Suppose you are an entrepreneur who has recently stepped into a new venture. In that case, you are most likely to need proper accounting software that will help you with the recording of data as well as projections regarding revenue generation and preparation of budgets. 

Given the volume of transactions and payments to be recorded for small businesses, you might not have to spend a fortune or purchase the right and most apt accounting software. A basic software with essential functionalities such as invoice creation ability, general ledger, inventory details, and purchase history is more than enough for an SME to run its operations smoothly.

Most basic accounting software for small and medium-sized businesses come with guided help features that help run operations with a step-by-step guide and act as tour guides for the software, helping understand controls and highlight any possible errors. 

Here are a few ways guided help boxes in accounting software can help small business owners run the accounting software themselves or make it easier for new accountants and bookkeepers. 

Highlighting errors: One of the most crucial functions that the guided help box performs is highlighting potential mistakes in the finance sheet. If any figure has potentially compromised the balance of your finance sheet or your income or expenses are more than your total, the guide feature in accounting software quickly highlighted any such entries that could have crucial errors impacting your entire finance sheet. Additionally, it highlights any mistakes in inventory management and helps you maintain your product stock to better cater to your customers. 

Budget allocation: Guided help boxes make budget allocation easier. If your total allocated budget or the percentage of funding allocated to a particular part of your business exceeds the rate you decided initially, the in-built feature of accounting software will highlight the areas of concern, helping you plan your budget efficiently. Mainly if your business is new and revenue is comparatively lower, your expenses are expected to surpass your income. Guided help from the accounting tool helps you check your costs and thus keep track of your budget.

Inventory control: If your business involves many inventories buying and selling, manually keeping a check on your stock can be quite a hassle. Guided help in software highlights when the supply of a particular product is low, intimating you that you must restock. Additionally, any articles with a restricted shelf life also appear highlighted in your software, securing you from potential loss by helping you identify products with nearing expiry and thus putting them ahead of the rest of the stock. 

Payment intimation: Proper accounting software include built-in controls for expense management, payroll, taxation, balance sheet, fixed assets, and cash flows, as well as inventory, sales, and customer management. With all these features, it becomes easy to track and schedule payments. Any payments that are due on you or are expected to receive are highlighted, allowing you to intimate your payer or schedule your income in time. Similarly, good accounting software with guided help assists inadequately managing the payroll. 

Tax calculation: Guided help in accounting matters is of excellent service when it comes to resolving the tax matters of SMEs. Business owners or accountants can easily create income tax statements, calculate the Value Added Tax (VAT), and prepare a comprehensive financial report including the taxation on all transactions. The information helps you understand business taxes better and helps you responsibly file your taxes in time. 

Tutorial functionality: One of the essential tasks that guided help boxes perform is the tutorial functionality. A dialogue box every step of the accounting and bookkeeping management helps accountants/bookkeepers/SME owners better understand the software’s functionality and thus perform finance management tasks with great precision and efficiency. This tutorial functionality also makes it easy for a bookkeeping novice to record the data and carry out bookkeeping tasks at ease. 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Owning and operating a small business is complicated because often, you can afford extra staff to handle specific tasks. As a small business owner, you have to keep up with selling your products or service, inventory, staffing, bookkeeping, and gaining and retaining customers.

With all these business concerns, you may not spend much time focusing on payroll taxes, but you shouldn’t ignore them. The IRS takes payroll taxes seriously since it is how the federal government is funded. Here are six things every business owner should know about payroll taxes.

Crossing State Lines

Each state has tax laws related to the state taxes owed to fund the state government. Because of this, if you own businesses in multiple states, it can complicate how payroll taxes are done. Each state has its tax codes and regulations about handling, calculating, and distributing taxes.

When opening your business in other states, you may want to consider these differences in tax code before opening a business in another state. In some states, the additional payroll tax cost may outweigh the benefits of opening your business in that state.

Compliance Enforcement

Even if you are running an honest business to pay and withhold all taxes required by the state and federal government, mistakes can carry heavy penalties. The Internal Revenue Service has become known for being especially hard on small businesses regarding taxes and specifically withholding payroll taxes.

The single largest source of uncollected taxes is small businesses. Though most small businesses are legitimately functioning and paying, collecting, and distributing payroll taxes, they are still heavily focused on by the IRS. This lack of trust in small businesses by the IRS is likely from a few non-compliant businesses ruining the overall reputation of small businesses when it comes to payroll taxes. Keep that fact in mind when it comes to your bookkeeping practices and payroll taxes.

Do Not Access the Funds

When it comes to payroll taxes, they do not belong to the business owner but rather the government via the Internal Revenue Service. Those taxes do not belong to the business owner, and it is against the law to access them.

These funds are deposited to the IRS monthly or bi-monthly, depending on the schedule your company has set up. If you fail to make these deposits because you have accessed the funds, there could be severe consequences. No matter the situation, you should never touch these funds.

Monitor Constantly

Since these funds are deposited to the IRS regularly, you should monitor every aspect constantly. You need to ensure all employees have the appropriate amount withheld and that the deposits are correct each month.

It is also crucial that you be up to speed on the latest tax codes and laws to withhold and deposit the correct amount. The importance of monitoring payroll taxes is a vital part of your business’s bookkeeping and payroll process.

Bonus Checks and Overtime

Other earnings beyond the employee’s salary can have significant tax implications if not timed correctly. When paying overtime, bonuses, and commissions, you need to ensure that they are taxed. The taxes owed on these earnings and the timing of them can cause the taxes owed to fluctuate.

To avoid costly taxes, penalties, or fees, ensure the timing is correct and that the right amount of taxes is withheld on these types of earnings. This diligence will ensure all taxes are paid promptly and that the least amount of taxes is owed.

Severe Penalties

Incorrect payroll tax handling can lead to penalties that may put your business at risk. Most incorrect filings are simple mistakes or misunderstandings. However, it must be corrected immediately if a mistake is made to avoid the penalties.

There are more severe penalties if you don’t pay your payroll taxes. If you fail to deposit payroll taxes, it is considered a federal crime and can be prosecuted as such. It would be best if you avoided anything that will result in these penalties.

While not generally as severe, there are penalties for depositing payroll taxes late. You must make your payroll tax deposit on time and for the correct amount to avoid costing your business unnecessary penalties and fees.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Starting your own business can be a frightening but rewarding procedure. While an ideal business plan condemns entrepreneurs, financing is one of the most significant elements a company needs to succeed. However, financing a small business can be a drawn-out process, especially for those with an accounting background.

Consistent improvements to grow your small business are daunting for its success and sustainability. Meanwhile, the operations like monitoring cash flow, controlling the marketing, and identifying your strengths turn out to be the most profitable.

Here’s a list of 10 strategies to utilize the acquired funds smartly to develop your small business.

Product packaging is important: You can apply the packaging to utilize the funds in a productive chore. Bringing innovation to the product and services will attract the clients and commit the old ones. Investment in the better quality and paging of the product will help you meet your client’s requirements, and they will come back to shop from you.

Impactful marketing campaigns: Wasting money on profitless marketing is easy. Seek out for budget-friendly and impactful marketing strategies to grow your business. Experiment with a few latest tactics and examine their after-effects on your business. Social media is one of the great ways to market your company globally.

Conservative financial projection: A big-wins area for business growth is the sales function. Whether you’re a sole operator or managing a sales team, you’ll have to focus on sales improvements. Even the trends that don’t seem relevant on the outside might have a versatile impact on the inside, so consider all the possibilities.

Keep up with technology: Investing in the latest technology provides pedantic insights into the clients and potential prospects. You can get CRM (customer relationship management) software to maintain the sales records virtually. With this software, you won’t be carrying the burden of keeping the records manually; instead, you’ll get all the documents prepared beforehand.

Keep your inventory updated: Another great way to utilize the funds efficiently is to get the latest and fresh inventory and equipment. This way, the work procedure will become faster, and the company will complete the customer’s orders on time.

Instead of purchasing used machinery, get the latest machinery with advanced features to provide a much-required boost to your business.

Prioritize and clear debts: Utilize your funding to remove the account payables. With a higher debt amount comes the higher interest rate, which you probably wouldn’t want to pay all at once. Also, you can utilize the rescued amount of cash from the interest rate in fulfilling other financial requirements of the company.

Please don’t push your limits: Successful entrepreneurs have a clear idea of their boundaries. By identifying your entrepreneurial personality type, you operate your resources well and find the areas of weakness. For instance, if you excel at sales marketing but are less experienced with the accounts, focus on the sales and hire a professional accountant to handle the books.

Involve in networking: As an entrepreneur and a small business owner, hosting business events is a great way to create an identity among the potential audience. Invest in advertising and promotional banners so that everyone will know about the existence of your company.

Target a niche sector:  Niche is a specialized market portion for a particular product or service. When other companies fail to fulfill the customer’s requirements, focus on the potential areas and invest to win the audience’s trust.

Consider franchising: Franchising provides a rapid boost to your small business. In this activity, the product is distributed among the potential audience. However, before franchising, you must do a market analysis to know the customer’s requirements and demands.

 The above-defined strategies come in handy not only for small enterprises but for every stage of business. Running a small business is quite hard as the owner himself is responsible for so many monetary chores. However, there are numerous options out there for the utilization of new funds. Determine your financial position and make a productive decision for the growth of your business.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Outsourcing accounting has become a popular practice among businesses of all sizes. In today’s competitive business environment, outsourcing accounting services can provide a range of benefits that can help companies improve their financial management, lower costs, and increase efficiency. In this article, we will explore the benefits of outsourcing accounting with Transaction Cost Economics and provide industry-specific statistics and facts to support our claims.

Transaction Cost Economics (TCE) is a theory that explains how companies can minimize their costs by outsourcing non-core activities to external vendors who specialize in these activities. According to TCE, companies can save money by outsourcing accounting because it reduces transaction costs, which are the costs incurred when conducting transactions in-house.

One of the main benefits of outsourcing accounting is cost savings. Outsourcing accounting services can be significantly cheaper than hiring an in-house team. This is because outsourcing providers have economies of scale and can spread their fixed costs over multiple clients. In addition, outsourcing providers are often based in lower-cost regions, which means that labor costs are lower. According to a survey conducted by Deloitte, companies that outsourced their finance and accounting functions reported cost savings of up to 40%.

Another benefit of outsourcing accounting is improved financial management. Outsourcing providers have the expertise and experience to provide accurate and timely financial statements, which can help businesses make informed decisions. In addition, outsourcing accounting services can provide access to the latest accounting technology and tools, which can help businesses stay ahead of their competitors.

Outsourcing accounting can also increase efficiency. By outsourcing non-core activities, businesses can focus on their core competencies and strategic goals. This can lead to greater productivity and efficiency, which can help businesses achieve their objectives faster. According to a study conducted by the Society for Human Resource Management, outsourcing accounting services can increase productivity by up to 9%.

In addition to these benefits, outsourcing accounting can provide other advantages, such as access to a global talent pool, improved compliance, and reduced risk. For example, outsourcing providers are often located in different countries, meaning businesses can access a global talent pool and benefit from diverse expertise and cultural knowledge. Outsourcing providers are also experts in compliance and can help businesses navigate complex regulations and reduce the risk of non-compliance.

When it comes to industry-specific statistics and facts, the benefits of outsourcing accounting are particularly relevant for small and medium-sized businesses (SMBs). According to a survey conducted by Sage, SMBs that outsourced their accounting reported a significant reduction in the time spent on financial management tasks, which allowed them to focus on growing their businesses. In addition, SMBs that outsourced accounting reported higher levels of satisfaction with their financial management than those that did not.

In the healthcare industry, outsourcing accounting can provide significant benefits. According to a report by Black Book, healthcare organizations that outsourced their accounting reported significant cost savings, improved financial management, and increased efficiency. In addition, outsourcing accounting can help healthcare organizations comply with complex regulations, such as HIPAA and the Affordable Care Act.

In the manufacturing industry, outsourcing accounting can provide benefits such as improved supply chain management and reduced costs. According to a survey conducted by Deloitte, manufacturing companies that outsourced accounting reported significant improvements in supply chain visibility, which allowed them to make more informed decisions. In addition, outsourcing accounting can help manufacturing companies reduce costs by improving inventory management and reducing waste.

In conclusion, outsourcing accounting can provide a range of benefits to businesses of all sizes and across industries. Outsourcing accounting can help businesses save money, improve financial management, and increase efficiency by reducing transaction costs. Industry-specific statistics and facts show that outsourcing accounting is particularly beneficial for SMBs, healthcare organizations, and manufacturing companies. As businesses continue to face pressure to cut costs and improve performance, outsourcing accounting is likely to become an even more important strategy for success.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

For small business owners, managing multiple accounts and cards can be a difficult task while managing all the other operations of their business. Running a business is risky and very hectic for sole proprietors, and that’s why they’re always looking for more straightforward and less time-consuming alternatives.

Businesses with no accountants have the owner as the bookkeeper too, which is a highly complex task because you have to make sure that you make no errors. To avoid the hassle of multiple accounts and holding multiple credit cards, some business owners use their credit cards to pay off their business expenses.

You should have an Employer Identification Number (EIN) or a Tax ID Number to get a business credit card. The government uses these identifications for your business’ tax purposes. But to get a personal credit card, you only need your Social Security number.

To get a business credit card, you will need your business’s legal name and contact information. You will also need the industries your business operates in, your business entity or legal structure, the time in the business, and the number of employees.

In addition, you need your federal tax ID, the annual business revenue calculation and estimated monthly spend total annual income, and your credit history to provide the bank. This all is a challenge for small business owners, so they use their credit cards for business uses. A few advantages and disadvantages of using a credit card for your business expenses are:

Disadvantages:

• You won’t have access to business credit. A business credit card is an excellent source of finance without paying any extra charges like interest or other fees. The business credit card also builds credit, and your credit score increases. The credit score helps you take lines of credit, and you will be eligible to take loans.
• Your business will have less spending power. Having the same or merged accounts for your personal use and business use will make you stop spending on necessary stuff for your business as you would want to save that money for your personal use. Having a business credit card gives you a sense of more spending power, and you can spend on the right things as a business credit card typically has a much higher spending limit than a personal credit card.
• You will face cash flow and financial management problems. When using the same card for different purposes, it can be hard to differentiate between personal and business expenses. While keeping a record of bookkeeping and other accounting transactions, you will be confused about business expenses. You also won’t be able to create a cash flow statement properly when you don’t have accurate information about the inflows and outflows of the business only.

Advantages:

• The CARD act of 2009. The CARD act of 2009 is only provided to personal credit cardholders in the USA, and a lot of legal protection is provided to the cardholders. The banks cannot ask for high charges to issue a credit card, and the interest rates are lower too.
• More benefits and rewards as compared to business credit cards. Credit cards are pretty safe and have better security features. You can avail of discounts and gift cards through your credit cards, and some credit cards even offer cash back on some purchases and payments.

There is absolutely nothing wrong or illegal in using a personal credit card for your business expenses. Still, you should separate your personal and business accounts and expenses to prevent any confusion. Keeping your accounts separate is easy and much more beneficial than having merged accounts.

You can have access to extra credit without having to worry about interest rates or mortgages. You can access lines of credit through credit cards if you have a satisfactory credit score. You can only have a good credit score if you have a separate bank account for your business. Your cash flows will be managed properly, and you won’t face bookkeeping problems. So you should get a business credit card for your business instead of using a personal credit card.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

In the past, television, billboards, newspapers, and brochures were the only means of marketing. These methods have evolved as the digital world now encompasses more platforms to get a message across. 

With the advent of the internet, people began marketing their services and products online, and as the internet gained more popularity, their ways of thinking also changed. The world shifted to digitalization, and marketers took advantage of that. 

Digital marketing, by definition, is the virtual marketing of your blog or website. Digital Marketing is the optimal way to promote your business online, and if done right, it can transform your business into a big profitable giant.

Digital Marketing Strategy

Digital marketing strategy can be defined as a strategy designed to transform your business into profitable means and meet your goals and objectives. It focuses on the plans that dictate which channels and tools you will use for marketing your website and includes budgeting. 

There are multiple ways to market your stuff online, and we have covered the top 5 tips for creating a successful digital marketing plan in this article:

1) SWOT Analysis

Every plan starts with an analysis. A complete analysis of your business’s Strengths, Weaknesses, Opportunities, and Threats will help you understand the things you need to work upon for its betterment.

A SWOT analysis allows you to look at the market and get to know your framework in a much better manner. After the analysis, you can work on the factors that come up as the result of your research. 

An internal study and research of your brand, product, or website also help you understand it better and unlock many sides of the promotional campaign in your plan.

2) Search Engine Optimization (SEO)

SEO is the core of digital marketing; it is the procedure of your website’s improvement to rank better against the related keywords and LSIs on various search engines. Build a strategy to rank on as many keywords (higher rankings) as you can, as it will give great exposure to your website and welcome more visitors.

The goal of SEO is to get more site traffic from your relevant audience. Your audience includes the people who regularly read, buy, or search for the services you offer, so your goal should be to get them on your page.

Targeting is essential in SEO, as your priority should always be to rank against the relevant keywords only to get the required audience on your page.

SEO is essential as every other user begins their search by typing in the search engine bars, and according to the CTR study, 30% of users click on the first result that appears against a specific keyword. If any of your pages are ranking at the top position against a keyword, it will only increase the chances of users landing on your page.

3) Marketing Automation

Marketing Automation refers to using the software as a service to automate various marketing-related tasks. Digital Marketers use this process to save their time and benefit from the results gotten via CRM and CDP integrations.

Marketing Automation platforms can help you build your digital marketing strategy, removing the hurdles of various marketing tasks from your plate by automating them. They can easily automate email marketing, content marketing, social media marketing, and more. 

4) Monitoring

After building a good digital marketing strategy, you should track your progress and monitor every process to ensure that everything goes in the right direction. 

Constant monitoring can help you eliminate the vast blunders by fixing the minor fixes that may appear in any process. You can set the error right when you diagnose it, saving you from more significant troubles. 

Also, constant monitoring contributes to improvements in your tools, processes, and plan. With monitoring, ensure to introduce timely updates to upgrade your digital marketing strategy.

5) Finalize your Digital Marketing Strategy

After the planning and research phases end, you can put together all the elements to finalize your digital marketing strategy.

You must build your potential buyer’s persona, have clear-cut goals for your website or blog, have an inventory and audit of your existing media, and have created a content creation plan. 

After ensuring all these factors, you may form a proper marketing strategy that focuses on your aims and objectives and includes all your research elements.

Conclusion

You can incorporate all the practices mentioned in this blog to make a comprehensive and cohesive digital marketing strategy. We have amalgamated all the critical factors and the essential digital marketing tips for startups required to succeed.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

For a business to run efficiently, it is vital to have a record of all financial statements. The three financial statements generated by the accounting department include the income statement, the balance sheet, and the cash flow statement. Each of these has its significance. Keeping the financial records up to date and maintaining all three of these financial statements is critical for business growth.

Small business owners sometimes make the mistake of ignoring the recording of financial statements promptly. Accountants in small businesses often rush to create accounting statements only when filing the taxes or an external audit is near. Rushing can raise the risk of errors and lead to the potential loss of critical financial data.

Accounting is the systemic recording of all business transactions, including the income and expenditure such as payroll, taxes, client and vendor payments, and office expenses. The accounting department also ensures that the business complies with the government laws and provides the necessary financial paperwork to upper management, investors, and government officials.

An accountant’s job may only be restricted to bookkeeping or data recording and report generation for the small-sized business. However, for medium and large-sized businesses, the role of accountants and the finance department evolves as it involves financial analysis, expense management, and presentation of the company’s financial data to potential investors and the company management.

Having an efficient accounting department or at least a committed and efficient accountant for your small business is necessary. Here are five reasons your small business needs an accountant.

Finance Data Recording and Management

The primary function of an accountant in a small business is recording and managing crucial financial data. The accountant is responsible for maintaining records for all financial transactions and keeping receipts, invoices, and payment documents organized.

The accountants must prepare monthly, quarterly, and yearly financial statements to help business owners study the trends. This data management is easy, especially when you are looking for someone to invest in your business.

As the company size grows more prominent, a typical accountant’s job evolves from bookkeeping to payroll and tax management. Proper financial management ensures a balanced cash flow and timely payments to vendors.

Finance Analysis and Projections

At a more senior level, accountants are required to study the financial statements, analyze and make projections to business owners and potential investors.

These projections are made by studying the monthly, quarterly, and yearly financial reports to observe sales and revenue trends and identify areas of weakness and strength. Qualified accountants calculate and project a business’s growth by thoroughly reviewing the financial records, thereby helping the company owners make learned decisions.

Law Abidance and Regulatory Compliance

The finance department, chiefly the accountant, is also responsible for ensuring that the business abides by the law and complies with all the IRS and state regulations. From tax preparation to budgeting, the accountant is responsible for doing all of this within time to avoid penalties.

Monitoring and supporting taxation issues and filings can also be a responsibility of an accountant. The accountant also usually coordinates the audit process by assisting with financial data preparation.

Communication with External Bodies on Matters of Finance

Businesses often operate on credit and have multiple vendors with payments overdue. The finance department is liable to communicate with all these external bodies, vendors, tax lawyers, or potential investors. Accountants provide the prerequisite data and make sure that payments from vendors are made in time.

Budgeting

One of the critical functions of an accountant is to help formulate an appropriate budget for the company. The accountant, based on business projections, allocates a fixed budget to various departments of the company. The budget is usually annual; however, small businesses tend to break the annual budget into different categories of quarterly budget, monthly budget, and bimonthly budget.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Companies utilize numerous management tools for smooth operations. These tools are efficient and provide business owners with critical insights into their company’s financial information and performance tools for operating processes.

One of the most valuable tools is a budget, primarily used by businesses to manage their finances. A budget is crafted with advanced forecasting so that it can predict future expenses. Presently, companies rely on the accuracy of their income and expenditure, which is indicated by budgeting.

On the contrary, performance reports are usually an assessment of a particular function of a business. Also, comprehensive performance is generated at the end of every fiscal year. The performance report reflects the input of the resources and output of the services for every single company unit.

This activity is commonly implemented by government officials and agencies to co-relate the tax-payer funds and the outcome of services provided by the federal or state government.

Budget and performance reports are essential for every business, and generally, professional accountants or bookkeepers are hired to tackle them. The finance department is typically assigned the budgeting task, while an expert always creates a performance report. The process of budgeting is essential for a business to grow in health and profitability.

Role of the Performance Report

Although budgeting holds a significant amount of information, it can’t offer you additional facts related to variances. Additional costs of acquiring the resources or poor economic conditions are several factors that need to be considered before the budget approval.

However, performance reports are highly impacted if the government brings any alterations in its laws. Half of these indicators are utterly financial, while others might be related to administration and management. Therefore, a performance report has to be accurate to avoid any future surprises.

Role of the Budget

For a business, there are numerous characteristics of budgeting. One of them is how budgeting accurately assigns your money. It provides you an evaluated acknowledgment of your affordability and financial limitations. Here are the primary characteristics of the budget.

Controllability

Budgeting is a fantastic way of willfully controlling your money. The budget allows you to stay worried about the unexpected expenditure that might appear. Also, you’ll be able to determine the weakest parts of your business.

Cash Assignment and Profitability

It is effortless to lose sight of where a company is generating profit during the scramble of chronic management. An appropriately structured budget indicates what aspects of a business generate money and which ones utilize it, which ultimately compels the management to consider expanding neglected parts of a business. Additionally, a very minimal amount is available to invest in working capital and fixed assets, and budgeting forces the management to select the worthiest assets to invest in.

Avoid Business Chaos

In smaller organizations, budgets became a rarity. Business owners prefer to manage themselves only with the reference of general budgeting. Undoubtedly, they aren’t professional accountants with tons of expertise in this field. When things don’t do as planned, the business owners might reserve the employees’ paychecks or invest in several financial operations, but many businesses fall anyway.

There will be varied explanations for this failure called “undercapitalization.” Undercapitalization is the reason larger corporations rely on budgets. It is a significant element for controlling and strategizing financial processes.

Productive Usage of Resources

Within many companies, it is a prevalent practice for employees and managers to assign limited resources. Every business contains a deserving workforce, and it usually creates disputes among the employees. However, the available resources will be naturally higher than the available amount of funds with proper budgeting.

Companies may opt for automated software and performance reports for tracking the financial information related to budgeting. It combines with the performance report that is in charge of comprehensive budgeting management. These reports often list particular attributes relating to several budget variances and the other mandatory information for the budget situation.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Business owners need to know the current technological advances in the field of accounting. With time, the use of bots is increasing, and their cordial relationship with bookkeepers is utterly unavoidable.

Bots are not robots in reality but unique applications that interpret information and notify you. The coding activity allows bots to process data rapidly, which is not humanly possible. The most significant aspect of bots is the perfect blend of human elements and advanced technology to achieve utmost efficiency.

Undoubtedly, bookkeepers play a pivotal role in an organization, but what happens when bots manage the flow of information and render various manual tasks virtually? The shared insight of bookkeeping as an activated role focused on tracking data gets upside down.

Technology has reached a point where individuals don’t have to be involved in manual data collection and management. For instance, recording invoices can be done reflexively and without any human involvement. This activity is getting a lot of hype and is becoming a reality for many financial recorders.

It has been determined that future bookkeepers will go beyond understanding the accounting manual software. Bookkeepers must be capable of anticipating technology usage, workflow issues and strengthen financial strategies.

Artificial intelligence and mechanics have already enabled bookkeepers to communicate with bots just like associates. Many businesses have already entrusted online tools that can record the transactions without requiring a lengthy trial.  Here are six reasons you should use bot technology to handle your business accounting.

Efficient Data Recording

Chasing customers for their accounting records, bills, bank statements and finding the missing documents are some of the troublesome pointers for bookkeepers. Bots help to eliminate this gracious part of the work for bookkeepers. The bookkeeper has to share an online application with the customer for data collection.

Every time the customer receives a bill or receipt, they have to take a picture with their smartphone. The digital document and the connected data will be available to the bookkeeper within minutes. Additionally, they can scan and upload documents from the desktop.

Improves Processing Speed

Sorting documents manually and data entry needs time, depending on the burden of work. Almost all bookkeepers who have worked with SMCs in the past have gone through extreme workloads, and they’ve described their stressful journey of working under pressure.

Bookkeeping bots mechanized data processing and enabled them to craft more reliable services for their customers. Once you have rapid data processing, you can render practical reporting and excellent services.

Better Management

With multiple tasks, it is nearly impossible to remember deadlines and deliveries. A mechanically organized dashboard can compose all the functions in one place. This bird’s eye view of your customer’s bookkeeping variables enables you to prioritize their requirements.

Practical Reporting

Nothing makes a brand attractive to its clients more than practical financial reporting. A few decades ago, practical reporting was quite impossible. Still, with the advent of the latest technology, document sharing, and mechanized bookkeeping tools, it has been easier than traditional accounting.

Less Stressful

Recruiting, training, and reserving a skillful workforce is one of the most crucial challenges for SMPs. However, bookkeeping bots make it facile to appoint and retain work staff. Moreover, it also diminishes the stressful procedure of hiring employees, and it would be highly feasible to motivate a minimal workforce. You won’t worry about the workload’s instant burden or pushing the team to contribute to the business.

Budget-Friendly

The bookkeeping bots don’t include any initial cost, fixed fees, and maintenance costs. Fortunately, it isn’t the software that you need to buy with thousands of dollars. Bookkeeping bots are budget-friendly internet-based software, and getting one for your financial purposes is as easy as signing up for a social media account. There will be no initial cost to utilize them, and you’ll be paying only for the processing of documents.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Why You Should Hire A Professional Accountant Today

Hiring a professional accountant saves time, prevents costly financial errors, and provides expert guidance that transforms your business operations from reactive to strategic. Small business owners typically spend 120 hours annually on accounting tasks that professionals handle in a fraction of the time, freeing you to focus on growth and innovation.

I’ve spent over 20 years as CEO of Complete Controller working alongside businesses across every industry imaginable, and one pattern remains constant: companies that invest in professional accounting services outperform their competitors by margins that surprise even seasoned entrepreneurs. The data backs this up—businesses using outsourced accounting save up to 50% on bookkeeping costs while achieving 30% higher financial accuracy. This article reveals exactly how professional accountants deliver these results, from tax optimization strategies that recover their fees within months to error prevention systems that protect against devastating penalties.

What does hiring a professional accountant achieve, and why act now?

• Professional accounting delivers immediate time savings, error reduction, strategic planning, and tax optimization that typically recovers costs within 90 days
• Time efficiency gains average 10-20 hours monthly through automated bookkeeping, payroll processing, and invoice management
• Mistake prevention eliminates misclassified expenses, compliance penalties, and missed deadlines that cost businesses 5-20% in annual revenue
• Strategic advisory services include growth forecasting, investment planning, and cash flow optimization beyond basic number-crunching
• Immediate ROI materializes through tax savings, recovered deductions, and operational efficiencies that most businesses never realize alone

The Tangible Benefits: How Accountants Save Time and Money

Professional accountants transform chaotic financial operations into streamlined systems that practically run themselves. The average small business owner dedicates three full work weeks annually to accounting tasks—time that could generate thousands in new revenue instead.

Modern accountants deploy cloud-based automation tools that reduce manual bookkeeping labor by 80%. A bakery client recently redirected 12 weekly hours from invoice processing to customer acquisition, resulting in 23% revenue growth within one quarter. These efficiency gains compound over time, creating sustainable competitive advantages.

Beyond time savings, professional accounting services prevent expensive mistakes before they occur. Misclassified expenses, unreconciled accounts, and overlooked deductions trigger IRS audits and cash flow crises. Studies indicate businesses save $7,000 to $15,000 annually by avoiding penalties and interest charges through proper financial management. One retail client discovered $9,200 in overlooked deductions during their first professional review—money that would have vanished without expert oversight.

Navigating Tax Complexities: Expertise That Pays for Itself

Tax regulations change constantly, with new credits and deductions emerging while others expire. Certified public accountants maintain current knowledge of these shifting landscapes, identifying opportunities most business owners never discover.

Strategic tax planning extends far beyond annual filing deadlines. Professional accountants analyze your entire financial structure to minimize tax liability legally. A tech startup recently reduced taxable income by 34% through R&D credits that their accountant identified—savings that funded two new hires. These professionals also handle quarterly estimates, payroll taxes, and state compliance requirements that overwhelm DIY filers.

Audit defense represents another critical value proposition. Accountants maintain meticulous records, respond to IRS inquiries, and navigate examination processes that terrify unprepared business owners. Their expertise prevents minor issues from escalating into major financial disasters, protecting both your business assets and personal peace of mind.

Real-World Pitfalls: Case Studies of Costly DIY Accounting

Financial mistakes compound quickly without professional oversight. A Colorado manufacturing firm faced $28,000 in penalties after missing quarterly payroll tax deadlines—an oversight their overwhelmed owner never noticed until IRS notices arrived.

Their new accountant immediately filed penalty abatement requests, recovering 70% of the charges while implementing automated reminder systems. The firm now saves $17,000 annually through proper tax planning and never misses another deadline. This transformation required just three months of professional intervention.

The freelancer’s $9,200 lesson

A freelance designer learned expensive lessons about balancing personal and business finances. Her DIY approach triggered an IRS audit when suspicious deductions appeared without proper documentation. The examination revealed numerous errors, from unclaimed home office deductions to improperly categorized expenses.

Her accountant restructured the entire financial system, separating business transactions and maximizing legitimate deductions. The result: $9,200 in reduced tax liability and a bulletproof system preventing future audits. More importantly, she gained clarity about actual profitability, enabling smarter pricing decisions that doubled her income within 18 months.

Strategic Financial Leadership: Beyond Basic Bookkeeping

Top-tier accountants function as fractional CFOs, providing strategic guidance that transforms good businesses into great ones. They create detailed cash flow projections, analyze investment scenarios, and identify growth opportunities hidden in financial data.

A Miami e-commerce business leveraged these insights to secure $500,000 in funding. Their accountant prepared three-year financial models demonstrating specific profitability pathways, impressing investors who typically reject 90% of applications. The projections proved accurate, with the business achieving targets six months ahead of schedule.

Professional accountants also implement risk management strategies to protect against common vulnerabilities. They identify overreliance on major clients, suggest revenue diversification tactics, and create succession plans to ensure business continuity. A family restaurant avoided closure after its founder’s sudden retirement by following its accountant’s pre-established transition framework, preserving both the business and family relationships.

Finding the Right Accountant: A 5-Step Selection Framework

Selecting the ideal accounting partner requires strategic evaluation beyond checking credentials. Start by defining your specific needs—tax complexity, industry requirements, and growth objectives shape which expertise matters most.

Step 1: Define your requirements

Tax-focused businesses need CPAs with IRS Enrolled Agent status, while high-growth companies benefit from strategic advisors. Industry specialization matters significantly—restaurants require cost-control expertise while SaaS companies need R&D credit proficiency.

Step 2: Verify professional credentials

Check state board licenses through official channels like CPAVerify.org. Confirm CAAT certifications (Compilation, Audit, Attest, Tax) matching your needs. Request references from similar businesses and actually call them—authentic feedback reveals working relationship quality.

Step 3: Assess technology compatibility

Modern accounting requires seamless software integration. Prioritize professionals fluent in your existing tools (QuickBooks, Xero, etc.) who can enhance rather than complicate current systems. Cloud-based collaboration capabilities enable real-time financial visibility.

Step 4: Evaluate communication style

The best technical skills mean nothing without clear communication. During initial consultations, notice whether complex concepts become understandable. Your accountant should educate, not confuse, ensuring you make informed decisions confidently.

Step 5: Structure the engagement

Discuss service packages, response times, and growth accommodation. Many businesses start with basic bookkeeping, then expand services as needs evolve. Establish clear expectations about deliverables, meeting frequency, and preferred communication channels.

The Emotional ROI: Beyond Spreadsheets

Financial stress destroys entrepreneurial creativity and decision-making ability. Business owners report 40% lower anxiety levels after outsourcing accounting responsibilities, with many citing improved sleep and family relationships.

Professional financial management exponentially builds stakeholder confidence. Banks, investors, and partners view organized finances as competence indicators, increasing funding approval odds by 65%. One client secured a crucial supplier partnership solely because their professional statements demonstrated stability during initial negotiations.

I’ve watched countless entrepreneurs transform from exhausted number-crunchers into visionary leaders once freed from financial administration burdens. They rediscover passion for their core business, make clearer strategic decisions, and actually enjoy entrepreneurship again. This emotional transformation often proves more valuable than any tax savings.

Conclusion: Your Financial Transformation Starts Now

After two decades guiding businesses through financial transformations at Complete Controller, I’ve witnessed one undeniable truth: professional accounting isn’t an expense—it’s an investment that pays compound returns through saved time, prevented mistakes, and strategic insights.

The businesses thriving today aren’t necessarily smarter or luckier than their struggling competitors. They simply recognized that financial expertise amplifies every other business strength while protecting against hidden weaknesses. Your competition may continue wrestling with DIY accounting, but you now understand the competitive advantage waiting through professional partnership.

Take action today before another quarter passes without optimized finances. Schedule your free financial assessment with our Complete Controller team to discover specific savings opportunities in your business. We’ll analyze your current situation and demonstrate exactly how professional accounting transforms your bottom line.

Frequently Asked Questions About Hiring Professional Accountants

How much does hiring an accountant cost for small businesses?

Professional accounting fees range from $150-$500 hourly for specialized CPA services, but most small businesses utilize monthly packages between $250-$1,000 covering comprehensive bookkeeping, payroll processing, and tax filing services.

When should a startup hire its first accountant?

Engage professional accounting during entity formation to optimize tax structure and equity distribution—ideally before generating first revenue to establish proper financial foundations and avoid expensive restructuring later.

Can accountants help businesses manage and reduce debt?

Yes, experienced accountants negotiate payment plans with creditors, consolidate high-interest loans, and develop debt reduction strategies—one client reduced $100,000 in obligations to $72,000 through professional debt restructuring.

What’s the difference between a bookkeeper and an accountant?

Bookkeepers record daily transactions and maintain organized records, while accountants analyze financial data, provide strategic guidance, ensure tax compliance, and offer business advisory services—most growing businesses benefit from both.

How do I verify an accountant’s credentials and reputation?

Verify CPA licenses through state boards via NASBA.org, check disciplinary history, confirm specialized certifications through AICPA, and request references from current clients in similar industries.

Sources

• Archer Lewis. “7 Benefits of Hiring an Accountant for Small Business.” Archer Lewis, 2024. www.archerlewis.com/benefits-hiring-accountant
• Haworth & Co. “Common Accounting Mistakes Small Businesses Make.” Haworth, 2025. www.haworth.com/accounting-mistakes
• Investopedia. “Financial Advisor Definition.” www.investopedia.com/terms/f/financial-advisor.asp
• IRS. “Tax Professional Guidelines.” Internal Revenue Service. www.irs.gov
• J2T Recruiting. “How Does an Accountant Save My Company Money?” 2022. www.j2t-recruiting.com/post/how-does-an-accountant-save-my-company-money
• MGO CPA. “Identifying a Major Tax Error for a Machinery Manufacturer.” 2024. www.mgocpa.com/perspective/case-study-identifying-a-major-tax-error-for-a-machinery-manufacturer
• Mytasker. “Top 5 Benefits of Accounting Services for Small Businesses.” Mytasker, 2025. www.mytasker.com/accounting-benefits
• NOW CFO. “Why Your Business Deserves Better Accounting and Less Stress.” 2024. www.nowcfo.com/why-your-business-deserves-better-accounting-and-less-stress
• Otterz. “Case Study: How Otterz Helped a Small Business Save $20,000.” 2024. www.otterz.co/case-study-how-otterz-helped-a-small-business-save-20-000-annually
• Personiv. “How Accounting Has Changed: 52 Statistics.” 2025. insights.personiv.com/blog-personiv/how-much-accounting-has-changed-stats
• Pulse Accountants. “Top 10 Reasons to Hire an Accountant.” Pulse, 2024. www.pulseaccountants.com/reasons-to-hire
• SBA. “Small Business Tax Guide.” U.S. Small Business Administration. www.sba.gov
• ZenBrief. “How to Build an SEO-Friendly Content Outline.” 2021. www.zenbrief.com/content-outline

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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