April 3, 2025

Business Practices

Applying the Customer Lifetime Value Formula to Boost Profits

By Jess Brown

A young woman smiles confidently as she begins work at a coffee shop.

It is easy to get caught up in the hunt for new customers, but what about the ones you already have? Understanding their actual worth over the entire time they do business with you can be a game-changer. That’s where Customer Lifetime Value, or CLV, comes in. Think of it as looking beyond the immediate sale and seeing the bigger picture.

By figuring out CLV, you can make smarter calls about where to put your marketing dollars, how to keep customers happy, and ultimately, how to boost your profits. You will be able to see the long-term value in your customer relationships. And you don’t need a finance degree to make it happen; we’ll walk you through the steps so you can see how this simple calculation can transform your business.

What Is the Customer Lifetime Value Formula?

Customer lifetime value, or CLV, is how much money you can expect a customer to spend with you over the entire time they are a customer. It is a way to put a dollar amount on those relationships. The formula looks like this:

CLV = Average Purchase Value x Purchase Frequency x Customer Lifespan

This gives you a number that shows how much a single customer is worth, on average, over time. You can also see the average value across all your customers. Let’s break it down:

• Average Purchase Value: Your total revenue over a set period divided by the number of purchases.

• Purchase Frequency: How many times, on average, a customer buys from you during that same period.

• Customer Lifespan: How long, on average, a customer keeps buying from you.

Here’s a quick example:

If your average purchase is $50, and customers buy from you four times a year for five years, the CLV would be:

$50 x 4 x 5 = $1,000

That means each customer is worth about $1,000 over five years.

Why Does Customer Lifetime Value Matter?

Knowing how much a customer is worth helps you make smarter decisions about how much to spend on getting new ones. If it costs $100 to bring in a customer who’ll give you $1,000 in revenue, that’s a good deal.

CLV also helps you focus on keeping the right customers instead of just chasing one-time sales. It gives you a reason to invest in good customer service, loyalty programs, and better experiences. These things can make customers buy more often and stick around longer.

How to Apply the Formula to Your Business

Even if you’re a small business or just starting out, you can use the CLV formula with a few simple steps.

Step 1: Gather Your Data

Start with what you know. Pull sales data from the past year if you have it. Find out:

• How much the average customer spends per purchase

• How many purchases each customer makes on average

• How long do they usually stay with you?

If you do not have perfect data, use your best estimate based on experience. You can always refine the numbers later.

Step 2: Calculate Each Part

Let us say your total revenue last year was $100,000, and you had 1,000 purchases.

• Average Purchase Value = $100,000 / 1,000 = $100

If your 250 customers made those 1,000 purchases, then:

• Purchase Frequency = 1,000 / 250 = 4

If customers stay with your business for 3 years:

• Customer Lifespan = 3 years

Now, plug it into the formula:

$100 x 4 x 3 = $1,200

Each customer is worth $1,200 on average over three years.

Step 3: Look for Opportunities to Improve

Once you know your average CLV, you can find ways to increase it. You have three main levers:

• Increase average purchase value: Offer bundles, upsells, or higher-tier services.

• Increase purchase frequency: Encourage repeat purchases through marketing emails, reminders, or loyalty rewards.

• Increase customer lifespan: Build stronger relationships and provide better support so customers stay longer.

Small changes in any of these areas can lead to a big jump in your CLV.

Common Mistakes to Avoid

While the formula is simple, there are a few things to keep in mind.

• Relying on short-term data: If you only use one month or one quarter of data, your numbers might be off. Use at least a year of data when you can.

• Ignoring customer segments: Not all customers are the same. Some are more loyal or spend more. Divide your data into groups to find your best customers.

• Focusing only on growth: Getting new customers is important, but improving your CLV can be a more efficient way to long-term success.

When to Recalculate CLV

You should check your CLV every few months or at least once a year. As your business changes, so will your customer behavior. If you add new products or change your pricing, your CLV will change as well. Tracking it over time helps you stay on top of trends and make better decisions.

Final Thoughts

Using the customer lifetime value formula helps you see your customers in a new light. You see more than just single purchases; you see a relationship. This can guide your marketing, sales, and service decisions.

You don’t need fancy tools or big teams to get started. Just look at your data, run the numbers, and think about where you can make small changes that lead to bigger value. Tools like FINSYNC make it easier to organize your financial data and track customer behavior in one place so you can apply insights quickly. Over time, these changes can increase your profits, improve loyalty, and help your business grow stronger.

Fynn Moves Your Business Forward Faster

Meet Fynn, your AI assistant, built to simplify business planning, funding, operations, and growth. With a fully connected Business Platform and Financial Network, Fynn helps you turn ideas into action, secure funding, streamline operations, and accelerate success.

From business planning to seamless execution and smarter financial connections, Fynn keeps everything and everyone in sync—so you can focus on what truly matters, in business and in life.

March 24, 2025

Success Stories

Building a Stronger Entrepreneurial Community: Bill Lucci’s Success with FINSYNC CO.STARTERS

By Jess Brown

Bill Lucci Collage of photos for his CO.STARTERS Program

Every great business starts with an idea, but turning that idea into reality takes guidance, support, and the right resources. For entrepreneurs in Rutland, Vermont, the journey got a little easier thanks to Bill Lucci and the FINSYNC CO.STARTERS program.

Bill is the Program Director for The Hub CoWorks, where he recently led his first 10-week program, bringing together a passionate group of aspiring business owners, expert mentors, and community partners to create a truly impactful experience.

A Commitment to Excellence

Bill’s dedication to delivering a high-quality program was evident from the start. One of his biggest wins? Securing top-tier guest speakers to enrich the curriculum each week. By partnering with SCORE, Heritage Family Credit Union, the Vermont Law School, and the Vermont Small Business Development Center, he ensured participants had direct access to expert insights and real-world guidance.

“Rather than us trying to scramble to find a guest speaker every week, SCORE provided me with an expert who could take one of those primary areas and be the guest speaker. It was seamless. We got some pretty heavy hitters each week,” Bill shared.

From financial planning to intellectual property law, these speakers helped demystify the startup process, making the information accessible and actionable for participants.

The Power of Community Support

Beyond the structured curriculum, what set this program apart was the strength of community collaboration. Heritage Family Credit Union, a key supporter, played an active role in the program’s success.

“Heritage Family Credit Union was happy to be a part of the recent session that Bill Lucci helped facilitate. This process started with a call between Bill, myself, and FINSYNC CO.STARTERS to see how HFCU could be involved in this programming. We are always happy to support programs like this that aim to help local entrepreneurs either start a business from scratch or continue to build on a business that they have already started. Bill’s passion for helping small business owners in the community is definitely commendable,” said Dylan Watts, VP of Commercial Lending for Heritage Family Credit Union.

SCORE also stepped up in a big way, ensuring a strong mentorship presence throughout the program. “Overall, SCORE really appreciated being invited to be part of each of the 10 sessions. It actually gave 10 of our volunteers a chance to be part of a community program in Rutland,” shared Gene Calvano, a SCORE mentor.

Father takes selfie while son holds a basketball on head

The Graduates’ Success Stories

Bill’s inaugural program featured diverse entrepreneurs, each with a unique vision. Among them was Harper Ennis, founder of Trehalose Biosciences, who walked away with a refined business model and a clear path forward.

“The course materials taught us how to make a proper business model canvas and prepared us for everything I had not thought of yet. It’s very thorough, very detailed, nice, easy to understand. It’s really helped me,” Harper said.

Another standout team was Mike Woods and Dylan BB, partners working on an innovative video game. With one focused on coding and the other on design, they leveraged CO.STARTERS to solidify their business structure and map out their market strategy.

A Grand Celebration and Looking Ahead

The culmination of the 10-week journey was a well-deserved celebration attended by program partners and local supporters. Heritage Family Credit Union went above and beyond, treating graduates to a $150 gift card to Roots, one of the best restaurants in Rutland, and funding a catered event graduation.

Reflecting on the experience, Bill highlighted the importance of collaboration: “The partnerships all made it better for the people participating in the program. The program alone is a great skeleton, but all these partners added meat and skin to the bones. It just made it so much better to have partners just as eager to see these people succeed as I am.”

The program’s success has already laid the groundwork for future sessions, with sign-ups underway for the next cohort in April.

Start Your Business with FINSYNC CO.STARTERS

For aspiring entrepreneurs looking for the right support system, FINSYNC CO.STARTERS offers the perfect launchpad. Whether you’re starting from scratch or refining an existing business, the program provides expert guidance, valuable connections, and a structured path forward.

Fynn Moves Your Business Forward Faster

Meet Fynn, your AI assistant, built to simplify business planning, funding, operations, and growth. With a fully connected Business Platform and Financial Network, Fynn helps you turn ideas into action, secure funding, streamline operations, and accelerate success.

From business planning to seamless execution and smarter financial connections, Fynn keeps everything and everyone in sync—so you can focus on what truly matters, in business and in life.

March 20, 2025

Payments

What Are ACH Payments? Understanding Direct Deposit and Direct Payment for Your Business

By Jess Brown

Paying vendors and receiving payments from customers are essential functions of running a business. Yet, many entrepreneurs overlook the simple and cost-effective systems available to streamline these transactions. Among the most widely used methods is ACH, short for Automated Clearing House, a nationwide network for moving funds electronically between bank accounts.

Whether you are just getting started or seeking ways to improve your payment operations, understanding how ACH payments work is a valuable step toward managing cash flow more efficiently.

What Are ACH Payments?

ACH payments are electronic transfers processed through the Automated Clearing House network, a secure system operated by Nacha and supervised by the Federal Reserve. This network enables financial institutions across the country to move funds between accounts for payroll, billing, vendor payments, tax refunds, and more.

Instead of sending checks or wiring money, businesses can use ACH to send and receive payments directly through the banking system. Funds are transferred in batches and typically posted within one or two business days, depending on the financial institutions involved.

Direct Deposit vs. Direct Payment

ACH payments fall into two categories: direct deposits and direct payments. Both use the same network, but the direction of the transaction differs.

Direct deposit refers to payments made into an account. For example, when an employer processes payroll, employees receive their wages directly into a checking or savings account. This method is also used for government benefits, tax refunds, and retirement disbursements.

Direct payment refers to funds withdrawn from a bank account to pay for goods or services. This is commonly used for recurring bill payments such as utilities or rent, as well as one-time purchases or peer-to-peer transfers. In this case, the payer authorizes a business or individual to pull funds from their account.

These transactions can be categorized as either credit or debit transfers:

• A credit transfer is initiated by the payer to move money into another account. Examples include paying employees, vendors, or contractors.

• A debit transfer is initiated by the recipient with the payer’s authorization. This is useful for collecting recurring payments or converting checks into electronic transfers using services such as a digital lockbox.

Both types of ACH transactions help reduce manual effort and paper handling and are less expensive than other payment types, such as wire transfers.

Processing Time

ACH remains one of the most cost-effective ways to send or receive money. Many banks and platforms charge little or nothing for basic ACH transactions. Sending money externally may cost a few dollars, while receiving ACH payments is very inexpensive.

With FINSYNC, ACH transactions have a flat fee of 50 cents. Whether you are sending funds for a bill or receiving payments for an invoice, this predictable pricing allows small businesses to manage payments with clarity and control.

Person-to-person payments initiated through banking apps or third-party platforms may involve fees depending on the provider. However, in general, ACH is among the most affordable options available.

Why ACH Matters for Small Businesses

ACH payments support healthier cash flow by providing reliable, scheduled transfers. They help eliminate the delays and uncertainty of paper checks, reduce the need for physical handling, and allow for better control over timing.

In combination with FINSYNC’s financial tools, businesses can automate billing and collections, streamline payroll, and receive payments faster. Features like CollectEarly™ make it possible to access funds as soon as an invoice is accepted. And with real-time insights from Fynn, your AI assistant, business owners can receive recommendations on how to optimize payments and operations.

A Smarter Way to Manage Payments

ACH is a foundational tool for simplifying operations and improving financial performance. When connected to a broader system for invoicing, payroll, accounting, and cash flow management, ACH becomes part of a more strategic way to run your business.

FINSYNC’s all-in-one Business Platform brings these elements together in a single, integrated solution that saves time, reduces errors, and helps you focus on growth. Whether you are sending a payment or receiving one, ACH is just the beginning.

Fynn Moves Your Business Forward Faster

Meet Fynn, your AI assistant, built to simplify business planning, funding, operations, and growth. With a fully connected Business Platform and Financial Network, Fynn helps you turn ideas into action, secure funding, streamline operations, and accelerate success.

From business planning to seamless execution and smarter financial connections, Fynn keeps everything and everyone in sync—so you can focus on what truly matters, in business and in life.

March 18, 2025

Business Practices

10 Ways Financial Statements Can Help Your Small Business Grow

By Jess Brown

Farming, portrait of group of women in greenhouse and sustainable small business in agriculture.

For small business owners, every decision has financial consequences. The ability to understand, interpret, and act on financial data is a vital part of building a business that grows with confidence and clarity. Financial statements do more than track performance. They provide insight, reveal trends, and support strategic planning.

Instead of reacting to problems after they occur, business owners who regularly review their financial statements can anticipate challenges, invest wisely, and make better decisions faster. Financial visibility is not just for large companies. It is a competitive advantage for any business that wants to scale sustainably.

Here are key ways financial statements help unlock your business’s potential.

1. Monitor Inventory

Understanding what you have in stock and what you need to reorder supports both cash flow and customer satisfaction. Financial records linked to inventory allow you to balance supply and demand, reduce waste, and avoid tying up funds in unsold goods. Businesses that maintain optimal inventory levels are in a better position to meet customer needs while protecting their bottom line.

2. Manage Cash Flow

Cash flow is one of the most critical elements of business health. The statement of cash flows shows how money moves into and out of your business. It highlights patterns, potential shortfalls, and opportunities to improve.

With a clear view of cash activity, you can identify delayed payments, overspending, or seasonal dips. You can also make informed decisions about reinvesting in your business, adjusting operations, or taking on new projects. Accurate and timely visibility into cash flow enables better financial control.

3. Measure Profitability and Refine Strategy

The income statement, often referred to as the profit and loss statement, breaks down how much revenue you are earning and how much you are spending over time. This report provides a snapshot of your overall financial performance.

Profitability is not just about how much remains after expenses. It is about understanding where your revenue is coming from, which offerings are most successful, and how your cost structure supports or hinders growth. Reviewing profitability helps you refine your pricing, streamline your operations, and focus your efforts where they produce the greatest return.

4. Recognize Trends and Plan Ahead

The balance sheet shows your company’s financial position by detailing assets, liabilities, and owner equity. When reviewed over time, it reveals more than a static view. It helps uncover patterns that affect long-term sustainability.

For instance, a growing asset base may indicate expansion, while an increase in liabilities could signal overextension. Recognizing these signals early helps you adjust your approach before issues become urgent. Trend analysis is essential for businesses that want to stay agile and grow intentionally.

5. Analyze Expenses

Financial statements help you understand where your money is going. By reviewing spending categories, overhead, and vendor payments, you can evaluate whether your costs align with the value they bring to your business.

Streamlining expenses strengthens profitability and allows you to reallocate funds to initiatives that drive growth. It also encourages smarter budgeting and helps avoid financial waste.

6. Plan for Taxes

Taxes can be a significant burden when they are not planned for in advance. Financial records help you forecast taxable income, manage deductible expenses, and prepare for tax season without surprises.

By monitoring your financial position throughout the year, you can avoid rushed decisions and take advantage of planning opportunities that may reduce your tax liability. Consistent review supports both compliance and optimization.

7. Support Strategic Decision-Making

Whether you are considering a new hire, a technology upgrade, or a market expansion, the right decision often depends on your current financial reality. Financial statements give you the information you need to weigh options, assess risks, and make confident decisions that move your business forward.

Having access to timely, accurate data allows you to plan effectively and execute with intention.

8. Raise Capital with Confidence

Financial statements are essential when preparing to raise capital. Lenders and investors want more than a business idea. They want clear, organized financials that reflect how your business performs and where it is headed.

By maintaining structured statements and projections, you can show how your revenue, expenses, and cash flow align with your goals. Tools like Fynn help compare actuals against forecasts, revealing insights that strengthen your case.

When your numbers are in sync and your story is data-driven, you can showcase your business with confidence. Through FINSYNC’s Raise Capital, you can connect with aligned investors who can review your financials and assess your potential. A strong financial foundation is no longer optional. It is the key to securing funding and moving your business forward.

9. Benchmark Against Competitors

Understanding how your business compares to others in your industry helps you identify areas where you excel and where there is room to improve. By comparing your income statement or balance sheet to similar businesses, you gain perspective that is often missing when working in isolation.

Benchmarking can highlight gaps in efficiency, pricing, or resource allocation. It also offers motivation to reach higher and operate at a level that meets or exceeds industry standards.

10. Plan for the Future

Long-term success requires planning and resilience. Financial statements help you forecast future performance, prepare for market shifts, and build plans that support both stability and growth.

By modeling different scenarios based on your current financial position, you can better understand what is needed to reach your goals. This type of preparation makes it easier to navigate uncertainty, make confident decisions, and remain focused on your long-term vision.

Summary

To sum it up, financial statements are an absolute game-changer for small business owners eager to scale their operations. The balance sheet, income statement, and statement of cash flows work together to provide invaluable information to help you realize your entrepreneurial dreams. So, seize the power of financial statements and watch your business flourish like never before.

Fynn Moves Your Business Forward Faster

Meet Fynn, your AI assistant, built to simplify business planning, funding, operations, and growth. With a fully connected Business Platform and Financial Network, Fynn helps you turn ideas into action, secure funding, streamline operations, and accelerate success.

From business planning to seamless execution and smarter financial connections, Fynn keeps everything and everyone in sync—so you can focus on what truly matters, in business and in life.

March 12, 2025

Accounting

Why a General Ledger Is the Cornerstone to Your Accounting System

By Jess Brown

Happy employees working at a pottery factory doing quality control

Today’s entrepreneurs rely on data for nearly every decision they make, from how many steps they take each day to how many leads convert to paying customers. When it comes to financial decisions, the key to clarity still lies in one foundational place: the general ledger.

Your general ledger (GL) remains the single source of truth for all financial activity. It captures every transaction, organizes it by category, and becomes the core of your financial insights. Whether you are just launching your business or actively scaling it, understanding the general ledger is essential for tracking performance, optimizing operations, and making informed decisions.

Purpose of a General Ledger

At its core, the general ledger tracks and categorizes every financial transaction in your business. It builds the foundation for your financial statements and gives you the full context behind your numbers.

Think of it as the brain behind your financial system. Just as an intelligent assistant needs reliable data to generate helpful insights, your general ledger feeds the reports and dashboards that guide your next moves. By reviewing historical activity, you can identify trends, catch inconsistencies, and plan more accurately for the future.

The ledger also plays a vital role during tax season. With income and expenses organized in one place, filing becomes simpler and more accurate.

The Five Core Account Categories

The general ledger organizes data into five primary account types. These align with your financial statements and ensure everything remains in balance.

1. Assets: Assets are everything your business owns that brings value. This includes cash, equipment, vehicles, or inventory. These accounts reflect what powers your business forward.

2. Liabilities: These accounts track what your business owes. Examples include credit card balances, outstanding loans, or unpaid vendor invoices.

3. Equity: Equity represents ownership value. It is calculated as the difference between your total assets and total liabilities. This includes owner investments, retained earnings, and capital contributions.

4. Revenue: Revenue accounts reflect the money your business earns by providing products or services. This information feeds directly into your income statement.

5. Expenses: Expense accounts track what your business spends to operate. These include rent, utilities, software subscriptions, and marketing costs.

Together, these five categories form the foundation of your financial reporting and provide a clear, organized view of your business performance.

Why Double-Entry Accounting Still Matters

Behind every sound accounting system is the principle of double-entry accounting. For each transaction, at least two accounts are impacted. One is debited, and the other is credited. This structure ensures your books always stay balanced. For these to balance, an entry on the debit side must be accompanied by a corresponding entry on the credit side and vice versa.

For example, when you receive payment from a customer, your bank account (an asset) increases, and your revenue account also increases. When everything is categorized properly, your financial reports will be accurate and trustworthy.

This system provides a built-in error check. If the books do not balance, something is missing or incorrectly entered. That level of precision makes the general ledger a critical tool for any business.

The Value Behind the Numbers

While financial reports like the balance sheet and income statement give you high-level summaries, the general ledger provides the full picture. It allows you to trace every entry back to its source. This makes it easier to resolve discrepancies, investigate trends, or refine your financial strategy.

With a clear and consistent general ledger, you gain control over your data. That visibility supports faster decisions, better planning, and stronger financial outcomes.

One System, Fully in Sync

Modern businesses need more than visibility. They need automation, integration, and intelligent insights that lead to better outcomes. This is where tools like FINSYNC’s Business Platform make a difference. With built-in accounting, payments, payroll, and cash flow management, your general ledger becomes more than a recordkeeping system. It becomes the engine that powers your business forward.

Start with a solid plan. Let your general ledger and FINSYNC work together to support your success.

Fynn Moves Your Business Forward Faster

Meet Fynn, your AI assistant, built to simplify business planning, funding, operations, and growth. With a fully connected Business Platform and Financial Network, Fynn helps you turn ideas into action, secure funding, streamline operations, and accelerate success.

From business planning to seamless execution and smarter financial connections, Fynn keeps everything and everyone in sync—so you can focus on what truly matters, in business and in life.

March 10, 2025

Business Practices

Bereavement Leave – Definition and List of Family Members Typically Covered

By Jess Brown

Dusk at a winter's English cemetery seen with in-focus flowers in a burial plot.

Losing a loved one affects every aspect of a person’s life. Amid the emotions and responsibilities that follow a loss, it becomes difficult to maintain focus at work. Many employers recognize this and offer bereavement leave as a way to support their team members during difficult times.

For small businesses, establishing a bereavement policy in advance ensures clarity and compassion when employees need it most. This overview provides definitions, common challenges, and guidance on who is generally covered by bereavement leave policies.

Understanding Bereavement Leave

Bereavement leave also referred to as compassionate leave, allows employees to take time off from work following the death of a close friend or family member. This leave is typically paid but varies depending on the organization and location.

During this time, employees are managing much more than grief. Funeral arrangements, legal paperwork, and family coordination require attention, and without a formal leave policy, stress can multiply.

While some states, such as Oregon, New York, and Illinois, have moved toward requiring employers to offer paid bereavement leave, most still do not. Despite the lack of a federal mandate, many companies choose to offer this benefit to ensure stability for their team and continuity for the business.

Funeral, cemetery and hands with rose on tombstone for remembrance, ceremony and memorial service. Depression, sadness and person with flower on gravestone for mourning, grief and loss in graveyard

Who Is Typically Covered

Organizations are encouraged to define clearly which relationships qualify for bereavement leave. Immediate family is most commonly included. This often refers to:

• Spouse

• Parent, including:

◦ biological parent

◦ adoptive parent

◦ foster parent

◦ parent-in-law

◦ step-parent

◦ parent of a same-gender domestic partner

◦ a person with whom the employee has or is in a relationship in loco parents or the individual or organization legally responsible for taking on some of the functions and responsibilities of a parent.

• Child, including:

◦ biological child

◦ adopted child

◦ step-child

◦ foster child

◦ child of a same-gender domestic partner

• Grandfather

• Grandmother

• Grandchildren

• Domestic Partners

Some employers extend the policy to cover:

• Siblings

• Aunts and uncles

• Nieces and nephews

• Individuals with whom the employee had an extended close relationship

• Individuals who live in the same home

Employers may request documentation such as a funeral program, obituary, or death certificate as part of the process.

Typical Duration

The amount of time granted for bereavement leave differs across companies. It is often based on the relationship to the deceased, the employee’s status (hourly, salaried, or contract), and the company’s internal policy.

According to the International Foundation of Employee Benefit Plans (IFEBP), the most common bereavement leave offering in the United States falls between three and five days. Many employers provide more time off in the event of a spouse’s, child’s, or parent’s death. Leave for extended family members is typically shorter, often limited to a single day to attend funeral services.

Additionally, the IFEBP reported that most businesses offered one day of bereavement leave to attend the funeral of an aunt, uncle, niece, or nephew.

Common Challenges for Employers and Employees

When no bereavement policy is in place, employees may turn to paid time off, unpaid personal leave, or flexible work arrangements to manage their responsibilities.

The absence of a policy can create inconsistency, uncertainty, and added emotional strain. It also places pressure on managers to make quick decisions without a shared framework. On the other hand, a clearly communicated policy provides stability during a time of crisis and signals to employees that their well-being matters.

Once a bereavement policy is established, the business can operate without too much interference, while the valued co-worker can take off the time they need to move through their grief.

Fynn Moves Your Business Forward Faster

Meet Fynn, your AI assistant, built to simplify business planning, funding, operations, and growth. With a fully connected Business Platform and Financial Network, Fynn helps you turn ideas into action, secure funding, streamline operations, and accelerate success.

From business planning to seamless execution and smarter financial connections, Fynn keeps everything and everyone in sync—so you can focus on what truly matters, in business and in life.

March 3, 2025

Featured

The Business Planning Dilemma: How AI is Transforming Entrepreneurship

By Jess Brown

Male Craftsman In Carpentry Workshop For Bamboo Bicycles Using Digital Tablet And Smart Speaker

Starting a business is an exhilarating journey, but for many entrepreneurs, it’s also overwhelming. One of the biggest hurdles? Business planning. According to the U.S. Small Business Administration, over 50% of small businesses fail within five years, often due to poor planning and financial mismanagement. A well-structured business plan is necessary, yet most entrepreneurs struggle to create one.

In fact, a survey reported by Wells Fargo found that only 33% of small business owners have a formal business plan, citing time constraints, complexity, and lack of resources as the primary reasons. Yet, research consistently shows that businesses with a plan are 30% more likely to grow.

The challenge is clear: entrepreneurs need a faster, more intuitive way to plan, strategize, and scale. Traditional methods, which include endless spreadsheets, static business plan templates, and generic online guides, are not cutting it. This is where AI-driven solutions are stepping in, revolutionizing the way businesses get off the ground.

AI Solution: Smarter, Faster, and More Effective Planning

Platforms like AI Canvas and interactive AI assistants are drastically reducing the time and effort required to build a business plan. What once took weeks, refining a strategy, conducting market research, and crafting financial projections now takes days.

One tool leading this shift is Fynn, an AI assistant designed to help entrepreneurs craft business plans with clarity and confidence. Over the course of a 10-week online business development program, entrepreneurs worked with Fynn, alongside human mentors, combining cutting-edge technology with real-world expertise.

The result? Business owners save up to two weeks of time while producing more polished, actionable strategies.

The following case studies highlight how three entrepreneurs from different industries leveraged AI to fast-track their success.

Shakhan Kelly: Transforming a Passion for Photography into a Business

Shakhan Kelly had the vision. A professional photographer with a background in civil engineering, she knew she wanted to turn her artistic talents into a full-time business. But she felt stuck when it came to structuring a solid plan.

Her biggest challenge was defining her unique value proposition in a crowded market. Many businesses struggle to find high-quality, personalized photography that truly represents their brand, and without a business plan, she risked blending into the sea of competitors.

Using AI business tools, Shakhan mapped out her market positioning and refined her service offerings. AI-assisted prompts guided her through identifying her target audience, setting competitive pricing, and crafting a strategy emphasizing her sports and corporate photography expertise.

“The tools make it so much easier to focus on what truly matters, delivering quality work to my clients and spending time with my family,” stated Shakhan. What would have taken weeks of back-and-forth planning was condensed into days, saving her two weeks of effort. With a structured plan in place, Shakhan felt more confident in her business decisions and empowered to scale her services.

Alisha Kowalski: Taking a Local Coaching Business Global

As a life and happiness coach, Alisha Kowalski has spent 15 years helping clients improve their lives through mindset shifts and emotional wellness practices. However, she struggled to scale beyond in-person coaching sessions. She had long dreamed of writing a workbook on emotional inventory journaling but lacked the structure and accountability to complete it. Additionally, she wasn’t sure how to expand her coaching practice beyond local workshops.

AI changed everything. Through an AI-powered business planning platform, Alisha was able to turn her idea into a tangible product. “The AI Canvas showed me how I could distribute the workbook and make it a revenue stream, all with minimal cost.”

Also, with AI’s guidance, she expanded her reach by launching virtual coaching programs, opening up new revenue streams, and refining her pricing strategy to ensure her services were scalable.

By streamlining the planning process, AI cut her timeline by at least two weeks, allowing her to bring her workbook and coaching expansion to market faster. With a clear roadmap, Alisha could focus her time and energy on what mattered most: her clients and growing business.

Kimberly Sales: From Family Tradition to Scalable Success

Kimberly Sales didn’t set out to start a business; she simply loved baking. For years, her signature lemon pound cake, a treasured family recipe, was a staple at gatherings, bringing back cherished memories of her late mother. Friends and family constantly requested her cakes, and over time, she realized her passion had real market potential.

The challenge was figuring out how to turn that idea into a viable business. Kimberly had no idea how to price her products, where to sell them, or how to scale beyond word-of-mouth orders. Financial planning, cost analysis, and market positioning felt like overwhelming obstacles.

AI changed her approach completely.

With the proper guidance, Kimberly built a structured business plan that helped her correctly price her cakes for profitability and explore new sales channels. “Fynn helped me think outside the box. It suggested ideas like selling at farmers’ markets and corporate events. For the first time ever, I realized this could be bigger than I thought it could be.”

What could have taken weeks of research and trial-and-error was condensed into days. AI provided instant financial models and market insights. Kimberly expanded her business vision, moving beyond local orders toward a more scalable operation. Most importantly, AI’s insights helped her set sustainable pricing and revenue goals, making profitability a reality rather than a guessing game.

An Industry-Wide Shift: The Future of AI in Business Planning

Shakhan, Alisha, and Kimberly aren’t outliers. They are the new face of entrepreneurship. Their stories highlight a broader industry trend, one where AI is not replacing human expertise but enhancing it, helping entrepreneurs make smarter, faster decisions.

While AI business tools provide immediate, intelligent insights, human mentors and business development programs remain crucial. That’s why programs like FINSYNC CO.STARTERS combine AI tools with a structured 10-week mentorship program, ensuring that business owners receive cutting-edge technology and community-driven support.

At a time when the majority of small businesses still operate without a business plan, AI-driven platforms are leveling the playing field, making professional business planning accessible, affordable, and achievable.

Whether launching a passion project, scaling an existing business, or pivoting into new markets, AI tools like Fynn are the ultimate co-pilot for modern business success.

Fynn Moves Your Business Forward Faster

Meet Fynn, your AI assistant, built to simplify business planning, funding, operations, and growth. With a fully connected Business Platform and Financial Network, Fynn helps you turn ideas into action, secure funding, streamline operations, and accelerate success.

From business planning to seamless execution and smarter financial connections, Fynn keeps everything and everyone in sync—so you can focus on what truly matters, in business and in life.

February 27, 2025

Accounting

What Is an Audit Trail Report? Definition and Examples

By Jess Brown

Every organization faces risks related to data security. Cyberattacks, unauthorized access, and data manipulation can disrupt operations and compromise sensitive information. Businesses must adopt strong security measures, including an often-overlooked but essential tool, the audit trail.

Digital advancements have streamlined financial management, payroll, invoicing, and cash flow tracking. However, these efficiencies also centralize vast data, increasing the risk of unauthorized alterations or fraud. Implementing an audit trail helps businesses safeguard information, ensure compliance, and enhance operational transparency.

Defining an Audit Trail

An audit trail is a chronological record that tracks transactions, financial entries, and system modifications. This log captures details such as who accessed or altered data, what changes were made, and when these actions occurred. Businesses use audit trails to verify accuracy, identify irregularities, and comply with regulatory requirements.

For example, an audit trail in financial management helps verify revenue, expenses, and ledger adjustments. If an accountant needs to confirm the cost of goods sold (COGS), they can review transaction logs to trace the source and legitimacy of each entry.

Industry Applications

Audit trails are vital in multiple industries that manage sensitive financial and customer data.

• Healthcare: Hospitals and clinics must comply with HIPAA regulations to protect patient privacy. Audit trails track who accessed medical records and ensure that sensitive information is not misused.
• Insurance: Providers use audit logs to investigate claims and resolve disputes. If a delay in treatment leads to a coverage issue, an audit trail can reveal where the process stalled.
• Finance and Banking: Financial institutions rely on audit logs to prevent fraud and monitor compliance with regulations such as the Sarbanes-Oxley Act. Audit trails track every transaction, ensuring accurate reporting and reducing financial risk.
• Cryptocurrency: Digital assets are vulnerable to price manipulation schemes such as spoofing. Audit logs track trading activity to detect and prevent fraudulent transactions.

Benefits of an Audit Trail

Audit trails provide businesses with greater control over their financial and operational data.

◦ Businesses can detect unauthorized access and prevent data breaches by tracking all system activity.
◦ Compliance with many industries requires audit logs to adhere to regulations and avoid penalties.
◦ Error resolution logs help businesses identify discrepancies and restore data to its correct state.
◦ Fraud prevention provides a clear record of transactions that deter internal and external fraud attempts.

As cyber threats increase, businesses must strengthen their security and compliance strategies. An effective audit trail not only helps protect data but also enhances accountability.

FINSYNC simplifies financial management by integrating audit trails into its platform. Businesses can track financial transactions, payroll activity, and cash flow changes with a transparent, automated system—ensuring accuracy and security while optimizing operations.

FINSYNC: Empowering Entrepreneurs, Strengthening Communities

FINSYNC, with Fynn as your 24/7 AI Assistant, is the leading platform for going from business dreams to financial success. From high-growth startups to main-street businesses, Fynn transforms ideas into actionable business plans and delivers real-time insights, enabling entrepreneurs to save time and focus on growth. Fynn and FINSYNC integrate essential tools like cash flow management, payroll, and accounting into one powerful business platform while connecting entrepreneurs with local support organizations, financial institutions, investors, and community resources to accelerate success.

By fostering a connected entrepreneurial ecosystem, FINSYNC and Fynn empower small businesses to grow faster, amplify local resources, and strengthen their communities—driving economic growth for all.

February 25, 2025

Accounting

Cash vs Accrual Accounting – Which Method Is Best for Your Small Business?

By Jess Brown

Choosing the correct accounting method is a critical decision for business owners. The two primary approaches, cash basis and accrual accounting, differ in how they record transactions within the general ledger, impacting financial insights, tax obligations, and cash flow management.

This guide outlines the advantages and disadvantages of each method to help you determine the best fit for your business.

Cash Basis Accounting

Small businesses widely use cash-based accounting due to its simplicity. Under this method, revenue and expenses are recorded when cash is received or paid rather than when transactions occur.

For example, if a landscaping company invoices a client for $4,000 on December 1 but does not receive payment until January 15, the income is recorded in January. This approach can help businesses manage tax liabilities by deferring taxable income to the following year.

However, cash-based accounting does not account for outstanding invoices or upcoming expenses, limiting visibility into long-term financial health.

Accrual Accounting

Accrual accounting records revenue and expenses when transactions occur, regardless of when cash is exchanged. This method provides a more accurate picture of business performance by recognizing income and expenses in the period they are incurred.

Businesses that extend credit to customers benefit from accrual accounting because it reflects revenue at the time of the sale, not when payment is received. For example, if a company completes a project in December but receives payment in January, the revenue is still recorded in December.

Accrual accounting follows the double-entry accounting system, where every transaction affects two accounts, ensuring accuracy and reducing the risk of errors. This approach is essential for businesses that are required to report financials for audits or investors.

Most modern accounting software uses double-entry accounting when entering an invoice or deposit into the system.

Key Considerations

Choosing an accounting method involves evaluating several factors beyond just revenue tracking. Understanding how each method affects financial planning and compliance requirements is essential.

• Regulatory Requirements: The IRS requires businesses earning more than $27 million in gross receipts to use accrual accounting. Smaller businesses have the option to choose either method.
• Financial Visibility: Accrual accounting provides better financial insights, helping businesses plan for growth and investment.
• Cash Flow Management: Cash-based accounting may simplify short-term cash flow management, but it does not provide a full picture of financial obligations.

By considering these factors, business owners can determine which approach aligns with their operational needs and long-term financial goals.

Making the Right Choice

The best accounting method depends on your business’s size, complexity, and financial needs. Accrual accounting is often preferred for its ability to provide a more transparent financial outlook, while cash-based accounting is useful for businesses that prioritize straightforward bookkeeping.

For a more comprehensive approach to financial management, businesses can leverage tools that integrate accounting, cash flow tracking, and financial planning. With FINSYNC, business owners can seamlessly manage their finances, generate reports, and gain insights into cash flow trends. Whether using cash or accrual accounting, FINSYNC’s platform simplifies financial operations and supports smart decision-making.

Explore how FINSYNC can help you streamline accounting and strengthen your business finances today.

FINSYNC: Empowering Entrepreneurs, Strengthening Communities

FINSYNC, with Fynn as your 24/7 AI Assistant, is the leading platform for going from business dreams to financial success. From high-growth startups to main-street businesses, Fynn transforms ideas into actionable business plans and delivers real-time insights, enabling entrepreneurs to save time and focus on growth. Fynn and FINSYNC integrate essential tools like cash flow management, payroll, and accounting into one powerful business platform while connecting entrepreneurs with local support organizations, financial institutions, investors, and community resources to accelerate success.

By fostering a connected entrepreneurial ecosystem, FINSYNC and Fynn empower small businesses to grow faster, amplify local resources, and strengthen their communities—driving economic growth for all.

February 21, 2025

Accounting

Automating Manual Processes for Accounting Can Save Time and Money

By Jess Brown

two men in aprons working at a plant nursery on an ipad

Manual accounting can be a time-consuming burden for many small business owners. Entering transactions, verifying invoices, reconciling accounts, and generating financial reports take valuable hours that could be spent growing the business. Handling these tasks manually also increases the risk of errors. Automating financial processes can improve accuracy and efficiency, helping businesses stay on track.

The Cost of Manual Processes

Relying on manual processes often results in extended working hours. As tasks accumulate, business owners and employees work late to keep up. Over time, this leads to fatigue, reduced productivity, and employee burnout, affecting morale and work quality.

There are also financial consequences. Accounting errors can cause discrepancies that require additional time and resources to correct. Missed payment deadlines can lead to late fees, while delayed invoicing impacts cash flow. Without automation, businesses may overlook opportunities such as early payment discounts from vendors or timely billing for services rendered.

Benefits of Automation

Time Savings

Automation reduces the time spent on routine financial tasks. Data entry becomes seamless, reports are generated instantly, and bank reconciliations shift from a stressful process to an efficient routine. By streamlining operations, businesses gain time to focus on strategy and growth.

Improve Cash Flow

Efficient invoicing and payment processing ensure businesses receive funds faster. Automated reminders reduce overdue payments, while digital bill pay simplifies vendor transactions. A clear view of cash flow allows for better planning and decision-making.

Minimize Errors

Automated accounting reduces human error by categorizing transactions, reconciling accounts, and tracking expenses with precision. This ensures accurate financial reporting, helping businesses avoid costly mistakes and maintain compliance.

Scale with Ease

As businesses grow, financial management becomes more complex. Automated solutions adapt to increased transaction volumes, new revenue streams, and expanding teams without requiring significant manual input. This scalability ensures smooth operations at every stage of business growth.

Choosing the Right Payment Software

Selecting the right financial software is essential for effective automation. Key factors to consider include:

• User-friendly interface: A simple, intuitive system minimizes the learning curve and enhances productivity.
• Integration capabilities: The software should seamlessly connect with banking, payroll, and cash flow management tools.
• Security: Robust protection safeguards financial data, including encryption and multi-factor authentication.
• Reliable support: Access to expert customer service ensures timely resolution of any issues.
• Cost efficiency: Solutions that offer free or low-cost transactions help businesses maximize their earnings.

The software you choose should cater to your business’s unique requirements.

Transitioning to Automation

Adopting automation requires a structured approach:

1. Assess current processes: Identify manual tasks that consume the most time and introduce the highest risk of error.
2. Select a solution: Choose software that meets business needs and integrates smoothly with existing systems.
3. Train the team: Ensure employees understand how to use the new system effectively.
4. Monitor and refine: Regularly review automated processes to maximize efficiency and address any issues.

A Smarter Way Forward

Automating financial management simplifies operations, reduces costs, and positions businesses for long-term success. Small business owners can gain real-time financial insights and make informed decisions by leveraging AI-driven tools and integrated platforms.

For those seeking a comprehensive solution, FINSYNC offers a suite of business tools that simplify invoicing, payments, payroll, and cash flow management. Its AI assistant, Fynn, provides real-time guidance and connects businesses with a financial network of bankers, investors, and local experts. Transitioning to automation with FINSYNC empowers business owners to focus on growth while maintaining financial stability.

FINSYNC: Empowering Entrepreneurs, Strengthening Communities

FINSYNC, with Fynn as your 24/7 AI Assistant, is the leading platform for going from business dreams to financial success. From high-growth startups to main-street businesses, Fynn transforms ideas into actionable business plans and delivers real-time insights, enabling entrepreneurs to save time and focus on growth. Fynn and FINSYNC integrate essential tools like cash flow management, payroll, and accounting into one powerful business platform while connecting entrepreneurs with local support organizations, financial institutions, investors, and community resources to accelerate success.

By fostering a connected entrepreneurial ecosystem, FINSYNC and Fynn empower small businesses to grow faster, amplify local resources, and strengthen their communities—driving economic growth for all.