Essential Accounting Tools for Your Small Business Growth

The best accounting tools for small business growth include QuickBooks Online, Xero, FreshBooks, Wave, and Zoho Books—cloud-based solutions that automate invoicing, expense tracking, bank reconciliation, and real-time reporting to streamline your finances and support scaling. These powerful platforms reduce manual errors by up to 80%, save business owners 6-11 hours weekly, and provide scalable pricing from free tiers to $50+ monthly, helping you focus on revenue generation rather than paperwork.

After two decades as CEO of Complete Controller, I’ve watched hundreds of entrepreneurs transform their financial chaos into streamlined operations with the right tools. One recent client reduced their bookkeeping from a weekend burden to a 15-minute daily check-in, freeing up time to land three major contracts. This article shares the exact tools and implementation strategies that have helped my clients save an average of $9,000 annually while scaling their operations—including specific comparisons, real cost breakdowns, and the 30-day implementation roadmap we use at Complete Controller.

What are the best accounting tools for small business growth?

• The best accounting tools for small business are QuickBooks Online, Xero, FreshBooks, Wave, and Zoho Books
• QuickBooks Online dominates with 62% market share and 750+ integrations for comprehensive business management
• These tools automate invoicing, payroll, and bank feeds, cutting errors by 80% and saving 6-11 hours weekly
• Pricing ranges from free (Wave) to $50+ monthly, with most businesses investing $20-35 for robust features
• Smart integrations with banks, PayPal, and CRM platforms create seamless workflows without data silos

Top 5 Best Accounting Tools for Small Business Compared

Small business owners spend an average of 21 hours weekly on manual bookkeeping—but the right software cuts this to just 10-15 hours. Based on real implementations with my Complete Controller clients and verified market data, here’s how the top tools stack up.

Tool	Starting Price	Key Strengths	Best For	Market Share
QuickBooks Online	$35/month	Invoicing, payroll, 750+ integrations	All-around growth	62.23%
Xero	$20/month	Bank reconciliation, inventory tracking	Inventory-heavy SMBs	8.90%
FreshBooks	$19/month	Time tracking, client portals	Service businesses	4.2%
Wave	Free (add-ons paid)	Unlimited invoicing, basic reports	Solopreneurs, startups	3.1%
Zoho Books	$15/month	Automation, multi-currency	Global micro-businesses	2.8%

QuickBooks Online’s market dominance reflects its comprehensive feature set—80% of my clients choose it for scalability from solo operations to 50+ employees. The platform’s dashboard provides instant cash flow visibility and integrates with virtually every business tool imaginable.

Xero excels through intuitive bank feeds and automated reconciliation. One retail client reduced their monthly reconciliation from 10 hours to 1 hour after switching, while gaining real-time inventory insights that prevented $15,000 in dead stock.

How to Choose the Best Accounting Tool for Your Small Business Stage

Your business lifecycle determines which features matter most. After analyzing hundreds of client implementations, I’ve identified clear patterns based on revenue and team size.

For solopreneurs and startups under $50K revenue

Wave or Zoho Books provide essential features without monthly fees. Wave’s free invoicing and receipt capture handle basics perfectly—one freelance designer client managed $48,000 in revenue last year paying only for payment processing.

For growing teams ($50K–$500K revenue)

QuickBooks Online or FreshBooks add crucial multi-user access and payroll capabilities. A marketing agency client automated their entire billing cycle with FreshBooks, reducing payment delays by 40% and increasing revenue 25% within six months.

For scaling SMBs ($500K+ revenue)

Xero or QuickBooks Online Plus offer advanced inventory management and custom reporting. These platforms handle complex operations—multi-location tracking, project profitability analysis, and automated sales tax compliance across states.

Mismatched tools create 30% more errors and frustration. Start with a 30-day trial and import real transaction data before committing.

Real Success Story: Clear Start Digital’s $9,000 Annual Savings

Clear Start Digital struggled with cash flow gaps while processing client payments through Stripe. Funds took 2-3 business days to clear, creating unpredictable revenue timing. Manual reconciliation consumed 8 hours monthly, and tax season brought chaos without organized records.

The agency switched to QuickBooks Online Plus with integrated payments, enabling automated recurring billing. Results came immediately:

• Time saved: 96 hours annually on accounts receivable tasks
• Cost savings: $9,000 in reclaimed billable hours
• Payment speed: Next-day deposits versus 2-3 day delays
• Collection rate: 100% on-time payments through automation
• Bonus savings: Lower fees using ACH (1%) versus credit cards (2.99%)

This transformation exemplifies how integrated accounting tools deliver measurable ROI within 30 days of implementation.

Smart tools matter. Smart oversight matters more. See how Complete Controller supports both.

Implementation Roadmap: Switch to Your Best Accounting Tool in 30 Days

Most businesses fail software transitions through poor planning. My proven 30-day roadmap prevents costly mistakes:

Days 1–7: Foundation Setup

• Export existing data to CSV format
• Connect all bank and credit card accounts
• Create chart of accounts matching your business model
• Set up tax rates and payment terms

Days 8–14: Testing Phase

• Run parallel books with old system
• Process 10 test transactions
• Invite your accountant for setup review
• Customize invoice templates and reports

Days 15–30: Full Launch

• Automate all recurring invoices
• Train team members on daily tasks
• Monitor cash flow dashboards
• Schedule monthly report reviews

Budget $500 for professional setup assistance—this investment typically returns within 60 days through time savings and error reduction. One manufacturing client discovered $3,000 in missed deductions during their QuickBooks migration.

Hidden Costs and Compliance Risks of Accounting Tools

Free tools hide expensive limitations. Wave charges $40 monthly for payroll, while QuickBooks includes basic payroll at $45 total. More critically, inadequate audit trails risk IRS penalties averaging $4,500 for small businesses.

True cost analysis

QuickBooks Online: $35 base + $20 payroll = $660 annually

• Saves approximately $2,000 in accountant fees
• Prevents audit risks through compliant record-keeping

Wave: Free base + $40 payroll = $480 annually

• Limited reporting may require $1,500+ for tax prep
• No audit trail features risk compliance issues

Hidden fees to consider:

• Payment processing: 2.9% + $0.30 per transaction
• Additional users: $10-25 monthly each
• Advanced features: $20-50 monthly for inventory or time tracking

Research shows 70% cost reduction in accounting expenses within months of proper implementation, with some businesses achieving 290% annual ROI.

Where Software Falls Short—When to Add Human Expertise

Automation handles transactions brilliantly but lacks strategic insight. At Complete Controller, we partner with your chosen software for comprehensive financial management.

Software excels at:

• Transaction recording and categorization
• Invoice generation and payment collection
• Basic financial reporting
• Bank reconciliation and bill management

Human expertise required for:

• Strategic cash flow forecasting
• Tax planning and optimization
• Complex compliance issues
• Growth strategy and financial modeling
• Fraud detection and internal controls

Smart businesses combine both—using software for efficiency while maintaining expert oversight for critical decisions. Technology adoption among small businesses reached 99% in 2024, with 81% planning to expand their tech stack this year.

Taking Action for Your Business Growth

The best accounting tools for small business—QuickBooks, Xero, FreshBooks, Wave, and Zoho Books—transform overwhelming financial management into streamlined operations that support scaling. I’ve witnessed these platforms help business owners reclaim entire work weeks annually while improving accuracy and cash flow visibility.

Success requires selecting the right fit for your business stage, executing a structured implementation, and maintaining expert oversight for strategic decisions. Start with a free trial of your top choice today, following our 30-day roadmap for smooth transition.

Ready to maximize your accounting software investment? Contact our team at Complete Controller for personalized guidance on tool selection, implementation support, and ongoing cloud bookkeeping services that grow with your business. We integrate seamlessly with your chosen platform to deliver both automation efficiency and strategic financial insight.

Frequently Asked Questions About best accounting tools for small business

What is the best free accounting software for small business?

Wave offers completely free invoicing, expense tracking, and basic bookkeeping features ideal for businesses under $50K revenue. You only pay for optional add-ons like payroll ($40/month) or payment processing (2.9% + $0.30 per transaction).

QuickBooks vs Xero: Which is better for small business?

QuickBooks Online wins for comprehensive features and dominates with 62% market share, while Xero excels at user-friendly inventory management and international capabilities. Test both platforms with free trials—QuickBooks suits most businesses, but Xero may better serve product-based companies.

What accounting software do most small businesses use?

QuickBooks Online commands 62% of the small business accounting software market, with 69% of software users choosing it for proven reliability, extensive integrations, and accountant familiarity. This dominance means better support resources and third-party app compatibility.

Is there accounting software for self-employed individuals?

Yes—QuickBooks Self-Employed, Wave, and FreshBooks offer specialized features for freelancers including mileage tracking, quarterly tax estimates, and personal/business expense separation. Wave remains free for basic needs, while QuickBooks Self-Employed costs $20/month with advanced tax features.

How much should I budget for small business accounting software?

Plan $20-50 monthly for robust accounting software, with most businesses investing $35/month for comprehensive platforms like QuickBooks or Xero. Factor in setup costs ($500) and payment processing fees (2.9%), but expect 70% reduction in overall accounting costs within three months.

Sources

• “10 Best Accounting Software for Small Businesses.” JWU Online, online.jwu.edu/blog/best-accounting-software-for-small-businesses. Accessed 15 Jan. 2026.[1]
• “20+ Best Bookkeeping Software for Businesses (2025 Tool Guide).” Pilot Blog, pilot.com/blog/bookkeeping-software-for-business. Accessed 15 Jan. 2026.[2]
• “10 Free Accounting Tools for Your Small Business.” U.S. Chamber of Commerce, www.uschamber.com/co/run/finance/free-accounting-tools-for-small-businesses. Accessed 15 Jan. 2026.[3]
• “What’s the Best Accounting Software for Small Businesses?” Tipalti Blog, tipalti.com/blog/small-business-accounting-software. Accessed 15 Jan. 2026.[4]
• “7 Best Bookkeeping Software for Small Businesses.” Run Eleven Blog, www.runeleven.com/blog/best-bookkeeping-software-for-small-businesses. Accessed 15 Jan. 2026.[5]
• “2025 Accounting Software Comparison for Businesses.” Fisher Accountants, www.fisheraccountants.com/best-accounting-software-for-business. Accessed 15 Jan. 2026.[6]
• “The 8 Best Self-Employed Accounting Software.” Zapier Blog, zapier.com/blog/accounting-bookkeeping-software-freelance. Accessed 15 Jan. 2026.[7]
• Gauld, Stewart. “Xero vs QuickBooks 2026 | Clash of The Best Accounting Software.” YouTube, uploaded by Stewart Gauld, Nov. 2024, www.youtube.com/watch?v=0Uh4iBr6OLo. Accessed 15 Jan. 2026.[8]
• Gauld, Stewart. “Top 5 Accounting Software for Small Business (2026 Guide).” YouTube, uploaded by Stewart Gauld, www.youtube.com/watch?v=9a04BsKv26M. Accessed 15 Jan. 2026.[9]

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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Starting your own business is easier than ever in today’s world. The internet controls aspects of entertainment, production, and social activity. Of course, there are good things and bad things that come with corporate startups, but yet more people are finding themselves fascinated by the idea of controlling their lives.

If you ever wonder why you put up with your job or never pursued your passion, starting an online business may be the best thing you could do.

1. More Spare Time

This might not be the case at the very start, but if you stick with your work, you will ultimately be able to mechanize or outsource errands to create more free time. Working eight hours a day and doing things you dislike isn’t the perfect life for most people.

People settle for less. But it would help if you never settled for less; you have too much potential to do that. Plus, if you start your work online, it will be much easier to work it into your timetable while still having a job, if you wish to start part-time.

Having more spare time means more time with people you love, friends and family, more time on your preferred hobbies, and who doesn’t want all of that?

2. Job Security

Let’s face it, searching for your next job is hard. If you have ever been fired or let go because of downsizing, you know what it feels like to lose job security and to climb up again to find another job to pay bills.

But if you have your own business, you’ll never have to worry about someone else monitoring your position. You’ll be the boss, and no one can fire you, lay you off, or let you go for downsizing. You are always in control and are not just another staff member.

3. Your Brand

When you are a businessperson, you shape your brand over time, and if you make sure to keep it constructive, people will move towards you wanting to buy your products, ask for advice or offer your chances that you could never have gotten before.

4. New Challenges

What is the point if everything is too easy? This is what makes your day slow and creates a lot of dullness. The reason the entertainment industry is vast is that people have been confirmed to hate being bored.

When you have a business, you are always facing new challenges, and you try to progress. Trust us. It makes your day go by and keeps you devoted to what you do.

5. Networking

When you become a businessperson, you are sure to create a lot of new networks. Entrepreneurs love talking to other businesspersons about what’s working, what does not, and everything in between.

You will also build some lasting relationships with some entrepreneurs who understand all that you do. You may end up making some new friends with other business owners, and you might be able to exchange some favors that will help improve businesses. As they say, Rising tides raise all ships.

6. Schedule Freedom

Are you tired of work hours? Have you ever had to get up at 5:00 AM? Many people have tried that, and they do not miss it one bit. When you are a business owner, particularly an online business owner, you set your schedule and timetable the way that works best for you.

7. Recognition

Of course, this is not why you should want to be a business owner, but getting familiar with your hard work is a fantastic feeling. There are countless regional, local, and national awards that identify businesspersons for their work.

The world certainly appreciates the entrepreneurs because there would be no jobs, innovation, or economies without them.

8. Home Office

When you have online work, there is no need to pay for lease or get furniture, etc. Not only does it give you the liberty to have your regular domestic stuff available to you all day, but you get to track your own home office.

I would say 99% of businesspersons are pretty artistic, so when they get the chance to modify and build up a home office to their fondness, they will have some fun with it.

It’s fun producing the perfect workspace for yourself that looks great and lets you be productive.

9. Skills and Education

When you start as an entrepreneur, one of your assets is the ability to learn new skills. At many times people do not have the startup currency to subcontract everything from the start, so they must either sink or swim.

This may appear like a collapse of starting your work, but honestly, it’s a blessing. The more skills you learn and the more self-educated you are, the more irreplaceable you are to any business.

10. Reinvention

Many businesspersons start their work and sell many different companies over the years. When you start and know you’re good at running businesses, you can start all kinds of work in different places. You continuously get to reinvent yourself.

If you are just a staff member or rely on your college degree, you perhaps won’t have much of a chance to reinvent yourself or maybe try new stuff, even if your interests alter.

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.

No matter the size, every business needs to apply for business credit at one time or another. The exceptions are when the owner has the capital to run the business until it is self-sustained or if an investor buys a stake in the company, eliminating the need to take out loans or other credit lines for start-up or operations.

Before you apply for business credit, the most important thing you should do is separate your personal finances from your business finances. Even if you invest some of your own capital into the business, you should treat yourself as an outside investor as far as accounting and other financial functions are concerned. You should also look into incorporating or becoming a limited liability company or partnership to protect your personal assets if the business has issues. Here are four types of business credit and its advantages.

Charge Cards

A charge card is similar to a credit card; however, the main difference is that you cannot make minimum payments each month. They also have no pre-set spending limit. Each charge is approved or disapproved based on a few factors. Your business credit score, current financials, recent spending patterns, and account history will determine if your purchase will be approved. Charge cards are excellent for purchases you need immediately but can pay off quickly since the entire balance is due the following billing cycle.

Installment Accounts

Installment accounts, also known as commercial installment accounts, is an all fixed amount process. The amounts don’t vary according to interest or other sliding factors. The lender will agree to loan you a fixed amount, you will agree on the final fixed amount you will pay back, then determine a fixed amount you will pay each month to pay it back. In some cases, the loaned amount is the same as the payoff amount, for example, if you borrow from a friend or family member who doesn’t want interest. The advantage is all parties involved are clear on the amounts.

Revolving Credit Accounts

Revolving credit is money you borrow that has a pre-set credit limit, and you can charge all you want up to your credit limit as many times as you need. The two types of revolving credit are business credit cards and a business line of credit. Both will have a pre-set limit, you charge or borrow any amount under the limit, then you pay it back with interest.  As long as you pay down the balance and keep your account in good standing, you can charge up to your limit an infinite number of times. The advantage of revolving credit accounts is that you don’t have to pay the balance all at once; however, keep in mind they will have interest attached, so make full payments when possible.

Vendor Accounts

Vendor accounts are when a business receives products or services and pays the vendor over a set period. Most vendor accounts will expect the net amount back within 30 days; this is also known as a net-30 account. Other vendors may have longer or shorter accounts. Some will also negotiate with a business that is loyal and in good standing. Most of these vendor accounts do not carry interest. The vendor account is excellent for products and services and for building vendor trust and relationships. Another plus to a vendor account is that it is reported to commercial credit bureaus and can build your financial reputation as a business.

Conclusion

When you have a small business, it is best not to use your personal money to fund the business unless you treat it as an investment and pay yourself as a stakeholder from profits. Using business credit is a reliable way to take care of business needs until the company is self-sustained. You should carefully consider all the options and use what makes sense for you and your company. Sometimes, you can use more than one type of business credit; be sure you keep in good standing or your business could suffer financially.

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.

Before starting a business, an entrepreneur comes up with a business idea. No matter what business they are thinking of running, a plan and strategy are necessary in every case. Now, a strategy refers to the game plan they have in their minds to run a business. Business strategies include all methods and ways a business can be launched and a step-by-step process according to which the business will be governed. A business plan, on the other hand, is a bit different.

A business plan is created to demonstrate your business’s purpose and necessity in society to different external parties. No matter what you’ve come up with in your mind or what idea you’re looking forward to launching in the market, you will need to convince certain people. The external parties an entrepreneur looks ahead to convince through an effective business plan are potential partners, lenders, and investors. To persuade such people to show interest in your business idea and make necessary investments, you must introduce your business plan to them effectively. It would help if you introduced them to your company’s structure, scope, and how you plan to expand it.

Here is a guide about all the nuts and bolts and the core components of a business plan.

Executive Summary

Your business plan should first highlight your executive summary. To sum up, it ought to be what you anticipate your business should achieve. Since it’s intended to feature what you expect to talk about in the remainder of the arrangement, the Small Business Administration recommends composing this segment in the end.

Company Brief

The subsequent segment that ought to show up in a business plan is an organizational or company brief. It’s ideal for incorporating critical data about your business, objectives, and the clients you intend to serve. Your organization brief should likewise talk about how your business will stand apart from others in the global industry and how your offerings will be helpful to your intended interest group or target audience.

Market Analysis

The market analysis section usually tells you and the investors about the market and industry dynamics you plan to operate. Here, you will have to utilize information and insights to discuss where the market has been, the place it’s relied upon to go, and how your organization will fit into it. Furthermore, you will need to give insights concerning the shoppers you will be advertising to, for example, their pay levels.

Competitive Analysis

If your business plan is quality, it will properly contrast your and your competitors’ positions in the industry to you and your investors. You must show that you are aware of their qualities and shortcomings and that you know how your business will perform.

Marketing Plan

The business plan you are creating must include the essentials to depict how you expect to get your items and administrations in front of likely customers. As you pinpoint the means you will take to advance your items, you’ll have to refer to the spending you’ll have to actualize your techniques.

Sales Strategy

Probably the most essential thing for a business is generating sales. Sales strategy consists of all the possible ways you plan to hit the market. It’s ideal to be as explicit as could reasonably be expected. It’s wise to toss in the number of salespeople you intend to recruit and how you’ll approach discovering and welcoming them. You can likewise incorporate deal targets.

Financial Plan

The financial plan is the final section of your business plan. Here, you mention all the financial projections, including your plans regarding the initial investment. It is one of the most critical parts of your business plan since it contains the information that interests the reader the most.

Each organization is unique, so your marketable strategy or business plan may not look like those of your competitors. However, each great arrangement needs key segments, and it’s consistently a smart idea to give an unmistakable and exact outline of your business objectives in your business plan.

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.

4 Ways to Avoid Cash Flow Problems:
Stop the Log Jams Killing Your Growth

To avoid cash flow problems, you need four practical habits running in your business at all times: consistent cash flow forecasting, disciplined billing and collections, intentional budgeting and cost control, and a real cash reserve so timing gaps never become emergencies. Apply these weekly—not annually—and your operating cash flow stays smooth, your payroll stays funded, and your stress level drops dramatically.

Here’s a stat that should stop every founder in their tracks: a widely cited U.S. Bank study found that 82% of small businesses fail due to poor cash flow management or a weak understanding of cash flow itself. After more than 20 years leading Complete Controller and partnering with thousands of small and mid-sized businesses across nearly every industry, I can tell you that the difference between the companies that thrive and the ones that fold is almost never revenue—it’s process. In this article, I’ll show you exactly how my team helps clients stabilize cash flow in the real world, so you can bill smarter, plan ahead, and build the buffer you wish you’d had last year.

How do you avoid cash flow problems and stop log jams in your business?

• Build rolling cash flow forecasts, tighten billing and collections, budget around reality, and maintain cash reserves so timing gaps don’t become emergencies.
• Use cash flow forecasting to see weeks ahead and adjust spending, pricing, or financing before a crisis hits.
• Improve accounts receivable with clear terms, faster invoicing, and consistent follow-up to prevent late client payments from starving your cash.
• Apply budgeting strategies and cost control so expenses align with actual inflows, not hopeful projections.
• Build cash reserves covering 1–3 months of operating expenses to absorb seasonality and surprise shortfalls.

The One Habit That Helps You Avoid Cash Flow Problems Before They Start

The single most powerful habit is rolling cash flow forecasting. When you can see a shortage coming six weeks out, you have options. When you discover it on payroll Friday, you have panic. Forecasting turns reactive scrambling into proactive decision-making—and it’s the foundation of every other cash strategy in this article.

Cash flow forecasting: Your weekly radar for operating cash flow

A simple 13-week rolling forecast projects cash inflows and outflows so you spot shortfalls early and adjust collections, spending, or financing in time. Here’s how I coach clients to build one:

1. Pull 6–12 months of historic revenue, payment timing, and major expenses from your books.
2. Build a weekly spreadsheet: beginning cash, cash in, cash out, ending cash.
3. Stress-test best case, expected case, and downside scenarios so you know your real risk.

Financial planning that matches real cash not just profit

Profit on paper often hides weak operating cash flow. I’ve watched profitable companies run out of money because owner draws, hiring, and equipment purchases were timed against the P&L instead of the bank balance. Tie every major decision to your forecasted cash position, and use a clean bookkeeping system so the numbers feeding your forecast are accurate. The SBA’s finance guide is another solid resource for tightening up your financial planning fundamentals.

How to Avoid Cash Flow Problems for Small Business With Better Billing

Most small-business cash jams aren’t caused by low sales—they’re caused by slow accounts receivable. According to Fundbox’s 2022 Small Business Payment Study, 62% of small business owners reported trouble paying obligations because of late customer payments, and 68% said it kept them from paying themselves. That’s the real cash flow killer.

Managing accounts receivable to prevent cash shortages

Tighten terms before you tighten your belt. Move from vague terms to clearly stated Net 15 or Net 30 with late fees, deposit requirements on larger projects, and signed acceptance before work begins.

To reduce cash flow problems caused by late client payments:

• Invoice immediately on delivery—never “at month end.”
• Offer ACH, card, and payment-link options to remove friction.
• Send reminders 7 days before due, on the due date, and 5–7 days after.
• Pick up the phone for key accounts before they drift into seriously delinquent territory.

Convert lumpy project invoices into 30–50% upfront deposits, milestone billing, or monthly retainers. This single shift can transform a feast-or-famine business into one with steady, predictable inflow.

Accounts payable: The other side of the timing equation

Smart accounts payable management eases cash pressure without hurting relationships. Use full Net 30/45 terms instead of paying early, group disbursements twice monthly, and negotiate extended terms with strategic suppliers when needed.

The classic example? Dell Computer. In the 1990s, Dell’s direct-to-customer model let it collect cash from buyers before paying suppliers, creating a negative cash conversion cycle that funded explosive growth. You don’t have to be Dell to apply the principle: align the timing of what comes in with what goes out, and your cash gap shrinks dramatically. The U.S. Chamber of Commerce has documented similar wins from small B2B firms that renegotiated terms and required deposits.

Cash flow shouldn’t be a guessing game. Complete Controller helps you stay ahead of every dollar.

Budgeting Strategies That Keep Your Business Out of Cash Log Jams

A realistic budget tied to your forecast is how you stop spending commitments from outpacing actual cash. Too many businesses draft an annual budget in January and never touch it again—then wonder why reality and the plan don’t match by Q2.

Dynamic budgeting strategies that protect your cash

Effective budgeting strategies require monthly or quarterly updates. Separate fixed from variable costs, prioritize essentials (payroll, rent, taxes), and build in seasonal dips so you’re not overcommitted in slow months.

Smart debt management is also a cash flow tool—not a trap. Refinance high-interest debt, consolidate small loans to simplify outflows, and never borrow to cover operating losses without first fixing the underlying leak. Track operating cash flow monthly, not just net income. Consistently negative operating cash flow means your model or pricing needs adjustment, not just your budget.

Building an Emergency Fund So Cash Flow Problems Don’t Become Crises

A real emergency fund turns surprises—late payments, broken equipment, lost contracts—into manageable events instead of existential threats. This is the buffer that lets you sleep at night.

Building an emergency fund to stabilize cash flow

Keep cash reserves equal to 1–3 months of operating expenses, depending on volatility:

• Stable, recurring-revenue businesses: 1–2 months
• Seasonal or project-based businesses: 3+ months

Fund it by sweeping 3–5% of every customer payment into a separate reserve account, using tax refunds or windfalls to jump-start it, and treating reserves as untouchable except for true emergencies. Park the money in business savings or money market accounts—liquid, low-risk, and accessible. The CFPB’s emergency fund guidance reinforces why liquidity management belongs at the center of your strategy.

A 90-Day Roadmap to Avoid Cash Flow Problems for Good

Implementation—not theory—is where most businesses stall. Here’s the 30-60-90 plan I give to clients who want results fast.

30-60-90 Day plan

1. Days 1–30 — Get visibility: Clean your books for the last 6–12 months, build a 13-week cash flow forecast, and draft a lean budget aligned to your current revenue.
2. Days 31–60 — Fix billing and payables: Update contracts with clear terms and deposits, turn on online payments and automated reminders, and renegotiate key vendor terms.
3. Days 61–90 — Build and protect reserves: Set an emergency fund target with automatic transfers, define rules for owner draws tied to cash position, and schedule monthly reviews with your bookkeeper or controller.

Block 30–60 minutes every week for a money meeting—forecast, receivables, payables, bank balance. Treat it as leadership work, not admin. When your forecast shows a dip four to six weeks out, contact key clients and vendors early about accelerated payments, partial payments, or adjusted terms. Early conversations protect relationships; late ones damage them.

Final Thoughts: How I Think About Cash Flow as a Founder

When I look back at the clients we’ve helped move from constant cash emergencies to predictable growth, they all did the same four things: they forecasted cash, tightened billing, disciplined their budgets, and committed to a real emergency fund. Avoiding cash flow problems isn’t about perfection—it’s about building simple routines you actually follow every single week.

If you want help installing those routines, my team at Complete Controller does this work every day—cleaning up books, building cash flow forecasts, and helping owners finally sleep at night. Visit CompleteController.com to see how we can support your next stage of growth.

Frequently Asked Questions About How to Avoid Cash Flow Problems

What is the best way to avoid cash flow problems?

The most effective approach combines weekly cash flow monitoring, a rolling forecast, controlled expenses, accelerated receivables, and 1–3 months of cash reserves. No single tactic works alone—it’s the system that protects you.

How can I improve my cash flow quickly?

Invoice immediately, offer digital payment options, follow up on overdue invoices within days, trim nonessential expenses, and negotiate extended payment terms with suppliers. These five moves can shift cash within a single billing cycle.

What causes cash flow problems in small businesses?

Slow-paying customers, poor budgeting, overspending, rapid growth without planning, lack of reserves, and confusing profit with operating cash flow. Most failures trace back to one or more of these.

How do you manage cash flow in a small business?

Track inflow and outflow weekly, build a rolling forecast, manage accounts receivable and accounts payable actively, align costs with revenue, and plan for seasonal fluctuations before they hit.

Why is cash flow forecasting important?

Forecasting reveals shortages weeks or months ahead so you can adjust spending, secure financing, or accelerate collections while you still have options. It’s the difference between strategy and survival.

Sources

• Ameriprise Financial. (2023). Personal Cash Flow Management Strategies. https://www.ameriprise.com
• Bank of Elk River. (2023). Cash Flow Management: Tips for Maintaining a Healthy Cash Flow in Your Business. https://www.thebankofelkriver.com
• Brex. (2023). 8 Proven Strategies to Improve Cash Flow in Your Business. https://www.brex.com
• Consumer Financial Protection Bureau. (2018). Creating a Cash Flow Budget Tool. https://www.consumerfinance.gov/consumer-tools/savings/what-is-an-emergency-fund/
• Fundbox. (2022). The 2022 Small Business Payment Study. https://fundbox.com/resources/the-2022-small-business-payment-study/
• Hagen, Jessie. (2018). Cash Flow Problems That Can Kill Your Business. U.S. Bank Workplace Insights. https://www.usbank.com/business-banking/business-financial-resources/business-growth/cash-flow/cash-flow-problems.html
• Hill, Charles H., and Jones, Gareth R. (1999). Dell Computer (A). Cengage Learning. https://www.anderson.ucla.edu/faculty-and-research/decisions-inventory/case-studies/dell-computer-a-1999
• Internal Revenue Service. Recordkeeping for Small Businesses. https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping
• NetSuite. (2023). Cash Flow Management: Definition, Importance, and Best Practices. https://www.netsuite.com
• S&T Bank. (2022). Seven Ways to Fix Cash Flow Problems. https://www.stbank.com
• U.S. Chamber of Commerce. (2022). 4 Common Cash Flow Disruptions in Small Businesses (and How to Fix Them). https://www.uschamber.com/co
• U.S. Small Business Administration. Manage Your Finances. https://www.sba.gov/business-guide/manage-your-business/manage-your-finances
• WhippleWood CPAs. (2026). The Importance of Budgeting & Cash Flow Planning in 2026. https://www.whipplewood.com
• Williams-Keepers LLC. (2023). Six Ways to Strengthen Your Cash Flow Management Strategy. https://www.williams-keepers.com

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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Starting Your Own Business:
Key Steps to Launch

Starting your own business begins with validating a strong idea, conducting honest market research, drafting a clear business plan, choosing the right legal structure (like registering an LLC for a startup), securing small business funding through loans or bootstrapping, and launching with disciplined cash flow management and a smart customer acquisition plan. Get those pillars right, and you’ve built a foundation most founders skip past in their excitement to open the doors.

I’ll be honest with you—after more than 20 years running Complete Controller and watching thousands of entrepreneurs across nearly every industry imaginable take the leap, I’ve seen brilliant ideas crumble over preventable money mistakes and average ideas thrive thanks to disciplined planning. According to a U.S. Bank study, 82% of business failures trace back to poor cash flow management. That stat haunts me, and it’s exactly why this guide focuses on the financial muscle most “how to start a business from scratch” articles gloss over. By the end, you’ll walk away with a real-world roadmap, the entrepreneurial mindset to use it, and the confidence to turn your idea into a business that lasts.

What are the key steps to starting your own business?

• The short answer: Validate the idea, plan it, fund it, register it, and launch with strong financial controls.
• Validate first: Use market research to confirm demand and define your target market and customer personas.
• Plan on paper: A solid business plan template guides decisions and attracts funding.
• Fund it smartly: Compare small business loans, bootstrapping, and investors against your startup cost breakdown.
• Register and launch: Handle business incorporation, then execute your branding strategy and customer acquisition plan with disciplined cash flow management.

Refine Your Idea with Market Research

Every successful startup business I’ve worked with started the same way—by getting brutally honest about whether people actually want what they’re selling. Market research is the cheapest insurance you’ll ever buy against building something nobody needs.

Skip the gut feeling and go grab real data. The U.S. Census Bureau offers free demographic insights, and a quick scroll through competitor reviews will tell you exactly where the market is hungry.

Define your niche and customer personas

Pinpoint a specific problem and the people who feel it most. Build out target market and customer personas using surveys, interviews, and free AI tools. The more specific your “who,” the easier every marketing decision becomes later.

Study competitors and validate demand

List your top five competitors, study their pricing, read their one-star reviews, and identify the gaps. Those gaps are your opening. Confirm demand with pre-orders, waitlists, or a simple landing page before you spend a dime on inventory.

Write a Business Plan Template That Wins Funding

A business plan template turns a fuzzy idea into a clear operating system. It’s your pitch deck, your financial forecast, and your decision-making compass all in one. According to a study of 2,877 entrepreneurs published in the Journal of Management, founders who wrote formal plans were significantly more likely to actually launch—planning is what turns ideas into action.

Whether you choose a traditional or lean format, a strong business plan makes funding conversations dramatically easier.

Key elements of how to write a business plan

A winning plan covers these essentials:

1. Executive summary with your mission and vision
2. Market research and competitive analysis
3. Products or services breakdown
4. Marketing and sales strategy
5. Operations and team structure
6. Financial projections (3 years minimum)
7. Funding request and use of funds

Common pitfalls in business planning

Vague goals kill plans faster than bad numbers. Use measurable milestones, stress-test your assumptions, and build a realistic cash flow forecast. Investors can spot fluffy projections from a mile away.

Build the business. Grow with Complete Controller.

Choose Your Legal Structure: Business Incorporation and Beyond

Picking the right structure protects your personal assets and shapes how you’re taxed for years to come. This decision sits at the heart of business registration, and rushing it is one of the most common—and costly—mistakes I see.

The SBA’s structure guide is a fantastic free resource for comparing options.

Sole proprietorship vs. LLC vs. Corporation

• Sole Proprietorship: Easy and cheap, but no liability protection.
• LLC: The sweet spot for most small businesses—registering an LLC for a startup gives liability protection with flexible taxation.
• Corporation: Best if you’re raising venture capital or planning to issue stock.

Where and how to register your business

File with your state, apply for an EIN with the IRS, and check local licensing requirements. Don’t forget industry-specific permits—those catch new founders by surprise constantly.

Master Small Business Funding: Best Ways to Fund a New Business

Funding fuels everything that comes next. The smartest founders match their funding source to their stage, their risk tolerance, and how much control they want to keep. Our bookkeeping team at Complete Controller helps founders stay funding-ready by keeping their books investor-clean from day one.

Bootstrapping, friends and family, and small business loans

Start with what you have. Personal savings, low-interest credit, or SBA-backed small business loans keep equity in your hands. If friends or family invest, sign a real legal agreement—Thanksgiving dinner depends on it.

Angel investors, crowdfunding, and venture rounds

Once you have traction, angels and VCs become viable. Pitch with your business plan, your numbers, and your founder story.

Case Study: Spanx’s Bootstrapping Success

Sara Blakely launched Spanx with just $5,000 in personal savings and grew it for years without outside investors before reaching a $1 billion valuation. Her takeaway? Tight spending plus early sales equals total control—and a much better outcome when you eventually do raise.

Develop Branding Strategy and Customer Acquisition Tactics

Your branding strategy is the personality customers fall for, and customer acquisition is how they find you in the first place. Together, they make or break your first year.

Pair a memorable brand with smart launch marketing and you’ll build momentum without burning cash.

Build online presence and marketing channels

Lock in your website, claim your social handles, set up Google Business Profile, and start collecting reviews immediately. Local SEO and email marketing deliver the highest ROI for new businesses—period.

Early customer acquisition for launching a startup

Lean into referrals, partnerships, and content marketing first. They cost less and convert better than paid ads when you’re new and still refining your offer.

Overlooked Financial Foundations: Startup Cost Breakdown and Cash Flow Management

This is the section nobody wants to read and everybody needs to. Remember that 82% failure stat from the U.S. Bank cash flow study? It’s not because those founders had bad ideas. It’s because they didn’t watch the money.

Our cloud-based bookkeeping services exist specifically to keep founders out of that statistic.

Realistic startup cost breakdown for new businesses

Budget for one-time costs (legal, equipment, branding) and ongoing costs (rent, payroll, marketing, software). Then add a 20% buffer—because something always costs more than you thought.

Cash flow management tips for steps to start my own business

Track inflows and outflows weekly, invoice the same day work is done, and never confuse revenue with profit. Automation tools turn this from a chore into a 15-minute habit that keeps you alive.

Launch with the Entrepreneurial Mindset

Entrepreneurship guidance always comes back to one thing: resilience. The founders who win aren’t the smartest in the room—they’re the ones who keep showing up and adjusting. I’ve scaled Complete Controller through recessions, tech shifts, and market changes by hiring slowly, firing quickly, and iterating relentlessly.

Building your team and first milestones

Hire for what’s broken right now, not what you think you’ll need in two years. Aim for early wins: MVP, first ten customers, first profitable month.

Common launch mistakes and how to avoid them

Don’t skip the legal setup, don’t ignore your books, and don’t try to be everything to everyone. Pick a lane and dominate it.

Final Thoughts

Starting your own business is a series of small, smart decisions that compound into something extraordinary. Validate the idea, plan with intention, choose the right legal structure, fund it strategically, and protect your cash flow like your business depends on it—because it does. After two decades helping founders cross this exact bridge, I can tell you the ones who succeed treat the unsexy stuff (bookkeeping, planning, registration) with the same energy as the launch party.

Ready to launch with confidence? Visit Complete Controller and let our team handle your books so you can focus on building the business of your dreams.

Frequently Asked Questions About Starting Your Own Business

How much does it cost to start a business?

Costs vary widely, but most small businesses launch on $3,000–$10,000 when bootstrapped. Plan for legal fees ($100–$1,000), equipment, software, marketing, and a 20% buffer for surprises.

Do I really need a business plan to start a business?

Yes. Studies show founders who write formal plans are more likely to actually launch and secure funding. Even a one-page lean plan dramatically improves your odds.

What’s the cheapest way to start a business?

Bootstrapping with personal savings or service-based offerings keeps costs low and equity intact. Start lean, validate with real customers, then scale.

How do I get funding for my startup?

Options include small business loans (SBA-backed are best), crowdfunding, angel investors, venture capital, and friends-and-family rounds. Match the source to your stage and goals.

What legal steps do I need to start a business?

Choose a structure (LLC is most common), register your business with the state, get an EIN from the IRS, secure required licenses and permits, and stay compliant with tax filings.

Sources

• Paychex. “How to Start a Small Business: Step-by-Step Guide.” www.paychex.com/articles/startup/steps-to-starting-a-small-business
• U.S. Small Business Administration. “Fund Your Business.” www.sba.gov/business-guide/plan-your-business/fund-your-business
• J.P. Morgan. “10-Step Guide to Starting Your Startup Business.” www.jpmorgan.com/insights/business-planning/10-step-guide-to-starting-your-startup-business
• BaseTemplates. “10 Steps You Have to Follow to Turn Your Idea Into a Startup.” www.basetemplates.com/blog/10-steps-you-have-to-follow-to-turn-your-idea-into-a-startup
• Salesforce. “How to Start a Small Business in 10 Steps.” www.salesforce.com/small-business/how-to-start-a-small-business/
• Startup Grind. “9 Realistic Ways To Fund Your Startup.” www.startupgrind.com/blog/9-realistic-ways-to-fund-your-startup/
• U.S. Bank. “U.S. Bank Study Shows 82 Percent of Business Failures Due to Poor Cash Flow Management.” www.usbank.com/about-us-bank/company-blog/article-library/most-businesses-fail-due-to-cash-flow-problems.html
• Crook, Andrew C., et al. (2011). “Does Entrepreneurial Activity Pay? The Role of Planning.” Journal of Management. journals.sagepub.com/doi/10.1177/0149206310380463
• Dolan, Kerry A. (May 23, 2012). “Sara Blakely.” Forbes. www.forbes.com/profile/sara-blakely/
• U.S. Census Bureau. www.census.gov
• U.S. Small Business Administration. “Choose Your Business Structure.” www.sba.gov/business-guide/launch-your-business/choose-your-business-structure
• U.S. Small Business Administration. “Loans.” www.sba.gov/funding-programs/loans

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.

See Full Bio

Whether you are running a small business or a big one, you will face challenges while setting up your business and keeping your employees safe. One of the biggest challenges an organization will ever face is disaster management, especially the natural ones. It doesn’t matter where your business is established; disasters occur in every part of the world in the form of storms, floods, earthquakes, and many others.

Businesses that are well established might get back on their feet, given the number of resources at their disposal. However, the situation is not the same for small businesses. Most of them are not prepared to handle floods, chemical explosions, fire hazards, and other disasters.

Why is it essential to handle disasters?

When disasters are not handled properly, they can damage property, equipment, inventory, displace employees, all of which can cause significant revenue loss. You need to make sure that you have an emergency plan to protect your business assets, safeguard your employees’ wellbeing, and minimize any interruption that can slow down your business in the future.

In case your business has suffered from a disaster, the first thing you need to do is protect your employees. It is recommended that you ask them to work from home. Then, you transfer all your data to a cloud database. Backing up your data daily can protect you from significant financial losses.

Let’s learn why disaster management or preparedness is essential for small businesses.

Making a Professional Impression

When you have a disaster recovery plan, you are immediately letting people know that you are keeping things professional. You don’t take anything for granted, and no matter the size of your firm, your approach is no less than a prominent business owner. When a small business protects its valuable assets and people from disasters and documents everything, it leaves a strong professional impression.

Employee Safety

When an employee works for a company, it becomes the firm’s responsibility to ensure their health and safety. When employees feel safe and secure, they work harder and perform better, resulting in better organizational productivity. If you do not protect your employees, you will have a bad reputation in the industry and lose your employees due to injuries or, worst-case scenario, death. 

Business Continuity

One of the most important reasons for having a concrete disaster recovery plan is for business continuity. Many types of business disasters occur naturally, and you need to make sure those disasters don’t have a significant impact on your business; otherwise, your business would not be able to recover ever. If you want to continue your business operations, then it can be as easy as asking people to start working from home for a while.

Cost-Efficiency

Disaster plans are not for issues that take place at hand. Even a business that doesn’t have a recovery plan can handle a disaster. The point is how to get things back to normal once the disaster is over. Small or big, your business will suffer certain losses, so how you recover from that loss is the bigger question, and a recovery plan can give you the direction. If you don’t have a plan, you would be spending thousands of dollars on things that might not be so important in the first place.

Improving B2B Relations

Every company not only has to look after its customers but also its business partners as well. If you are facing a disaster, you might be prepared for it in advance because it ensures your business partners that you are not taking things for granted, and it gives a positive impression of you.

Conclusion

Before they expand themselves into the market and find a stable position, small businesses are always walking on thin ice. Even a minor disruption can cause a significant ripple effect causing a business to collapse if it is not prepared. Having a disaster recovery plan helps business owners protect their valuable assets and ensure no harm is done to the business from which they cannot recover.

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.

Small businesses are especially vulnerable to major setbacks, while large businesses can often absorb them and move forward without batting an eyelash. There are a few things to consider when you are a small business owner facing anything that can financially ruin your business. Whether the setback is a seemingly overwhelming disaster or a mandated shut down due to the COVID-19 pandemic, with some creativity, you can not only bounce back; you can bounce forward.

Instead of looking at a significant setback as a negative, be creative and turn it into a positive. Look at it as a way to change your business and grow in a new direction. Sometimes the things we see as a curse are a blessing in disguise. Here are some ideas of how you can bounce back from COVID-19 or other major business setbacks.

Stay Calm and Put it in perspective

Remaining calm even when the storms are raging around you is crucial to navigate to the other side of a major setback successfully. Panic is the quickest way for your small business to sink totally. You can’t accomplish anything when you are panicked. You have to find a way to get a handle on your emotions as soon as possible. When you are calm, you can focus on what you need to do to survive and then thrive. The lushest growth comes out of the ashes. Your business can do the same if you keep it together.

To put the setback in perspective, you must ask yourself some questions:

• Is there something I did or didn’t do to cause the setback?
• Is it an issue caused by COVID-19 or another disaster out of my control?
• Is there something I can do to change the situation?
• Should I consider closing my business?

These questions may seem a bit scary to answer, but you need to understand the setback and the root cause, and if you want to move forward or move on to something different.

Get Creative

If, after you calmly put things in perspective, you decide to move forward with your business, it is time to get creative. In some cases, like with COVID-19, businesses were shut down for long periods, and when they did open, there were limits. If you have to shut your doors during a setback, you need to assess if you can offer something outside your business. It could be products or services that go to your customers, you could change what you do or offer during the setback, or some businesses can operate online or from home.

Not every business will have the ability to offer products or services this way. That is when you could consider completely changing your business but reaching out to your customer base to launch your new direction. A setback, even a major one, does not have to end your entrepreneurial spirit. You started this business once; you can do it again!

Check Local, State, and Federal Government Sites

Small business owners should be going to their local, state, and federal government sites searching for assistance for small businesses. In the case of COVID-19, help through the Small Business Association (SBA) was offered to small business owners to give them some relief. There are other programs and grants and disaster assistance that you may be able to use.

Reach Out to Other Small Businesses

Small business owners are often supportive of one another because they understand the struggles and risks. Especially during a disaster that affects small businesses widespread like COVID-19, small business owners can help each other with ideas on how they can survive. Sharing best practices and brainstorming ideas with others who understand your perspective can lead to successful solutions. You can also partner with other businesses to uniquely offer products and services as a supportive team. You may even form a lifetime business partnership that will make your business stronger than before.

Conclusion

Setbacks will happen to every business at one time or another. It’s how you handle it that matters. If you stay calm, put things in perspective, get creative, look for help, and partner with other small business owners, you will not only survive, you will THRIVE! And remember. This, too, shall pass.

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.

No matter the size of your business, there are certain coverages every business needs. One of the most critical business needs is business insurance, though it is often overlooked. What is business insurance? It is insurance specifically designed to cover issues businesses face, such as natural disasters, accidents, equipment breakdown, and lawsuits, all of which could spell the destruction of your business without insurance. Here are the types of business insurance and what they cover to make the best decision on the coverage that works for you and your business.

General Liability Insurance

General liability insurance protects you against financial loss if there are bodily injury and medical expenses, property damage, libel, slander, lawsuits, liens, settlement bonds, or judgments. Every business should carry general liability insurance. While you can run your business as professionally as possible, there are unforeseen disasters or human reactions you have to protect your business against. Without insurance, your business could be wiped out with just one disaster, accident, or lawsuit.

Product Liability Insurance

Product liability insurance protects against financial loss due to a defective product that causes injury or bodily harm. If your business creates any product or products, this is a must in addition to general liability insurance. There is no prediction about how some products will be used or how the people using them may be vulnerable to some aspect of them. Your business is protected from financial loss with product liability insurance, no matter what happens with your product(s).

Professional Liability Insurance

Professional liability insurance protects against financial loss as a result of malpractice, errors, and negligence. This insurance is specifically designed for businesses that offer a service instead of a product. Several things can happen when performing a service for a customer. With professional liability insurance, you and your business will be protected from financial devastation. Some businesses that offer services also have products. In that case, you would need to carry both product liability and professional liability insurance.

Commercial Property Insurance

Commercial property insurance is coverage that protects your business against loss and damage of company property due to a wide variety of events such as fire, smoke, wind and hail storms, civil disobedience, and vandalism. It also covers injuries a person may have suffered while on your property. This coverage is specifically designed for businesses with property or physical assets. There are so many events that can occur, causing damage to your property, this coverage ensures that if the unthinkable happens, your business will come out intact.

Home-based Business Insurance

Home-based business insurance is added to the homeowner’s insurance and protects your business and home from liabilities. These liabilities include the same thing general liability covers, but your business AND home are protected since your business is run out of your home.

The Business Owner’s Policy

The business owner’s policy is coverage that protects your business by combining all the coverage needs you have in one bundle. This bundling simplifies all the coverage you need and makes it more affordable. There is often more than one coverage a business requires. For example, a home-based business offers service and has a product that would need product liability, professional liability, and home-based insurance and general liability insurance. Bundling all four under one business owner policy will save money and confusion.

Before You Buy

Before you buy any business insurance, you need to take the following steps.

• Assess your risks. As the business owner, you need to consider types of accidents, natural disasters, or lawsuits you could be facing with your business. If you need help, the National Federation of Independent Businesses (NFIB) helps assess your risks and choose the right insurance for your company.
• Find a licensed agent. Commercial insurance agents specialize in policies that match your specific business needs.
• Research and compare. Prices and benefits can vary significantly from company to company, like any insurance. Research your needs and shop to compare rates, terms, and benefits for your specific insurance needs.
• Re-assess every year. As your business grows, so do your liabilities, so what worked this year may not work next year. Get with your insurance agent to adjust as needed.

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.

We all have heard that 50% of businesses fail within the first five years, but we don’t hear about 20 % of companies that diminish within just a year of launching or about those with ten years in, two-thirds of businesses have their doors shut. Once we understand the challenges that companies face, we can talk about making some real changes to the landscape and the tasks that can help struggling initial enterprises survive the thrive.

Hiring and Retaining the Right Staff

To find the right people for the job is a hassle for 20% of the small businesses that were surveyed and 21% of midsize companies. Also, retaining those people once they show up is a massive task for 15% of small productions and 21% of midsize industries.

If your business has the right people in place, then they can thrive.

The meaning of “right people” varies by business and job tasks, but the issue is less about defining the word and more about finding those people searching for jobs.

Small VS Midsize Businesses

While small companies are concerned more about hiring new people, midsize businesses are concerned more with holding on to their talented staff that they already have.

Midsize businesses are tremendously worried about ramping up sales teams in a way a small corporation does not care about yet.

The fundamental problem is that while small industries need to scale, a midsize corporation needs to scale faster. The latter frequently has a more distributed proprietorship, which grows demand on supervision to attain results.

The reason why a business slows down is when you spend time on hiring new staff. While companies wish to retain their employees, they do not go through the same holdups associated with the income that midsize businesses do.

Using the Right Technologies

Out of all the SMBs, it has been observed that 21% showed us that using the right technologies is a big challenge. On the other hand, 17% of those found face difficulties in using their tech, while 33% of the midsize businesses reported the same issues.

For midsize businesses, technology is not in their reach and away from the most significant single obstacle that was asked them about. We dived in to find out what it is about technology that makes this such a hurdle.

When questioned about specific challenges that the business faced planning to invest in new tech, almost half said that directly detecting the right technology is challenging. Midsize companies also often cited security concerns (54%) and compatibility with existing systems (50%).

For spreading businesses and also established players in particular markets—the cost of buying the wrong tech can be disastrous. Studies commonly show that the ERP application, for instance, has cost invades (with total costs close to millions of bucks) and under-delivers on corresponding promises.

Even at a small business level, the value of choosing the incorrect system can set a business back. Free orders need practice time and move away from any technology coming with substituting costs and possible data loss.

Increasing Operating Costs

Businesses irresistibly want to upsurge their earnings, but managing costs will always remain a goal as long as they care about profit. Across all observed companies, 15% said that growing functioning prices were quite a challenge for their business.

As businesses prosper, so do their day-to-day bottom lines, irrespective of profit. In concept, companies desire that devoting more to their functioning costs reflects the wellbeing of their business. Still, when profit putrefies and operating costs increase, that is when business owners start to worry.

Facing Increasing Competition

In a survey, 16% of respondents responded that competitor strength is a significant challenge. This one tilts more heavily on midsize industries rather than on small businesses. Of small businesses observed, only 16% were worried about competition, while 24% of midsize enterprises reported some worries. The competition concerns came third on the list. It came up top of the list when it was asked from companies what was going to form their organization’s business aims.

In total, 41% of businesses reported that competition in their industries was a major external factor in shaping their aims. That broke down into 34% of midsize companies, 43% of small businesses, and 43% of small businesses. Meanwhile, the global competition took a seat back, with just 21% of companies identifying it as a significant external factor.

The split between factors and challenges shaping businesses comes down to these two points. The simplest explanation is arrogance, a small amount of which is relatively healthy for a business. Most companies do not usually see other brands as genuine opponents, particularly new competitors. One study found that less than 20% of SMBs see troublesome models and new competitors as building their goals.

Secondly, many small businesses work in industries where an increasing tide lifts all boats. Vertically diverse markets or undersaturated markets—home renovation or legal services—are less affected by new competitors. Those players do not take a chunk of the existing players’ pies, which is more frequent at the small business level than the midsize level.

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