up cash flow. Outbound telemarketing can be helpful to build traffic or even re-sell to the customers who have previously canceled any order.

Telemarketing Benefits:

  1. It’s less costly and helps to grow your business.
  2. Provide immediate feedback.
  3. Analyze, measure, and report individual concerns.

Lead Magnets

A lead magnet is an incentive that has already been proven as highly helpful to the marketers in the lead generation process. It usually offers mostly downloadable or digital content, such as a free e-book, PDF, checklist, report, whitepaper, etc. In fact, the idea behind the lead magnet is to gain a maximum of qualified leads.

If you are wondering whether small businesses can benefit from it, the answer is probably yes. Furthermore, lead magnets do not require any luxury budget to fit in. Also, you need to translate a portion of your expertise into a format, that will perform the task for you. Also, here we have listed few practical lead magnets that get results.

  1. Template
  2. Checklist
  3. Toolkit
  4. Planner or calendar
  5. Report/ whitepaper
  6. Infographics
  7. Webinar
  8. Quiz
  9. Boot camp
  10. Strategy Session / Consultationetc.

Finally, the best part is you don’t have to try all of it. Choose the format according to your convenience. Once you get the idea of how to work with the lead magnet, you will end up getting a better idea of what to do next.

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Income strategies to increase profitability for startups

Every entrepreneur knows they have to make a profit to save their business because new businesses cannot survive only depending on savings, capital, and loans forever. Every entrepreneur needs to have a plan and a strategy to make enough profits. When the business income amount is higher than its expenses then we say profit has been made out of the startup business. 

Strategies to generate startup income:

Spent most of your time on sales and marketing purposes:

After you have organized your startup plan and you have a clear idea about what services or products your startup will provide, you need to go with your marketing program to generate income. As an owner of your startup, you must devote more than 50 percent of your time working on the implementation of marketing strategy which includes making a customer’s list and providing presentations about your plans and services to potential clients and customers for building a strong market presence.

Request for referrals from your clients:

One of the inexpensive ways to increase sales of your startup is by asking for referrals from your contacts. Let every potential customer know about your services or products you sell. You may send everyone an email describing the products and services that you can offer. This process will cost you very little compared to any other marketing strategies you need to implement.

Ask for feedback from customers:

After every purchase, it is essential to get feedback from every customer about your products, user experience, pricing, and overall impression of your new startup. One of the cost-effective ways to get this feedback is through a follow-up email or a call and also a request to give a rating for every product they purchase. As an owner, you need to use this feedback to make changes about the minute elements affecting your business. 

Add value to every products and service:

Established companies add value to every service and product they sell. These value-added products hold greater financial value with enhanced customer service. Every business model can increase their sales and income if they add value to their service from the customer’s point of view.

Strategies to decrease expenses while increasing revenue:

Use a proper accounting system:

During the initial days of a startup, the team needs to track and manage the cash flow, payroll, and expenses of the company accurately otherwise the business will collapse. You may consider outsourcing your accounting system for a better focus on key business elements. A proper accounting system tracks the income, expense, and cash flow for recognizing the key business areas and comparing the previous records for ensuring the least wastage of assets.

Lease or rent, rather than buying:

In some cases where a large amount of expense is needed to buy any item, it is feasible to rent or lease the item rather than buying it.

Stick to your fixed expense contracts:

To reduce the irregularity of expenses, the arrangements for business goods and services must be based on fixed pricing. Fixed salesperson expenses agreements, contractor agreements, and raw material agreements can reduce fluctuations in expenses.

Track your time:

Time is one of the essential assets for the survival of a start-up. Companies must reduce the cost of operations to increase profit within a lesser amount of time. To estimate the future capacity of the business, you need to measure the time taken to increase levels of productivity. This will also help you to get insights into the time you took to complete each project. And estimation for cutting costs in the areas needed for increasing profits.

Partners need to work together:

For a startup company, it usually takes at least 2-3years to establish as a self-sustaining profitable company. Moreover, partners need to keep the sources of income in place to get a significant reduction in expenses. As a result, this will ultimately become a major way to get profit in business. Even if partners need to reduce their income they must devote their full time to the business.

Final thought:

To achieve maximum profit is the ultimate goal of every startup. The above-mentioned tips will help you to generate maximum income keeping all the expenses at a minimum level. Finally, entrepreneurs who have experience in this field know that it takes almost 2 years for a startup to become profitable.

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Productivity Hacks For Business Leaders

It does not matter whether you are reading inspirational quotes or trying out several articles, every business leader is searching for productivity hacks. Hacks for becoming more successful in the professional world. As a business leader, you must examine yourself daily. And search for the areas where you need improvement also celebrate where your business has achieved greatly. There is no specific calculation for achieving maximum productivity for business leaders. But you can measure your productivity and see where you stand today.

Business leaders and entrepreneurs who can find methods to overcome the challenges and organize their workloads to increase productivity and time management can only rank as top business leaders in the industry. The top CEOs today in every global company were able to fight and overcome productivity challenges. Those challenges are faced by many leaders on a day to day basis. You can take inspirations and productivity tips from those business leaders for taking your organization to another higher level. In this article, we will guide you with proper tips and tricks to increase your productivity as a business leader.

Improve your daily working capacity

At the end of the day, many of us find ourselves stuck with a question. A question where we are not sure what we have accomplished in a whole day. We are often busy with small or repetitive tasks every day. But each of the tasks done today adds up to build future success. Make a list of high-value tasks every day and work towards the significant goals you want to achieve. Make plans to build your company better.

If you can follow the same, this might help you to find the most important tasks which you can complete in a whole day. Preparing a list would help you to track your progress. These lists will motivate you at the end of the day. And you can find yourself satisfied and hopeful with the tasks that are still unsorted.

  • Sort the hardest task first:

When you make a to-do list for the day, you might be thinking about which task you should complete earlier. Most of the business leaders prefer to complete the hardest and most challenging task at first. In the morning you are full of energy and charm with the least distractions around. Thus, it is easier to focus on unpleasant tasks in the morning. Also after completing the hardest task first, there remains a positive charm for the rest of the day.

To perform all the tasks without distractions, you must restrain yourselves from checking your mobile phones, social media accounts, and emails until the unpleasant task is complete.

Avoid procrastinating:

At some point in life, we all have felt guilty of procrastination. Procrastination hinders the productivity rate. Always try to start with the hardest part of the task and finish it within time. Getting done with even little tasks will probably increase your productivity because you are not piling up the tasks. Make a schedule of doing the tasks which you find difficult to do. After some time you will find yourself washed your hands of them.

One can beat procrastination by doing the difficult tasks for a few minutes every day and they end up doing the whole thing. This shows why you should start with the hardest part and not procrastinate.

Review your tasks every weekend

Many business leaders go to bed with millions of unprocessed thoughts running through their minds. People are so stressed out that they do not have enough time to process what they did the whole day. Maintain a diary for reviewing your tasks every weekend. And make changes in your schedule to improve efficiency at the workplace. Many CEOs maintain their diary to evaluate their weekly job done. As a business leader, you must ask questions to yourself while evaluating:

  1. Have I completed what I wanted to get completed this week?
  2. Is there any other way to complete the tasks in a shorter period?
  3. Should I personally need to be present for everything I attended?

These are some powerful tips and tricks for evaluating whether you are spending your day wisely at the workplace.  

Finally, with these productivity hacks, you, as a business leader will be able to complete many things within a shorter timeframe. They would feel less stressed out and full of accomplishments.

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Finance trends that small businesses should remain updated with!

Generating enough capital for business growth is one of the greatest challenges that entrepreneurs have to face to expand their business. Entrepreneurs are no fortune-tellers who can simply tell what could happen in the future. The small businessmen and entrepreneurs need to be prepared to jump into recent trends in the marketplace. When it comes to financial trends, new trends in the process of banking transactions, accounting, payroll, and security are constantly turning up which aims to run these processes smoothly. While the most innovative methods emerge at the top, some classic financing methods are also effective for small businesses still today. Here are some potential trends which show our streamlined financing methods and let’s determine whether it a perfect time for small business owners and entrepreneurs to adopt these opportunities. 

Crowdfunding:

Many small business owners are now trying to adopt crowdfunding as a financing method for their business expansion. It is gaining popularity among the small business owners and they are using some online platforms where they can showcase their business model and discuss their financing needs. These discussions will be on the various social media handles and shared through emails and different websites. This process eliminates the endless hassles of getting prospective investors. These are very feasible platforms having a transaction cost of 5 to 10% of the total amount of funds raised. Many entrepreneurs and small businesses have gained massive success with crowdfunding through social media marketing. Generally, business owners gain huge followers on social media so they will automatically get a high reach with an online presence. 

Big data analysis:

Big data is on the trend for many years now, it has a promising utility in the future. When it comes to making effective financial decisions, the organizations and their clients are having benefits of big data in cash flow forecasting and prediction for market performance. Big data analysis also benefits in handling big expenses and calculating future trends in the marketplace.

Online transactions:

It is becoming a trend for banks to handle most of the transactions via online mode. They can operate financial and banking services on their online applications. Customers can deposit money, make stock trades, pay bills, and check account balance online. In addition to these, a person’s mobile could be a better option for reporting account breaches instantly and the security issues can be identified easily. Small businesses should make their portals mobile-friendly for transparency so that the employees can check their vacation hours and benefits on the portable device.

Automatically generated payroll:

Handling payroll manually is a time-consuming task for any business organization. Instead of manually generated payroll, the automated payroll platforms seem to have a more bright future. Moreover, automated payrolls make wage calculations much faster and simpler and less prone to error. Automation helps in avoiding the slower process of manually writing checks to the employees.

Improved security:

Using artificial intelligence the business enterprises are dealing with the security of their financial information. Using such tools, financial service organizations can act quickly if any fraud is suspected and alerts the customers of security breaches. Financial services organizations use more than one step verification process to ensure security from a larger scale of attacks.

Outsourcing financial services:

A maximum number of businesses are outsourcing their financial services following the trends. Outsourcing saves time and ensures accurate transactions are made. A business firm hires a financial outsourcing service for handling their accounting and transactions by the experts in the domain. Outsourcing accounting services help managers to focus on key business activities. 

Increased use of AI and cloud storage technology:

Gone are the days when financial information was stored in one person’s computer in the offices. In fact, with an introduction to a cloud-based financial system. Thus, many people in the company can have access to the company’s data from anywhere. Moreover, these systems allow small business owners to regularly check on the data. In today’s world, a vast amount of data is generated daily. And it becomes important to analyze them over a while for proper decision making. Finally, artificial intelligence can help a lot in providing actionable insights to help the company in financing. 

Final thought:

Business leaders and entrepreneurs should remain updated about the latest industry trends to achieve business growth. The small business environment keeps changing in today’s data-driven world. If you can adopt the necessary trends, you can be ahead of your competitors in 2020 and in the coming years.

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Management reporting system: Why is it essential!

Management reporting systems collect all sorts of information that is needed by the owner of a business organization to run a business efficiently. The annual financial statements constitute the core of the management reporting systems. The management reporting system provides business information in the form of reports or statements. These financial statements are compiled by the accounts department. The management staff gets assistance from the reporting systems through regular pertinent information. A powerful management reporting system will provide reports at a more detailed level to the investors. Other than financial variables like revenue and expenses, the management reporting systems also track non-financial variables in many active start-up companies. The non-financial variables are:

  • Number of clients and accounts
  • Number of employees working
  • Client assets in custody
  • Amount of money deposited and withdrawn by clients
  • The investment performance

Why do we need a management reporting system?

An effective Management reporting system captures data that is needed by managers of any enterprise for making decisions on further goals. As mentioned above, data can be financial and non-financial. However, here are some reasons why an organization needs to have an effective management reporting system:

  • A regular need for reports on decision making and analysis
  • Lack of forecasting the organization’s future performance
  • Inessential data and duplication of data which leads to data management issues and errors
  • Financial reports cannot reach the right stakeholders at the right moment

How an effective management reporting system can help an enterprise?

  • It improves the decision making ability of managers based on the reports
  • Improves the management efficiency
  • It helps to respond to any issues related to business growth
  • The efficiency of using resources and assets will improve the organizational services

Over the years, the modern management reporting systems have replaced the traditional ones which were only used to capture information. Using advanced technology, the management systems have become a vigorous platform for both financial and non-financial reporting and management. Moreover, such robust reporting helps the administration to take appropriate actions to control their business growth.

Traditional accounting activities have adopted automation due to advancements in information technology. The modern management reporting systems now play an important role in allowing the managing team to take accurate decisions for future growth. The reporting systems now help in:

  • Identifying the complications
  • Analyze the alternate solutions
  • Implement accurate solutions and
  • Investigate and assess the implementation

Benefits of management reporting systems:

Properties of an efficient reporting system include creating timely clear and relevant reports. Such reports are not only easily accessible but also provide the records to search for non-performing areas and some other benefits:

1. Enhance communication:

When the management and all the employees are sharing similar information, there’s a chance of better communication which may lead to the identification of problem areas and they can mutually solve the issue. This benefit improves the building of trust in the company.

2. Improved accuracy and efficiency:

An accurate reporting system helps to decrease duplicate efforts by the employees. In fact, this enhances the cross-functional cooperation between the management and employees. Furthermore, as the reporting system becomes automated, this reduces working hours and less paperwork for searching previous data. This improves the productivity of the company because employees do not need to spend time collecting the information the managers want.

3. Improves decision-making ability of the management:

With an effective and functional management reporting system, managers can solely depend on the reliable data offered by the system. Moreover, without such any reliable reporting system, managers and employees cannot sense a proper direction.

4. Identify the problem and act on them as early as possible:

A proper administrative reporting system should be there to help the admin staff with results showing the effectiveness of a project before it reaches the red zone. Management can calculate many alternatives and analyze the results before making promises.

5. Cost-effectiveness:

One of the most important benefits is that the administrative reporting system can help in the process of cost-cutting. You can have your company’s project data at your fingertips so that you can respond to changes in the business environment and increase revenue.

6. More focus on customer service:

With a management reporting system, you can access data about the desires of your clients and customers and management can respond with better customer service as well as a delivery system. Also, you can provide regular reports to your clients and customers very easily.

Final thought:

Finally, a management reporting system is essential for any public and private organization and everyone is serious about improving their performance with the help of thoughtful analysis by a good administrative reporting system. Otherwise, managers need to utilize their experience using trial and error methods to make decisions which often is not easy.

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Why cash flow forecasting is important for your business growth?

Small businesses and young start-up owners often find it difficult to manage their business without any cash flow forecasting. Initially, without appropriate cash flow forecasting, you might think that your business is on the right track but maybe it will not stay for long. You may have no idea of potential dangers that could slow down your business growth.

Now let’s first see what is cash flow and why is it so important and how can you improve cash flow forecasting of your business with us, Mfhills. At MFhills, we are helping both our small and large business clients with financial issues for many years. Today we have a proper team to help with cash flow forecasting for start-up and small businesses.

What is the cash flow?

Cash flow is the movement of money that entering and leaving your business every month. We say there is a “positive cash flow” when your business has more cash entering into your bank than the amount you are spending. Similarly, a “negative cash flow” means more amount of money is going out of your business than coming in. Cash is coming in from the clients and customers who are purchasing your products and services. And cash of going out of your business in the form of expenses like mortgage or loans and tax payments and other accounts payable. It may seem to be a simple concept but it must be taken seriously.

Why cash flow forecasting is important?

An appropriate cash flow forecasting is a valuable tool for business growth that allows you to predict the correct amount of cash you might have with you at the right time. Proper forecasting might help you to foresee cash gaps and excess cash in advance. Here are some points on why cash flow forecasting is required:

This is a building block of your business:

As a start-up business owner, Setting up and maintaining a proper cash flow forecast must be the cornerstone of your business model. Proper cash flow is a part of the infrastructure that your business needs to increase sustainability. Before buying more office space or hiring new staff, you must forecast how these actions are going to impact your cash flow. Understand whether the actions are feasible to minimize further risk in cash flow statements.

Forecast cash gaps and excesses before they happen:

Forecasting cash flow gives your organization enough time to take necessary action to prevent the crisis. Forecasting your bank balance allows you to see when you may have a cash shortage that might be an obstacle in your start-up business growth. In another perspective, knowing the surplus amount of money you might have in the coming months will help you to think about re-investments options to drive growth.

Gaining stakeholders trust:

Unlike business owners, the investors and financing providers are not stuck in one thought, which means they like to think about big achievements. Investors want the business owners to provide them with a clear picture of future achievements form the business they will invest. Businesses need to provide the investors with regular cash flow statements including the best and worst cases of cash flow forecasting. An accurate forecast will trigger confidence and trust among investors and raising more money as investments will be easier.

Properly track and stay within your budget:

Even one late payment from the customers may drive you into the red zone. Every time your guesses for future cash flow might not be correct. You might look into your business’s profit and balance statements which reflects the current scenario but will not give you the future predictions in terms of cash flows. In simple words, to get the “real and accurate” you should make proper forecasting and then can compare the predictions with your guesswork which is based on invaluable data.

Improve your credit control process:

Cash flow forecasting is based on actual invoices and bills of your organization. In this way, you can track which customers are paying late regularly and use this information you can enhance the credit process of your business. You can even create different payment dates for invoices that are overdue and see how the late payment affects your cash flow forecasting.

How MFhills can help you with cash flow forecasting:

We at MFhills will provide you with accurate cash flow forecasting at regular intervals. Our team uses cloud accounting software to present you with clear and simple spreadsheets. The forecast will help to take action to manage receipts and expectations with payments and search for funding when required.

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How Start-ups Are Getting Creative In Post-COVID-19 Situation

The primary concern for any country right now is to contain the further spread of Covid-19 but the consequences of such calamity will haunt us even after the lockdown ends. No active startup business in the US will be restated to its previous glory very soon. We are already expecting changes in customer behaviors in corporate and startup sectors as well. Unemployment in different sectors will rise to a high level across the world post-COVID-19.

The MSMEs and active startup businesses in the US have to face the devastating aftershocks once the Covid-19 pandemic is over. Due to complete lockdown in the country, the startup businesses that rely upon the constant flow of investments and capital have come to a standstill. Many active startup business owners are finding ways to cope with the situation of the market post-COVID-19. They are searching for appropriate exit strategies to curb further the losses. Some aspiring projects and ideas will take many years to bloom into reality. As the situation worsens, only tough and smart decisions can save startup businesses.

Areas of impact due to COVID-19 pandemic:

To better understand the impact of the Covid-19 pandemic on the startup business ecosystem on a global scale, let’s have a quick look on the major areas of impact due to lockdown for several months since the outbreak:

Capital:

According to global surveys, 41 % of startup businesses have entered the “red zone”: they have less than three months of cash to continue operations. Many young startup businesses are also facing the same problem of cash runaway in such situations when fundraising is very difficult.

Nearly 53% of global startups are facing a situation of slow down or no response from the investor’s side. Only 28% of startups have their funds secured.

Innovative minds and Jobs:

Since the beginning of the lockdown period, almost 74% of full-time employees have been fired by many active startup companies. If we break down the layoff statistics region-wise then active startup businesses in the US have fired almost 84% of employees which is followed by 67% in Europe and 59% in Asia.

Market:

Since the beginning of the outbreak, the start-ups have witnessed a revenue decline of 74 %. More than half of start-up businesses worldwide have seen an 80% and more decline in revenue collection. That means three out of all active start-up businesses in the US are severely affected by the Covid-19 pandemic. 

Management and operations:

Since December 2019, two-thirds of all start-ups in the world have reduced their expenses following the lockdown. Aggressive cost-cutting measures adopted by the start-up companies have reduced expenses and tried to operate with limited resources even in the lockdown period.

How to cope with the post-COVID-19 situation:

For some start-up businesses, the new era of the global market would bring new opportunities. Many start-ups business ideas that were untouched before would find new heights of improvement. Many active start-up businesses in the US have already started planning for the post-COVID-19 scenario.

Some sectors that would need reforms and have advantages because of their business model:

Healthcare industry:

There’s a massive opportunity for the health and wellness sector to showcase itself as one of the most important industries in the world. Post Covid-19 pandemic, they must brand themselves as the most needed support sector. The people are facing immense thereat of lack of immunity and are searching for anything that would help them to say fit and healthy.

Ed-Tech:

Online classes and online courses have become the need of the hour as schools and universities have shut down worldwide in fear of Covid-19 spread. The sudden surge in the online mode of education has grabbed people from all walks of life in every Covid-19 affected countries. The education sector needs reforms in its mode of delivering education. And the online mode of teaching and learning could be the best alternative. Parents are afraid to send their kids to schools because social distancing will not be practiced efficiently. Thus, the Ed-tech sector is looking for alternatives.

Remote working tools:

Remote working tools are the need of the hour in the post-COVID-19 situation. The remote working tools would pave the way for future projects to greater extends. Most of the business operations in the future will use remote working tools for better productivity.  

Delivery Services:

Post pandemic situation will give rise to customer-retail operations for which precautionary measures for Covid-19 will be maintained. The e-commerce and delivery based sector is increasing. This is due to large demand due to people refraining to gather around in shops. The start-ups need to go online for greater reach. 

Managed office spaces:

Every sector is experiencing a sudden wave of work from home culture along with cutting taking cost-cutting measures. Managed office spaces for start-ups and real estate would come as an alternative. This will be a cost-cutting measure to balance the things out.

Final thought:

Most start-up businesses have bleak futures. We have uncertain economies right now and global unemployment will be a challenge for the upcoming quarters. As the situation comes under control and we find a cure to stop people from losing their lives, the businesses will again rise. Only if appropriate measures and business model are taken into account.

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Healthcare accounting: Reasons to outsource it

Accounting is an important part of business industries and the healthcare industry is facing a major transformation in this regard. The healthcare industry is reshaping as healthcare costs are rising, patient demographics are changing and consumers are demanding an efficient and smarter way for providing healthcare services. However, the major concern which for the healthcare industry is the mismanagement of data which results in inaccurate cash collection. Smaller hospitals and physician offices mainly are the victims of such mismanagement.

The practitioners and physicians are traditionally focused on patient billing and are not able to create an effective financial grip on the revenue process which leads to revenue leakage. In fact, the patient’s data record should remain secure in the medical industry. For better management of the accounting process, the proper infrastructure and manpower are needed in hospitals. Moreover, for better results of revenue collection and having less revenue leakage, the healthcare firms should opt for outsourcing healthcare accounting services.

Why healthcare organizations should be outsourcing accounts?

Outsourced accounting for healthcare organizations is the solution for helping healthcare providers to minimize their financial losses. Many medical organizations in the world have found outsourcing accounting as a savior against mismanagement. The experienced accounting service providers will help the medical industry to restrict inefficient revenue collection processes. This will ultimately help doctors to focus more on the treatment of patients and hospitals can use their resources more on advanced medical technology. The outsourcing of accounting services uses the latest technology for drafting regular reports. But ironically this option of outsourcing was not a serious alternative even 10 years ago. And now outsourced accounting for healthcare is has become a viable option among healthcare providers.

Critical points to consider according to MFhills’s perspective:

Here’s a list of main benefits which highlights the idea of outsourced accounting for healthcare is the need of the hour:

Get access to field experts:

The Healthcare Industry needs to hire accountants who have experience in handling the accounts process of health care industries while remaining updated with new rules and requirements. For small scale healthcare providers it is difficult to find personnel with good understanding and experience of industrial accounting service. Outsourcing healthcare accounting to off-site professionals who have healthcare industry accounting and reporting knowledge will build up the in-house controls. Finally, with proper on-site knowledge of medical and reimbursement issues will enhance the results of cost reporting.

Improvement in business decision making:

If the reader can interpret and recognize main business issues and difficulties by going through the financial statements and analysis over some time then you can say the analysis and report are perfect. Getting regular reports on financial conditions is a crucial part of any industry. Outsourcing accounting will provide users to get more logical and detailed information in an improved manner. Also, reporting the financial statements in an understandable format will nullify the unnecessary processes. Elimination of a cumbersome process will improve decision making for business growth. 

Helps to remain committed to core activities:

Outsourcing enables business enterprises to assign back-office tasks to an off-site team. As a result, helps to focus more on utilizing the time and resources available that make a direct impact on revenue generation. In-house activities like hiring and supervision must be strengthened to get the job done.

Collaboration with the outsourced and in-house team to generate the best results:

Some healthcare organizations fear that outsourcing accounting may create unrest among the in-house staff working with the company. There remains a risk that existing employees, patients, and accounting staff could feel isolated while working with a third-party organization. This is one of the reasons why it is important for an off-site team to closely collaborate with in-house staff. So that each employee works together with a similar goal of improving the financial progress on the health organization. In fact, managers should ensure that the outsourcing company takes the in-house staffs’ suggestions to make the best results.

How MFhills can help you?

We at MFhills would be happy to help you with a roadmap for proper onboarding. We have experience of serving small and medium healthcare organizations with efficient financial processes and reducing revenue leakage due to inappropriate cash flow practices. MFhills’s financial and accounting services for healthcare organizations are there to assist you to improve your level of care and profit.

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Do employees quit your organization very often?

Today’s millennial and younger employees are rapid “job-hoppers”, they do not stay in one position in one company for a long period. In simple words, their tendency to quit or change their current job is way greater than any other previous generations. The modern generation employees are always looking for jobs that suit them most or choose to peruse their career goals rather than working with one company loyally.

Employee turnover can cost the organization dearly. Some employee turnover happens because of a lack of management by the company that makes a huge impact on the financial condition of the company along with reduced employee efficiency and productivity. To minimize the frequency of employees leaving, the organization must eliminate the reasons because of which even good employees quit or change their positions. 

The poor balance between employees and organizations leads to major problems in employers’ life too! Staffs face a lack of productivity and fatigue at work. So nowadays employees search for jobs having good management between staffs and the organization. This is the reason why any organization endorses a quality company culture to enhance the relationship between employees and organizations.

We shall discuss the reasons for which employees are leaving the organization frequently and how to maintain the balance between employees and the organization.

Why do employees leave the organization?

Many popular reasons make even a good employee quit the organization they work at. Most of the time, it is a mixture of different reasons that makes an impact on their minds which results in their decision to quit. Here are some popular reasons that drive employees to leave a company:

The imbalance between work and life:

Due to economic reasons, organizations often demand the employee to work for extra hours. This pushes the staffs to choose between personal life and office works. This does not go well with the current millennial workforce in the country.

Everyday indignities:

If an employee is facing a serious effect of humiliation every day, this results in his/her productivity and results in employee turnover. A food employee can leave the organization if mistreated and face an unsuitable work culture.

Lack of trust:

It is very common nowadays that employees are offered a job that does not match the initial description of the organization at the interview stage. This can lead to a lack of trust between the employee and the organization.

Feeling unrecognized:

Every employee wants recognition and value for the work they do. That’s a common expectation. Lack of positive communication between staffs and organization makes employees feel unrecognized.

Inadequate leadership quality

While many managers can finish their job very well but that does not mean that they know how to lead the company. If the manager has adequate skills and understanding to motivate employees then only the balance remains.

Lack of growth opportunities:

Often talented employees are compelled to perform “job-hopping” when they feel trapped in dead-end positions in the current organization. Employees always try to gain new skills and responsibilities within the company. Only staffs who can learn new skills stay with the company. 

How to maintain a balance between employee and organization?

Sometimes, employees finish their job at the end of working hours but sometimes it may take an evening or a whole day to finish. This creates a problem in personal life. Any good organization must understand the work-life needs of employees. Although from the employees’ side, they must schedule themselves while doing work from home but there remain many steps taken by the companies to keep employees’ work-life balance.

Encourage the managers to focus on work hours:

Instead of counting the number of hours an employee works, mangers should focus on the completion of work assigned.

Review the workloads of employees:

Any enterprise must look into the workload before assigning tasks to employees. Managers need to familiarize the works because it is not always possible that what seems like a small task will take less amount of time to complete. 

Encourage taking breaks:

Encourage your staffs to take a break from work to do their jobs. You can encourage them to take a walk or even perform their job in another part of the office. This encourages a healthy work culture. 

Offer work from facilities:

Managers should endorse a flexible working culture. In fact, to keep up the balance between organization and staffs, they can be given an option to manage from where they are comfortable to work.

Conclusion:

Hectic workload affects the employee’s social life. Moreover, this weakens the employee’s life relationships with family and friends. Finally, to rule out an imbalance between the employee and organization, the necessary steps must be taken by the company they work with.

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Restaurant accounting services: Dos and Don’ts of Outsourcing it

In the current business situation of the global business marketplace, be it any type of industry, the main focus remains on growth and development. Every industry wants to maximize revenue collection and make more profits by adopting cost-cutting measures. This is a modern strategy and every company is trying to attain these goals. The outsourcing of activities like restaurant accounting which is not included in the core business model of the industry is considered as a logical option. In the last 10 years, major global business organizations are using this viable option to increase their revenue and growth. 

Insurance companies were the first to initiate this which was then followed by the healthcare industry. In the present scenario, the hospitality sector is leading in the outsourcing field. At first, the hospitality sector outsourced the data entry projects and then outsourced accounting for restaurants in India.  

Problems faced by the restaurant business:

Most of the industries can revolve around different products and services but restaurant industries can depend on quality food and delivery only. This major characteristic makes the restaurant industry one of a kind. For business growth, the owners of restaurants only need to think about the quality of customer experience and food served. Other backup tasks are as less essential. Thus, the restaurants are outsourcing most of their secondary tasks. 

Restaurant outsourcing includes building up social media presence to increase online food ordering and digitizing menu cards and outsourcing the bookkeeping process to established restaurant accounting services in India. But here’s one question arise: up to which extent can restaurants outsource accounting services? As an owner of a restaurant, would you like to outsource the whole process? If yes! Then will it be feasible for you? Here, from MFhills, we present some answers to these doubts in details in the form of do’s and don’ts while outsourcing restaurant accounting services:  

The do’s for outsourcing:

Outsource inclusively: 

Since accounting is not a part of your core business model for restaurants, it is reasonable if owners decide to have outsourced accounting for restaurants in India. This move would also help as a cost-cutting measure and restaurants can use more resources and assets to increase business growth. Outsourcing agency has a team of experts who have enough experience in this field and they might also assist you on tax-related issues. It makes sense if any restaurant decides to outsource accounting comprehensively, this will make it easier for them to make accurate reports regularly based on which the future of business can be planned. 

Choose your outsourcing company wisely:

Choose an outsourcing company that has enough experience in serving the restaurant industry. Choosing the wrong outsourcing company will cost you dearly. The accounting systems and processes vary from industry to industry, thus owners need to research before opting to go with any outsourcing company. These companies work with experts and use the latest application software to produce the best reports. Nowadays outsourcing companies use a cloud storage facility to keep your data safe and secure. 

The don’ts for outsourcing:

Do not outsource decision-taking activities:

The activities that involve decision making like investment decisions, payment authorization, signing of cheques should be under your management’s control. These are a few tasks that need to have your grip to ensure security. You can outsource your accounts payable and get reports from the outsourcing company on time. But payment authorization should be made in house option that will anyway be reflected on payment process statements done externally. 

This move does not mean that you are insulting the honesty of the outsourcing company. But in any way, you should not give any outsider the right to make key decisions on financial issues. Thus only you should have the authority to make key decisions based on the reports of the outsourcing company. 

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Thinking to outsource your restaurant accounting?

While the customers enjoy the food served in the restaurants and emphasize only on the quality of food and delivery but they are unaware of what’s going behind the scene. As a restaurant owner, your goal is to provide customers with the best customer experience with delightful recipes and ambiance. To run an effective restaurant business, financial planning and accounting play a crucial role. Restaurant owners dedicate their time and energy to work on back-office tasks that impact the restaurant business and thus can’t pay the required attention to accounting work. You might prefer to have to outsource accounting and bookkeeping tasks so that your financial tasks are not ignored. Considering the small business nature of restaurants, outsourcing your financial tasks will have benefits that have been listed below in this article.

Benefits of outsourced accounting for restaurants:

As a solution, the owners of many restaurant companies have agreed to rely on outsourced accounting for restaurants in India. The main accounting functions like cash flow forecasting and management, payroll data input, account payable and receivable and many other functions are managed by an off-site team for outsourced accounting for restaurants India. As an outcome of outsourced accounting, the owners will have accounting and stronger management after all. Some benefits are:

Focus more on the business model:

The restaurant bookkeeping is a time-consuming task for any restaurant organization but outsourced accounting for restaurants in Indian restaurants has relieved the burden of accounting management from the owners. Managers have to spend less amount time completing the accounting process working with an offsite team. This creates a lot of space and time that owners to focus on restaurant service and make strategies on how to improve the restaurant experience for customers. 

Eliminate fraud issues:

Fraud is very common in any business if the behavior of higher authorities is very casual. Many large restaurant companies have to deal with cash-heavy nature so fraud cases arise. Spotting the fraud or from where the money is getting displaced needs an eagle-eye and regular checking. But due to heavy workload business owners do not have enough time to notice these cases. By outsourced accounting for restaurants, a team of experienced accounting investigators will have this responsibility to keep an eagle eye. They can regularly check and keep your accounts clear of any fraud-related issues. 

Receive more strategic accounting process:

In the restaurant business industry, success and constancy are very difficult to find. Restaurants must adopt excellent financial strategies and then take appropriate decisions for improved customer experience and services. The basic accounting strategies followed by the company’s decision-makers do not create anything out of the box. Due to this problem, restaurant accounting becomes a liability for many. Outsourced accounting enables restaurants to make accurate decisions for the future by analyzing accurate numbers and statistics. 

Gain access to industry experts:

Business accounting and restaurant management are not the same things and require different skill sets. Most of the restaurants dedicate a huge sum of assets, time, and energy only to get an enormous outcome. By outsourced accounting, restaurants can get access to professional accountants and services. Outsourced accounting for restaurant services also offers dedicated client support. This often proves very cost-effective. 

Other benefits include:

  • No need to bear any extra cost of hiring a new accountant for restaurant bookkeeping. This would have increased your expenses in the form of installing new software and providing proper training to the newly hired employees.
  • The outsourcing team will assist you in effective tax planning strategy for the business. Outsourced accounting for restaurants in India has expertise in many fields.
  • The offsite team will provide you with regular reports so that you can manage inventories according to business growth. You must keep the track of materials available because a customer will demand anything and you won’t like to say no to them.

Outsourcing is a decision that no one should take it lightly. As an owner, you must be thinking to take exert advice before going for outsourcing. Whenever you think to have a conversation on this matter, you can reach out to our outsourced accounting expert at MFhills.

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What are payroll services and how do payroll services operate?

Payroll is an amount of money that is paid to the employers by their company. The payroll processing is very complicated for any company or startup as payroll is one of the most important parts of expense. Payroll processing can be done every week or month but it is very time-consuming and requires proper report management. So companies and startups prefer to hire Payroll services to make this whole process easier and get the job rightly done on time.

A payroll service is an outside organization that manages to provide multiple tasks like employee’s working time calculations, tax obligations, preparing checks for payments, and managing salary reports. You can find some best payroll services for startups, San Francisco, on Google. The United States first saw payroll services in 1949 with Automated Payrolls Company who used to rely on primitive technology of electromechanical calculators at initial days and then grew to become one of the largest business outsourcing services globally. 

A payroll service will calculate the gross salary of the employees through the collected data for employers working hours, and other works like preparing employment tax filings, making direct deposits and printing checks. This will eventually reduce the expenses needed for the business and can also provide legal support for the startup company as the organizations have experts for rules and regulations of business.  

Stages of payroll service processing:

The best payroll services for startups in San Francisco offers careful planning for payroll processing. The payroll service has to monitor regular tasks and changes to withholding and security funds etc. the entire payroll service process can be simplified into three stages: 

1. Pre payroll processing: 

This stage includes activities like: 

  • Defining payroll policies

The start-up’s different policies such as pay scale policy, leave policy, and attendance policy. The first step for a payroll service company is to define all the payment factors and policies to start payroll processing.

  • Collection of inputs like employee working hours and revised mid salary structure

Payroll services interact with multiple departments and gather information like newly hired employee’s data, salary structure, payroll settlement terms, current working shifts and timings, leave policies including benefits etc. 

  • Input validation:

After the payroll services collects the data, they check for the validity of the input concerning adherence to company policies and approval matrix or is in the right format etc. Payroll service ensures that no employee is left out for salary payment. 

2. Actual payroll

This stage includes the actual calculations done for gross salary and tax payments by the start-up. After getting the input data, the payroll processing starts and the results are again verified for accuracy and to restrain from any type of errors

3. Post payroll activities

These activities include statutory compliance, payroll accounting, pay-out the employees and sharing the reports. 

Advantages of payroll service: 

Saves a larger amount of time:

Payroll processing is a time-consuming task for small businesses and start-up companies. Hiring the best payroll service for start-ups in San Francisco will allow the owners, the HR manager. And the accounting team to concentrate on the core business model to operate. To manage the salaries of all the workers while changing the business policies demand a huge deal of time and detail. Thus, by outsourcing payroll will ultimately save your precious time and refrain you from daily repetitive tasks as an owner.

Saves cost

Hiring a payroll service is cost-effective as compared to direct payroll processing. But obviously, big businesses can afford to hire the best payroll services for startups in San Francisco. But small businesses having in-house payroll processes increase the expenses. If your startup has more than 40 employees then you may consider outsourcing your payroll operations. 

Avoid mistakes:

Finally, payroll mistakes can be disastrous for a startup. For incorrect or late submission of taxes to the government can lead to the penalty. An experienced payroll service provider has dedicated and expert staff. In fact, they keep themselves up to date on all the changes of your payroll process. Thus outsourcing payroll service with professional payroll providers will reduce your chance of missing payment dates. Moreover, the experts working at payroll services are up to date with the latest government rules. This will help you to stay in compliance.  

Conclusion: 

As a business owner, you must identify the factors that prevent productivity and hinders your payroll process. Outsourcing payroll has its benefits provided the payroll service provider will do its job efficiently and serve the client.  

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Financial reporting: 10 reasons to hire a specialist for outsourcing

When you are running a business, you have to operate on leaner budgets, and outsourcing certain functions can be proven to be helpful to keep the quality up along with downside costs. In the past, only larger companies thought to hire financial reporting specialists from outsourcing. But today, more and more companies are choosing to outsource over in-house to deal with financial issues. With the improved financial automation solutions along with the use of cloud-based systems, all types of companies, irrespective of their size are now taking advantage of what it can offer to their businesses.

1. Time-saving:

Financial reporting which is accounting and bookkeeping is time-consuming. If you choose to outsource your financial department then you can save your precious time and resource to increase the revenue instead of dealing with complexities of running an entire financial department on your own. And the entire process is handled by an expert who is exclusively focused on finances.

2. Finances get exclusively focused attention:

If you choose in the house to deal with the financial department, then often is left with a lesser importance. As the primary focus of most of the in-house stuff is to generate revenue. But whenever you outsource financial specialists, the financial department also receives equal attention as the rest of your business. The main motive of the finance and accounting Services Company is to manage the finance sector of its client with ultimate importance.

3. Minimal Errors:

It is important to settle financial statements at the end of every month to detect errors and frauds. As in most cases, in-house don’t have much experience with financial departments. So finding errors at any stage with in house is time-consuming and extremely expensive. But when you are outsourcing financial reporting San Francisco, you can use the multiple layers of review in their built-in process that allows you to catch most of the error on time.

4. Save Money:

While running a business, you can only be allotted 2 to 5 percent of its revenues generated to train its in-house for accounting departments. And the business owner knows it’s not a huge amount to spend on something to get the best out of it. So whenever you are choosing to outsource, you lower your overall expanse as with outsourcing you have not to think about training, employee benefits, office supplies, accounting software, and hardware. And the chances of making mistakes are also low. So, overall bringing an outsourced provider like Financial reporting San Francisco can cost lesser than mishaps like financial mistakes at any stage of your business.

5. Access to the Latest Technology

When you are running a small and medium enterprise (SME) it’s pretty normal to lack the latest technology for accounting. Going to outsourcing another external firm that is having expertise in that technology, you can easily overcome such a problem. If we compare the cost for enhancing the technology, the task can be easily outsourced at a much reasonable price.

6. Automate Financial Solution and Reduce Paper

Do you have the idea that outsourcing your finance can reduce the carbon footprint, wasted paper, time, and space? Financial reporting San Francisco can provide you all the information electronically. That readily reduces the cost of maintaining printers, copies, papers, and a fax machine.

7. Privacy

The internal financial records of your business are one of the most confidential parts of the business. Your topmost concern lies around how to keep them secret. If you hire any local accountant for accounting and financial tasks it may result in conflicting the required privacy. But professional outsourcing firms can maintain the privacy of your records.

8. You can access The Financial Data Anytime, Anywhere

Most of the professional Financial Reporting in San Francisco provides cloud-based accounting applications to you. This new technique allows you to access all your financial records and data online. You can easily access any information related to the cash balance from anywhere at any time so that you can make a more informed and confident decision spontaneously. With all the accounting reports on your fingertips, you have a clear picture of the financial health of your business.

9. Getting a neutral viewpoint

You need your financial record in your hand when you are trying to make any important decision by analysing the current financial scenario. Here, outsourcing Firms can give you assistance and suggestions from a neutral viewpoint. As a result, you have to face any biases that may exist in in-house. With the help of a professional, you can outsource any reports to get a better insight.

10. Overall Confidence and Peace of Mind

Outsourcing provides you with timely and accurate accounting data that helps you get better visibility of the financial health of your company. And with that, you get better peace of mind while making important decisions. By outsourcing with Financial reporting San Francisco, you can rest assured that all the financial information is correct and your business is out of any potential threats or fraudulent activity. No matter what is the size of your company, hiring financial reporting specialist from outsourcing just provide a better business sense. It provides you security as well as the confidence to focus on the growth of your business.

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How do small businesses can become successful?

Are you having a feeling that your small business is not making enough progress as you wanted? This is a common feeling that every owner of a small business feels at the initial stages. Every entrepreneur faces trouble to work in the first place. Having a profitable and successful business is every entrepreneur’s dream. But it is not always possible to get things done as you want. In some scenarios, the marketplace has slowed, which is a tough situation for many small businesses due to lockdown during the coronavirus pandemic. This article is focused on delivering a few ideas that would help small business owners to succeed. Building a successful business is a time taking and hardworking job and here are some suggestions for you to make that a reality.

Give customer service a priority: 

It is very often observed that a customer will not turn out again to a company after they experience bad customer service. For making up one bad customer review the company needs several other positive customer service experiences. Routinely analyze your customer service policies and make changes to that according to the customer’s demand in order to keep up the competition among your competitors.

Entrepreneurs need to be aware of customer service because it takes more cost to get a new customer than to retain an existing customer. Providing quality customer service can boost your sales. It is part of the marketing strategy because satisfied customers will ultimately give positive reviews about your company to other people. Prioritizing your customer service will pay off in the future. 

Focus on using digital tools

COVID-19 pandemic has forced entrepreneurs and small business owners to digitize their business to a greater extent. Digital tools and social media platforms are getting essential to survive this lockdown period where customers can’t visit you. Create a public page on social media in the name of your company. Build a website where you can describe your company and what your company does. If you are selling a product then advertise your inventories online so that customers can at least order online. This will also increase the reach of your business to greater masses. After all, social media like Twitter, Facebook, and Instagram is a great way for promotions as well. 

This is the time to become advanced using digital tools and build up an efficient information management team. For example, try to keep business records on cloud storage which can be accessed from anywhere you want. It is not possible with computer hard drives because you may not be able to visit the office in person. Moreover, digitization will also ensure keeping backups of your data. 

Build Word of Mouth for Your Business

When you run a small business or a community, word of mouth is very essential for attracting customers. Customers will at first search the product and service reviews about different companies and then decide from where they should buy. Creating a good reputation among the customers is a part of the market competition that will enhance your business. 

Now coming to the point, you can get a positive word of mouth by providing quality and professional customer service, analyzing and navigating your online reviews, and focusing more on public promotions. You may also consider gaining publicity by doing charity and making partnership local organizations. 

Cut business costs: 

Small business owners must ensure routine checks on business expenses especially at this time of the coronavirus pandemic. As an owner or entrepreneur, reducing expenses should be a part of your company profile and work culture. Tracking expenses can be a tedious job but there are many applications available online to help you keep a record and analyze routine checks. Try to conduct monthly reviews of your expenses like vehicle expenses, office space, and business insurance. Now if you see any of these areas have an abundance of enough available commercial space, you might think of relocation. You may also consider choosing work from home culture to cut the need for a storefront. Regularly check your essential supply cost and search for discounts or methods to a partnership with local businesses for saving money. 

Conclusion: 

Every small business wants better ways to serve customers. Entrepreneurs across the world are struggling to solve and implement their business ideas. In reality, entrepreneurs fail to focus on some areas of their company while busy engaging in other areas. This article has highlighted those areas where they need to work more to grow and succeed. 

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Sales process: Definition and its significance

A sales process is a series of steps needed to acquire customers and clients. A sales process guidebook defines the sales tactics adopted by your company, best methodologies, and practices that will act as a roadmap for your company to deal with customers and close deals. A company needs to build a sales procedure for its growth. For a sales manager, building a sales process guideline is a necessary job as the sales practices will decide your team’s possibility to sell company products or services. A sales process is generally created by documenting and customizing each step of your business model, then mapping out the whole procedure. This is very important because the guidebook shall ensure that your business is most likely to meet quotes and keep customers and upgrade the conversion rates. Creating a sales process is not that difficult as it looks. 

Why the sales process is important?

The sales process has a positive approach towards sustainability and promotes consistent revenue increase. The following reasons can be included for having established sales practices:

Boost confidence and efficiency:

Before selling a product or service, it is very important to build a proper roadmap. Following the roadmap will increase the sales team’s efficiency. A sales process will help them to follow a predefined method that would make your sales team aware of what should be done at each stage. Without guidelines, your team will find it difficult to follow up and can easily get out the opportunity to make the greatest deals. With a proper guideline, even a new intern will find it easier to understand company policy, who your clients are, how to communicate, and make deals with them. 

Increase revenue growth:

According to various surveys, it is evident that a company that has a well-established sales ptactices generates higher revenue. With faster understanding, the new representatives can contribute more effectively. The repetitive steps in a sales process also help your sales department to find out leads with minimum potential and less productive. Every business company has a goal of making business growth more sustainable. The sales process ensures the same and focuses more on accelerating growth. This ready-made guideline is more beneficial as they help the sales team to focus more on resources. Moreover, it also helps in selling, terminating deals, and communicating with prospects. To have a better sense of your business’s success rate, your sales team must have a clear roadmap that would also forecast sales bookings and revenue growth. Trustable sales prediction increases confidence in making adjustments in operations routinely while planning for the future.

Accountability management:

Accountability management among sales team members ensures that staff is working well with their assigned works. If there are any issues appearing within any other department, it will be easier to find out and solve the issues within that department. The sales practices involve every other employee in the company so this helps to facilitate the accountability of your employees. 

What Your Sales Process Guidebook Should Include:

Make sure your sales process guidebook is easy to follow. Your sales will be solely dependent on it. Assign duties at each step to your employees and mention all the policies and strategies to your staff while dealing with customers.

The company overviews

Describe your organization’s vision, mission, history, ethics, and overall strategies. Also, include how your company sales methodologies are different from others keeping your sales department in a broader light.

Sales practices and methods: 

Explain your company’s sales approach here and mention how to interact with customers. This must include “what to do next” in different situations and how to convert a lead into a customer efficiently. 

What products we offer:

This area must include a detailed description of every product and service that your company offers. Selling points and pricing charts of the products should be mentioned here. 

Customers’ profiles: 

This area should not only have details of your buyer’s persona but also include their industry details, job titles, pain points, and qualifications. And how to make them purchase products and scripts for driving those ideas. 

Conclusion

Developing a sales process guide requires your team to understand what does it takes to convert customers into prospects. And then following repeatable steps that your team must follow consistently. Thus sales process includes understanding each step and making connecting activities to persuade the customers into the sales process. 

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Strategies for Surviving a Cash Flow Crisis

A cash flow crisis is one of the major challenges that business owners have to face. Any kind of business has its own ups and downs and business owners need to ensure necessary steps taken to thrive the crisis. Currently, the global market is facing a major impact of the COVID-19 pandemic and business owners are facing an economic crisis during the lockdown. The inability to cover daily expenses is putting every business at risk. A cash flow crisis can appear when there is a decline in sales, customers are paying late and expenses are larger than anticipated. Small-scale businesses need to manage cash flow otherwise it could lead to destabilizing the business. 

Due to continuous shortfall in sales, business owners need to focus more on operations that lower their expenses and put cash in their hands. Here in this article, we have got you covered if your business is facing a serious cash flow crisis. Follow these strategies to help get your finances back on track:

Slowdown your payment to vendors:

If you are not among those who have a history of paying late to their vendors, then try to negotiate with your vendor for extension of a few days or few weeks to pay your business bills. The longer you take to pay your bills, the more cash will you will have in your hand. But, this strategy may get you off from your vendor’s favorite list of clients. Your relationship with vendors may be at risk but strategically slowing down your payment is a good option during a cash flow crisis. But remember not to delay payments too much, only try to pay when your payment is due for some days and cash is in short supply. If your vendors allow you to delay payments for some days, consider renegotiating your payment for the long-term.

Get your customers to pay you faster. 

Customer relationships are a priority in running any kind of business. To make customers pay you on time, you can offer them payment discounts. Business owners may consider offering discounts to customers who will pay before the deadline. For example, give 4 to 5 percent discounts on a first come first serve basis. Contact those customers who have made payments on time before the crisis period and ask them to clear all payments as soon as possible. Offer them to forgive an amount of their overdue balance if they pay immediately. Even if you do not receive payments via credit cards, try accepting card payments for faster and easy collection methods.

Purchase less inventory for better cash flow management:

Some business owners make mistakes by buying inventory more than required. This step can have a negative impact on cash flow management. Instated of buying too much, first analyze if your business allows you to keep inventory in hand, review the inventory requirement, and then see if there are items that can be ordered less frequently. Order only those items which are absolutely needed for running the business for now. When there is less demand in the market, try to have liquidity on any unnecessary inventory to cut your losses and gain as much amount you can by giving discounts. 

Monitor cash flow:

To avoid such a cash flow crisis in the future, business owners need to focus more on cash flow statistics. Perform daily cash flow analysis to keep track of your expenses. Business firms need to develop a habit of analyzing their finances on a monthly basis to know where the company stands and can easily troubleshoot such issues during the crisis period.   

Consider layoffs: 

Small business firms often find it difficult to downsize their employers compared to large scale business firms. Every staff in small-scale industries has the potential to generate an amount of revenue. But layoffs will not benefit the smaller companies. Instead, ask those employers to work as freelancers to reduce labor costs and health insurance. And payroll of the company and also provide the employers freedom to work for other companies. This strategy will also help the staff for increasing their income.     

Conclusion: 

During the cash flow crisis, these above-mentioned steps should give business owners some ideas to stay alert and ready even in the economic slowdown. 

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Business got hacked!! What to follow next?

Your business has been hacked. That’s surely a nightmare scenario, but that does not mean that you have to immobilize your entire operation. Unfortunately, the situation is becoming more common as the interest of cyber-crooks targeting small and medium-size business are increasing day by day. The main tendency of the hackers is to steal private information like customer data, product details, and password that leads to back account. At times, there are risks that hackers may try to hijack your entire company’s website to attack others online. As most of the small size business does not have the security expertise, response tool, and data protection such cases have become more common today.

If you have to knowledge of what to do next it could cause you a difference between making a quick recovery and shutting the doors permanently. Here we have listed six ways that you must know to minimize the damage after been hacked.

Contain Your Damage

Once you have realized what type of hack you are facing, you can immediately make moves to secure your network by running an antivirus program as well as resetting all the passwords. To confine the impact it’s critical to do this step quickly.

Find out the corrupted systems and files and remove them to prevent further data theft. Though this step will not help you to solve your problem it will help to prevent additional damage. Depending upon how severe the entire situation is, you may need to take isolate a part of your network, offline the entire system, and implement temporary firewalls or block website traffic.

Inform Customers

May you think to fix things without telling the entire hacking scenario to your customers and clients? That’s not a good idea!

If you have used the customer database, then you are obligated to provide proper information to them. Hiding a hack from your customer is never a good idea. You have to let your clients and customers know what kind of data or information was compromised and what are going to do about that.

Get Legal Advice

If the cyber-insurance policy of your business is not there, then you have to consider to hire attorneys that specialize in internet & cybersecurity law to navigate the legal issues. For example, if the hacker gets access to your personal information about the company or customers then you to send them a legal obligation notice. Internet security related laws are constantly changing and also varies from state to state. So, if you are facing hacking in any stage of your business, get legal advice as early as possible.

Repair Damage and Rebuild

To repair the damage, you must have to consider few costly and disruptive steps, like you have to shut down your website and remove infected computers while you clean up. But don’t forget to take a clear backup before restoring data and formatting the hacked system. Try to rebuild your website as well as the reputation as early as possible. While you are rebuilding the system, maintain constant contact with authorities, partners, and customers.

Educate Your Employees

To avoid putting your sensitive information and business data in danger, you must train your employees accordingly. Let them train to respond and address;

  • Keeping passwords secure
  • Avoiding password repetition
  • Clicking on links and downloads
  • Sharing too much personal information
  • Updating antivirus and malware protection

Train your employees to trust others, in that way you can address one of the important social hacker’s key tools.

Update Your Security

Once you have cleared all the mess, make sure that your security defense is now running perfectly and all your data are being backed up. You have to come with a plan that you had not tried yet. If also you have a tight budget, you must not compromise with the security area. To investigate any future problem and to save all our business information you have to pay money on buying a cyber-insurance policy to create layers of security; that give you the facility to add encryption to retrieve the most sensitive information.

Final Thought

Plan your cybersecurity policy before it happens. But if you faced one, consider following these steps to minimize the damage and keep your business afloat.

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Financial Reporting- all you need to know!

Every new business leaders and managers face challenges in managing finances. They must develop basic skills in financial management to run a healthy business. If a business owner is not experienced with managing business finances and expects others in the company to manage finance is clearly going to harm the business. Basic skills like cash management and bookkeeping need some critical strategies and control to ensure the integrity of the business process. Simple accounting methods and drafting balance sheets are some basic skills that need to be understood properly by managers and owners for a stable economic future. Here, we have listed 6 steps a business owner should follow to run a healthy business efficiently.

Owners should not neglect their role:

Business owners often overlook their role and decide not to pay themselves. Their aim remains to pay every other employee to grow the business. If it is a small business, then it’s even easier to put every capital gained into everyday operations as ultimately this extra money will help you to expand your business. But experts warn that if the business does not run accordingly then the owner will never get paid. So a leader or a manager shouldn’t forget that he is a part of the business and need to get paid accordingly.

Increase growth in investment:

Every new business owner should never stop searching for business growth opportunities. To take the business towards a healthy financial development, business owners should always aim for a better future. If there is a notable improvement in customer service, there’s always a possibility of business growth which will attract more clients. Generally, start-up companies that come with innovative business models to attract the clients to show that they are willing to invest more in the near future and add more values to their organization.

Have a proper profit and loss statement:

Maintain a proper profit and loss statement of the company which will reflect the revenue and investment the owner have done in a given period of time. It shows all about the company’s clients, investors, customers, and lenders’ contribution to the growth of the company in terms of financial health. Moreover, maintaining a profit and loss statement will help stakeholders and business partners to evaluate if the company has a decent track record for each year. 

Balance Sheets must be maintained:

A balance sheet is a tally that shows the recent net worth of the company. The balance sheet includes assets of the company, liabilities, and equity values for the company. Whereas, the profit and loss statement includes only income and investments. A business owner must take the necessary fiscal action if the sheet is not ‘balanced’

Cash Flow Statements:

As a business owner, maintaining a cash flow statement will show how you’ve spent and profit your income. In simple words, a cash flow statement is a description of the company’s past. This reflects how effective a decision was strategically correct for growth. The statement reflects not only how the business was operating but also the patterns of investment over an interval. As a result, this statement helps investors to evaluate a business’s capability. So that they can generate more revenue and remain profitable in the market. Cash flow statements often indicate a possible financial future of the company.

Make a strategy for billing:

Managing business finances includes managing the flow of cash on a daily basis. Clients are often late on invoices and do not make the payment on time. In fact, Billing the clients is really a tough job as owners often face difficulty. It is difficult to collect payments from some customers which causes cash flow problems. As a solution for these situations, you must not annoy the client with multiple invoice mail and phone calls. In fact, you must try a different approach. You can offer a 2 percent discount off the total bill if the customer clears the payment within 10 days. And unless he has to pay the full amount within the next 30 days.

Final thought:

Business issues will occur but to deal with finance-related problems, a business owner must do planning for the future. Business leaders should consider the above-mentioned steps and concerns before implementing a business model into reality.

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Outsourcing business operations: is it the exact time?

The COVID-19 pandemic has affected global business operations drastically. Entrepreneurs around the globe are busy reviewing their core business operational methods while maintaining the restrictions and strict guidelines for lockdown. Entrepreneurs and business owners are mostly operating business processes with remote working arrangements. One of the notable lessons that the COVID-19 pandemic has made us realize that businesses should outsource lean operations. So that to maintain a proper focus on customer satisfaction with limited resources.

How outsourcing services will help your business to grow during COVID-19 situation?  

In such difficult times, you may require to arrange all your staff to handle multiple tasks. Tasks like revenue generation, sales process, managing accounting, and other activities for business to continue. This pandemic has forced entrepreneurs to review and arrange business operations again. So that they can generate greater revenue for every investment made in the form of money and of course time. Outsourcing your business will let you focus more on core business operations. Meanwhile, the outsourcing team will help your company to expand your offering to customers.

The global outsourcing market is worth billions. In fact, it includes businesses of all sizes, marketing departments, HR, information technology, and many others. Outsourcing will expand your business to a higher level by letting you save cost and time. You can get in touch with a team of specialists to help you run the business smoothly. So, do you want to expand your business without having the burden of hiring extra staff? Consider these reasons why this is the exact time to consider outsourcing.

Help you with cutting costs:

Cutting costs is one of the main reasons why business companies need to outsource. Outsourcing will help you get advice from trained experts within a limited budget and you need to pay only for the services you want. Thus, outsourcing is cost-effective compared to the process of hiring full-time employees which can be a more costly and time-consuming task for the owner. A dedicated outsourcing service will charge for the working hours and the cost-effectiveness of this method will be visible.

In which areas outsourcing services can help your company to cut costs?

Companies have to spend a huge sum of money to find new employees and further, the training of hired employees is necessary after the interview process. But in outsourcing, there is no need to spend expenses on training and interview process for hiring.

How cost-cutting will help your company during the COVID-19 pandemic situation?

The statistics for cash flows in various industries in the COVID-19 pandemic situation have left the small business owners and entrepreneurs very upset. Your business can save a significant amount of money by outsourcing some costly operations that your business otherwise have to spend a lot of money on. Entrepreneurs can eliminate the headache of having extra office space and updated software technology for the new staff to do their jobs properly. Outsourcing is less expensive for organizations because staff salaries can add up. You may outsource the operations of HR, payroll, financial reports, and other accounting stuff while paying only for the services your organization actually wants to use in the required time. 

You will get a team of experts from outsourcing services on your side:

Entrepreneurs are not only innovative and creative when it comes to business ideas but also experts in different areas. But most of them cannot claim to be an expert in every aspect of taxations, HR regulations, and other operations. That’s where outsourcing companies can assist your organization. Outsourcing services will provide you with experts for guiding you to take accurate decisions even in difficult times. The team of experts will be more dedicated to their work because each of them needs to organize and handle a particular area of operation.

The outsourcing company will expand according to your needs:

The COVID-19 pandemic is lasting for a really long time right now. But we all hope that it will eventually end so that our businesses can be put back on track. When the situation will be back to normal, then you will need to accelerate your accounting processes, HR operations, and accounts payable process as well. The outsourcing company will help you to meet your business needs. This would be done by providing you with additional hours and workforce so that you can reach your goals easily. This is quite easier compared to negotiating with staffs for putting more efforts to meet the growing business needs. While outsourcing, all you need to do is just inform the outsourcing company about the additional working hours you need.

Final thought:

If you are looking for cutting costs, increase capacity, improve customer experience, and expand your offering, then outsourcing is the most affordable and stable way to meet your business needs.

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4 steps to keep your business afloat amid the recession

Numerous discussions are going on around the world about the upcoming recessions due to the COVID-19 pandemic situation. The worldwide lockdown situations have resulted in the downgrading yield curve of business growth. A recession will be difficult for many entrepreneurs around the globe. Entrepreneurs will not only face an uncertain future for running their business but it also means they would get a lesser amount of opportunities to find potential partners who are willing to invest. Forecasting recessions are very difficult even when there are strong shreds of evidence to understand an upcoming crisis. Prediction of timing and the exact impacts of the recession on the industries is very difficult.

There’s no escape from the recession, simply shutting down the shop should not be an option. Every business irrespective of their sizes would have to face the universal recession. During such difficult times, the entrepreneurs and business owners are losing hope and are not able to focus on the statistics. But trust me, getting panic-driven and emotional will accelerate the difficult situation and may lead to self-destruction. We need to defeat the downturn and change the direction of the business. Entrepreneurs need to adopt some changes during recessions for grabbing the opportunities for advances. Here we present you with some changes to think about making your business downturn-proof and recession ready.

Renegotiate long term business contracts:

Not only the business owners but also our suppliers, vendors, and customers will face the recession. During the economic downturn, discussing and renegotiating the contracts are highly appreciable, especially the long term contracts. Such adjustments will benefit the hard financial time of your organization. If you stay in business, your suppliers and stakeholders will also remain a desirable position to continue.

Give importance to flexibility:

A recession comes with uncertain economic operations. So entrepreneurs prefer to focus on cutting costs and outsource financial operations. During downturns, if customers hesitate to purchase, it could be proved disastrous. The productions need to lower as a response to the recession. Quick and costless scaling down production is the need of the hour

Adjust your values:

Even during a recession, entrepreneurs need to focus on providing value but the ultimate value always depends on the customers. You must introspect about what the value of your offerings is and what should the value be according to your customer in difficult times. Successful entrepreneurs always prefer to let value decide what they want and when.  

Recessions bring the opportunity to expand:

On a positive note, an economic downturn also comes with a lot of opportunities to expand your business. During such hard times, the competition is much less, the prices for the assets falls exponentially. An increasing unstable employment situation can be seen which means you can hire skilled employees easily. Recessions bring some pessimism where a lot of opportunities to expand your business could be observed. You just need to make sure that you have enough bank balance to grab the potential market.

Conclusion:

If you make the right decisions today, you will see the results tomorrow. Not only adjusting prices will work but also you need to expand your business reach and tell people why they should choose your product or services. As an entrepreneur, lead the way out of such difficult times and be an inspiration for other people. Start helping your employees, negotiate with your suppliers, and then support your customers.

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Cash flow crisis: Why is your company is facing it?

Cash flow difficulties are faced by every successful business in any industry. From the unpredicted expenses to late payment of clients, numerous other factors pile up to make your company financially unstable due to disrupted cash flows. The cash flow crisis usually arises when the amount of money you spend on the payment of suppliers and your employees is greater than the amount coming in. Cash flow is an indicator of your business performance. A positive revenue stream indicates your company needs not to borrow money and can meet is commitments immediately. A successful entrepreneur aims at having a positive flow for running his/her company easily.

Cash flow management is a difficult task for small scale and medium-sized industries. Although cash flow management is necessary to ensure financial difficulties will not happen hamper a business. A negative cash flow happens when your company does not have enough money for the payment of suppliers and employee salaries. They eventually become dues over time and this indicates an alarming situation where management should immediately take necessary steps. Revenue stream difficulties are a serious threat to small and medium-sized businesses. Entrepreneurs should be aware of the following reasons for the assets crisis.

Inefficient cash flow management:  

For small-sized businesses, owners need to draft proper strategy for cash flow management. To increase assets, entrepreneurs need to streamline the assets and liabilities of the organization. One of the major reasons for the decrease in the amount of money coming inside is the lack of following up late payments by the clients and accounts receivables. Your liquidity will be affected if the necessary documents are not filed within the deadline. Keeping a track on inventories is important as owners should not spend too many expenses on inventories but owners must ensure they have the required assets at any moment. Proper management of the amount going outside the company in the form of payments is the need of the hour.

Not following the cash flow reports:

A business company needs to prepare a cash flow statement along with the balance sheet and income statements to regularly track the amount of money coming in and going outside the company. There are various tools and software available for managing the financial positions of your business. You may consider outsourcing your company’s financial operations for better results. Cash flow statements can be used to predict and design the plan of action. The revenue statements will help entrepreneurs and business owners to know the sources of their main source of income.

Slow business performance:

Cash flow and profits are two different concepts and having a low profit are one of the reasons for disrupted flows. A profit statement influences the assets directly. At some point in time, entrepreneurs have to face irregular cash flows. When there is a high amount of income, we refer it as positive flow and lower-income means less amount of money is coming inside. High profits ensure the company has enough money to pay its dues and perform investments for improving its services and products. A company with low income will struggle to fulfill its requirements.

Lack of cash reserved:

During recessions, companies will face a lot of difficulties to maintain their revenue stream. During such difficult times, business owners need to keep a minimum balance to meet their requirements. The cash reserved will depend on the size of the company. Generally, small businesses do not produce enough cash to survive through emergencies. COVID-19 pandemic is one of the emergencies we all are facing right now. Maintaining a regular revenue stream has become difficult in almost every sector.

Conclusion:

Maintaining a positive cash flow should be one of the top priorities for business owners. They must have strong control over cash flows to maintain the company’s financial status. Business owners must incorporate strong practices and regulations to keep a regular check for effective cash flow management. A company with positive harvest practices will generate more revenues and will observe an exponential growth.

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Why discounting can be hazardous for running your business

Your company’s reputation depends on the business values that you incorporate while engaging with the customers. Discounting can be proved harmful for your business if it goes unchecked. Discounting may damage the value of your brand even if you are offering unique products or services.

It may sound cool to offer discounts to customers for a sudden hike in sales but it creates long-term damage to your brand value. It is a common myth that the greater the turnover higher will be the profits. Entrepreneurs should not believe in such wrong beliefs. Such hit and trial methods have always dearly cost the owners. Such moves can initiate a greater price war among your competitors and you may damage your business without making any profits. Consult financial experts or outsourcing services before you consider to reduce the prices of your products.  Here we present some reasons why offering discounts cannot be an option to increase profits:

Discounting is aimed at short time benefits:

Discounting without proper planning will do more harm to your company than good. This will create a sales spike for a short time but in the long-term, it may damage the brand reputation. Most business owners do not recommend slash prices which will create a sudden onslaught on sales. According to financial experts, even a slight price discount may decrease the operating profits to a greater extent. Several surveys in recent years have shown that when an average company slashes its prices to increase volumes and raise profits, it has generally ended with a failure. No entrepreneur should ignore these facts and statistics while planning for a business. 

Discounting sets dangerous expectations among the customers:

Customers will get used to the regular discounts available for your products and once such expectations are created, it devalues your brand. When sales representatives offer price cuts to increase their commissions, customers start to expect such regular discounts. After that, it becomes difficult to make profits from the exclusive products that your company has launched.

Business dealings become more complicated through Discounting

A business deal becomes irrational when you can offer discounts to one customer but not for the other one. This indicates that you are selling the same quality of service or products under different price structures. Such variable pricings will hurt the customer experience of your company. This can lead to internal confusion and your management team will face a lot of difficulties controlling the chaos. If your business has a larger customer base, then such complications will become nightmares for you.

Discounting shows the lack of faith you have in your business

When you start to discount your products, it is basically due to the lack of confidence in your services. The owners start to discount when the customers do not value your products as you have expected.

Profit margin gets squeezed:

It is obvious if you sell products and services at their original price rather than on a discounted price, your margin will be much higher. As a result, you need to cover those profit margins that you are losing due to discounting through future opportunities. This requires creating more sales efforts and make deals at higher prices.

Conclusion

Customers always expect to grab the best deals possible in the market. But discounting may create a lot of problems for the service provider. As mentioned above, this will ultimately hurt your company’s profit margin, customer experience, and your reputation very critically. Discounting without proper checking will threaten your future business prospects. Some alternatives to discounting include showcasing the value of your products and services and providing the most unique solutions to the customers. You can try to eliminate the unnecessary components from your services so that it can fit the budget of the customers. Or you may just leave such a deal where profit-making is complicated and not guaranteed.

At MFhills, our expert advisors can help you to better understand the hazards of discounting. Our advisors will guide you to prepare sales processes and policies which can support rational pricing for a large profit margin. To know more, Contact us on:

Mobile phone: +1 (650) 351 7900

E-mail: admin@mfhills.com

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Payroll processing tips for successful entrepreneurs

Employees form a significant part in every process of your business. Their role is very crucial in making every business operations run smoothly. That’s why Entrepreneurs should not take payroll management should not for granted. Your employees work with the expectation that the owner will clear their salaries within time. So when payroll processing is not done properly, business owners face a lot of difficulty in cash flows. This situation leaves your employees unsatisfied. And this can dampen the work environment in your organization. In fact, keeping employees satisfied is highly appreciated in any work culture. If payroll management isn’t done properly, your business could face regulatory penalties. And would cost an entrepreneur very dearly.

So are you facing any problem managing your payroll? In this article, we will introduce some useful payroll management tips and tricks for entrepreneurs to efficiently run their start-ups. Calculating the work hours for each employee accurately. And providing them with the benefits they deserve can be a time-consuming task. In fact, you may like to outsource your company’s payroll management for better operations and more effective output.

Use time tracking software to monitor 

Entrepreneurs can keep track of employee working hours and attendance using technology. Time tracking software helps do so. You can eliminate the risk of manual errors and get more accurate data regarding employee scheduling. This move will save a lot of time and will make payroll processing less cumbersome and cost-effective. You can calculate the payroll statements about the data provided using time tracking software. This will not only improve the company’s productivity but also increase efficiency without the need of hiring new staff for doing the exact job.

Make sure you pay taxes on time

Ensure that you have gained the necessary information about government regulations regarding tax collection and procedures for payment. If you don’t know all the essential steps, talk to your accounts team regarding the taxes you need to hold back from the paychecks of the employees. Besides, being an owner, it is your responsibility to learn about these complications and how payroll processing works. You need to pay taxes to the government after a regular interval and new entrepreneurs may find it complicated.

Emphasize more on automation for accurate payroll processing

There always remains the risk of manual error while running an organization. The higher the manual errors, the greater is the probability of getting calculations done wrong. Manual errors include getting repetitive data which affects the entire calculations. To get rid of such errors, you may consider outsourcing your payroll management. Outsourcing services use the latest software to plan and process your spreadsheets.  Moreover, automation will increase the pace calculations and you can plan for future investments accordingly. As a result, this will eliminate the need of hiring a new set of employees and entrepreneurs can save a lot of money.

The employee should ensure self-service

It is impossible to eliminate manual entry even if you entertain automation. A payroll managing department can face a lot of difficulties answering all the queries of employees about their salaries. Finally, this can reduce the pace at which your company is running. An employee must get access to his/her payroll process data. Employees have the right to review their payment details, time off requests, and withholdings through a portal so that the other operations of the company can run smoothly. Owners must establish a set of policies and regulations that has all the details about payment calculations.

Conclusion:

Make sure you do your payment processing in a compliant manner, otherwise your business could face a hefty amount of fines and other implications. Similarly, payroll mistakes can be very expensive to entrepreneurs. We have assembled a few tips and tricks that could help entrepreneurs to remain at the top of every responsibility. And this will definitely help to keep your payroll management run successively.

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Outsourcing accounting services: Pros and cons

If you are running a large real estate business or a small restaurant start-up, your finance department plays a huge role in business growth. Regardless of the size of your business, you must keep a proper track of your financial operations. As an entrepreneur, you may want to look into every department of your start-up alone, but this could affect your productivity. For managing every operation, you need a good tracking and prediction of your finances. Entrepreneurs would never like to see their start-up failing due to poor accounts management. If you don’t like to get such nightmares, all you need to contact is a good accountant to handle all your financial operations and let you make accurate decisions for expenses.

Wouldn’t it be nice if you can focus more on your core business operations while your financial team will keep your balance sheet ready? Most entrepreneurs prefer to outsource their financial operations to get a better output on the financial need of the company.

Now you may ask about what outsourcing will cost your company, but let me tell you outsourcing services will be more cost-effective than hiring new staff for your accounts. Outsourcing your accounts will be a great decision. And you don’t’ have to worry about setting up new office space and hiring new staff. Also, entrepreneurs need not take the headache of expenses for the latest accounting software. Without any doubt, any business owner can say outsourcing services are beneficial to a great extent. But, there are some demerits of outsourcing assistance that entrepreneurs need to take care of.

In this article, we will be discussing a few pros and cons of outsourcing your accounts. So that you can take logical decisions whether and which section of your business you need to outsource.

The Pros of outsourcing Accounts:

The benefits of outsourcing are endless. It lets business owners spend more time on the bottom line and enjoy the merits of cost savings, access to professional guidance, and data security.

Cost-effectiveness of outsourcing:

While outsourcing your economic affairs, you need not worry about getting a new office space for the accounts department. And you can eliminate the need of hiring new staff and providing them with proper training. With outsourcing, you only need to pay for the amount of service you will ask to get done by an outsourced professional accountant.  

Outsourcing can save a lot of time:

When you have outsourced accounts operations of your organization, then you can expect a proper balance sheet coming your way. For getting better results from outsourcing, all you need to ask for a specific interval to get the things done on time and pay accordingly. This would eliminate your worries regarding your task done within a set time frame.

Outsourcing can get you close to expert advice:

The employees working in outsourcing companies are highly experienced and result-oriented. Thus you need not worry about the quality of work and advice you shall get.

Security and confidentiality are maintained:

Outsourcing services have professional employees who maintain your books, and they are well aware of the security concerns and. So they use expensive and robust security systems to keep a check on data breaches. They do not compromise with security threats and maintain your company secrecy.

Cons of Outsourcing:

Problems with communication with an outsourced accountant:

It is always easier to communicate with in house accountant in case of any emergency. Business owners may find it difficult to communicate with an outsourced accountant because you may have lesser control over your accounting functions. Such problems can be sorted by making policies and agreements in the initial stages of the partnership.

Hidden costs of outsourcing:

While working with any paid service, sometimes it may happen that additional charges required weren’t mentioned in the agreements. To avoid such risks, ask the outsourcing service to properly mention the additional charges needed while accepting the agreement. After working for a few months, chances of such happening is eliminated.

Conclusion:

Your outsourced accounting service will provide you customized financial reporting, management reporting, professional bookkeeping, and accounting services. Outsourcing can truly transform your business growth if you have chosen the right bookkeeping services. Outsourcing is not only engaged with better accounting but also helps to drive cash flows and maintain profits while growing your business.

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Entrepreneurial risks faced by every successful entrepreneur

Entrepreneurs are renowned for their potential to take risks. Most entrepreneurs do not make a huge success during their initial days. Before they can make it a big, entrepreneurs go through tough phases of their careers. And they often experience and learn how to tackle the obstacles and barriers. An entrepreneur needs to take calculated risks before starting a business. Careful planning is all a budding entrepreneur needs to mitigate many risks of starting a business.

An entrepreneur must be mentally prepared to manage all the obstacles that he/she might face during his/her entrepreneurial journey. They put their career, personal finances, and health at stake to plan for the future. Entrepreneurship is one of the satisfying career paths anyone would have chosen. To take the responsibility of your destiny through your own decisions is worth it. But success comes with challenges, and being an entrepreneur you need to take the following risks to become successful.

A career at risk

You might have to quit your current job or drop out of college to manage the burden of business ownership. Once you enter the world of entrepreneurship and start getting income, you will be too busy to maintain a full-time job somewhere. Some people get the chance to resume their careers. But everyone is not lucky enough to have any backup plan when a business does not run well. Some entrepreneurs do part-time jobs as a backup plan during initial days to ensure the safety of their careers.  

Putting personal time and health at risk

The success of entrepreneurship is rewarding. They often outweigh the personal risks taken to start the business. Entrepreneurship can have a serious effect on individuals. Budding entrepreneurs need to spend many hours to plan for prospects of their business. You may have sleepless nights just worrying about the business model you have planned to execute. You are bound to take risks of spending personal time and energy to make your company a great success. And need to be prepared to live in such a stressful lifestyle.    

Risk of living without regular paychecks

In the initial months of the entrepreneurial journey, there is not any guarantee of generating profits. This is where your career comes at a risk. In the first few years, there may not be any regular positive cash flow inside your company. This can push you to work towards sustaining your business and have unstable income. Thus make sure you have an alternative plan for your career and have enough money reserved to keep your business running.  

Financial risk

Entrepreneurs make a financial plan showing predictions for company profits and the expected return to the investors. You can avoid financial risks by having proper forecasting for your cash flows. If your income exceeds your investments, your company will have enough cash revenue to meet your ends. Entrepreneurs need to continuously manage cash flow and forecast market demand to reduce financial risks.

Trust business partners and your staffs

You are likely to have a team of staff to manage your business operations. And for that, you need to trust each one of your partners and employees. Trust is one of the key requirements in your entrepreneurial journey and the most common risk too. If you lose trust in your partners, drastic consequences may follow. Thus building a squad of trustable and focused employees who will help you to reach your goals is appreciated to become an ideal entrepreneur.

Risk of competition

Business competitions are inevitable. To avoid such risks, entrepreneurs need to perform a proper analysis of market demand and the industry. They need to tally strengths, weaknesses, and opportunities available in the industry. A successful business owner is always aware of competitors and finds different ways to stay ahead in the competitions.

Conclusion

The entrepreneurial journey is full of risks and result oriented journey. The above-mentioned risks are some common risks that budding entrepreneurs are likely to face. But that should not drive you away from taking entrepreneurship as a career option. Instead, see the success behind every entrepreneurial journey. Recognize the risks and act accordingly to avoid any difficulty while working on your business strategy.

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Roles and responsibilities of a CFO

As a start-up owner, you have the responsibility to involve in various business operations including building your brand, hiring new staff, and ensuring a steady flow of business. While managing all these, you may overlook the operations related to finances. Your financial requirements will continue to grow when your startup is on the right track. And gradually you will feel the need for a professional CFO to manage your finances.  

Many start-up owners feel there is no need to hire any CFO because they are only required by large companies. But in reality, start-ups have the potential to grow faster if they get assistance from an expert CFO who can plan according to the industry needs and help the start-up to grow financially stronger. In fact, a CFO can play a crucial role in the decision-making process and prepare for the prospects of your start-ups to achieve your goals.

Who is a CFO?

A CFO is a professional individual who can assist your company effectively in business finances. A CFO is like a financial spokesperson of your company. CFOs are responsible for building core financial processes and establish investor and customer relations. These business operations are the basic requirements to grow your start-up. Before bringing CFO, ask yourself about your company’s growth strategy, and how much is the requirement of correct financial strategy to streamline your financial growth. One of the important factors of hiring a CFO is the timing because the professional accountant needs to understand your business strategy and that takes a quite long time. We have listed here all that a CFO needs to do for managing your finances.

Financial planning for the future:

Financial planning for future growth is one of the core areas of expertise of a CFO. They can forecast growth trajectory through their ability to analyze the balance sheets. CFOs use their knowledge and experience to guide you with your expenses, due diligence, hiring staff, and overall accounting management of your start-up. Their knowledge of bookkeeping and accounting will be crucial to guide you in making accurate business decisions.

Maintain tax compliance:

CFOs help companies with tax planning and helps to maintain tax compliance with updated rules and regulations. Your CFO will be responsible to keep compliance in line with government policies during transactions and fundraising for your business.

Build up infrastructure to support workload:

Building a scalable and quick adjustable infrastructure to support the market demand is one of the areas of expertise of a CFO. CFOs can develop a scalable financial environment for better payroll processing and cost analysis. As your start-up grows, your CFO will take care of complex transactions effectively.

Produce data-driven financial strategies:

CFOs analyze the balance sheets and income statements to generate data-driven insights that business needs to make calculated decisions. To track the cash flows and other operations, they examine business activities. And note the vital changes, such as sales process and inventory change.  

Fundraising:

A CFO plays a crucial role in raising funds for the start-up. CFOs prepare and pitch financial projections to investors. Furthermore, they convince potential investors to rely on these projections. An accountant can develop and implement policies to deal with sudden growth to ensure a streamlined transition. As an owner of a start-up, hiring a CFO to manage cash flows is one of the right decisions you can take.

Risk Assessment:

An experienced CFO helps the management to identify financial issues and analyze the depth of the potential risks. They derive strategies and management processes to avoid any potential risks of late payment and misuse of expenses.

Handle statutory compliances:

Managing statutory compliances and timely reporting can be ensured if you can hire an experienced CFO. This will protect your start-up from facing any regulatory actions. During economic emergencies, a CFO can be a rescuer as they can guide your start-up to take the correct decisions amid recessions. A full-time accountant can be expensive for a newly built start-up so, you may consider outsourcing accounting operations to get in touch with industry experts.

Conclusion:

A CFO is experienced in budgeting, predicting, monitoring the financial statements, and financial reporting. Moreover, a skilled accountant is an asset for a start-up as they help to scale efficiently to meet the changing market demands. You can consider working with an outsourced CFO to get the results and data you need within the scheduled time. After all, outsourcing will save your money and time while achieving all your business goals.

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Business processes automation: Overview and Benefits

Automation is currently playing a major role in revolutionizing the world of business. Businesses with automation will be at a peak soon. As innovation in modern technology progresses, business process automation will be encouraged. Businesses will develop adaptations to embrace the tech-savvy generation.

In the current situation, automation in the workplace is accelerating rapidly worldwide. To remain in the competition, several business firms in today’s marketplace are adopting new technology to promote and expand their business. The information sector employees use automation regularly and help to become more efficient and productive. In this article, we will look at the pros of automation in business and explore its impact on the workplace. 

Creating new jobs

It is a well-known belief that automation will snatch away more jobs leaving people in distress. There’s a fear that artificial intelligence will lead to job cuts in the workplace. This fear is not baseless, but in another case, automation helps in creating more skilled jobs as well. Most certainly, people can get more jobs as a result of automation because businesses need a manual workforce.

Saves money

Automation will reduce the company’s cost of labor. Due to human errors, there’s a chance of a slower rate of production in the workplace. And automation will allow the employees to focus not only on their duties but also skilled human touch. While running a business, it’s obvious to keep strategies for saving money and business will surely enhance productivity.

Customer service improvement

Implementing automation in business, you can give your customers a better consumer experience. Users always remember the bad experience for a longer time than the good one. Through business process automation, you can easily convert your odds into a better user experience that will go in your favor. Automations like including a Chabot on your website or a help center that will be ready to assist your customers 24/7. Moreover, it would benefit your company without spending larger sums of money to representatives. The organizations which use ‘contact us here’ forms or send emails to assist its customers provide less burden on their employees.

Human error reduction

Human error issues are very unfortunate when it comes to business points of view. Automation in the business process will reduce this major issue. Manufacturing sectors need accuracy and technology is something that businesses can use to get benefits. In fact, we can expect a much larger emphasis on automation in business. Moreover, business firms will integrate and embrace automation as much as possible. And make the business experience better.

Some examples of future automation in hardcore business development areas

Accounting

According to some research, cloud computing can reduce labor costs by half. One of the reasons why accountants are easy to go with cloud computing. Accounting automation can solve some major difficulties in business, such as, reduce the cost of papers needed to generate long purchase orders. This will make business firms better at tracking purchase orders automatically. Another tedious job is to handle invoices. An automated invoice system will scan incoming invoices, records, and also does payment when needed. You can even send the same invoice to your client every week or month.  

Customer service experience

As said earlier, customer service is very crucial to get your business right on track. Customer service automation will include operations like Email marketing and push notifications. Moreover, machine learning software can handle these in seconds. Chatbots will respond to the query of customers within seconds. Call center processes and help desk support will help customers get better customer experience. Just set a reminder to contact customers and the remaining will be done through automated chatbots.

HR automation

It is not necessary that organizations have to perform people-related tasks manually. HR process automation can be really helpful if implemented properly. Some tasks that can be done through HR automation includes monitoring attendance and time tracking. In fact, the artificial intelligence incubated software can calculate the money-making amount per client through time tracking. Business organizations can keep a check on employees using the automated attendance system. Also, business companies can manage the shifts of staff based on attendance.

Sales and marketing automation

In sales and marketing, artificial intelligence is in high demand. During the next 5 years, all the sales and marketing activities can be done using business process automation. Organizations will use readymade templates and social media marketing for promotions. Finally, Automated surveys will be a common norm for gaining client feedbacks. Customer case studies will be easier with data processing software that can tally the individual feedbacks.

Final thought:

The future with automation in business is very bright. Business companies just have to analyze their targets and prioritize automation software that will benefit them. Besides, they have to prepare a team in every specific department and make a strategy to cope with competitions in the marketplace. Workplace automation is improving every day in the form of reducing workloads. Artificial intelligence (AI) is playing a key role in designing software that can mimic human qualities. Automation has enough potential to complete human work in a business with greater efficiency.

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Human Resource outsourcing will streamline business operations

Human Resource Management is a significant side of your business which often goes ignored. The HR department of a company plays an important role in employee payroll, administration, and tax filing. It also finds its role in legal compliance, maintains files and archives, and supervises the training process of newly hired staff.  On the one hand, HR is one of the complex functional departments of your company that you may opt to outsource. Business owners nowadays consider HR operations are difficult to be maintained in the house. Most of the companies now outsource human resources operations to handle everything more efficiently. An outsourced HR handles everything from the hiring process, performance review to managerial functions. There are some notable advantages to outsource human resources when it comes to cost-cutting and business productivity.  

Here are some key areas where HR outsourcing will help organizations to streamline their business operations:

HR outsourcing can save your company money:

One of the major advantages of HR outsourcing is cost-effectiveness. The decision to outsource human resource functions is one of the wisest decisions an owner can take to save money. And whereas an in-house HR department requires well-experienced staff and extra office space to function smoothly. So finally to avoid overhead costs, small and medium scale business companies prefer to outsource HR operations. Outsourcing costs can be variable but can be negotiated as per requirements.

Increases efficiency:              

Firstly of all most of the business companies outsource HR operations to generate more efficiency in its business operations, Outsourcing HR functions helps to deal with HR activities like the hiring process, employee payroll, and manage compliances. The outsourced HR person will be more professional and experienced and thus very efficient in managing administration. As an owner, you can expect to get more time and energy to handle core business activities. You can spend more time to develop a strategic plan to achieve your goals.  

Outsourcing HR improves the hiring process:

Outsourcing human resources not only means that it will cost less to hire employees but also helps to hire better staff. Job seekers not only look for a company that offers a better salary but also look for those who offer better job packages as well. Many business companies fail to perform well in a competitive environment due to poor hiring talents. With an outsourced HR, it is possible to offer attractive packages including training opportunities. An outsourced HR will help to streamline your company’s hiring process and ensure to recruit top talents. Once employees finish all the stages of hiring processes, HR can supervise their performance.  

Outsourcing HR to improve compliance:

Maintaining compliances is one of the major responsibilities of the HR department. With changing rules and regulations regarding employment, HR needs to be updated with the latest. Outsourcing Human resources will help you to ensure that all the management practices are under laws. The company needs to adhere to specific laws if any discrepancies occur within the organization. An experienced HR will help you to deal with such issues and take action according to the latest laws.  

Conclusion:

The above-mentioned areas are some of the many advantages of HR outsourcing. be it small-sized or medium-sized business, outsourcing will help any company to save an extra penny and increase the efficiency of the business.

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What is back office and why you should outsource it?

The back office refers to administration and support personnel which is the non-client facing part of your company. The overall growth of your business is directly proportional to the efficiency and reliability of back office. And deals with accounting, maintenance of records and regulatory compliance, and settlements.

Customers we only consider the storefront, marketing, brands, products, and services campaigns, but behind all these attractive front ends and desirable customer offerings, there is a hardworking and efficient back office service. Back office serves as the lifeline of your business processes.

The back office is not that important?

Wrong.

It depends on your career aspiration and what work culture you want to be in. whether you want to be a part of the front desk or middle office.

Back office helps the front office to keep business afloat through support system technologies. And the technologies adopted for efficient functioning vary with function and responsibilities. The back office is mainly administrative-based tasks. This expertise includes projects and claims processing, market trends, market research, behavior analysis including data entry and management. Is also serves accounting and finance responsibilities.

Back-office is the pillar of the organization’s operational and financial success

The back-office of your company helps to build up the structure of the overall business by initiating and sustaining effective business processes. In this article, we will discuss the responsibilities of support service executives and how the back office help to make successful business transactions through engagement and coordination.

Finance & Accounting and its importance:

The accounts and finance department plays a crucial role in the management of any organization. For controlling the business processes, one needs to control the cash flow. And to do so, you must have proper accounting for the company’s income and expenses. Initiating financial reports, receipts, invoices, cheques, and income statements are all the responsibilities of any back office executive. Thus back office helps in:

  • Creating budgets and financial records
  • Analyzing financial performance
  • Developing a business strategy
  • Analyzing the costs of a business

Data Management and its importance:

Data management is one of the important parts of its responsibility. This process makes the records and information available for the company after drafting, collecting, organizing, verifying, storing, protecting, and processing essential statements and sheets.

  • Productivity: Your company becomes more productive with good data management.
  • Cost efficiency: with data management, your company can avoid unnecessary extra costs.
  • Security risk: proper data management with data security can keep your information safe and never ends up in the wrong hand.
  • Accurate decision: It helps that all the employees got the recent information so that analyzing them your company ends up with the most accurate decision.

Market Research

One of the most important tools to get an outline of your business growth rates, sales, and product developments is through market research. Complete market research helps to set achievable goals, develop effective strategies, and to make well-informed decisions. Following and analyzing market trends and behavior a back-office executive becomes enable to understand the current as well as future impact circumstances on the company. Without this, the company will end up with no guidelines for plans/actions to reach out to the target audience. What does extensive market research reveal?

  • Competitor’s product & services
  • Marketing strategies
  • Target audiences

Processing of Projects

One of the crucial responsibilities of a back office executive is the management of projects. The operations like ordering, tracking and the delivery of any goods are the sole responsibility of back-office executives.

Why do you need to outsource Back office operations?

Moreover, in today’s market environment, it is very vital that small and medium scale businesses outsource back office. As a result, they must grasp their revenue by concentrating more on the crucial and practical operations of a business. Instead of paying more attention to administrator related tasks that can be easily outsourced for better results.

If you outsource back office operations, your company will get more time to streamline the core business tasks. You can be freed from the struggle of getting back office tasks done. Moreover, support services outsourcing will increase company efficiency and productivity. Finally, this will enhance your company’s cash flow and improves business management. Also, if you want to save money to keep your business afloat, then outsourcing is the wisest decision you can take right now. Outsourcing provides you access to industry experts in particular fields and ensures quality work. And finally, you can achieve all of these benefits at a minimum operating cost and infrastructure.

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CFO Services Can Financially Strengthen your Organization

According to estimates and reports, more than a hundred million startups open up each year. However, not all the startup gains success, and some even met their failure. Poor financial management is the main problem often found in startups, which leads to their failure. A Chief Financial Officer (CFO) can quickly resolve such problems within your startup.

Research also found that senior finance executives and CFOs play a crucial role in the early-stage growth companies and start-ups. There are many misconceptions among people that only large companies can appoint CFOs. Mostly, their values are also undermined. But, CFOs are needed in every step of growing as the company’s financial and business strategies are deeply interwoven with each other.  

It is undoubtedly one of the primary roles in a growing young company as the Startup CFO’s commercial manager. When a CFO is needed, the main question gets expressed when the startup comes with finance. 

Role of Chief Financial Officer in enhancing the Finance Sector of Start-Ups

CFOs are the backbone of a company, basically for the startups to manage everything for easy functioning. Below stated are some of the critical financial areas for enhancing and adding value by the CFOs.

Financial Processes Improvement and Cash Flow Management: 

Financial turbulence is always a problem for startups in the business world. Reportedly, most of the startups, even before launching the product, run out of money. Hence, a CFO is needed to guide the entrepreneurs in every step of cash flow and the company’s finances analysis. 

Regulatory and Compliance Laws:

One of the other fields that can be a massive problem for startups is the compliance and regulatory laws. There is much statutory compliance for following by a startup such as Income Tax, Company Law, GST, etc. In this matter, a CFO can provide the right guidance regarding government policies and rules to the company with availing the maximum advantages also. 

CFO Has Important Role In Risk Management:

Another important area of neglect in startups is failing to put in place robust risk management processes. There is risk in every business, and the same is not possible for avoiding. But, if we can identify the risks and plan accordingly, then we can minimize them up to some extent. Hence, CFOs can mitigate such financial risks as startups need to have a contingency plan.

Future Planning: 

Startups need to have future planning in the financial sector. They not only have to meet the finances of the present but also of the future. A CFO can quickly help in the planning by analyzing the balance sheet and forecasting growth trajectory. They will help in the formulations of the best plans for the growth and development of the startups.

Conclusion

Hence, CFOs are very much needed to develop a start-up without any hindrances in the finance sector. Start-Ups gets immense value with the hiring of a CFO and gives them the best chance to succeed in their entrepreneurial venture. 

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Google AdWords: All The Important Things You Need To Know!

Google AdWords is a huge PPC network that is owned by the search engine of Google. Existing since 2000, millions of businesses use AdWords to promote their business. Many companies rely on PPC as a primary source of promotion. Google AdWords has a vast network of websites and keywords built, so almost everything in the world can be easily advertised. If you are trying to use pay-per-click for the first time, you need to learn AdWords basics.

How Google AdWords works:

It works on the most simple principle where users bid on keywords to determine whose ads are shown. Whoever bids the most for a keyword will take the number one spot, while other users will take the remaining slots underneath. With most keywords offering 3-4 ad slots at the top of the results page, you don’t need to be number 1 to get a significant following.

Users also have the choice to decide if their ads only appear on Google’s search network or their partner websites. Both options have their pros and cons. It is important to understand that ads are not just limited to Google. In simple words, this is how AdWords and many other PPC networks work. People bid against other people on keywords and depending on how much they bid determines where their ads will be displayed.

AdWords basics:

Ad creation stage 1:

AdWords basics involve understanding how the bidding system works. Bidding on Google AdWords is simple. Bidding against other users determines two things, where your advertisement will be displayed and how many clicks you get.

Coming to the display network, advertisements are displayed on Google’s official website when you enter a keyword. But the thing is, ads are displayed on other websites by google as well. Google has over 2 million partnership websites that display their ads as an exchange revenue. You can target people when they are using the website.

The third thing is the quality score: the quality score of AdWords is a complicated feature. Most of the users don’t know it exists. Quality score can influence the cost and effectiveness of your advertisement. The quality score also affects how much you pay and how your ads perform.

The fourth one is the ad creation stage. Once you open AdWords for the first time, “click on create your first campaign”. This will take you to the first page of creating an ad campaign. The total stage has a set of 7 sections. The first section asks you for your campaign name and the type of campaign you are creating. It will allow you to pick between displaying your ad on Google or Google’s search partner display network. If you select a search network with display select, you’ll get to choose which network you want your ads to be displayed on. By default, your ads will be displayed on all mobile platforms and tablets. Later, you can change your settings. Next is the location setting and where you want your ads to be displayed. If you pick other countries to target in the previous section, this section is really important. The last but one section covers the bidding of your adverts and what bibbing strategy you use. The last section covers ad extensions which is an advanced feature.

Ad creation stage 2:

The basic settings are already by now and you need to look at the way you want to make your advertisement. This stage is split into 2 sections, the advertisement, and the targeted keywords. The first section is pretty simple to figure out. You have to enter your name and group name with something relevant to your campaign and start writing your advertisement. Google has a useful tool that helps you visualize how it will be displayed later. The second stage is about what keywords you want to be targeted. This is the end of creating your first campaign.

These are the primary AdWords basics you need to know. Stay aware of frauds and keep in mind the quality score. Also, if you want a well-optimized advertisement, go for only one keyword. We hope you find creating your campaigns on AdWords easier after reading this….

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Microbusiness vs. small business: The major differences

All micro-businesses are small businesses, but all small businesses are not micro businesses. It is based on the number of employees in a company. Your business is considered to be a micro business if you have less than six employees and is considered to be a small business if you have dozens of employees. Even if your company requires less than 50,000 to start, you are running a micro business.

Characteristics of a micro business:

  • Financing and marketing are both important when it comes to these differences. Microbusinesses operate with lesser capital when compared to small businesses.
  • Micro businesses are run by single-owners or solopreneurs.
  • A few micro-businesses are simply early-stage small businesses.
  • Most micro businesses don’t need registration with the state.
  • Microbusiness owners who start as sole props always have the option of registering as a separate entity.
  • It is harder to get capital loans for micro-businesses. Microbusinesses operate on smaller scales than small businesses on every level, including the scope of their customer base.
  • Social media marketing is widely used in promoting micro businesses.
  • Creating a website is the first and foremost task of the micro-business starters.
  • Every micro-business owner finds his customers in his friends and the local community to make larger networks.
  • Creating a business accounting software is important for every micro business.
  • Microbusinesses have much smaller budgets.
  • Creating an appointment scheduling software is an important task too.
  • Create a project management software.

Characteristics of a small business:

  • A small business is a privately-owned corporation, a partnership that has fewer employees and less annual revenue than a normal business.
  • Small businesses can often implement the same quality management systems found in larger corporations.
  • Small businesses are mostly socially responsible.
  • The small businesses often run on a “shoestring budget” which means a tight budget.
  • A small business is labor-intensive.
  • A small business being tight-budget mostly uses indigenous technology.
  • They are started with the motive of satisfying the needs and demands of a local area or community.
  • Also, small businesses use sales tools.
  • Furthermore, small business is most likely to get government contracts and low-interest loans.
  • Small businesses usually have more benefits.
  • Also, Small businesses need funding, a mentor, and legal counsel.
  • A small business can be defined by various business regulations.

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Google Ads are working or not! Here’s How to know

Google Ads, one of the most used advertising platforms, has indeed grown to be a much popular one since its launch in 2000. However, the platform was initially named Google Adwords, which got changed in 2018 to only Google Ads. Nowadays, almost everyone used this platform for earning as it is a pay-per-click (PPC) form of advertising where the payment is made based on per click or impression on an ad. It is a much good fit for a business generating new business and leads with the probability of getting new customers with the generation of more clicks.

Effectiveness of Google Ads

Google Ads is the most effective method for right-fit customers or traffic building to any business when anyone searches for services or products. The traffic of the website also gets boosted with an increase in-store visits and receiving more phone calls. Furthermore, Google Ads allows for sharing and creation f good advertisements, whether on desktop and mobile among the audience that is targeted. The placing of ads can take place not only on one platform but across other channels, also such as Google Display Network, YouTube, Facebook, Blogger, etc.

Non-Displaying of Google Ads

Sometimes this does not show up any impressions. There are various reasons for not showing Google Ads. Billing information of the account may have some issues or not completely set up or is not correct or accepted by this platform. The status column consists of separate statutes indicating the reason for not showing the ads. Paused or removed indicates the non-appearance of the advertisements. It may also be the case that the advertisement may still be under the approval process. Sometimes, the ads also get disapproved. Hence, it is essential to continuously check whether if Google Ads are working or not.

Checking of the working of the Google Ads

The status of an advertisement or extension after its creation can get checked in the Status column. First, one should sign in to the particular Ads placing account and then navigate to the campaigns or the ads from the page menu. Now, click over each ad which will state if the ad is active or not. The Status column will describe the exact position of the ads and also the proper explanation of the status. The policy details in the table should get enabled for seeing more details about the policy information or more about the ads. Below stated are the details of each status.

Eligible:

It means that the review is still going on for the ads. It may also mean that some parts of the ad is approved and running.

Under Review:

It means that the ad cannot show up until approval took place, and it is still in the reviewing process.

Approved: 

The can now get shown as it complies with all the policies of Google Ads. However, the ad does not run due to policy restrictions in all situations in the approved (limited) and some targeted locations in the approved (limited all locations).

Disapproved: 

The ad violated some policy of Google Adwords, so it cannot run.

Conclusion

Hence, one can always check if the Google ad is working or not with fulfilling all the required conditions. If it is not working, one can correctly place it again.

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How outsourcing payroll and accounting services can save the cost of investing in software?

Outsourcing has become an easy and cost-effective method that is used in today’s digitalized world. As the business world is becoming more and more competitive, you must leverage everything that’s at your disposal so that your business can grow. There are many functions in the organization that does need to be performed internally. These functions such as payroll and, accounting can be transferred to a third party.

Many businesses prefer to manage payroll and accounting services internally. It allows businesses to leverage their professional expertise, but also more time and resources to focus on their core functions. India is the number one country providing outsourcing services around the world.

Benefits of outsourcing payroll and accounting services

Time-saving

Handling payroll is no piece of cake. The payroll department has several responsibilities, such as new hires, garnishments, and terminations, to name a few. Outsourcing payroll to professional firms unburdens you from worrying about these time-consuming tasks. It also saves the HR department time, which can be utilized for other important functions. As the business grows, you might find yourself managing money and less time scaling the business. Outsourcing accounting tasks will help you focus more on business strategy.

Cost-saving

You can save several precious rupees by outsourcing your payroll function. If you compare the expenditure of doing payroll in-house and outsourcing to professionals, then a good amount of money can be saved. Time is money therefore, startups and small businesses should outsource their payroll function and accounting services so that they focus on the core functions of their business. By outsourcing, you save money on paying salaries, taxes, office supplies, and benefits for a full-time or part-time employee. It reduces the cost of training, recruitment, and infrastructure. You can save on office spaces, supplies, furniture, etc. You also get the leverage of getting your functions done with the latest technology as such companies invest the most in making these services better.

Eliminate the costs of hiring processes

The recruitment process is an expensive job. It requires time, energy, and resources. By outsourcing, you can save on such costs. The outsourcing companies have professionals hired who will take on this burden. Professional team of experts outsourcing gives you access to a professional team of experts. With the reduced cost, you get good quality service as well. They will address worker’s compensation, employee concerns, and human resource in general. You get the possibility to hire people with higher-level expertise which otherwise would be a gruesome task. Choose the outsourcing firm wisely, after doing the appropriate research to make the most of this opportunity.

Faster results

Outsourcing helps you share the burden with a third party. Doing everything by yourself will reduce the efficiency and quality of work done. Higher efficiency translates into a competitive advantage, which helps the business in scale.

According to reports, business outsourcing helps you cut down costs by 20-30%. Many organizations, both big and small, have experienced saving costs by outsourcing to offshore locations. Overall outsourcing is a great way to cut down business costs and can be leveraged by any size of business.

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Tips for budding entrepreneurs

Entrepreneurship is an exciting journey filled with highs and lows. It’s nothing short of a roller coaster ride. Let’s give you some tips to organize it in a better way;

View challenges as opportunities

Starting and running a business is not a cakewalk. There are going to many challenges you have to face. These challenges should be viewed as an experience you are going to gain once you have successfully solved it. If you weren’t able to solve the challenge, then take it as motivation to do better the next time. Each problem and challenge is an opportunity to brush up on your hidden skills.

Stay positive

There are going to be some rough patches in the road to a successful business. Don’t let that affect your motivation or will. Fighting away your negative thoughts is important. Sometimes you might find yourself questioning many decisions you made but,  just relax for a while and allow positivity to fester you. Surround yourself with like-minded people who inspire you. Whenever you are feeling down, talk to people about what you feel, it will definitely free you from all the negative emotions.

Do not ignore good advice:

If you have someone who has acted as a mentor to you or a good friend who knows you very well never forego his or her advice. Sometimes other people see more than you do.  They always have the best interests at heart. You cannot always be right about everything so consulting other people will give you a wider view of the situation. It’s always good to listen if they have to offer advice.

Take calculated risk

Starting a business itself is a risk as you are investing your time, money, and energy into something, which you don’t know, will yield success or not. Risk-taking is important but taking an unnecessary risk will only lead to downfall. Weigh the pros and cons before making a decision

You don’t have to do everything:

Many budding entrepreneurs feel that they have to do every single task in the business. This can be draining and also cause inefficiency. Set aside a small amount of money so that you outsource time-consuming tasks. This will allow you to focus on the important functions of the organization. For example, you can outsource accounts, data entry, etc. which will save you time.

Making a routine

As an entrepreneur, you have a lot of freedom when compared to people who are doing a 9-5 job. You might feel overwhelmed about where to start.  You need to create a routine that you must follow meticulously.  Setting up a good morning routine can boost your mood and lead to higher productivity.

Health comes first

 Research has proven that a lot of entrepreneurs are constantly stressed and are vulnerable to mental health problems. Business is important but always remember that there would be no business if you are physically and mentally unhealthy. Make your health the priority.

Know your passion

Identify your true passion before starting a business. Do not jump into a business idea because you think it can make money. Business comes with a lot of rough patches and, if you are not passionate about the idea, then you might end up quitting the business.

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Successful Fundraising: All You Need To Know!

For successful fundraising, a well-organized and focused effort is essential with the right blend of people, cause, records, and plans for the future.

Tips for successful fundraising!

Good cause

Fundraising is easier for an organization with a worthwhile cause. The company must prove its effectiveness along with a spotless record. A review or stories from people about their experience with the organization will help you in gaining trust.

Vision

It’s not about just talking about the records but also the vision you have about the future. A vision, which is realistic and builds on the present ideas of the organization, will make the campaign attractive to the donors. The goals must be specific and achievable.

Donor appreciation

Appreciating the donors and thanking them should not be overlooked. Big check donors should be thanked personally. Donors should be given updates about how their money is being utilized. Reminders should be sent about how this support is helping the organization to keep up the good work.

Take out the time to send thank you notes to everyone who attended the event.

Being on the same page

The leaders of the organization must be on the same page about the fundraising. If the leaders themselves are in confusion, it leads to a lack of trust among donors with your organization.

Marketing

Your event needs to be aggressively marketed to reach your target audience. Convince your audience that their time and money are worth spending on your organization. Personalize your approach, as people are more likely to be convinced.

Fundraising goal

A decision should be made regarding the amount of money you have to raise beforehand. The campaign is only successful when you raise funds close to what you have estimated.

Set-up

The event must be well-planned and set up well in advance. The budget of the event must also be prepared. All the expenses must be listed down and, the amount you raise must be more than the expenses.

Sense of urgency

Ideally, the campaign must be short as long campaigns grow stale and lose momentum. A short campaign establishes a sense of urgency.

Make it easy

Once a donor is convinced, make sure your donation process is not complicated. Keep the processes simple and quick. Make sure the page is mobile friendly and can be accessed quickly. You can advertise the campaigns on YouTube and social media, which will increase your site visits.

Follow up

Don’t remain inactive after completing the campaign and, slack away with the donations you have received. Keep updating and launching follow up campaigns in 6 months. Continue to report on the impact of your supporter’s donation. Reward your supporters not with junk but well thought out and useful gifts.

Recurring donations

These allow donors to repeat their donations regularly. Allow the donors to manage the recurring donation themselves. This will enable the organization to predict their revenue stream.

Ask funds for what you need:

Try to stick with your original fundraising plan. Do not incorporate new ideas into the plan to make it more enticing for capturing new donors.

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Tactics For Improving Cash Flow Of Your Startup

Cash flow is the sum of money flowing into your business. You have a positive cash flow if u start reinvesting in your business, your debts are cleared and, liquid assets start increasing. You have a negative cash flow when your payrolls get affected, running short of cash for daily operations and, you are close to bankruptcy. Cash flow is not the same thing s profit you can make a profit but still have a negative cash flow.

Tips:

Estimate your cash flow:

This will help you in planning. Start by forecasting your cash flow by using the previous year’s data. Estimate overall cash flow summing up inflows and outflows. This information will help you evaluate potential issues and make strategic decisions to improve cash flow.

Offer discounts for early payments:

Providing incentives to clients who pay early will improve your cash flow. Everyone loves incentives and, this strategy will reduce your accounts receivables increasing your revenue.

Customer credit checks:

Before signing a contract with a client, make sure you keep a check on their credit history. If the client has poor credit, then you can assume that you won’t get payments on time. Late payments will hurt your cash flow.  If you still opt for that client, make sure to set up an interest rate in case of late payments.

Reexamine and re-negotiate terms with long-standing clients if the terms are not working in favor of the business.

Inventory check:

Keep track of goods that are not selling well. Idle goods will hurt your cash flow. Do not buy more of what is not selling. Get rid of the unsold stock even if you have to sell it for discounts.

Payment platforms:

It’s good to have multiple payment platforms. Making payments digitally will help you collect payments faster and improve cash flow. You can use a payment gateway to turn the way you collect payments easy for you.

Leasing is better:

To maintain a steady cash flow, leasing is the best option. Leasing anything from warehouse, machines, equipment, building lets you pay in installments, which is a business expense anyway.  You can divert this cash towards productive activities such as research and development. Buying assets can take a big hit on your accounts.

Cut costs:

Track your expenses and cut out unnecessary expenses. Some ways to reduce expenses include, keeping a check on travel expenses, save on electricity, etc.

Reduce your operating costs and identify areas where you can reduce costs.

Make wise investments:

Repaying your loan obligations early on can help you reduce interest payments. Invest cash in such a way that it increases your sales. Open high-interest savings accounts.

Experiment with pricing:

Increasing your prices is a great way to increase your cash flow.  Increase the price, keeping in mind that the customers should find the price reasonable. There is no harm in experimenting with pricing and finding out what price will be the right fit for your organization.

Leverage technology:

Use cash flow spreadsheets, accounting software, and other tools to improve cash flow. If you improve your business processes, then it’s easier to manage your cash.

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To maximize your business profit, all you need is a high performing team.

Building a high performing team is not just pulling together a bunch of talented people. High-performing teams are individuals with expertise in different fields, are goals oriented and like-minded.

Characteristics of high performing teams

The team has clear goals and has common priorities:

High performing teams are focused on and support the shared vision. Goals should not only be aligned but also each team member knows what they need to know and how to get there.

The fit of their work in an organization

The job and specialization should fit the goals of the organization. If the member understands how the job fits into the context of the overall mission of the organization, then they are more engaged and productive.

Defined roles and responsibilities

They minimize unnecessary conflict by defining each individual’s roles and responsibilities. This prevents confusion as to who is going to lead which project and departments. Each employee is going to have a different opinion. Keeping this in mind, the team should be able to achieve coordination and have clarity in their responsibilities.

Clear and respectful communication

The team has to have clear channels of communication. All communication must be done healthily. Miscommunication can lead to conflicts and breach of trust, which will hurt the working of the organization.

These are only some characteristics; different types of organizations are going to have different types of teams. You cannot expect to have all this build overnight. There is always room to grow and improve from yesterday.

Now that we have discussed the characteristics, here is the importance of a high performing team:

High-performing teams are independent, as they do not need spoon-feeding from others. They are more engaged and satisfied with their job. The team either has little or no conflict.

 A team, which shares the same purpose, is easier to manage. A team that understands each other and the goals of the organization are more productive.

High-performing teams are more motivated and happy as they are around people who are like-minded and share the same vision.

Research has shown that organizations that focus on team building and training leaders and, creating effective teams reap significant rewards of return on investment. The team constantly pursues superior performance through shared goals, shared leadership, and open communication. They constructively handle conflict as they ensure that they take in the views of everyone.

High performing teams usually make higher quality decisions and accomplish much more in a lesser time.

How to build a high-performance team

Nurturing a feedback culture is a good way to make positive changes in the team.

Developing work ethics and respectful communication is important.

Providing both monetary and non-monetary incentives to the team will boost their motivation to have a positive impact on productivity.

Empowering the team members by giving them some autonomy in decision-making.

Some common barriers to building a high-performance team are infrequent communication, lack of mutual trust, inability to manage conflict, lack of goal clarity, relationship issues, poorly defined roles and, a negative atmosphere.

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Tips to manage business accounting in a better way

Finance is key to any business, whether a small business or a big one. There is a difference between managing your finances and managing them effectively. Effectively managing your accounts can do wonders. The technology has become advanced, there are numerous software and, tools to make your work easier. In the past, there were paper books, which were maintained manually by many employees. Today a single professional can maintain innumerable books. Although hiring a professional will make your work easier and also highly efficient.

Tips 

Quality bookkeeping software:

Using good software will take the workload off your workforce. If you are a startup, you can save yourself some money by managing the accounts yourself using the software.

Where the money goes in and out:

The business should keep a tab of where the money is flowing. This is very important in the case of a startup as funds are limited and, they have a long way to go. Keeping your finances under close watch is essential. If you start preparing detailed financial reports, then you can minimize unnecessary spending and divert these funds to productive activities.

Business account and personal account:

Do not overlap your business account with your personal account. Separating these accounts is also necessary to get accurate financial reports. It will also give you legal protection in times of crisis where your personal account and assets will not be used to pay liabilities. Personal transactions will also lead to confusion maintaining, it separately makes it more organized.

Tax planning :

It is advised to use a financial professional to compute your taxes. It will save the business some trouble and give you a sound financial plan. Stick to tax deadlines. A projection or forecast of the taxes is important as you not be massively shocked with the tax amount and projections help you in financial planning 

Advanced solutions for effective business accounts management: 

There are innumerable tools available to make your accounts easier. A person with little knowledge also can handle business accounts in an efficient business. Hiring a professional will give you more in-depth details about the finances of the business.

Records should be neat and tidy:

As most records are digital today, make sure that it is easy to search and not cluttered in one folder. Keep it organized to save you some time.

Create profit and loss statements regularly:

A profit and loss statement is a part of financial statements that accounts for your incomes and expenses. This applies to small businesses. This will help you keep track of your expenses and revenue and make an informed decision.

Keeping a watch on accounts receivables :

Staying on top of both accounts payable and receivable are important. Accounts receivables are revenue-generating items. The company cannot operate if there is no revenue coming indoors. Always calculate your outstanding revenue. No more than 10-15% of your accounts should be past due. Reach out to your clients weekly but, don’t let them stiff you.

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TIPS THAT WILL HELP TO ORGANISE YOUR START-UP!

Ideas emerge out of chaos. They are wild, fascinating, unimaginable things, that can change the world. We might very well need a little entropy for creativity. A spinning solar system of possibilities in your head from which you can pick out an idea: that shining, bright, glowing star is the key to everything. Well, if you’re here, you have probably had one of those. The first stage is complete. Now, you need to rein it. Running an actual business might perhaps be the exact opposite of creating an idea. It requires organization, management, discipline, and practicality. We’re here to help advise you on how to do that. 

Come up with a Solid Business Strategy 

A business strategy will focus your approach and help inform every decision you make for your business. It will give you a mission and a vision. Every goal you determine, every task you set is an influenced product. When you have stick to your business strategy, everything aligns precisely. Even the very presence of your business is a part of that strategy. By using advanced analytics, you can see how to optimise the efficiency of your business. 

Marketing and Social Media Presence 

Marketing is an essential component of a business. It will help you find your demographic and how to best engage with your market. Now that everything is gone digital, your social media presence becomes crucial.  

You will need a social media management tool to help market your product, listen to your audience, and interact with them. Not only will this help grow your business, but it will also help expand it, as well. 

Manage your Inventory 

Knowing your inventory and managing it is of utmost importance. It will help reduce your overhead prices as low as possible. You will need to automate it, too, for the highest levels of accuracy. It will keep track of it, eliminate manual error Automating the process for greater accuracy is a and internal theft. Keeping a record of it will boost your sales, productivity, and further efficiency.

Keep Track of Payments and Cashflow 

The organisation of your cash flow is what will keep your business going. As the head of a company, it is easy to get wrapped up in the day-to-day aspects of running a business that you might forget to send an invoice, or tell a customer your payment is overdue. Thus using an online invoicing tool will help manage your current, upcoming and recurring payments from clients.

It will also help you understand if you are generating revenue. As a result, you will know how to modify your business and how to maximise its potential. 

Store Your Information 

While running a business or start-up, you will be generating so much information that it can become easy to forget to keep track and lose all of it. You will require a structured management system to help store all of that information and avoid being overwhelmed by the information overload. 

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PERSONALISING YOUR MARKET STRATEGY: A complete Guide!

2020 has been an incredibly taxing year, no doubt. The pandemic crushed our spirits, caused major upheaval, whose lasting effects we will feel in the years to come. It is no surprise that we will need to change strategies to adapt to this new normal. “How do you do it?” is a big question. But not to worry, we will help guide you on the best way to do that. 

Use New Technology 

2020 showed us a real need for technology during the time of the pandemic. It also showed its power and extreme effectiveness when we all had to live remotely. Technology can produce a more accessible experience. Using virtual reality and augmented reality can benefit your marketing strategies. It will immerse the audience in what you are selling. 

Bring a More Interactive Approach to Your Marketing 

People are producing content in a near-constant pace, and show no signs of slowing down. There will be more content than ever in the new year. It, thus, becomes your responsibility to help your audience to navigate through this information. You will need a personalised touch to engage your audience and help them connect with your product. Contests, quizzes, polls, surveys, games, interactive videos are interactive tools to achieve this. It will linger with them and help remember your brand, ensuring that will stand out from the rest. 

Decide on a Content Marketing Strategy

Determining on a content marketing strategy is essential for a marketing strategy. It will help you decide how to reach out to your audience and help your audience remember you. How can you improve? What are the most effective ways to do this? How can you diverse your approach? These are all questions you should be asking to make your strategies more effective. It will not only retain the customers you already have but also help attract new ones. In the post-pandemic era, there has been a boost in digital content marking. Having a strong social media presence, churning out regular content in the form of infographics, blog posts, and making short-form videos are some of the ways that are available to you and will help in successful marketing. 

Carry Out Audience Research

Knowing who you’re targeting is just as crucial as what you’re putting out. 

Who is the audience for your content? What do they like? What do they respond to best? When you can familiarise yourself with these answers, your approach will become more focused and effective? It will help build “ideal” customer types so you can best understand what works and what doesn’t. 

Understand the Need for E-Commerce

The E-commerce business has seen a lot of traffic during the pandemic. It has established its effectiveness, and this is not likely to dissipate in the coming years. It has increased profit, accessibility, and widened the customer base in an unexpected but welcome way. Do your research, and consider if it is the best approach for your business, as well. It is your job to make things easy for the customer, and E-Commerce is the best way to do that. 

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WANT TO IMPROVE CASH FLOW IN YOUR BUSINESS?

It might be one of the best things in the world to see your company succeeding. Your sales are high, you’re generating revenue, and your profits are on a steady incline. You have cash flow, which is more than what most businesses can say. But this is not the time to relax. Growing companies often lose out on cash flow, because they think they’re in the clear. They don’t see it coming, and it costs them dearly.

Healthy cash flow is a sign your company is running efficiently. It inspires confidence in your customers, and might even bring in more in the process. Always work to improve cashflow. Here are some tips that we think might help you out. 

Improve Your Inventory

It is crucial that you regularly check your inventory to make sure you know what products you are selling. Look for missing items. In-theft is a harmful problem–it will require your immediate attention. In the process, also notice all the products that don’t sell. Those products are causing you to lose out on cash flow. Do a cost-benefit analysis. If they’re not worth it, get rid them immediately. If you think they might still have potential, brainstorm other ways to boost its sales. 

Make Friends with Your Suppliers 

All businesses want to pay their suppliers less so that they can make a profit with their sales. But most people are confused or scared about how to approach them or ask for a discount. Use this age-old tactic: Become friends with them. If you make an effort to forge a connection with your suppliers, you might be better for it. Learn what they want, and give them that for something in return. 

Turn every proposition into a mutually beneficial one and watch your cash flow increase. 

Evaluate Your Customers 

There are good customers, and there are bad customers. Bad customers don’t pay. They delay payments until you’re calling them every day for what they owe you. They might be negotiating in bad faith. They might irk potential customers. Evaluate your relationship with them. Is their business worth it? Is it bringing in substantial cash flow to your company? Will your business grow for the better without them dragging you down? If you still want to keep your relationship with them, renegotiate the terms of your contract. Always, always remember to run a credit check on your customers. You want to weed out those bad seeds as quickly as possible. 

Increase Pricing

It is always daunting to increase the price of your product or service. There are so many questions that swirl around in your head. What if I’m making it too high? What if my customers leave? What if they go looking somewhere else? What if my product is not worth the hike? What if, what if, what if. But it is alright to experiment with the pricing of your product a little bit. You need to understand what works and what doesn’t by yourself. We recommend you find a creative way to do it, so you are as secure as possible. 

Healthy cash flow is a sign your company is running efficiently. It inspires confidence in your customers, and might even bring in more in the process. Review these four tips regularly, and assess whether you want to implement them or not. Always do what is best for your business. 

Why MFhills?

The daily humdrum of life keeps one busy – be it managing the stress of business to work pressure — as many don’t find the time to manage their money properly and some do not get the time to do it at all. In such circumstances, it is advised to let an expert manage your money rather than doing it yourself.

If you don’t have time, it is worth paying money (fees or commission) to a financial adviser so that he can manage your money properly.

Get the best financial management from experts, contact MFhills today. Our professional advisers are located all around the world. To get a free trial, contact us on +1 (650) 351 7900 or email us admin@mfhills.com and get a demo directly on https://lnkd.in/geQcJbb

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DISCOUNTING CAN AFFECT YOUR PROFIT MARGINS…BUT HOW?

Businesses continually offer discounts because they think more sales somehow equates to more profit. But that is never the case. Higher turnover doesn’t lead to higher profit margins; it only puts your company at risk. Reducing pricing can have many adverse effects. 

Let us look at some of them. 

Your Profit Margins Get Hit 

When you reduce pricing for your products, you’re only making your sales department work harder to make up for the difference. It is a no-brainer that your profit margins are higher when you sell at full price. So, for every discount you offer, you need to make more sales with future sales. It is important to remember that the sales made from your discounts are never going to add up to the money you lost. Tread water cautiously and consider how much revenue you’re going to lose here. 

What Happened to your Cash Flow?

When you mess with the pricing of your products (or services), you’re inadvertently messing with your cash flow. Discounting will only cause more issues with cash flow. It creates a long-term problem where your company will continue operating on the bottom line alone. So, you will be surviving, but you won’t be thriving. And this creates a vicious cycle. The more you reduce prices, the more it’ll affect the survival of your business. Essentially, you’ll be feeding on yourself until there is nothing left. Told you it wasn’t sustainable. 

Your Value and Image 

Pricing tells a customer: This is what a product is worth. It says, all the hours of hard work, design, creativity, manufacturing costs add up to this particular number. When you sell it at a discount, you say, I can compromise on all that work; the worth of my product changes as you wish–maybe it doesn’t have a stable value. Naturally, this tarnishes the significance of both your product and your company. Discounting doesn’t inspire confidence at all. And that is you want in your customers—for them to be confident about you. So, focus on what your product or service deserves—and ask for that. People who see its quality will pay for it. 

Discount Twice and You Never Stop 

Your logo, your marketing, your packaging, your services—they all set a tone. They convey a specific message about your business. So, pricing establishes your tone, too. When you offer discounts all the time, you’re known as the business that offers discounts all the time. It sets expectations. Chances are customers won’t buy anything from you when you’re not offering discounts. It damages your opportunities in the future when you’re trying to increase profits and create revenue. 

To understand if discounting is right for your business, you need to look at the whole picture. When you sell more, you have to make more. It seems like a good thing until you realize you’re not selling at the price you’re supposed to. Look at all the costs, even the small ones. The small costs are always the ones that add up in the end and deliver the final blow. Assess how thin your margins are because it’s likely, you can’t afford to give out the discounts you are. 

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LET’S RAISE PRICES WITHOUT LOSING CUSTOMERS! HERE’S HOW!

If you’re a new business, chances are, at some point, you’re going to raise your prices. If it doesn’t happen now, it will happen sometime soon. But many sellers are hesitant to raise prices because they’re afraid they will lose their customers in the process. But if you’re careful and you do it right, there is a way to have your cake and eat it too. In fact, there are many. Let us look at some of them. 

The Perfect Window of Opportunity 

There is always a right time for you to do certain things–you have to wait for it, and then, pounce. In a case like this, you need to wait for when you have successfully hooked your customers. When they are satisfied with your product and willing to come after you for more, that is when you increase your prices. 

Add Extras

It is basic logic—if you offer more, they will offer more, as well. When you want to increase your prices, consider throwing some extra benefit or service along with your product that costs you less than nothing. Remember—you only have to increase the perceived value of your product. If you achieve that, your customers will remain with you, no matter what. 

Reduce Sizes

Why do you have to increase your prices at all? One sure way to keep your customers from scampering to your competitors is to keep your costs the same but reduce your portions instead. It is one way to keep your business going without draining your funds. 

Increase Prices Gradually 

One of the most reliable methods to raise prices without angering or alienating your customers is to increase it gradually. By doing this in increments, you can ensure that in the long-term everyone pays the higher price. However, there is always the possibility that new customers might found out about the price differential and refuse to pay. If this is the strategy you want to employ, you should prepare for his possibility.

Vary Your Price Options 

One way to increase prices is to charge different prices for the variations in products. For instance, if you sell products in different sizes, colours, or added features, you can charge different prices for those products. In this way, you can cater to various kinds of people and their corresponding budgets. It is also a secure way to earn more profit out of the product. 

Be Honest

If your product is outstanding and your prices are fair, most customers are willing to pay the extra few bucks. You can be honest and trust that they will follow your lead. As the famous saying goes, honesty is the best policy. 

When the time comes, you might want to some of these methods, or none of them. Whatever you end up doing, you might probably lose a few customers along the way, but that’s inevitable. You should do what is best for your business, and customers will do what is right for them. 

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CLIENT ACCOUNTING SERVICES – GET YOUR BUSINESS IN LINE WITH IT!

What is Client Accounting Services? 

In recent years, the accounting industry has gone through a lot of advancements in terms of technology. One of these changes happened with the introduction of Client Accounting Services (CAS). 

But you might be wondering, one of an accountant’s job is to proving 02158/ting services to its clients. Isn’t that CAS? 

No, not quite. CAS includes a wide range of services, including a whole new scope of services that manual accounting may not cover.

The main objective of Client Accounting Services is to optimize the accounting services one provides to their customer. It takes a more focused approach, so one can solely attend to their needs. It also helps accounting firms to maximize their profits, as well. 

So, let’s look at the features of Client Accounting Services. 

What Does CAS Do?

CAS includes four services. These usually include transactional services, strategic services, performance services, and compliance services. 

As part of that, firms that use CAS take care of duties like: 

  1. They handle basic-bookkeeping for their clients. 
  2. They provide financial statements, P&L’s, and reports for businesses. 
  3. They file sales tax on behalf of their clients’ firms. 
  4. They deal with payroll and handle all taxes related to providing those payroll services. 
  5. They also give out business advisory and consulting services. 
  6. They provide outsourced and virtual CFO services. 
  7. Lastly, they might also monitor and regulate cash flows within the business. 

Why Should You Use Them? 

Expert Services: 

With the combined impact of skill, precision, technology, and highly trained professionals, more businesses are using CAS. 

 Especially, as firms have now begun to prefer outsourcing their accounting needs, they covet CAS. 

Time-Saving:

A lot of accounting services are time-consuming jobs. For instance, handling payroll services can be a laborious task. When you outsource mechanical tasks such as these, it frees up times to contribute more work to value-adding tasks that generate higher revenue. 

Higher Levels of Accuracy:

When hired experts whose main jobs are to handle your accounting needs, the results are bound to be more accurate and reliable. Firms that primarily handle accounting service are more trained, experiences, and skilled. They are proficient at their jobs, delivering higher performance, and more trustworthy returns. 

Cost Efficiency: 

If you think about it, outsourcing accounting services to firms that offer CAS is much more cost-effective in the long run. You won’t have to deal with operational costs such as maintaining staff and systems. Instead, you can use the saved money for funding a variety of other business ventures. Maintaining separate account departments will always cost more than outsourcing it. Thus, it is always better to hire accounting firms to handle your business.

Up to Date Technology: 

CAS keeps up to date with the ever-changing technology of its industry. Trying to do this by yourself can drain your business’ funds and run you ragged. Thus, it’s best to hand over those responsibilities. 

CAS is an excellent option for your business. It will help your business thrive.

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THE PROS AND CONS OF THE FRIENDS AND FAMILY FUNDING

Funding from friends and family; it is one of the oldest and most reliable forms of financing. It is traditional, simple, and does not require going to a bank. And when the time comes, you will probably consider asking your friends and family to fund your business, at least once. 

Some say it is the most unadvisable thing you can do; others say it might be the smartest first step you can take. Needless to say, it is an extremely controversial idea. 

But let us break it down. What, truly, are the advantages of friends and family financing? What are the disadvantages? Will it work for you? 

First: The Pros

Quick and Easy:

Unsurprisingly, asking your family and friends for a loan is the easiest money you will get. You do not need to check your bank statement or go down to the bank or put something for collateral. As long as they believe in your idea and your abilities, they will want to help you. 

Hassle-Free:

Because they only want to help you, your friends and family will probably give you loans at the best of terms. The interest rate will be low, the shares, perhaps, might also be small. Any agreement you settle might be the most beneficial one you will ever get.

More Relaxed:

The thing about getting funds from your family and friends is they are not going to hound you for their money. They are not going to slap you with an eviction notice or take away your car. They will support you through the tough times and be lenient when you fail to break-even or struggling through the quarter. Their kindness will help, not hurt, as long as you do not take advantage of it. It just might make all the difference in the world. 

Now: The Cons

Complicates Relationships:

They do not tell you to keep relationships and money separate for nothing. When you mix these two things, it can complicate ties quickly. 

Your relationship might sour if you do not pay them back on time or your business venture fails. Similarly, if they refuse to fund more of your business ideas, it might cause friction, as well. 

Limited Capital:

The pool of funds you get from your friends and family is not going to be much. It might last for a couple of months, sure. But sooner or later—especially if your business start picking up—you will need to consider other sources of funding. 

Future Impact:

Financing is a complicated tangle of webs, with worrying implications in the future. If you give out a lot of shares to your family and friends at the start of your business and think better of it in a few years, you cannot take it back. If you go into a lot of debt, that might put a strain on your relationship, too.

Well, there you go. You have all the information now. Whether you choose to go through it or not, is entirely your choice. But we do hope we have given you all the information to make an informed decision. 

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ALL YOU NEED TO KNOW TO RUN AN A/B TEST

Also known as split testing, A/B testing is the process of showing two variants of the same webpage to website visitors simultaneously. It allows you to compare which variant invites more traffic and conversions. 

A/B testing is a crucial part of setting up a website for your business because the more traffic you get on your website, the more opportunities it creates for your business to grow. Any visitor could be a potential investor. 

 You know you have a good website when you have website visitors who take action. Action can mean a variety of things—if it’s a blog, it refers to how many clicks you get; if it is an eCommerce site, it may refer to the number of sales. The goal is to optimise efficiency and make your website look attractive. And, A/B testing plays a huge role in that. 

So, how do you run an A/B test? 

Pick a Variable

As you do your research for the test, you will most likely find that you want to test many variables on your audience, but you shouldn’t do this. To maximise efficiency and results, you need to pick one variable. When you get your results, you can test another one.   

What is Your Goal?

There several metrics for a single test and, that it can get sort of overwhelming. But what you will want to do is focus on your goal, your vision for the A/B test, and use that to converge on a primary metric. When you know what you are looking for–what your desired outcome is—it will be much easier to analyse the results and make decisions moving forward. 

Setting up the B website

Now that your variables, metrics, and goals in place, you should now build website B to test your control website A. The opposing website, now, will serve as your variation. 

Getting Your Sample Groups Together

Your sample groups are crucial to the process of A/B testing. You need to select the sample groups equally and randomly, to get the most accurate results. 

Well, your test is over now. And you have the results with you. What should be your next steps?

Focus on Your Goal and Take Action 

Remember your goal? It is time to bring back that now so you can do your analysis. You cannot get caught up on the other metrics and variables right then because you already have your goal in mind. That is what you focus on—and decide whether you want to make a change or not. 

If one variation turns out to be better than the other, you choose that website. But sometimes it is not that simple. If neither is better than the other, then your test is inconclusive. When this happens, you may have to run the same test. 

Plan Your Next A/B Test

Remember, you only conducted a test for one variable, so you will have to repeat it for other variables for maximum optimisation. 

A/B tests give you an accurate look into how your content and marketing strategies land on your target audience. It might seem a little daunting, but A/B testing only helps improve your business. 

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HOW TO FIX PRICING PROBLEMS IN YOUR BUSINESS

Pricing problems or pricing strategy is one of the most important things to consider when you start your company. It can make or break your business. It is, perhaps, one of the toughest things in the world to settle on a price. What if it is too much? And what if it is not enough? What if this tanks my business? These are all valid concerns, but worry not! We are here to help show you the way through some of the hurdles you might face when trying to choose a price.

How Do You Settle on a Price?

The price of your product or service must always help cover the costs involved in running your business. That much is obvious. You need to keep the lights on, yes? And you need to pay the rent; you need to pay for your raw materials, meet the costs of your loans, the utilities, the salaries etc. But the right price is not just about sustainability; it can achieve so much more. An effective price strategy should accomplish four things–

  1. The pricing strategy should communicate the value of your product.
  2. It should place you among your competitors and help you find your position in the market.
  3. It should reinforce your revenue strategy.
  4. Lastly, it should also allow you to invest in technology and innovation that will help improve your product or service.

What are Some of the Pricing Problems Businesses Face?

  1. Basing Prices on Costs rather that Customers’ Perceptions of Value

It is undoubtedly your right to charge your product the money it took to make it. No one denies you that right. But you also have to keep in mind that your prices don’t exist in isolation. Unless customers perceive the cost to be worth it, they are not going to buy your product. So, it is essential to keep your customers in mind when settling on a price. Find a balance. And if you can’t–maybe you’re investing disproportionately in your product or not marketing to the right demographic.

  1. Companies Hold Prices At The Same Level for Too Long

It is a nerve-wracking experience to increase the prices of your product. Chances are, you are going to lose some customers in the process. But as long as your product is worth it, the majority will be willing to pay. However, due to fear and anxiety, businesses hold their prices at the same level for too long. They don’t know if this is the right time to increase times, or even if there is a right time. And, this predictably affects profit margins.
But as long as you announce your increase in pricing and do it strategically, you’re good to go.

  1. Businesses Spend Most of Their Time Serving their Least Profitable Customers

The sad truth is most companies don’t know who their most profitable customers are. So, most often, they pick their largest customers and cater their business toward them. But when you look at the data, they only lend to a marginal percentage of the profits. Failure to identify their profitable customers negatively affects their profits and unfairly skews pricing. Maybe a majority of your customers want to you decrease your prices. But how would you know when you don’t consider them important enough for you to listen to them?

Final Thoughts!

Fortunately, you can deal with most pricing problems easily. They might seem like complex problems, but in the end, they only require simple solutions. We hope this helped you, and we wish you good luck on your pricing journey!

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PR STRATEGY FOR START-UPS—lET’S KNOW ABOUT IT

In this day and age, you can’t have a business or a start-up without doing a PR strategy. You are what your audience says you are. And for better or worse, you will be defining yourself based on people’s actions. So, PR is crucial. 

So, first things first: What is PR?

The word PR gets thrown around a lot. But are even sure we know what it means? To take away all confusion: Public Relations (PR) refers to strategic communication efforts that you design to influence the public’s view positively—and to make sure they respond to your company. 

Depending on who you are trying to attract, the public can mean anyone from customers to investors, to government officials. 

So, how does a start-up go about doing PR? A big question; a complicated question. Thus, below, we outline some of the steps you can better grasp on how to begin. 

Take the Leap

The first thing you do when doing PR: Prepare yourself because you are going to be doing it on your own for a long time. Big companies and organisations can afford to hire professional PR firms to handle communications for them. But, unfortunately, start-ups can’t. With a small budget and limited resources, you will need to build a media relations team and do the leg-work by yourself. 

Lucky for you, spreading awareness about your start-up is not as hard as it used to be. With various social media platforms, you can make connections easily. You can get some amount of recognition once you get yourself out there. That is the first step. 

What is Your Goal?

To develop a successful PR strategy, it is important for you to send settle on your specific goal or goals. Different objectives require different kinds of engagement. PR is hardly the field where you can use a one-size-fits-all approach. So, ask yourself: What do I want positive PR for? What am I trying to achieve?

Are you, perhaps, trying to attract attention to your product launch? Do you want to draw crowds to your new location? Do you want to encourage more investment? Are you trying to become more visible for hiring purposes? 

Once you figure what you want, you can choose the right sources to spread your message through—and who you want to send the messages to, as well. 

The One-Sentence Pitch

Before you contact the media and invite journalists to take your photo and interview, you need to develop a one-sentence summary pitch for your business. 

The pitch is your story and your selling point. It distils the mission, vision, and details of your company all into one sentence so the media and the people can decide if it is worth their time or not. 

Your pitch needs to be concise and compelling. It needs to outline:

1.The purpose of your company

2. The specific group you’re targeting

3. The uniqueness of your product or business. 

Once you have all this in place, you’re good to go!

Reach Out to the Media

The last step of this particular journey is to contact the media. Don’t be afraid–journalists are always looking for new stories. You might be just what they are looking for! Reach about e-mail, make sure to personalize it, and restrict your pitch 5-7 sentences. Be interesting, and don’t be afraid to stand out from the crowd!

These are the basics of creating your PR strategy. Follow these steps to have a successful experience with PR. Good luck with your start-up!

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How much funds you should have to launch a start-up?

Dreaming to be a business owner or startup owner is exciting, but starting a business can be tough due to the various composite expenses. Anyone planning budget should be realistic as possible, concerning everything in a row from the office space, business Credit Cards, legal fees, payroll to any other organizational expenses which can add up in the journey. This blog will help you to figure out ways to predict the cost of your business needs.

1. Begin Small

Having a new company can make you thrilled to act and work fast but wait don’t let it lure you as starting small and moving forward with small steps is a much more authentic way of walking ahead in business. The founder and CEO of business plan software company Enloop, is Cynthia McCahon who states very much clearly the importance of stepping forward in a bit of healthy scepticism.

The business owner should start with understanding the potentiality of his business idea. In simple terms, don’t be overconfident with your business plan and assume it to be successful anyhow.

Put your idea to a small test to notice that whether the area you exist in will pay you for your business or not. And, you’ll get to know whether your idea will be successful or it requires certain modifications. Remember in business, the response of people is of primary importance and the rest is secondary.

2. Cost Estimating is Important

Every business requires different types of financial plans to start. Thank you, Drew Gerber, for the serial entrepreneur and founder of a technology company, financial planning and the PR Firm called Wasabi Publicity for clearly stating that any entrepreneur will need fixed costs in hand to satiate six months of the startup without any excuses.

He also advises having a plan ready to cover expenses and also an entrepreneur must identify his customers before opening the gates to offer services so that you have a way to cover your expenses.

Remember to never underestimate your costs. If you do so you can sooner be out of cash. As your business grows, so will your expenses. Therefore, never underestimate your costs. Plan at least 5% more expenses than you have in your head.

Preparing a business plan without the real expense number often is the reason for to failure of small businesses. Writing the actual figure after vigorous hard work can make a business stay and grow with the market.

3. Understanding the type of costs that can occur

Business owners need to consider various types of expenses when starting a business. The type of expenses that need consideration before starting on your venture are listed below:

Ongoing Costs vs. One-time costs

Ongoing Costs include expenses like utilities and paid on regular basis. No much fluctuation occurs month to month.

On the other edge, one-time costs occur in the startup process. The expense of incorporating a company is an example of it. Even buying a costly one-time payment item in a particular month, will make the money go out in greater numbers than the money coming into the company. In simple terms, it means you’ll notice a disruption in your account for that month and as a reconciliation of the used money, you have to make it up the following month.

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Steps to build a successful business plan

The business has evolved in recent years. People are excited about opting for entrepreneurship. Anyone who can earn money through his ideas or talent can own a business. Wait…! an idea isn’t enough to get started. Firstly, you have to plan your business and then the expenses revolving around it. If everything is proper, then you are good to start. Remember to start slow and increase further in the journey.

This blog will help you write your business plan without any worries, anxiety, or impatience.

Creating the executive summary

SBA recommends six pieces of information must consider while constructing the executive summary. The points include:

1. Mission Statement

It would take you not more than a para, where you’ll describe your mission statement, stating what your business is and your overarching goals in mind.

2. General information about the company

It consists of everything from the founding date of your business to the founders, if any, besides you. Here you will also mention the number of employees, roles of the founders and locations if any.

3. Highlights of the past endeavors

As a beginner of startups, you can list down your experiences and also can highlight your past successful endeavours as it will help the public to build trust in your company.

And if, you are experienced in this world of business, simply list down your successes in the years of exceptional working.

The public wants to see the past results to trust to invest in you through your services and products. Even listing your milestones will help gather an interested audience around you.

4. Services and Products

Describe your services and products you’re selling to the market. If you don’t have enough specifications for the product, you can state plans about your products offer.

5. Financial Information

Include your funding goals and information about banks with whom you have worked.

6. Futuristic Goals or Plans

Conclude by announcing the plans or goals you have thought of for your business’s success in the coming months and years.

Adding Company’s Overview

In this section, you will discuss the legal structure of your business, the industry representation by your business, the marketplace and the working.

Performing Market Analysis

In this section, you’ll include the description of the industry you are representing through your business, discuss the overview of your target’s market size, characteristics and growth. You will also highlight the market share potential, barriers, pricing and your top competitors.

Defining the business organization

In this section, you can discuss your organizational structure, hiring needs, ownership structure, the background of the board of directors and owners.

Describing services and products

In this section, you give product descriptions, the recent status of your services, the research & development behind your products, the defining goals and the intellectual property important to run your business comfortably. Also, list down the sourcing clearly and discuss the fulfilment in detail.

Explaining the sales and marketing plan

In this section, you’ll include the promotion criteria, your positioning style of products, the sales force and the selling strategy.

Detailing of the financial projections and plans

In this section, you will discuss financial statements including balance sheets, cash flow, income, accounts payable, accounts receivable and documents related to debt obligations, in detail.

You will also include essential documents like balance statements, cash flow forecasts, projected income statements and budget concerning Capital expenditure.

And, at last don’t forget adding an appendix!

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