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What Type of Bookkeeping is Best for Business?

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Regardless of industry or number of employees, every business requires bookkeeping in some capacity. Larger businesses might employ one, two or even more full time bookkeepers, while smaller businesses may hire a part-timer to review the books once a month. No matter the business, it’s important that owners and managers understand that there is no “one-size-fits-all” approach to bookkeeping.

While cost is always a dominant factor when choosing the bookkeeping process for a business, it is not the only one to consider – after all, businesses should not bank on a bargain when it comes to the person in charge of overseeing their finances. To better understand the different “types” of bookkeeping, here are three categories to consider:

1. Traditional bookkeeper

Whether your business is small or large, you’ll need to hire an experienced bookkeeper with a formal education and accreditations. Specifically, the bookkeeper should have substantial experience in business accounting, preferably in your particular industry. This way, you can rely on their previous learnings, which will allow for a shorter onboarding period.

It’s important to consider the role a bookkeeper will play in relation to your business’s Certified Public Accountant (CPA). Typically, bookkeepers are in charge of processing an organization’s financial transactions and documents, including purchases, receipts, sales and payments. Those transactions are recorded in a ledger or journal. In addition to the daily ledger, most businesses use software, (think QuickBooks or Sage), to keep track of entries, debits and credits. Keeping two separate recordings, one manual and one virtual, results in a trial balance with a final total of debits and credits that match. The ideal bookkeeper, particularly those who are certified, will classify and summarize financial information into financial reports, balance sheets, income statements and cash flow statements.

A CPA’s priority should be analyzing business processes and reporting, and providing advice to the business owner, especially for complex tax filing concerns. While a bookkeeper handles the businesses’ day-to-day transactions, the CPA will review and analyze the financials at specified times throughout the year. To ensure cohesion and integrity of the business’s finances, it is critical that the bookkeeper and CPA work as parts of a system.

2. Advanced bookkeeping technology

All businesses should implement some level of technology into the accounting workflow to lessen their financial and administrative burden. When considering advanced bookkeeping technologies, businesses must ensure that the technology works harmoniously across the board, while solving for particularly tedious tasks within the workflow.

For example, one of the more time-consuming, monotonous tasks in the average accounting workflow is data entry. From invoices to expense receipts, businesses are flooded with excessive yet necessary documents on a daily basis. For more streamlined and efficient data entry, businesses should employ expense tracking and management technology. Proper expense tracking ensures that employees are getting reimbursed for their expenses on the job while maximizing tax deductions and protecting the business in case of an audit.

To ensure the business’s expense management technology seamlessly plugs into their existing accounting workflow, owners and managers should be on the lookout for three features:

1. Mobile capture: Bulky scanners are office gadgets of the past. In today’s business world, mobile apps and software can turn your smartphone camera into a mobile scanner, allowing business owners and employees to simply snap a photo to extract data points, like totals, dates and vendor names, and import them into the proper location.

2. Integrate with advanced accounting software: Proper “locations” are often powerful accounting software, like QuickBooks or Sage. Through integration with the accounting software, the data entry process is not only streamlined, but ensures the correct information is being put into the correct data field.

3. Cloud Capabilities: In today’s increasingly-connected world, business owners and employees need access to their most important business documents at all times, so it’s important that their expense management systems are connected to the cloud. In addition to ease of access, the cloud promotes a collaborative work environment and allows coworkers to always be on the same page.

While most businesses use some combination of advanced technology and a traditional bookkeeper, those that are looking for a completely hands-off (and expensive) approach should consider a virtual bookkeeper.

3. Virtual bookkeeper

With the ubiquity of cloud technology and the popular practice of remote collaboration, some businesses are employing new virtual bookkeeping services. Virtual bookkeepers stand in as an entire outsourced accounting department for a business. With a team of bookkeepers, businesses have a unique system of checks and balances giving the owner peace of mind.  While they may lose the personal approach of a single bookkeeper, they can rely on availability and speed with multiple bookkeepers available at a moment’s notice.

When deciding what kind of bookkeeper will work best, it’s important for businesses to realize that advanced technology can supplement (or even replace) certain aspects of the bookkeeping workflow. While a full-time bookkeeper can certainly manage the entire process, businesses that implement certain software can eliminate tedious steps of the process, saving time and money. By allowing technology to solve for menial tasks, business owners may be able to move to a part-time bookkeeper or even take over the role themselves.

Each option comes with pros and cons, and it is determining the best fit for each individual business that is paramount.   Business owners and managers should keep their bookkeeping process current; both to the market and their businesses’ ever-changing requirements. There is always room for improvement, so constant evaluation and tweaking of workflows to ensure an efficient bookkeeping process, and ultimately, a better return on investment, should always be employed.

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Business

SpaceX’s Falcon Heavy And The Race To Space

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People are looking to the stars again — even though they might just be looking for Elon Musk’s midnight-cherry Tesla Roadster that’s somewhere in orbit between Mars and the asteroid belt. The successful launch of SpaceX’s Falcon Heavy rocket, which sent that car on its potentially billion-year journey, has everyone scrambling to get their rocket program on the same level as SpaceX. What does the Falcon Heavy launch mean for the future of space travel and the possibility of a new space race?

The Falcon Heavy

On Feb. 6, Elon Musk and SpaceX celebrated the maiden voyage of the Falcon Heavy. This miracle of engineering was launched successfully at 3:45 p.m. Eastern Standard Time, powered by a whopping 27 Merlin engines — nine inches each of the side booster rockets, and nine more in the center core.

The two booster rockets successfully separated and landed almost simultaneously at Landing Zones 1 and 2 back at Cape Canaveral in a mind-blowing feat of synchronization — if you haven’t had a chance to watch the replay of this landing, you should. Go ahead, we’ll wait.

The third core, which was supposed to land on the autonomous droneship Of Course I Still Love You about 300 miles off the Florida coastline, didn’t fare as well. According to the post-launch press conference, the core didn’t have enough fuel to reignite all three of its engines for its final landing burn. It hit the water at about 300 miles per hour — hard enough to take out two of the engines on the droneship.

If the cameras on Of Course I Still Love You weren’t damaged in the crash, we may be in for some spectacular crash footage in the coming weeks.

It’s not a great loss, though — Space X wasn’t planning to reuse any of the cores from the Heavy’s maiden launch. The two Falcon 9 boosters that landed successfully are Block 4 style rockets — the ones that will be used for future Heavy launches will be Block 5.

Despite the spectacular failure of the center core, the launch itself was a complete success — pretty good for something Elon Musk was expecting to explode before it even made it off the launchpad. As Musk put it, “Crazy things can come true. When I see a rocket lift off, I see a thousand things that could not work, and it’s amazing when they do.”

Now that it’s off the ground and proven its viability as a reusable heavy lift option, the Falcon Heavy is much cheaper than any other currently available options. “At $90 million per launch, it’s the cheapest heavy lift option available,” said William Ostrove, a space industry analyst. “The Delta IV Heavy, for example, typically costs $350 million to $400 million per launch.”

The Future of SpaceX

Now that his Roadster is traversing the solar system, what is next for Elon Musk and SpaceX?

In the short term, the next big milestone for SpaceX and for the Falcon Heavy specifically is to get certified by the U.S. Air Force to carry secure and government payloads. The Falcon 9 received this certification back in 2015 and has since carried several military and classified payloads into their places in orbit. The next flight for the Falcon Heavy is scheduled for June for the Air Force — and depending on its outcome, it could be the flight that qualifies the Heavy for military and government contracts.

Next year, in addition to continuing to develop the Falcon Heavy, there are two more projects on SpaceX’s plate — Crew Dragon and the BFR.

Crew Dragon is an upgraded incarnation of the currently used Dragon capsule, but instead of just hauling cargo to the International Space Station autonomously, Crew Dragon will be outfitted for carrying astronauts into orbit and beyond.

This will likely become an essential part of the space program, or at least in getting America’s astronauts to space, especially with the current administration’s plan to defund the International Space Station by 2025 and hand it over to private investors, shifting that funding toward the goal of putting humans back on the Moon.

The BFR — short for Big F*****g Rocket — is designed for use a lot closer to home, at least to start. Once completed, the BFR will be even larger than the gargantuan Falcon Heavy. A BFR with a capsule could potentially turn a 12-hour airline flight into a 30-minute hop around the globe. It could also change the way we look at travel to the Moon, Mars and other planets, as well as facilitating asteroid mining to allow us as a species to take advantage of the resources in the rest of the solar system.

Experts estimate the BFR, once it’s off the ground, could turn space into a multi-trillion-dollar industry — currently, space travel is worth about $300 billion.

The New Space Race

The U.S. hasn’t really been in a “space race” since the 1960s, when we threw everything at the wall to see what would stick. This grand idea resulted in the Apollo program, and we sent men to the Moon for the first time. During his Falcon Heavy post-launch news conference, Elon Musk set forth a challenge: “We want a new space race. Space races are exciting.”

They most certainly are — and Musk isn’t the only billionaire with his eyes turned toward the stars. Jeff Bezos, the mind behind Amazon, is also throwing his hat into the ring, as is Richard Branson of Virgin Galactic, Tory Bruno of the United Launch Alliance and the Sierra Nevada Corp.

Bezos’ entry into the space race is his company Blue Origin — he’s launched and landed his New Shepherd rocket multiple times, even before SpaceX managed a successful landing, though all his flights were suborbital. Bezos was planning on his first space tourism launches in 2017, but that fell through. Musk and Bezos regularly launch friendly barbs at one another on Twitter, but when it comes down to it, they each support the other’s endeavors.

Virgin Galactic, headed by Richard Branson, has been trying to make it into orbit for a while now, and has even started selling $250,000 tickets. Unfortunately, Virgin Galactic has hit a few roadblocks, namely the explosion of the space plane during a test flight in 2014 that killed the copilot of the flight.

The United Launch Alliance (ULA) is the mind behind NASA’s Space Launch System and the Delta IV Heavy rockets. Bruno and Musk are butting heads on Twitter, but Musk isn’t worried. He’s actually said if ULA can launch a national security mission before 2023, he’ll eat his hat — with a side of mustard.

The Sierra Nevada Corp. (SNC) is one of the most exciting entrants in this space race. Their space plane, dubbed Dream Chaser, completed its first successful suborbital test flights in 2017 and recently landed a contract with NASA for an ISS resupply mission in 2020. Musk might have some stiff competition if SNC can manage to nail this launch.

SpaceX might be the first one out of the gate, but they’re not the only game in town anymore — and that’s exactly how Elon Musk wants it. “I think it’s going to encourage other companies and countries to say, ‘Hey, if SpaceX, which is a commercial company, and it can do this and nobody paid for the Falcon Heavy, it was paid with internal funds,’ then they could do it too. So I think it’s going to encourage other countries and companies to raise their sights and say, ‘We can do bigger and better,’ which is great,” Musk said at the post-launch press conference.

The Falcon Heavy launch was history in the making, and being able to witness this launch is an amazing feeling. You can expect SpaceX to continue to push forward in their quest to find new and innovative ways to explore the solar system, but they’re not the only company we need to watch anymore — they’re just the only ones with rockets in the air. Elon Musk may have provided the spark to start this new space race, but he’ll have to come up with some amazing innovations to stay on top!

And if this launch has taught us anything, it’s that we need to keep looking at the stars — and believe crazy things can happen.

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Business

We need to talk to Marketing and PR Agencies about Amazon

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Owner’s Magazine is writing an article featuring the top Marketing and PR Agency’s perspectives on why Amazon should choose their city as it’s next HQ. We’re reaching out to all marketing and PR agencies in each of the 20 cities on Amazon’s list for a private interview. If you’re a marketing or PR agency, then we want to talk to you to get your perspective of your city. Your interview and responses will be featured in an article published featuring your city.

Here are requirements to qualify to be featured in article:

  1. Must be legally classified as a Marketing or PR Agency (cannot only be a service you offer)
  2. Company must either be headquartered in a prospective HQ2 city or have an active office there (No satellite offices)
  3. Company must be at least $1MM+ revenue anually

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Business

0 – 100 With Peter Hwang CEO of Bite App Inc.

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bite app inc.

0 – 100 With Peter Hwang CEO of Bite App Inc. Exclusive interviewed Peter Hwang, current CEO of Bite App Inc., a startup company based in Philadelphia that’s changing the way you discover your next meal.

“Bite is a mobile app that makes deciding what to eat easy by mitigating the time and energy required to evaluate a restaurant dish. It also provides a platform for users to share useful, concise reviews that help improve others’ dining experiences.”

 

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