You outsource your business accounting to the agencies believing that they would handle your bookkeeping more efficiently. Then you don’t have to hire internal bookkeeping staff and train them for managing accounts. Yes, when outsourced, your business accounting is in capable hands and the accounts will be managed well. But there are always chances of some risks in outsourcing accounting information. Money is a very sensitive thing that needs to be taken care of properly in business. And outsourcing of business accounting means giving direct control of the business to a third party. So before outsourcing business accounting, the experts of the business should take into account the potential risks related to it. To let you know about the risks, we are providing you with some information with this post.

Less Control Over Accounting

When outsourcing your business accounting to a firm, there are chances of you losing control over the business. This is because you can’t get every minute details from a firm. You can call the firm and ask the account manager about daily updates, weekly reports, and also monthly reports, but for such a thing to happen, you need to have trust in the firm. The relationship between you and the firm should be good. You may sometimes feel uncomfortable when outsourcing your business accounting to a firm because you lose your control over monitoring accounts and how you perform.

Being Unaware of Hidden Costs

When signing a contract with the agency appointed for accounting, go through the whole contract and read every terms and condition. There may be some work that they are charging you for and you may not be aware of it. There are chances that one task may be done multiple times, and you will have to pay an additional amount at the end of the term. So, keeping a good clarity with the firm about the accounts monthly or weekly and what activity is done is important. Be aware of the activity they do and set the expectations for payment before so you will not be unaware of things and won’t be hit with additional costs.

Security Risk of Data

When outsourcing the accounts, you will also have to share the data with them. The data will include very crucial information about your business and also your customers. So you are probably putting the data of your business and other people at risk. So it would be better to proceed cautiously every time you share the data. Ensure that unauthorized people aren’t  using the data for any kind of misconduct that could hurt your business or your customers badly. And in this modern era with the internet in hands, there are risks of data being used for misconduct.

Reduction in Quality of Work

When outsourcing accounting to a firm, there is a possibility that the firm may do your accounting for their profits. The firm would provide you with the financial reports very quickly, but it may lack the quality of work that a business needs to understand their financial situation. This could affect your business badly because if you are not aware of your current financial status, then how would you plan further. So, quality work is a must for the business which an outsourcing firm may lack in delivering.

Difficult to Communicate

It as a great advantage of having in house employees handling the accounts. As in house employees are in reach and you can have a query solve with them anytime you need. But that will not be the case with outsourcing firms. You may not be able to contact them instantly. The communication between you and the firm should be maintained well. The firm should respond whenever you need them. A firm’s response tells about how they prioritize their dedication towards you. So have a scheduled communication with the firm beforehand. This will help in eliminating any communication gap between you and the firm.

Faulty Process in Accountings

When you are relying on an outsourced company for your business’ accounting, make sure about the process they go through for clearing accounts. Review the firm before handing over the accounts to the system, see how good and well trained their employees are, the employees are certified or not, analyze the performances and the systems they work on. Analyzing such things will help you to get an idea of how good the firm is and how well the firm will be able to manage your accounts. This thorough check will give you a sigh relief and you will be stress-free.

Losing Track of Your Accounts

When you handovers the accounts to an outside firm to manage it, there are chances that you may lose the track you were on. As the outsourced firm is not in your reach every time so you may forget to check in with your accounts sometimes. Cloud-based systems are used by the accounting firms to manage and record your accounts. It gives you the authority of checking over the bookkeeping whenever you want to, but if you are not doing so, then you are missing out on your business. Checking on your business accountings every now and then will give you an idea of where your company’s financial condition stands. So you will be able to plan better for the future of your business.

There are risks with outsourcing your business with an accounting firm, and we have explained for your better understanding. Don’t ever sign a contract with an accounting firm without knowing how well they perform. Build good communication with them, ensure that they are reliable and keep your accounting in check. If you are looking for such accounting firms that have good communications and experts in managing your business accounting, then ATS Accounting is the right choice for your business.

Business budgeting is the most essential factor in running a business. Budgeting is the central working system of a business. Creating a business budgeting is not an easy task to be done. To make your business run smooth, a budget needs to be prepared. While creating a business budget, the company’s get fussy on how to improve its new budget plan. An improved budget plan will eventually result in better functioning of the company. To make a good enhanced budget, business firms that are already settled need to make a future budget based on the current trends. And for those whose business is a start-up needs to make assumptions on geographical area, local business, and hours of operation. To help you in improving your business budget, we are providing you with some tips that you can follow.

1) Make the Budget Flexible

The business budget made needs to be flexible. As there are changes that take place frequently in the market, and that changes can affect your business. In such times you should be careful, so your business should not get affected severely. To save yourselves from such a crisis, the budget needs to be flexible, so you can use it at such times. For flexible a business budget, you can’t make decisions on the basis of some guesses made months before. It can lead to faulty decisions. Creating a budget on the basis of outdated information can have backlashes during times of crisis. 

2) Try to Get Fundings

At whatever stage your business may be, funding from resources is always helpful, especially for those who have just started their business. Funding is never harmful to any business until you have planned how to utilize it efficiently. For those who are starting a new business can ask their friends or family for funding. Businesses, whether small or large, can always target to grab a big investor for their business. Funding in the business budgeting gives it an additional boost. When you are trying to get fundings from a prominent investor, make sure your financial planning is ready. Because the investor will like to fund their money in a business that is worth investing in. Their belief in investing in your business should not dwindle. A financial plan will show them what you are going to do with their fundings and they will be satisfied too.

3) Have a Clear and Early Communication

When preparing a budget, you should have communication without any barrier with all the departments of a business firm. The communication will ensure about what are the goals being set by a department, and it will help you to further decide about the perfect budgeting. The communication will help to remove any error that may cause afterwards. Communication will also help to ensure the alignment between the companies organizational and operational strategies. Communication is always the key.

4) Involve the Whole Team

Involving the whole team in the making of business budgeting is very significant. When budgeting is a team effort, it helps to make the process of budgeting easier. With everyone on board from the team, it will help to have a clear understanding of the goals of every department. Except for your finance department, involving people from the various department will give you a clear understanding of the needs and goals of every team. This will help you to have accurate data for making perfect predictions and setting a realistic budget for the business. The whole team will also provide different perspectives for the business and budget on where it is now and where you need it to be in the future.

5) Have a Plan for any Critical Situation

Making a flexible budget is very helpful for any crisis that can be faced by the business. To tackle more effectively with such a crisis, what you can do is predict the negative impacts that can hit your business. Review the market externally and economic trends that can severely affect your business positively or negatively. Forecasting for such events can help you to pivot as per the situation and need with the help of new data. This data forecasting will help for your business budgeting as the data will e on what’s happening in the market and not on what has happened previously. 

6) Consider the Profit and Cash Flow Goals

Considering profit and cash flow goals is vital. Goals for both profit and cash flow should be set differently. Because of both the thing, cash flow, and profit are very different in measuring, and both require a different kind of attention to control them. Your business budget will not be useful without profit and cash flow goals. You will have to set realistic targets for both profit and cash flow goals. This would help the business to miss from missing any of its financial objectives. 

7) Use the Right Software for Budgeting

New business budgeting software has come into the fore. So no more, you have to rely on Excel or Spreadsheet software to make your budget. New budgeting software provides some amazing tools for budgeting that makes your work easier. Excel and spreadsheets can be irritating at times so you can step back and opt for the right business budgeting software. New Softwares provide you with more flexibility, improved security, and cost savings. Also, current software tools help you to compare your current year budget with your previous year’s budget. The software allows you to make accurate predictions and can make your budget quickly with minimal errors.

Business budgeting is the backbone of a business, and by using such tips, the business budgeting will become firmer. Your business will be able to work efficiently throughout the year. It will also protect you from any critical situation if you follow the above tips. So make sure your business budgeting is improved and is based on such parameters.

Financial analysis is essential for all businesses to make quick business decisions and determine the future course of action using relevant and useful data about the strengths and weaknesses. Today, the accounting process has been made convenient, even for people not well-versed in accounting, by the use of accounting software and computer programs. One of the most common programs being used for accounting is the Excel spreadsheet. Many small- and mid-size businesses have been using Excel spreadsheets for calculation of their accounting books. But a lot of in-house accountants in Edmonton don’t know how spreadsheets have limitations that keep them from accurate accounting.

Consider this before praising spreadsheets; Accounting has been here since the beginning of early civilizations. The earliest accounting process or calculation dates back to ancient Mesopotamia (c. 3100 BC). Excel, on the other hand, was released for use on September 30, 1985. Do you feel the gap yet? When Excel came out, it wasn’t even specified that the program was built for proper accounting rules and calculations. Business mathematics is a twisted knot and requires skills of accountants in Edmonton to prepare accurate profit and loss statements. There are issues with the Excel spreadsheets that affect the accounting procedure of your firm and may result in erroneous information.

1) Poor Organization

Legitimate organization of transactional data is the first important step of accounting. If the data you have is not organized in proper categories and books, it will get obscure when you are actually trying to put the data to use for decision making. In this matter, spreadsheets are ponderous. For conveying data on the spreadsheet, you have to deliberately make your own grouping of files and information to organize them separately. In that case, accountants in Edmonton would still be better with pen paper where they can have different books for different categories of transactional data. In spreadsheets, sharing of data among different sheets is difficult. So if you’re taking a transaction from the cash book to use it in the profit and loss statement of your firm, you’ll have to re-enter the whole data manually in the other sheet. Spreadsheets make it challenging to transfer information on them from another application storing business data. Also, not all the details can be fit into the spreadsheet, so the data is hard to share with your tax preparer or your accountant for better results.

2) Growth Restrictions

Spreadsheets can be feasible to work on when the business is just starting up, and the calculations on the data are not too complicated or acute to regulations. Simple arithmetic calculations can be easy, but when the company grows, the calculations become complex as business mathematics is different than ordinary arithmetic used in calculating profit on a range of products. Suppose you have to engage in transactional data that has to be calculated between two different currencies. This is going to be troubling for you because the spreadsheet won’t do anything for you in this case. Spreadsheets were not made to be managing complex business data and calculations that require accountants in Edmonton on a register with excellent bookkeeping strategies. Accounting standards and cash flow are not understood by spreadsheet programs, and you will face problems when you try to add a business equation to the mix.

3) Poor Accuracy

Spreadsheets are old codes and require human help to make them work on the data that you provide. On spreadsheets, when you want the sheet to convert raw form data into calculated outputs automatically, you are required to write formulas for the spreadsheet to understand which way the calculation proceeds. It might be easy to come up with formulas for the most basic of calculations, but when your business grows and the equations of accounting become perplexing, it is difficult to come up with formulas that can represent the actual business equation to the spreadsheet. Even if you write a formula, it is highly possible that the formula is taken as something else at some points of the data and the whole calculation has errors that might not be found out until it's too late to rectify them. Not only do the errors make it unsuitable, but spreadsheets also have no idea about the accounting data, unlike human accountants who know about the accounting standards and will point out any errors you have committed in the balance sheet.

4) Storage and Security Concerns

When working on spreadsheets with your accounting data, all the data that you have acquired until now has to be saved on the computer itself and requires saving the data before you shut down the system. Since all the data is on the computer and is being conveyed to the spreadsheet in question, it has to be stored carefully so that no data is lost in the net of different programs. So if the computer suddenly shuts down while the sheet was still under use, all the data that you had accumulated will be lost, and you will have lost vital information to be analyzed for your firm. When you save data on electronic devices, there is always a chance that the data might get stolen if the device is stolen from the premises. Since hacking and malware attacks the prevalent, security concerns are heightened for crucial data about your firm that you wouldn’t want some people to have a look at. Even if you’re saving data on the cloud instead of your hard drive, it is only relevant to the last backup that you have made.

Factually correct accountancy is the essence of a successful business. Accounting data is carefully collected transactional information about every deal that your business has made. Analyzing this data using accounting standards is what gives you an intuition about the future of your business and shows you the factors that are to be worked upon to make better decisions than the last financial year. To get accurate accounting practice for your firm, hire accountants in Edmonton from ATS Accounting.

Many small and midsize businesses get hassled from the time of tax filing season. Many times the business owners are troubled by the amount of taxes they have to pay, along with the expenses that were made for the development of the business and maintenance of machinery in the business. The general thought of any business owner is to save enough from the business transactions that allow them to have financial freedom even after filing the taxes. This is the reason why you should know about the tax deductions that your business is liable to. There are many transactions and purchases that are not supposed to be listed in the tax filings. These expenses are done to run your business with all the machinery and manpower you need. So the business owners must take care that they note down every tax business deduction they can make by law to protect their capital for business operations and development. Such expenses are not considered in the tax reports of a firm. So what are the top business deductions that you can make from your tax filing?

1) Car and Truck Expenses

Almost all businesses have to get raw materials, goods or workers in and out of the workplace or factory. The cost applied in the use of vehicles and gas used for the business as a mode of transport can be deducted from the taxes you pay. Since vehicles used for the transit of raw material or delivery of goods to customers are taken as capital invested in business operations. If you bought a vehicle in a financial year, a percentage of the cost of the vehicle is deducted from the taxes. The amount of gasoline used in the vehicles used by a business can also be deducted from the taxable amount. Apart from this, even if a firm lease a vehicle for certain tasks and deliveries at hand, the cost of transportation can be taken out of the business deductions.

2) Salaries and Wages

When you’re running a business that requires the use of manpower. The salaries and wages that you pay to the employees are not supposed to note in the tax filings. All the payments made to your employees like salaries, incentives, bonuses, commissions and retirement funds can be deducted from the tax. Although the payments that you make to the sole proprietors and business partners are not under the business expenses bracket so you cannot be in your business deductions account.

3) Contractual Labour

Many businesses use freelancers and contractual labour to get some of their work done. The salaries or wages that you pay to the labourers or workers. There has to be some paperwork from the contractor that shows proof of you hiring labour on a contractual basis.

4) Workplace Supplies

The supplies used in operating business every day is a deductible cost. Cleaning supplies, toilet supplies, postage stamps, office stationery, vacuum-cleaning cost, etc. are all deductible from taxes.

5) Depreciation

This is the most important business deduction from the taxes you pay. Depreciation is an amount deducted from the accounts of machinery, property and other such assets that depreciate in value with time. A piece of machinery in a small factory, for example, is used every day and the parts of the machine go through wear and tear. So when the machine is sold out to attain capital for new machinery, the cost for the machinery won’t be the same as it was bought for. So the depreciation in value of assets and business property can be deducted from taxes as they are business expenses.

6) Rent on Business Property

If your small business uses a place on rent for everyday operations, the rent on the property can be fully deducted from your taxes. Many businesses like boutiques, salons, spas, etc. use the rental property. The yearly rent on the property is paid out of the profit which makes it a business deduction.

7) Utilities

The everyday operational activities of a small business or a midsize business require utilities that are charged for by the authorities. Electricity, for example, is fully deductible in the taxes. Another business deduction that can be deducted from the taxes is mobile phone bills used by you or you or your staff for the business. If you have a landline for domestic use you cannot deduct the bill from the tax but in the case of a second line for business use, it can be deducted as business expenses.

8) Other Taxes

Other taxes, like personal taxes that are not income tax or small business taxes, can be deducted from the tax filing list. Licensing and regulatory fees along with taxes on a property in the name of the business are tax-deductible. Your employer taxes and state unemployment taxes are deductible from taxation. Self-employed business owners, however, cannot benefit from tax deduction from half of their self-employment tax. It is a gross deduction on your income tax returns.

9) Insurance

Insurances are another important business deduction that you can make from your taxes and save significant amounts from your taxes. All kinds of business insurances like, malpractice coverage, flood insurance, cyber liability insurance, business continuation insurance, and the owners' insurance cover is counted under business deductions. A small business may also claim a deduction of 50% of the health coverages for employees if you provide one.

10) Repairs

Common repair jobs in the office building or manufacturing plants are deductible from taxes. Although the depreciation value of the machinery and other assets are accounted for in the business deductions, urgent repairs that might sometimes become fatal accidents can be deducted.

11) Travelling

Business owners or staff might require time to time travelling for a meeting with clients or for checking a machinery unit that they have sold. If you or your staff travel out of the state for business, transportation, flight expenses and accommodation are fully deductible from taxes. Although the local commute is non-deductible.

Understanding the rules of tax accounting can be a tough knot, at ATS Accounting we take care of all your tax filing paperwork and tax deduction accounting.

It is 2019, and not everyone is made for the 9 to 5 life today. People seeking to do their minds are everywhere and entrepreneurship seems promising for a life that doesn’t need a boss. Starting up your own business as a source of income is what many of us seek, but things go sideways for some. Reasons could be someone being treacherous or employees not liking the form of your work. A lot of times, the reason is just incomplete for the expenses you make for the business to run smoothly. Sometimes, in putting a business on the tracks and making it run, the capital input of the company dries in the first few years of initiation. This is the result of lack of experience for many young entrepreneurs.

When starting a business, the basic flow of thought of any beginner is towards the work that they will be doing in their business facility. For the financial management of the business, the easiest option would be to outsource your accounting through business services. But, there are some aspects of running a business in which the expenses go unnoticed and the business ends up having more expenditure than its profit. Hidden costs that can mess with the growth of your businesses must be on something you can’t turn a blind eye from.

Licenses and Permits

The days of barter are gone, and everything you earn has a share for the government as taxes. So eventually, the government needs to be informed before you set your foot in the market. Every new business needs permissions from the government and the local business community. Licenses for sale of objects and functioning hours are required for you to legally be on the track. Licensing and permits are seldom one time fees and require renewals as per the nature of your business. Always set aside some money for the renewals. You can join the local business networking organizations for benefits in the market and update of events and dates. Or you can hire a business service for consultation on starting a business.

Facility and Utilities

Running a business comes along with the requirement for a space to formalize your ideas into working for your profit. A start-up with just the founders or partners might not need anything more than a home office if its an online business. But as the nature of the business changes, having a professional space for working away from daily life becomes an obligation. Also, the utilities of such a facility that houses your work staff and other electronic gadgets, like computers, can run heavy on your pockets while they go unnoticed. Before you rent an office space, ask yourself what kind of facility is required for the nature of your business and see if a temporary office space works? Hiring a bookkeeper from business services for the proper calculation of your expenses can save you time and money.

Maintenance of Equipment and Upgrades

Even a small retail shop on the street corner requires equipment for functioning. At the beginning of a business, most entrepreneurs are into the development of their product or services and focus on the apparatus involved in the production and sale. In the enthusiasm of production and management of supplies, the smaller factors of the business, like the office equipment (computers, fax machines, copiers, etc.) and maintenance of the facility, are neglected. Sometimes, even the opportune equipment up-gradation in your workspace can save you future financial troubles on their maintenance. You can buy second-hand products and office equipment like desks and chairs on websites like eBay. However, you should never neglect the computers and laptops in your office and keep upgrading them according to the changing tech in the market.

Employees and Payrolls

Taking care of the people that create the wheels of your business and do their best to keep it rolling must be the most important point of focus. Proper budgeting of the employees who work under you is necessary to keep the running costs under control. The salaries, leaves, health insurance and training costs add up to external expenses. For the proper management of the compensation your employees get, you can hire a business service for payroll management. If you fail to provide the proper work environment, satisfactory salaries or wages and added benefits, you will most likely lose some good workers. Replacing an employee costs a part of the previous worker’s salary and might even require giving away more compensation to the replacement. Provide perks in your office space like refreshments for zoned out staff or allowing casual dressing with flexible timings.

Inventory Loss

Inventory loss or shrinkage is the loss of goods of sale to things like theft, damage, burglaries or faulty products. Shrinkage costs losses up to CA$ 4 billion every year to an average of Canadian retailers. Shrinkage costs add up over time and come up as a heavy loss on your hand. Inventory loss can be caused by both customer and employee theft. Prevention of shoplifting by employing security measures can decrease the amount of shrinkage. Insuring your warehouses from accidental damage will help you cope with the loss if the goods were lost to an accident like fire. Give allowances to employees to shop at the workplace for leaner rates. It will induce a sense of ownership and prevent internal thefts in your facility.

Time

Running a successful business requires money and most of all, it eats up all of your time. Time is the most important resource for all of us. Tasks that are time-consuming and non-productive at the same time, are going to be an opportunity-killer for you. Tasks like bookkeeping can be outsourced to hired specialists from companies with business services. While the work is on someone else’s timeline, you can use the time to find opportunities for expansion or maintain a work-life balance to keep your happy juices flowing.

Starting a business is not a mammoth task but ensuring its success is. Not having complete information about the obligatory procedures and the risks involved in the earlier stages can lead to the business failing miserably in the market. If you’re someone setting off on a journey of business and entrepreneurship, hire a start-up consultant from a company providing business services in Alberta.

Your business's accounting system is based on the bookkeeping process established to manage your company's funds. Bookkeeping records the financial transactions that are carried out during the course of business. When your business finances are in order, it becomes simpler to equip strategies that would bring success to your business. Here are a few strategies that would assist your business to achieve perpetual success.

Maintain Separate Business and Personal Finances

When running a business, it is important to engage organization funds for business use only. Using them for personal purposes not only affects the quantity in your business fund but also can invite legal complications. It could be a reason to pierce through the corporate veil and harm your business finances. Small businesses are managed by limited people, which makes it easier to cause a default whilst accessing the finances for the business. You should make it a point to open separate accounts each for personal and business finances. Using distinct bank accounts and credit cards for your business will not only help during tax filing processes but will also help you distinguish between the nature of your finances, thus uncomplicating the task of bookkeeping.

Hold Internal Control in Place

Having internal control over the company’s bookkeeping procedures and policies can expand your control over various finances and outtakes occurring in the business. When a transaction takes place, it is better to have an employee take down the transaction while another collects the fee. A third person can authorize the dealing. This measure of dividing work amongst the employees would keep more than one person in the loop and maintain accuracy while inputting data.

Plan Your Taxes Through the Year

Keeping in touch with your tax filing dates and requirements will not only save you time but also help you organize your expenses. You can plan the tax filing amounts and strategies well in advance to implement and pay smartly to avoid any costly penalties or burdens.

Follow a Specified Accounting Method

The standard accounting systems comprise of two accounting methods to be used in your business: cash basis accounting and accrual accounting. In the former method, cash is recorded when it is received by the business. This method is usually recommended to be used in businesses that strictly require making cash payments. In the accrual method of accounting, the matching principle of accounts is implemented, where the revenues and expenses are recorded as they occur. This method could be complicated because of the various rules it requires to be followed. Nonetheless, accrual accounting is your best choice while you opt for invoicing to clients. Your bookkeeping strategy should be built with an appropriate method that suits your business.

Track Expenses with Accounting Software

Recording expenses on a timely basis can be effective in many ways. From assisting in tax filing to helping in maintaining the books, a thorough record of the business finances is promising. Different accounting software are available to be used for tracking expenses and managing your accounts. Planning your expenses well in advance and building categories for them will ease the bookkeeping process. Choose to use an accounting software system that will not only help you with your current bookkeeping requirements but extend to a larger scope of work needs.

Focus on Tracking Performance Rather Than Plans

The best bookkeeping strategy to put in place is tracking the performance rather than plans built for the business. Most businesses chart plans or projects to undertake, which are then used to track the company's ongoing progress. When a plan is put in place, the financial budget of the business would be tracked and manufactured accordingly. On the other hand, if more focus is engaged in tracking the overall progress, it gives you a wider scope to compare financial figures compared to previous numbers and conclude strategically. Evaluating financial data monthly assists in building bookkeeping strategies for better results. For example, if growth in a company's finance margin over a period is visible due to a particular product, decisions of investing more into it can increase the annual cash flow.

Access Real-Time Data

Immediate access to the financial data of your business gives a larger scope to planning your company's finances. Your business may require you to deal with various critical information of outstanding account receivables or payables. With access to real-time data, it would be easier to develop strategic decisions and evaluate the current status of the business.

Follow Up on Bank Statements

Your bank statements are a compilation of the balances in your account and information on the complete stack of transactions. Conducting regular follow-ups makes it easier to review business proceedings thoroughly. Ideally, you can compare the information you’ve put in your company's books with the bank statement. This ensures a check over the presence of any discrepancies or any unauthorized transaction that may have taken place during the course of business.

Structure Accounts in Order

Structuring accounts according to categories eases the bookkeeping process. Well-categorized accounts would also make it easier to go back to them in the future if the need arises. The business’s receipts, records and any other information important for the bookkeeping process should be maintained in an orderly manner to suffice any requirements. This ensures efficient bookkeeping and aid in picking out any discrepancies.

The basic strategy your company should follow to is avoiding making bookkeeping mistakes to accomplish continuous success. Having said that, the above-mentioned strategies when implemented with prior consultation can help you achieve greater results. While you consult professional accountants, make sure to give them a true and fair view of your company to achieve the best results.

A profit margin is the basic means of small business accounting to gain insight into how much money your business is making, the general health of your business, and the problems within your business. Therefore, all small business owners should consider this metric: the profit margin. Profit margin is calculated on the percentage of sales that have turned into profits, i.e. dividing the net income by sales.

There are times when you don’t meet the profit expectations that you have set for your business. At times like these, you need to know why the profit margin is below expectations and make necessary adjustments in your business functions. If you want to know how to troubleshoot your profit margins, here are some of our tips to consider.

Gather Insights and Analysis from Annual Trends

Let’s start with looking at the income statements from the past years of the business. Look for the things that were driving the profits each year. Were there any seasonal surges or a pause in the statistics? How did the product perform in the respective years? Did increased competition affect your sales? Was there any poor execution of sales strategies? Performing this analysis and getting answers to these questions can help you drill down to the reason for stopping the sales of your products or services. Brainstorm the solutions to reduce the impact if the same circumstances still occur and affect your performance.

Compare Yourself to the Competition

Knowing how to stack up to the competition shows how well you are doing and decide your future strategies. Look up at your competitors and compare the profit margin of your competitor. When you compare your business strategies - such as marketing, targeting, and providing customer services - with your competitors, you re-analyze the root causes of the problems that are becoming an obstacle in your sales. Make a note of all the things that you like about your competitors that are also working well for them, and look for ways to inculcate the same in your business functions.

Consider Re-pricing Your Products

There is a possibility that your business is doing more while maintaining equivalent overhead expenses. To increase your revenue strategy, you need to choose a low-price strategy, i.e. reduce your selling price to increase revenue. By using this strategy, you should see a pick-up revenue assuming that your customers are price-sensitive. For instance, a car manufacturer that produces luxury cars will sell fewer models because of their high price tag. The strategy is to raise the prices and sacrifice the volume and operating costs by making more money on every sale.

On the other hand, the car manufacturer with economy cars will make less profit margin but can sell more cars since their customers can afford the price. Both the strategies are effective, but the execution of these strategies depends on the type of business and your customer’s tolerance level.

Here is how you can determine the price of the product:

For example, if you need to make a 15% profit on a product with the selling price of CAD 18, you need to subtract the profit percentage that you want from 1. Let’s say the factor is 0.85 (1-0.15). To calculate the selling price of the product, divide the original cost (18) by the factor 0.85. Therefore, you need to sell the product for CAD 21.17 to receive a 15% profit margin for your business. You can talk to your business’s financial analyst and small business accounting expert to price the products rightly.

Reduce Expenses

When you know your profit margin, you can uncover your spending practices or make decisions to cut costs in certain areas. It is all about keeping overhead costs as low as possible to produce a quality business product. The formula of the cost of goods sold for small business accounting is:

Beginning inventory + purchases during the period - Ending inventory

You can reduce inventory costs by purchasing in bulk, taking advantage of supplier discounts, and negotiating terms with the suppliers. Try to cut back the cost of goods sold to the extent that it positively affect sales.

Cut Underperforming Products or Services

Making this call is completely yours. If you have certain products that are not doing well in the market, try to pull them out of the market. This might help you trim the cost, and you can use that cost to bring up the profit margin percentage. You can even reduce your staff members if the salary is becoming a considerable expense item in your small business accounting books.

Review Profit Margins as Monthly Practice

As a small business owner, you should always know how your business is spending money. It is important to improve your profit margin to track the expenses. A well-run business looks at the numbers in their small business accounting monthly. All successful companies go through this necessary exercise. If your numbers are different from one or two percent, that is not significant and can be controlled. But when the numbers differ by five percent or more, then it indicates that there are things that need to change. Analyzing the margins is a great diagnostic tool for monitoring the health of your business.

Consult a Professional

Sometimes, you can’t identify the core issues to troubleshoot your profit margins no matter how many strategies you use. If you are still baffled about why profit margins aren’t where you thought they would be, try consulting a professional small business accounting expert. An outsourced small business accounting firm can bring your objective view of the situation and identify the core issues of the problem.

Remember that profits are nice, but the margins are even better. Do your research and make sure you track the numbers down to every last expenditure and revenue source. Knowing where your small business accounting is along with your profit margin will help you determine where to go next.

Businesses, both large and small, face a number of risks. Risks are an inevitable part of the business. The uncertainties in the business can be changed daily depending on your business. Many Canadian business owners should identify the pressing risks their businesses face. For an entrepreneur to identify the risks in the business and equip the enterprise with risk management strategies, it is important to conduct a risk assessment round in your business. So, here is a step-by-step guide for the small and medium businesses to assess the risks in the business.

Identify the Risks

A risk can be internal (risks inside of your operations) and external (outside of your business). Internal risks are only specific to your business and easier to control than the external risks such as:

- Financial risks

- Marketing risks

- Operational risks

- Workforce risks

External risks are usually out of your control such as:

- Changing the economy

- New competitors

- Natural disasters

- Government regulations

- Consumer demand changes

Once you identify the types of risks that your business is financially exposed to, segregate the risks as external and internal risk to know the risks that you can control and the ones that you don’t. You can even identify your financial risks by hiring the right accounting service provider for small business.

Assess the Risks

When you list down the types of risk that your business is exposed to, you need to determine the severity of the uncertainty in the financial aspect. Create a risk rating matrix to identify the risks that can cause severe damage to your business finances and the practical measures to manage the financial risk. Then, create a table as given below:

Risk rating level needed

- Critical - Immediate action is required

- High - Action needed quickly (within 1-2 days)

- Moderate - Action required with a week

- Low - Required action with a reasonable period (2-4 weeks)

- Very low - Risk can be eliminated or lowered easily with time

Control the Risks

Once you rate the risk in your risk rating matrix, understand various risk control measures that can help you control or eliminate the risk. Risk control is a set of methods by which firms evaluate potential losses and take action to reduce or eliminate the risks.

Figure out controls by looking at the patterns over time, assessing their impacts, and also the likelihood of occurring again. Here are some of the risk control techniques:

Eliminate it - You can avoid the risk of eliminating the core problem. For instance, if you discover certain chemicals used in your manufacturing company that is dangerous for your employee's health, as the owner, you substitute the chemical with a safe alternative to protect your worker’s health.

Prevent it - When there is a risk, you try to minimize the risk as eliminating it will cost you a lot. For instance, if you have something in your inventory that is susceptible to theft, you can include patrolling security guards in your security plan, install video cameras or use advanced storage facilities.

Reduce it - Some risks can be avoided, but you can always limit the losses when the threat occurs. For instance, if your company stores hazardous materials in a warehouse, you might install water sprinklers to reduce the damage when there is a fire threat. You may also use insurance as a risk control measure to protect the things that are susceptible to catching fire.

Transfer it - If your business deals with multiple lines of business offering such as a variety of products and services, try to analyze the risks differently. Consult a professional financing firm offering all types of accounting services.

Practice the Risk Control Measures

Once you have decided the risk control measures for the respective risk that you have listed, you need to test the effectiveness of your risk management approach and controls. When you execute your risk control measure strategies, you can determine the best strategy to control that particular risk. Not every risk technique will be the golden bullet to keep your business away from the potential risk. As said earlier, risks in the business change every day, and therefore, you need to find a solution that is flexible and effective enough even when the risks change. You can always depend on the financial accounting service provider to help you tackle the right risk control measures for your business.

Monitor and Review

When you find the right risk control strategy, you need to monitor the performance of your risk control measures periodically. Regular evaluations of the risk by an accounting service provider will help you out in knowing things such as:

- What does the management think of the controls?

- What does your financial team think about the controls?

- Is the control still relevant?

- Did the nature of the financial risk change?

- Are the controls still in place and active as planned?

Prioritize the risk that needs your attention and efforts. You can quickly assess the risk if it has achieved its goals or control the risks in several ways such as:

- Consulting your team involved with the control measures

- Consulting your management who administer the controls

- Checking the performance reports regularly with the accounting service provider

- Physically check the conditions of the controls

It is essential for your team to know about the control measures and the purpose of implementing the risk control measure. When you and your team are on the same page, your company can successfully reduce or eliminate the risk more effectively.

Risk assessment is a living process, and when it comes to assessing financial risk, you need to seek assistance from a professional accounting service provider. So keep track of your business debts, incomes, expenses, and maintain financial statements and assess the risk accordingly.

Virtual stores are the emerging trend, as they are an easy way to do business without the need to have a physical store. With a virtual shop, one can reach out to a broad audience beyond the location of the store. However, while chalking out a plan to operate an e-commerce business and sell online, one needs to adhere to tax compliance in Edmonton with the various provincial and territorial regulations.

These regulations enforce even though the store does not have a physical address in other provinces in which it sells. Furthermore, the online business owner needs to be aware of the rules and regulations associated with distributing products in different parts of Canada. Various provisions may apply in regions for e-Commerce, online sales contracts, or other online sale transactions and advertising.

Here is a brief rundown of the points to keep in mind while running an e-Commerce business in Edmonton.

Additional Provincial Registration

If you do business with clients outside your registered province, it's a must to register your business in their land or territory of residence as well.

Incorporation

Like any other physically existing business, an e-commerce business needs to be incorporated to protect the shareholder's assets from facing any liabilities. For this, it is recommended to consult a professional entity regarding the structure and incorporation, federally or provincially.

e-Commerce Sales Tax

One of the significant challenges e-Commerce sellers face is understanding of tax compliance in Edmonton for sales tax regulations. To understand the concept of sales taxes, we need first to know what they are. In layman language, sales taxes are the additional amounts you collect from your customer and remit them to the government.

It is not an additional tax on your income, and it is not a charge either; it is something that could be more of a temporary possession which is returned to the government eventually.

Sales Tax Implications for eCommerce Sellers

Similar to other countries, Canada imposes a sales tax on products shipped to Canadian consumers. Sales taxes levied on a federal and provincial level. It is an amalgamation of state and provincial tax jurisdictions.

Some provinces have harmonized their sales taxes in compliance with federal sales taxes (hence, the name HST – Harmonized Sales Taxes).

In a nutshell, an e-Commerce company will need to register to collect sales taxes from Canadian buyers if all of the following are true:

• You are deemed to carry on business in Canada
• You are selling taxable supplies
• You are not a small business supplier

Canadian Income Tax Implications for e-Commerce Sellers

In general, your business is considered resident for tax purposes in Canada if:

• The corporation was assimilated in Canada.
• The mind and management of the establishment are in Canada (i.e., directors or shareholders reside in Canada).
• The company is well-established and permanent in Canada (i.e., a fixed place of business).

Additionally, if your selling earns income from business carried in Canada, you will have to file a Canadian income tax return regardless if you are a small business supplier or not.

Canadian Controlled Private Corporations (CCPC) is subjected to a low of 14 -17% rate on the first $500,000 income.

The combined federal and provincial tax rates for non-resident companies vary from 25-31% regardless of the amount of income.

Most tax treaties absolve companies from paying taxes if the corporation does not have a permanent establishment (i.e., a fixed place of business) in Canada.

Necessary Tax Returns

If you are a non-Canadian corporation that carried business in Canada, you will be required to file a T2 tax return along with Schedules 91 and 97. If you are claiming protection under one of the treaties, you will need to specify sections of the agreement on those schedules.

Non-resident sole proprietorships will have to apply for an Individual Tax Number (ITN) to file their business income. Forms T1 and T215 will need to be completed and submitted to the CRA by June 15th of every year.

Canada – U.S. Tax Treaty

Those e-Commerce sellers who don't have a permanent establishment in Canada or the U.S. are subject to the protection by the U.S. – Canada Tax Treaty.

Canadian e-Commerce corporations selling in the U.S. with no permanent establishments fill forms 1120-F and 8833. Corporations require an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to file their returns.

On the north side of the border, U.S. e-Commerce corporations selling in Canada will fill forms T2 and Schedules 91 and 97. A corporation will need a Business Number (BN) to file their tax returns with the Canada Revenue Agency (CRA).

Tax Compliance

For selling items to an out-of-province consumer, it is critical to understand how and when to charge sales taxes (GST, HST, and PST). In an ideal scenario, an e-Commerce platform should be set up in a way that automatically adds the precise amount of tax. Make sure to test the system, ensure that the system is up-to-date and verify that it is accurately set up. Business owners who sell online in other countries are essentially operating a multinational company. The more your company gets involved in the land of destination, the higher tax obligations and complexities arise.

What we have given here describes basic rules and considerations of e-Commerce taxation for Canadian and non-Canadian sellers. Your situation can be different, so consult with the experts to meet tax compliance in Edmonton. Approaching a competent tax professional of your choice is wise.

If you are operating an e-commerce business in Edmonton, run it under the right business structure. Make sure to know your sales and income tax obligations within and outside the country. Also, utilization of technology should stay on top of your business checklist.

We recommend you rely on knowledge, trusted advisors, and your primary business acumen to navigate through tax compliance challenges.

Book a free consultation today to know more about your way with taxes and their impact on your business.

When it comes to operating a restaurant business, there are a lot of factors to consider to keep the business running smoothly.

Managing your restaurant accounts can be one of the hardest parts of running a restaurant as well as the deciding factor between success and failure. From creating cash-flow projections to applying for loans, managing the financial aspect of your restaurant can sometimes feel like a juggling act.

When you are starting a new business or prepping your taxes for the coming year, hiring an accounting service may be on your mind. Even the most business-savvy restaurateur could require an accountant to help handle the ins and outs of his restaurant’s finances.

If you are skeptical of the importance of accounting for your restaurant, this overview will help you understand its benefits for your business to thrive. Read along and find out how!

Ensures Compliance with State and Federal Directives

With constant law changes regarding sick leave, termination of employment, new hire reporting, health insurance, and more, it is nearly impossible to keep up with the federal and state laws for restaurants. ATS Accounting provides back office support in addition to offering payroll services. The company provides accounting and human resources management that offers clients a full suite of services that often intersect.

A full-service accounting firm understands the state rules and regulations regarding payroll services, tax-breaks, insurance, etc. They are also aware of how the latest amendments affect restaurant costs. Assessing for fines and fees due to recent law amendments is one less worry that restaurants need stress about when they outsource their accounting to a restaurant accounting firm.

Creates Cash Flow Projections

A cash-flow projection is a formula that estimates your budgeted revenue after expenses (total revenue – total expenses = projected cash-flow). For new restaurant owners trying to master accounting, creating cash-flow projections can be challenging. Still, this is a necessary part of financial planning and will aid you to keep your restaurant on a budget.

Helps in Processing Payroll Transactions

Your employees are the engines of your restaurant; therefore, it's imperative that you keep them happy and paid. When it comes to payroll services in Edmonton, there's more to consider than just wages and time tracking. You should also ponder over deductions, benefits, overtime payments, payroll taxes, and more.

Applicable deductions might include income tax, your share of your employees' contribution to the Canada Pension Plan, and employment insurance. To accurately calculate each employee's income tax deductions, require all workers to provide their Social Insurance Numbers (SIN), and fill out a separate Personal Tax Credits Return Form, or TD1.

Though paying employees may seem like a simple task, but it is more complicated than you might think. Some of the details you'll need to iron out include:

• Choosing a pay period
• Determine how payments will be made
• Properly classifying employees
• Withholding taxes

It can be a lot to keep up with, which is why many restaurant owners outsource these tasks to an accounting firm that offers restaurant bookkeeping services, including payroll services management.

Maintains Accuracy in Holding Accounting Records

It is critical to maintaining up-to-date financial records. Not only it helps monitor how much revenue is flowing in and out, but it also helps your restaurant survive should you ever face a CRA audit. If you aren’t experienced with managing the logs, consider seeking help from an accounting firm. Additionally, most accounting firms also keep track of the inventory, manage payroll services, and run sales reports.

Provides Sound Advice for Your Business

Many restaurateurs have backgrounds in the food industry but may not have experience in finance. It is wise for such entrepreneurs to outsource their accounting tasks to professionals.

Hiring an accounting service in Edmonton is often about bringing a new perspective, one with years of experience that suggests viable paths to business growth. An accounting service helps you plan your target goals and look out for financial tricks that would reduce your expenses. Your accountant offers insurance advice, find ways to trim costs without lessening quality, help you evaluate menu prices, and even research your business potential for expansion.

As you and your employees work hard in the day-to-day aspects of the business, your restaurant accountant can take a step back and see the forest for the trees.

Gives Tax Advice and Help in Auditing

Many restaurant owners approach an accountant when it's the tax time, and indeed, that's a service your restaurant can consider an accounting service for. Not only your accountant makes sure your restaurant is in compliance with federal and state tax laws but helps you plan throughout the year so that your deductibles go smoothly by the time the tax season approaches.

If a restaurant is audited, whether for taxes or during the bank loan process, restaurant accounting services also assure the auditor that the business’ financial documents are precise and up-to-date.

By understanding what an accounting firm does – and knowing what to look for in a restaurant accountant specifically, you can hire a great fit for your business and set your restaurant up for success!

ATS Accounting has licensed agents who work exclusively with all business owners. Our team of dedicated agents knows the specific risks restaurant owners may face and help ensure your business is protected with the right policies and coverage limits.

Ready to get started? Click here and get in touch with us today!

The primary goal of every business owner is to succeed. And to succeed in business means to be able to establish a steady flow of cash in their account. When they spend money to pay for the overhead expenses including the salary and benefits of their employees, they also expect money to come in to consider as profit. The risk of running a business will always be there. You can never tell when you will need immediate cash. Without immediate payment meant losses for the company.

The money you borrow from financial institutions or lenders could help you at the moment of need, but the interest they come with means expenses at your end. Is it possible to avoid such cashless moments? There are a number of things that can be used to keep yourself from being in that position when you don’t have a choice but to borrow money and pay for the interest. The first step is prevention. Work closely with a trusted accounting firm in Edmonton, and you don’t have to worry about finances. You know your business is in good hands.

Apart from that, here are three business decision mistakes you must avoid to keep your business thriving:

- Going for an extended credit period could mean more losses for the business. The length of time you want to go for to cover your loan payment may seem like you’re paying the creditors less each month. However, what most business owners fail to realize is that the interest rate they are paying for I much higher considering the length of time they took the loan for. If applying for credit to cover expenses could not be prevented, at the very least, make sure to pay it off at the shortest time possible.

- Putting off the updating of the books is one of the worst things that a business owner could do. Reputable accountants in Edmonton would always suggest that the books be updated with every transaction. The risk of forgetting to put in the books the expenses as well as the payments received will still be there. These mistakes may seem simple, but they could alter the books altogether. Recording all transactions when they happen should always be the goal.

- Paying off debt too early than the scheduled payment is not going to help at all. The interest that you’ll be paying for that credit is the same. Paying too first means not having the power to use the money and grow it in business. If your goal is to reach success, then you should be working hard to avoid obtaining debt at all.

When it comes to achieving a steady cash flow, business owners can’t help but take risks and sometimes commit mistakes in the process. The more important thing is always to try to avoid the mistakes to keep the business afloat.

The amount of money that you have to fund expenses in the business falls under the category of capital budgeting. At the beginning of the business, the money that is put into establishing it is considered an investment. The types of machinery, rental as well as the purchase of materials and hiring of people are all considered part of the capital budget. How do you determine whether an investment is worthwhile or not? The process of capital budgeting needs to be done as efficiently as possible. Here are some of the significant points that you have to consider:

- It requires a large amount of money. Capital budgeting involves a considerable amount of money put underinvestment. This is one of the reasons why the process needs to be done by the books. Every decision made should be thoughtful and wise to ensure that it will grow in value once it is put out on the market. Only knowledgeable and correct investments will bring back the money; otherwise, the company will incur losses even before it earns anything.

- The decision where to put the money for investment is irreversible. It means if you have decided to purchase machinery and later realize that it is of no use, selling it won’t bring back the investment. It already means a loss for the company. The market value of used machinery (whether or not it has been used once, twice or many times) is practically lower than its cost if it were bought brand new.

- Putting together a capital fund for the start-up of a business requires a huge amount of money. This amount can be further subdivided into particular areas of the company that needs to be covered, including purchases and rental payment that need to be paid. Making one wrong decision could mean a massive loss of the start-up business as well, that’s why it is important always to make wise choices on where to put your money.

- Your budget today is not limited to what you spend on today. It always involves the future of the company. When proper capital budgeting is done right, it can help you plan for future business developments. Therefore, before you execute any business decision, whether it is a purchase or an investment, make sure to think about where you plan your business to be in the future. In the process, it is best to include an accountant in the planning. Not only will they serve as a financial advisor, but they can help you foresee possible implications your investments may have on the tax you need to pay for.

While you are in the middle of capital planning, this checklist will serve as your guide to keep you on the right track. Before final decisions are made, especially those that have implications on the investment, make sure to consult an accountant you trust.

No business owner can ever tell what’s in store for the business in the coming months. Although most of them would be hopeful that they’d be able to grow their business and bring in more profit, not one of them could say that one strategy will make it work for them today and in the future. Half of the year has passed, what have you done for your business? The next six months will be crucial. It will present both opportunities for growth and risks for failure, that’s why you should always be ready for what will come your way.

Overcome the risks and take advantage of the growth opportunities when they come your way. Be prepared to sit down and make a financial plan for how it can be done. It is essential to know what you need to be financially prepared for in the next six months for the lack of it will have a direct impact on the success of your business. What do you need to do? This is where you begin:

- Keep Yourself Updated

The updates should not be limited to your business alone. You must also look into the latest happenings, including the trends because all of these could affect your business in one way or another. You should also consider studying your competitor’s strategy as well as evaluating the cost of running your business on a monthly basis. When you have data on all these, it would be easier for you to make decisions now and plan for what’s ahead.

- Make a List of Possible Expenses

One of the most critical aspects of financial planning is knowing what you need to spend your money on. You need to decide where the business money will go. Remember that the goal is to grow your money. For this purpose, it is best to talk to a financial adviser or the company’s trusted accountant to help decide where the money should go. They’ll know which departments you should invest in and which ones you should cut down on costs.

- Update your Knowledge Regarding Taxes

Are there any changes in the tax rates that you have to pay for your business? Make sure that you keep yourself updated with all these rates to ensure that you are paying the right taxes at the best prices for your business. Knowledge of such could also help you decide in advance where you can put in more money to grow it more.

Whether it is the beginning of the financial year or in the middle of it, there’s no denying how important it is to plan, especially when it concerns your business finances. In the midst of all these, you can count on an accountant in Edmonton to help you through it. All you need is to ask for help, and it will come.

How do you put together a business plan that sells? More than being a benchmark for success and growth, a good business plan must be able to attract potential investors to come in. Acquiring funds for business is not limited to how much the company earned over a span of time. Money could also come from individuals or institutions who are interested in investing in your business project to help it in its expansion. More than any other endeavor, creating a business plan that will get you the money that you need to improve your business.

You’ve prepared yourself for the sales pitch, but before you present anything, potential investors will always look into your business plan first. You must make sure that the plan is clear, concise and complete. But how do you get it done right? Here are some tips to do it:

- It must highlight all the key factors that make your business a success. The growth of the business is not dependent on one factor alone. In fact, it may be a combination of a number of factors working together. However, it is important that you are able to visualize this for your target investors. When they see that these factors are actually tangible and controllable, they can easily realize what they can expect when they put their money in your business.

- Be positive in your tone when it comes to packaging your business. Load with a lot of positivity and enthusiasm. The goal is to compel your investors to put their money in your business immediately after reading your business plan. What goals have you set for your company? Include that alongside the mission and vision of the company.

- Clearly define the potential of the business to grow even more. The growth that it has had in the last few years since it started its operation isn’t enough to get investors to sign in. They have to see where their money is going and how far it will grow. Identify your market and let them see for themselves how knowledge of your clientele will help in growing the business.

- What is the business idea? Assuming that the investor already knows what the business is about is one of the biggest mistakes that you can do as a business owner. When you present the business plan, make sure you explain the jargons that you used. Make the presentation as simple as possible. Complicating it will not get you the investment that you need.

These tips will help you put together a business plan that will sell. Follow it religiously, and you’ll be surprised at how effective your business plan will be.

Have you recently updated your business cost sheet? Whether it is a list associated with production, administration or the distribution of a product, every company must have its cost sheet. The more important part of having a cost sheet is keeping it updated as often as possible. The sheet is in itself a reminder of how you should calculate the cost of the product to determine the margin of profit that you gain when each one is sold. Also, it will help ensure that you can set up prices of other products that you decide to sell in the future.

Did you know that the cost sheet should be prepared even before you begin business operations? If this is how important it is to keep track of the flow of money in the business, it is also best that you know what should be in it. When you prepare the sheet, make sure that you include all the details necessary. Not only will it be helpful today, but it will serve as your guide to adequately prepare cost sheets in the future whenever you decide to add more products to the list you already have.

· First, your cost sheet must contain a list of all the products that your business is selling. Alongside these items should be a list of how much they cost when you procured them. On the column beside it, make sure to list down the price rate that you are selling it for. Whether it is a product or a service that you are offering, it is essential to put them on a list. Once you get a list of the total cost of the item, add the percentage of profit to help you arrive at the expense of each item or service.

· Second, be sure to include the source of the items that you are selling. If it comes with a shipping fee, then make sure to cover all the expenses incurred to get the item to you. All these should be shouldered by the cost of the item to make sure that you don’t lose money on your investment. The goal of every business is to earn; thus, you have to make sure that you include all expenses and have put them on a list.

· Third, the cost sheet must also include the details of the supplier as well as the details on the partner shipment company. These details will help you during the evaluation of the services and products you have been provided with. When it seems as if the relationship with these providers are no longer as productive as they used to be, it is best to rethink if keeping the relationship with them is still right for your business. When you decide to reconsider, the cost sheet will help you during the evaluation.

Preparing the cost sheet may be something that’s easy to overlook. However, it is the document that can be extremely beneficial for your business in the future. When its preparation becomes a challenge, it is best to ask a professional accountant to help you. They can prepare the cost sheet as well as explain the implications of the potential increase in cost and decrease in sales. All you need is a certified accountant to get the job done right.

Have you wanted to take the risk to start-up a new business venture? No matter how good your business idea may be, it is a must that you work on determining the amount you need to put up that start-up business of yours. Financial planning for both short and long-term projects is the key to the success of any new entrepreneur. It is essential that you know the tips and tricks that you could follow to help you grow the money you have put into it.

How do you get around it? Here are a few tips to help you start-up your business and grow it:

Tip 1: Look into the Cash Flow of the Company

Most start-up businesses don’t grow because it has run out of money to fund it. Business owners must know the flow of cash in the business. Where does every single dollar come from and where do they go. If you fail to be on top of the cash flow of the business, you could be putting yourself in the middle of trouble. Not only could mean losing all that you risked for the business, but failing in your venture altogether. Remember that the goal is to establish a budget and to stick to it.

Tip 2: Consider Various Opportunities for Business Growth

A start-up business may mean running it from home. In the beginning, this may all work out for you. But you also have to be open to expansions. This may require a bit more work. Recognizing the different opportunities for growth and development should always be on top of your list. When you know that new investments are possible for you, go for it. Like the first one, learn more about it and in the process, grow your start-up business and create a steady cash flow for it.

Tip 3: Identify Fixed Expenses and Keep them to a Minimum

The key to successfully starting up your dream business is to keep expenses to a minimum. If you don’t need to rent out an office yet, then don’t. The limit on costs means you have more funds to improve what you offer regarding items and services. Keep operating and other overhead expenses to a minimum. You don’t need catered meals each day. Don’t forget that the primary goal is to generate revenues and keep it growing.

Whether you are starting your business today or tomorrow, it is essential to be on top of everything. Generate higher revenues and keep the expenses to a minimum. Before you know it, you have doubled your investment and has won yourself more money to invest and grow.