Author: Admin

Best Practices for Effective Budgeting and Forecasting

Posted on 12/08/2022

Tables of Content: 6 Practices for Effective Budgeting and Forecasting- One Must Need to Know

  1. Start by creating a budget and sticking to it
  2. Plan for both short-term and long-term expenses
  3. Anticipate changes in your income and expenses
  4. Use forecasting to predict future trends
  5. Review your budget regularly and make adjustments as needed
  6. Seek professional help if you need assistance creating or managing your budget

Introduction

If you’re like any other business owner or entrepreneur, you’re always looking for working solutions to improve your bottom line. One of the best possible solutions to do this is by effectively budgeting and forecasting your expenses. By doing this, you can ensure that your business is on track to meeting its goals, both in the short and long term. In this blog post, we’ll discuss some best practices for effective budgeting and forecasting. We’ll also provide a few tips on how to get started. So read on if you’re interested in learning more!

Benefits of Effective Budgeting and Forecasting

1. Start by creating a budget and sticking to it

When it comes to budgeting and forecasting, there are a few best practices that can help you stay on track. First, start by creating a budget. This will give you a road map to follow and help you track your progress. Once you have a budget in place, stick to it as closely as possible.

2. Plan for both short-term and long-term expenses

Another most important aspect of effective budgeting and forecasting is to plan for both short-term and long-term expenses. Doing this will ensure that you have the resources necessary to meet your financial obligations both in the present and in the future.
Start by creating a list of all of your current expenses, both fixed and variable. This will give you a clear picture of where your money is going each month. Then, take a close look at your long-term goals and objectives. Are there any big-ticket items that you will need to save for? For example, if you are planning to buy a house or start a family, you will need to factor these costs into your budget.
Once you have a clear understanding of your current situation and future goals, you can begin to formulate a plan to reach them. Begin by setting realistic financial goals for yourself and your family. Then, develop a budget that takes into account all of your income and expenses. Finally, stick to your plan! Review your progress regularly and make adjustments as needed, but don’t be afraid to celebrate your successes along the way.

3. Anticipate changes in your income and expenses

In order to make sure that your finances are on track, you need to be able to anticipate changes in your income and expenses. This can be a challenge, but there are a few best practices that can help. First, it is important to Review your financial statements on a regular basis. This will give you a good idea of where your money is going, and it will also help you to identify any potential problems.

Second, don’t be afraid to adjust your budget as needed. If you find that you are consistently spending more than you anticipated, or if your income fluctuates, it is important to make adjustments so that your budget remains accurate. Finally, remember that forecasting is not an exact science. There will always be some uncertainty, but by following these best practices you can minimize the risk of making major mistakes in your financial planning.

4. Use forecasting to predict future trends

Forecasting is a critical component of effective budgeting and financial planning. By understanding past trends and using them to predict future patterns, businesses can make more informed decisions about where to allocate their resources.

There are a number of different methods that can be used for forecasting, and the most important approach will depend on the data type which is being considered. In general, however, the best practices for forecasting include collecting accurate data, using multiple methods of analysis, and continually revisiting and revising forecasts as new information becomes available. With careful planning and execution, forecasting can be an invaluable tool for making sound financial decisions.

5. Review your budget regularly and make adjustments as needed

It’s important to Review your budget regularly and make adjustments as needed in order to ensure that you are on track to meet your financial goals. A budget is a tool that can help you track your income and expenses so that you can make informed decisions about how to allocate your resources.

There are a few best practices that can help you create an effective budget:

  • First, identify your financial goals and priorities. What are you trying to achieve with your budget?
  • Second, track your income and expenses for at least one month so that you have a clear picture of where your money is going.
  • Third, create a realistic budget based on your income and expenses. Be sure to include room for unexpected expenses.
  • Fourth, review your budget regularly and make adjustments as needed. This will help you stay on track and adjust your spending as necessary.
  • Fifth, be creative when it comes to finding ways to save money. There are many ways to cut costs without sacrificing the quality of life.

Following these best practices can help you create an effective budget that will help you meet your financial goals.

6. Seek professional help if you need assistance creating or managing your budget

Budgeting and forecasting are critical tools for any business, large or small. Having a clear understanding of your financial picture can help you make informed decisions about where to allocate your resources. If you’re not sure where to start, or if you’re struggling to manage your budget effectively, seek out professional help.

A qualified accountant or financial planner can provide guidance and expertise that can make a big difference in your bottom line. With their assistance, you can develop a budget that works for your business and gives you the clarity you need to make sound financial decisions. Don’t be afraid to ask for help – it could be the best decision you ever make for your business.

Benefits of Effective Budgeting and Forecasting

One of the most important aspects of financial planning is creating an effective budget. A budget provides a roadmap for how you will allocate your income and expenditures over a period of time. It can also help you to track your progress and ensure that you are on track to meet your financial goals. Budgeting can be a valuable tool for both individuals and businesses.

An effective budget can help you to save money, as it forces you to be mindful of your spending. It can also help you to forecast future expenses and income, which can give you a better idea of when you may need to tighten your belt or make adjustments to your spending. In business, forecasting is critical for making informed decisions about investment, expansion, and other strategic moves. Effective budgeting and forecasting can help you to make the most of your resources and keep your finances on track.

Conclusion:

At the end of the day, forecasting is about being realistic and making sure that your business has a plan for every potential outcome. By using the best practices we’ve outlined in this blog post, you can create a budgeting and forecasting process that is both accurate and helpful in steering your company towards success. Have you tried any of these methods before? What has been your experience? Let us know in the comments below!

 

Topics: Accounting


How to switch between accrual to cash basis in QB Online

Posted on 05/08/2022

Accrual to Cash Basis in QB Online, There are two ways to do this either to change the basis in the account and settings page or within the specific report.

Steps as an Accrual Accounting to Cash basis Accounting follows:

Click the gear icon
Select Account and settings.
Go to the Advanced tab.
Expand the Accounting section.
From the Accounting method, drop-down menu select Cash
Click Save

Accrual accounting vs cash basis accounting

On the reports, under the Accounting method section simply select Cash

balance sheet report

Topics: Tech Tips


The Top Real Estate & Property Management Software You Should Know About In 2022

Posted on 22/07/2022

The digital age has revolutionized every aspect of daily life, including how people go about conducting real estate business. Top Real Estate & Property Management Software with an exhaustive set of features has replaced traditional property management activities, saving all parties involved time and money. Property management bookkeeping software also brings increased transparency and trust to transactions with the added convenience of having all necessary information in one place. It is not surprising that the property management software market stood at USD 3.04 Billion in 2021 and is anticipated to register a CAGR of 5.6% by 2030.

Tables of Contents:

A market with such high growth potential is bound to attract multiple industry players to seek their share. And that is the case, making it a tough decision to choose the right one for customers. The numerous products come with lots of features, requiring you to thoroughly scrutinize them for their capability to fulfill your needs before purchase. Today’s advanced software can automate many functions of real estate and property management like

  • Important Property Document Management
  • Accounting and Other Financial Operations Management
  • Tenant/lessor Management
  •  Rental Applications Screening
  •  Property Maintenance
  •  Inventory Tracking
  •  Marketing and Advertising Properties For Sale/Rent
  •  Facilitating Various Modes of Communication Between Concerned Parties
  •  Ticketing Fault Reports

Some other factors to consider before opting for a real estate management system are its pricing structure, underlying technology (such as cloud capability), how easily you can navigate its UI, and how well it can integrate other applications into it (like with project management software), geographical limitations (whether it covers local market only or international ones too), quality of customer support, and its mobile and web app user experience.

Here’s a look into the many popular property management systems of 2022, including each one’s pros and cons. Associated finance management software is present as well.

Buildium:

This is perhaps the first name anyone in the property management software market hears. Such is Buildium’s market positioning and value, earning the Best Commercial Property Management Software title.

Buildium is a cloud-based platform that provides several functions related to property management, real estate business operations, property and personal accounting, and leasing tools. Its easily navigable user interface enables you to access all vital functions with a few simple clicks/taps, whether on its mobile app or web portal.

The functions include property deals documentation approval, management of different communication modes between concerned parties, accounting, maintenance management, vendor and third-party services management, multi-property type portfolio management, related data analytics and reporting, community association management, etc.

Pros:

  •  Brings all real estate/property management functions onto a single platform. The list of options here is exhaustive.
  • 24×7 customer support
  •  Free trial for 14 days
  • Tailored to support Small and Medium-sized businesses
  • Anywhere availability due to cloud-based structure
  • Supports Windows, Mac/iOS, and Android OS and integration of many applications
  • Easy pricing structure with each plan covering Accounting, Maintenance, Tasks, Violations, Resident & Board Member Communications, and Online Portals.

Cons:

  • Expensive for individual users as it is for commercial users.
  • The Basic Plan only covers ticket support and not even live phone calls.

Appfolio:

Another popular real estate management system, Appfolio describes itself as a real-time property management solution. The platform seeks to streamline the usage of cloud tools for property managers with access to business metrics, multi-party communication via various channels, property maintenance tracking, and aiding vacant property advertising on the internet. Its rental support features include screening potential renters, processing rental applications, online rent collection, mobile inspections, the ability for renters to request maintenance requests, and a dedicated portal for owners to access reports and other statements.

Pros:

  • Reduces administration time by including all properties of various types on a single platform.
  •  Multiple communication channels for all stakeholders involved.
  •  AI support for automating tasks completely or partially
  • Strong emphasis on business metrics; is data-driven.
  • Owner’s portal for easier rental management
  • Real-time monitoring of properties and quick updates
  • Supports easy advertisement of properties in the market

Cons:

  • The focus is solely on property owners and managers, with a minimum property unit number being 50 for its basic Core plan.
  •  Is expensive as every property unit carries additional investment along with a monthly charge for each of the two plans-Core and Plus.

Hosthub:

Formerly Syncbnb, Hosthub was created to support owners and property managers dealing with short-term vacation rentals. This unique rental property management software isn’t a full-fledged one like the others on this list. Instead, it helps synchronize your listing calendar present across various booking sites. It updates your calendar in real-time and comes with a guarantee of avoiding double bookings. Hosthub wants you to use it as an add-on to your existing software to reduce manual labor, double bookings, and other issues for your many properties.

Pros:

  • Simple, lightweight, and easy to use UI across mobile and web
  • Allows you to build your booking website with a fully integrated booking engine.
  • Supports over 200 channels
  • Savings increase for every added property if you go with its annual plan.
  • Has a 14-day free trial
  • Is a cloud-based property management software

Cons:

  • Does not offer full-fledged property management features
  • The need to use other platforms for the missing features can increase your overall expenses.

Yardi:

Yardi Voyager is the epitome of an exhaustive and comprehensive cloud-based property management software. It goes above and beyond that by stocking features in its service, with its USP being a long list of affiliate and subsidiary companies. You can manage all property types across locations. It has all the usual bells and whistles you can expect from such a service provider, including leasing management, realty operations management, workflow automation with AI support, data analytics and reporting, etc.

Its other notable features include centralized data access through its web-based dashboard, real estate accounting, compliance management, resident documentation and screening, and more. There’s also customization and third-party app integration. With its affiliates, it provides storage services (StorageCafe), an eCommerce site to shop for home and office supplies (Yardi Marketplace), property news (Multi-Housing News), etc.

Pros:

  • End-to-End real estate and property management across portfolios
  • Individual affiliates facilitate Ala Carte-style usage of required services without going through the primary service.
  • Plenty of documentation templates to choose from for all property usage situations.
  • Works well for small, medium, and large property management agents.
  • Secure accounting software for property investors and realtors, with PayScan automated invoice scanning and payable accounts workflow personalization.
  • Easy integration with multiple third-party applications and data transfer.

Cons:

  • Unintuitive and laggy user interface due to its web-only access. No mobile app.
  • Can be expensive, especially if you add affiliate services.
  • UI requires a steep learning curve to manage successfully.
  • Poor, unresponsive customer support.

Re-Leased:

Re-Leased is a residential and commercial property management software that is focused solely on leasing. It is a cloud-based, AI-driven software platform that covers all kinds of commercial properties like industrial, office, retail, and mixed assets. It provides a dashboard that works as a central hub for many related functions like property maintenance, task delegation to team members, collaboration, tenant communication and management, issue resolution, etc. This platform’s USP is its ability to integrate Google Calendar, Outlook, Microsoft 36, and other office applications. It is also known for the easy integration of Xero and Quickbooks bookkeeping software for realtors.

Pros:

  • Suitability for a range of property portfolios in the commercial space, including rental-residential.
  • Excellent third-party application integration, especially for real estate bookkeeping.
  • Ability to add any number of properties by paying per tenancy
  • Available on computers and mobile devices via web and app.
  • Stores data using enterprise-level security.

Cons:

  • Pricing can only be known by contacting the company.
  • Focus on the commercial side of real estate.

Honorable Mentions

MRI

Established in 1969 as Qube Global Software, MRI has an illustrious history of delivering comprehensive property management software support to enterprises. It boasts over 10,000 clients worldwide and works for commercial, residential, mixed-use, and student accommodation assets. Its vast feature set includes billing and invoicing, lease and rent-related function management, tax management, landlord and tenant database, rent tracking and transfer, insurance management, property maintenance and expense tracking, late fee calculation, etc. The downside is that you must contact the company to know the pricing.

Condo Control Central

This real estate management system is special because of its astute attention to detail. It offers the usual exhaustive list of property management functions as features like others in a dedicated management panel that you can customize and automate. But along with that, you get to log deliveries to your properties, manage resident parking permits, access incident reports, important records, and entry requests with heightened security features embedded into it. You can even send push notifications about your choice of events to your properties’ management staff, external service providers, clients, etc.

In Conclusion

Whether the property market is going up or down, you need to have a good property management system to keep your real estate and property management functions in order. You can decide on the best one for your needs by considering their features and benefits along with their drawbacks to gain a comprehensive picture of their suitability. While it may take a while to master using some of these, it will pay off in the long run with efficient and transparent property management, yielding high ROIs for many years

Topics: Software


Managing Your Payables And Receivables

Posted on 05/07/2022

Are you having trouble managing your outsourced payables and receivables? We have been there done that! As you know, managing your payables and receivables is the most significant aspect of your business at all stages. You may get overwhelmed with the kind of cash you’d have to handle, and keep everything intact and going. Fret not, below are some really simple techniques you can adopt to disentangle yourself from all the payables & receivables hassles.

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Outsourced Accounts Payables:

Managing your payables can be a tricky business. For one, pay all your bills; do not let your unpaid bills linger any longer. The more prompt you are in your payments, the more reliable you become to your suppliers and lenders. Plus, there’s nothing like an unpaid bill that’s a dire threat to the business.

You can take complete advantage of the credit time limit given to you. For example, if your bill is due in the next 20 days, you do not have to pay the bill ahead of your time; rather you can use the cash for something else and pay this bill when it is due.

One other imperative thing you must do is to choose your suppliers wisely. Watch out for the ones that can offer you flexible payment options or the ones that give you good discounts to pay upfront.

Outsourced Accounts Receivables:

Nobody would have any problem running a business if they get paid for their products/ services on time. But that’s the hitch. Not everyone is prompt in their payments. Yet, you can do several things to collect the receivables efficiently:

  • Invoice your customers promptly. Do not procrastinate in sending your invoices, as it is quite obvious that your payment will be procrastinated too.
  • Do not give credit limits to your customers unless they are trustworthy. Enable COD (cash on delivery) for the customers; this will wipe out the painstaking process of following up on payments.
  • Offer lucrative discounts for the customers who are regular with payments. This will also give them a chance to make the payment then and there.
  • You must entail your customers to pay a deposit amount to use a product/ service if the invoice amount is huge.

Managing your payables and receivables can be easier if you outsource this to somebody who is experienced at the same time cost-effective; by outsourcing to reliable hands, you can make use of the opportunity to concentrate on better things like working towards expanding your organization. Contact at +1-860-215-4997 to seek more information on Account Payables and Receivables.

Topics: Accounts Payables


Simple Steps To Curb The Time Wasted On Bookkeeping

Posted on 23/06/2022

You might feel bookkeeping is one dreadful job, and it hogs a lot of your time. Well, you are not alone. Below are some simple steps you can follow to save your time and ensure seamless bookkeeping.

bookkeeping for small business

1. Go paperless

You may not be an expert in bookkeeping. You might find yourself frantically searching for that bill you know you kept in some place. You can avoid this most daunting task of maintaining papers which are essential during audits by eradicating the papers. In today’s world, we get electronic receipts for almost all the transactions we do and in some cases, we won’t have a choice but get that piece of receipt. In such cases, you can always scan the receipt and maintain a soft copy on your PC and use cloud storage as well.  This way you get to save the time you spend on searching for THAT receipt. Plus, you know, it is very simple to search for things online.

2. Maintain separate bank accounts for your personal use and business

Maintaining a common bank account for both personal and professional use will eat so much of your time. This is because you will have to rummage through the statement to categorize each transaction. This is one of the most common mistakes that people do. More often than not, they don’t realize that they waste a colossal amount of time categorizing transactions.

Not just that, maintaining a separate bank account for your business also comes with other perks such as:

  • You will know how well your business is doing
  • You will start curbing your expenditures and start saving up

3. Use the technology available

You very well know how technology is now playing a part in day to day life of human beings. Why not employ it in bookkeeping? You can automate invoicing and generate invoices that can be emailed and printed. The same can be fed into your accounting system.  This way you get to reduce the data entry work and also keep track of all the invoices. There is no way you would miss out on invoices which is money. So, go for it! Make use of the resources available online.

4. Outsource bookkeeping for small business

We know, bookkeeping is a hectic job that requires a lot of time and effort plus you can’t afford to make mistakes here. Once you outsource your bookkeeping, you will realize that you have so much time left to do some productive work like acquiring new clients and bringing new business. Outsourcing is also one of the best ways to reduce bookkeeping costs as it requires a CPA/ Accountant to work for you full-time. To your dismay, these accountants would not provide round-the-clock services to you. Fret not, help is at hand.

Visit https://www.velan-bookkeeping.com/ or contact @ +1-860-215-4997 for all your outsourcing needs.

Topics: Bookkeeping Services