How Bookkeeping Capitalizes On Young, Digital-First SMBs

| February 28, 2020

article image
An entrepreneur who opens a coffee shop or launches a FinTech startup isn’t in business to crunch numbers and file taxes. Yet, the burden of financial management, from tedious data entry to compliance challenges, is a nonnegotiable part of starting a small business (SMB). Waseem Daher, CEO of Pilot.com, recently told PYMNTS that this burden was felt acutely within two previous businesses he had founded, leading to a wake-up call. “In our very first company, we were totally bootstrapped — and because of that, we had to be very frugal, so we did our own bookkeeping,” he said. “In retrospect, it was a big mistake. It’s not a high-level use of any founder’s time, but it opened our eyes to the problem.”

Spotlight

CognitiveScale

CognitiveScale builds augmented intelligence software for healthcare, commerce, and financial services markets. The company’s products, ENGAGE and AMPLIFY are built on its open and extensible AI foundation, CORTEX, to help large enterprises increase user engagement, improve decision-making, and deliver self-learning and self-assuring business processes.

OTHER ARTICLES

6 ESSENTIALS OF A PAYMENT PLATFORM FOR SMALL BUSINESS

Article | May 13, 2021

In this blog, we will look at some important factors that should be considered when selecting a payment platform for a small business. Sometimes, small businesses make decisions based solely on price. However, many other factors can have a significant impact on payment solutions for businesses and their customers. Below are what we consider to be six essentials necessary to make a payment platform optimal for any small business.

Read More

THE 10 BEST POS SQUARE ALTERNATIVES FOR SMALL BUSINESSES IN 2021

Article | May 13, 2021

Square is a great point of sale (POS) system that allows you to collect payments in-person and online — but it's far from the only option available. Today, there are plenty of fantastic Square alternatives out there worth considering. But with so many to choose from, which Square competitor should you use? In this article, you'll get a straightforward guide to 10 top Square alternatives to help you choose the best option for your business.

Read More

A Comprehensive Handbook on Small Business Human Resources

Article | May 13, 2021

Human resources are a subjective term to each individual and a business entity. Many small firms overlook human resource departments, believing them to be time-consuming, so they do not engage human resource specialists to assist with business operations. Instead, they attempt to manage the tasks either directly or by delegation to current workers. However, human resources benefit both the business and future workers. This blog gives information on small business human resources in detail. According to connecteam, 54% of small firms manage employment and other human resource activities on their own to save money; nevertheless, this type of management presents several challenges and frequently blows up in their faces. According to the Bureau of Labor Statistics, human resource management professionals will see a 10% increase in employment between 2016 and 2026. HR is crucial in a small business from recruiting and retention through payroll and benefits. The shortcomings in any of these things result in: Penalties for non-compliance Inadequate talent Inefficiencies that cause your manufacturing cycle to slow down Above mentioned points define that you cannot underestimate the importance of HR support for small businesses. Employees are one of a corporate organization's most valuable assets. So, it is needful to protect them. Therefore, human resources requirements for small businesses are essential. Let us Know What Human Resource Management is The Small Business Association (SBA) defines human resources as: "The people who work for a company or organization" "The department of a company that is responsible for managing those resources." Human resource management (HRM) is concerned with your workers, whether they are hired, managed, or require other types of direction and support. Human resource management involve significant duties; some basic human resources requirements for small businesses should be considered and fulfilled. They are those who establish the tone for how employees interact,resolve conflicts, and collaborate. There is a new trend in human resource outsourcing, and some small businesses are deciding to outsource a significant component of their human resources. Responsibilities of Small Business Human Resource Management Recruitment and selection Education and development Compensation and benefits Retention of employees Creating an atmosphere that is safe, healthy, and productive Cross-organizational communication Benefits of a Human Resources Department Ensure a safe and healthy work environment Attract and retain high-caliber individuals Maintain compliance Access Human Resources Anytime, Anywhere Improved Onboarding Access to Employee Benefits at Large Corporations Contribute to Time and Energy Savings Fundamental Component of Human Resources For small businesses, employing dedicated people in meaningful work can enhance performance, loyalty, and retention. Thus, in combination with the human resources manual for small businesses, the human resources department supports them in achieving their goals. This is accomplished, however, by increasing workplace happiness, making judicious use of existing resources, and developing an efficient expenditure model. by boosting workplace satisfaction, judiciously utilizing available resources, and establishing an effective expenditure model. With the clearly defined human resource policies and best practices for small businesses, you can assist workers in their growth and in contributing their expertise and knowledge for the growth of the firm. Whether a small or a large business, the success of a corporation is highly dependent on its ability to manage both internal and external stakeholders successfully. The HR department very well accomplishes this. Below Are Some Human Resources Requirements for Small Businesses. Employee Records Maintaining employee records is an essential aspect of the human resources manual for small businesses. Having it done guarantees that your business complies with labor rules and is protected in the event of a future issue. Regardless of your business's size, it is requisite to gather and maintain these three papers for each employee to protect yourself and your company. I-9 File: The US Government utilizes this form to determine and verify the eligibility of your personnel to work in the United States. Personnel General File: This section covers the paperwork and certificates obtained from workers throughout the employment process. This includes resumes, verification of training, W-4 forms, payroll information, and disciplinary actions. Medical Records of Employees: This file may contain doctor's notes, information on a disability, or information about a medical check-up. The information contained inside is confidential and must be kept secure against unauthorized access. Employees Guidebook Employee's guidebook is a vital aspect of small business human resources element. The handbook includes an idea of expectations, best practices, and requirements. It also includes: The organization's vision, objectives, and values The code of conduct The anti-discrimination rules The safety and security regulations The non-disclosure agreement Work schedules (covering how to monitor time, take leaves, and notify management of leaves) Other general information not required by law Posters That Are Required The nation's or state's laws in which your business operates may require you to publish information at your place of business or in an easily accessible location. Additionally, the Department of Labor (DOL) requires posting certain labor law posters in the workplace. Parting Words While many business owners believe that small business human resources costs are redundant, a human resource department may have a significant influence on your workers' well-being and the success of your firm. Unfortunately, many employees quit their employment due to poor or non-existent human resource management. Frequently asked questions: Does a small business need human resources? Every business, regardless of size, must have a human resources department or at least one person dedicated to HR duties. HR simplifies many duties for business owners, allowing them to focus on other critical elements of operating the firm. In addition, human resources can do a variety of tasks that other employees are unable to. What are the essential human resources requirements for small businesses? Human resources are the bedrock to your organization because it is responsible for hiring skilled workers who appreciate your corporate culture. The most critical human resources requirements for small businesses to succeed are: Employee documentation Required posters Employee handbook Employee development and training Employee benefits Hiring process { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "Does a small business need human resources?", "acceptedAnswer": { "@type": "Answer", "text": "Every business, regardless of size, must have a human resources department or at least one person dedicated to HR duties. HR simplifies many duties for business owners, allowing them to focus on other critical elements of operating the firm. In addition, human resources can do a variety of tasks that other employees are unable to." } },{ "@type": "Question", "name": "What are the essential human resources requirements for small businesses?", "acceptedAnswer": { "@type": "Answer", "text": "Human resources are the bedrock to your organization because it is responsible for hiring skilled workers who appreciate your corporate culture. The most critical human resources requirements for small businesses to succeed are: Employee documentation Required posters Employee handbook Employee development and training Employee benefits Hiring process" } }] }

Read More

Inventory Management for Small Business and Effective Ways to Do It

Article | May 13, 2021

How do you know that your business is on the right track to success? Inventory management for small businesses is a critical component of their organization. Inventory management is a part of supply chain management that encompasses managing inventories, from raw materials to finished goods. It entails the ordering, storage, use, and sale of a business's inventory. Inventory management is fundamentally concerned with having the right products in the right quantities at the correct times. Inventory management is significant for organizations of all sizes because it identifies what quantities to acquire or create when to replenish inventory, what price to pay, and when and at what price to sell. As a result, effective inventory management minimizes the expense of carrying extra inventory while increasing sales and enables real-time inventory tracking to simplify processes. Inventory management is accomplished in two ways: through just-in-time (JIT) ordering and through material requirement planning (MRP). However, inventory management techniques are industry-specific. Here are the most common challenges faced by inventory management for small businesses: Tracking that is inconsistent Inaccurate information Manual documentation Unsatisfactory stock The complexity of the supply chain Access to current stock levels Inadequate management of time and resources According to the wasp barcode survey, 43% of small businesses either do not track their inventory or do it manually. "Strapped by tight credit and plummeting sales, businesses have overhauled how they manage supply chains, inventory, production practices, and staffing" American Economist, Janet Yellen This blog highlights few basics of inventory management for small businesses and how effectively you can do it with best practices. Different Types of Inventory Management How Is Inventory Management Software for Small Business Advantageous? Inventory management software is a computer-based system that keeps track of stock levels, orders, sales, and delivery. It is the solutions that design the entire journey of your products. From order placement with your vendor through delivery to your customers, the program takes care of everything. According to softwarepath, inventory management software is used by just 18% of small businesses. The following are some of the advantages of having good inventory management software for small businesses: Maintain real-time inventory tracking Prevent shortages of products and manufacturing Permit simple inventory analysis on any device Cost savings, improved cash flow, and an increase in your business's bottom line Assist you in forecasting demand Prevent overstocking and an abundance of raw materials Provide rapid and easy bar code scanning to expedite the intake process Inventory Management Techniques and Practices Use the FIFO (First in, first-out) or LIFO (last in, first out) Approach Business owners should use a FIFO strategy and sell items in chronological order, starting with the oldest products acquired or manufactured first. Applying this strategy reduces the chances of losing money, which is especially critical for perishable items. LIFO stands for last in, first out; this method prioritizes the sale of newer goods or products. LIFO assists in preventing inventory from spoiling. Numerous firms headquartered in the United States have shifted to FIFO and phased out LIFO (last in, first out). Due to economic changes and the possibility that the cost of producing items would increase over time, firms that use FIFO are believed to be more lucrative. FIFO is required to sell perishable commodities, whereas LIFO is the typical method for non-perishable goods. This method is a highly beneficial technique of inventory management for small businesses Optimize Your Forecasts Among the inventory management strategies available, forecasting is critical. Forecasting accurately is critical, but it is easier said than done. Inventory forecasting is a technique for projecting future inventory levels required to fulfill demand.This is achieved by integrating historical data with future demand cycles and sales trends for individual stock-keeping units (SKU). Your anticipated sales statistics should be based on a variety of criteria, including past sales figures, historical purchase data, market trends, predicted economic growthpromotions, marketing activities, and marketing campaigns, among others. Learn Your ABC Analysis ABC assigns a value to each item based on demand, risk, and cost data and then groups them according to those values. This approach assists small business owners in determining which items or services are most critical to the organization's financial performance and which inventories to prioritize. ABC analysis is based on Pareto's 80/20 principle; it finds the 20% of items that provide about 80% of value. The most significant stock-keeping units (SKUs), either in terms of sales volume or profitability, are "Class A" products, followed by "Class B" and "Class C" items. Below is the description of this distribution applied to inventory: A: Items with a high monetary worth (70%) and a limited quantity (10%) B: Items of intermediate worth (20%) and mediocre quantity (20%) C: Items with a low monetary worth (less than 10%) yet a significant quantity (70%) Utilize Cloud-Based Inventory Management Software While cloud inventory management software is a relatively new product, it quickly establishes itself as the best option for organizations. Utilize cloud-based technologies to centrally manage a complex network of interconnected operating parts while minimizing human effort. Automating a portion or the entirety of the supply chain provides many potential benefits, including increased efficiency and accuracy. Keep an eye out for software that includes real-time sales metrics. The software communicates directly with your point of sale, ensuring that your stock levels are immediately updated after each transaction. In addition, receive daily stock alert emails to inform you of which goods are running low or out of stock, allowing you to buy replacements in time. Track Your Inventory Level Inventory tracking entails keeping track of the SKUs you hold, their storage locations, and the quantities accessible at each site. Sales tracking is critical for every business operation, especially for small businesses. Effective small business inventory tracking systems enable organizations to track inventory items in real-time, anticipating how many pieces of specific product lines are in stock and ready for client orders. Inventory tracking software helps you save time and money by automating most of the manual work. Regular small business inventory tracking benefits the owners in several ways: Reduced number of missed sales More precise reports Cash that is better invested Early notice of problems Reordering with efficiency Cost savings in the warehouse Inventory and year-end efficiency Bottom Line A well-managed inventory system ensures that you always have an accurate view of your products. In addition, a well-managed inventory helps you to minimize money waste and earn money. Whether you're looking to learn the foundation of inventory management for small businesses or reinvigorate an existing system, this article will offer you efficient methods for streamlining your operations and repositioning your inventory management system. Frequently Asked Questions: Why is inventory management important for small businesses? Inventory management offers information about your inventory and enables you to make informed decisions. It gives real-time data, allowing you to determine what is working and what is not. What is the best way to manage inventory for small businesses? The best way to manage inventory for small businesses is through various inventory management techniques.Below is the list of best practices for small business inventory management: Use the FIFO approach Optimize your forecasts Learn your ABC analysis Track your inventory level Utilize cloud-based inventory management software Audit you stock Receive Inventory Orders Accurately Economic order quantity { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "Why is inventory management important for small businesses?", "acceptedAnswer": { "@type": "Answer", "text": "Inventory management offers information about your inventory and enables you to make informed decisions. It gives real-time data, allowing you to determine what is working and what is not." } },{ "@type": "Question", "name": "What is the best way to manage inventory for small businesses?", "acceptedAnswer": { "@type": "Answer", "text": "The best way to manage inventory for small businesses is through various inventory management techniques. Below is the list of best practices for small business inventory management: Use the FIFO approach Optimize your forecasts Learn your ABC analysis Track your inventory level Utilize cloud-based inventory management software Audit you stock Receive Inventory Orders Accurately Economic order quantity" }

Read More

Spotlight

CognitiveScale

CognitiveScale builds augmented intelligence software for healthcare, commerce, and financial services markets. The company’s products, ENGAGE and AMPLIFY are built on its open and extensible AI foundation, CORTEX, to help large enterprises increase user engagement, improve decision-making, and deliver self-learning and self-assuring business processes.

Events