In this digital era, establishing a business has become easier than ever. The technology development has made its way to the financial industry. Artificial Intelligence (AI), cloud computing, and big data analysis have all turned marketing and accounting into something that was not possible to imagine a decade ago. However, relying on the tech alone will not guarantee that your company can become an efficient profit machine.
In this article, we will explore further about finance tips and tricks that integrate both technology and old-school finance savvy. Our goal is to enlighten you with practical ideas that you can directly apply after you read them.
Utilizing the POS (Point of Sale System)
Point of Sale System is an integrated network system that allows you to monitor your inventory levels in almost a real time. This system is a necessity if your business is a manufacturing or retail company because inventory management is supposed to be your basis to take any sales decision.
The three common features of a POS system are accounting modules, general ledgers, account receivables, account payables, purchases, and inventory control. Integrating your business with POS will make the task of case-flow monitoring fast, precise, and reliable.
Protecting Your Assets with Insurance
Your most valuable assets are the things that you use to produce your products/service. If you work in the web development industry, then your computers and internet access are your two most valuable assets. The most common mistake in that scenario is that many business owners take their equipment for granted and omit the urgency of having insurance. Consequently, once there is an unpredictable misfortune occurs, the loss will be devastating to the business. In your case, you must not commit the same mistake. “If anything can go wrong, it will,” this Murphy’s Law must be on your mind so that you are always prepared to face a crisis.
Paying Attention to Your Tax Deductions
The moment you establish your startup, you need to learn about the taxation of your business carefully because any mistakes in your tax report can lead to penalty fees. However, there is also another aspect of taxation that is meant to stimulate companies to perform better in their business.
First, the startup cost tax deduction applies to companies that require investments of around $50,000 to $55,0000. It will grant you a deduction of $5000 by the first year of your company’s operational time. Second,research and development tax credits is a tax deduction that is designed to encourage startups to invest in their research and development. Third, professional fees deduction allows you to get deductions on your company’s expenses for hiring a financial consultant, lawyer, engineer, or other experts that are relevant to your field.
Integrating Your HR with a Recruiting Software
Recruiting software is an HR miracle. It will enable you to calculate the qualification of your applicants accurately and free from bias so that your company can hire only the best workers. Job aggregators, cognitive computing, and applicant tracking are three essential tasks that your HR division can perform with the help of technology. For example, Indeed and Google for Jobs are the two best sources of external hires because of their abundant database of applicants.