Most startups and entrepreneurs will eventually develop strong business skills and bookkeeping knowledge of advanced practices. However, they may still require the accounting acumen of a professional to deal with the following financial challenges.

Import Taxes and Fees

Some businesses will purchase and import goods from other countries that will be subject to taxes and duties. There are no federal laws that require organizations to use customs brokers to handle their imports, but these logistics professionals are licensed by the U.S. Customs and Border Protection (CBP) to conduct business on behalf of clients. Customs brokers are supply chain experts who may also handle shipping arrangements, port authorities, local transportation and even warehousing. Customs brokers must carefully analyze tariff classifications in order to select the appropriate category and duty calculation.

Gross Margin Calculations

The first step to increasing income is through improving the business’ gross margin. In order to calculate this, one must first know the costs required to produce the product or service. There are two concepts that entrepreneurs must fully understand. First, gross margin represents the total revenue that remains after production costs. The Cost of Goods Sold (COGS) refers to the direct costs like labor and materials. The formula for calculating gross margin is revenue minus COGS, which is then divided by revenue. What truly ensures that the business doors remain open is the difference between how much you sell a product for and how much you take home.

Continual Process Improvements

Financial health depends on robust and transparent accounting practices. First, create strict cutoff policies to reduce the time and energy wasted by waiting for the right data and numbers to arrive. For example, establish deadlines to submit invoices and expense reports. Second, conduct monthly or annual audits to re-evaluate policy and process efficiency in order to adjust them accordingly.  Third, integrated technology offers convenience and organization. There are many excellent apps that allow employees and business owners to quickly generate, access and share reports.

Advanced accounting requires ingenuity, experience, attention to detail and smart decision-making. This is possible through apps, software and the support of third-party accounting professionals.