Small and large businesses have struggled very hard to survive the brunt of the COVID-19 pandemic. Be it North America, Europe, or the Far East. The pandemic has hit businesses globally at a massive scale, particularly impacting SMEs significantly. The global pandemic has led many companies into severe debt.
With the business pace slowing down and revenue taking a step down, hundreds of thousands of businesses filed for bankruptcy or filed for closure themselves in the last 15 months.
According to the Wall Street Journal, over 200,000 small and medium-sized businesses were closed during the COVID-19 lockdown, a number that experts have suggested to be far better than what they initially suspected.
The most complicated businesses to take the hit include entertainment and service-driven companies such as restaurants, theaters, cinemas, and retail shopping. While online shopping platforms like Amazon, e-bay & Flipkart, etc., and online food ordering had already taken a massive toll on the retail and restaurant industry, the pandemic only led to further consumer demand, reduced spending, and social distancing SOPs being mandated for businesses to hit the companies hard. From Deans and Deluca to Hertz Car Rentals and CMX Cinemas, many major companies have filed for bankruptcy recently due to the impact of the Covid-19 pandemic.
But those are all gigantic companies with enormous cash to settle down unpaid debts and creditor loans. If you, however, are a small business owner and your revenue generation has taken a plunge, here are your top business insolvency options to get you out of debt.
Settle Out of the Courts
If you have run out of business and can’t figure out a way to pay off the debts of your creditors, it’s about time you reevaluate your decisions. Try working a solution out of the court. Liquefy any company assets like infrastructural components, brand name, & data, etc. Instead of filing for bankruptcy through court, discuss your situation with your creditors and give them at least half the minimum amount you owe them. Settling out of court can benefit both you and the creditor, and they can get some of the money owed to them. Otherwise, your creditors might not get a single penny. To settle out of court, you must have cash or assets that you can quickly liquefy.
File for Bankruptcy
If your business accounts have completely drained, you can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. With Chapter 7 bankruptcy, any assets not exempted by the state laws are sold to pay off the creditors. Whatever debts remain will be wiped out in the end. In Chapter 13 bankruptcy, you can make repayments in 3 to 5 years. You don’t lose any property; your creditors also get their money back. Chapter 11 bankruptcy is more of an organizational restructuring where you don’t completely shut the business down. But instead, you can borrow new money from a different creditor.
The bankruptcy option usually works better for a Limited Liability Company (LLC) as the owner cannot pay creditors by selling personal assets. If you have signed personal guarantees to your creditors, even bankruptcy won’t help you keep your other properties or assets.
Another thing that can go down while filing for bankruptcy is that your creditor can go to court and sue you for leading the business to losses. Then you might also have to pay off the debts.
Negotiate Deals on Your Business Debts
You can negotiate deals with them if you can’t pay your creditors the total amount. You can be done out of court directly with your creditors. You can discuss paying partially or in long-term installments. While negotiating these deals, prioritize your debts first and settle the ones that can eventually make you personally liable if you can’t pay them in time.
Conclusion
In conclusion, the global repercussions of the COVID–19pandemic have inflicted significant hardships on businesses, both large and small, with SMEs facing substantial challenges. The economic downturn, combined with diminished consumer demand and social distancing measures, has resulted in the closure of hundreds of thousands of businesses globally, particularly affecting sectors like entertainment and services.
Major companies have filed for bankruptcy, underscoring the severity of the crisis. Small business owners grappling with declining revenues are advised to consider options such as settling out of court, engaging in negotiations with creditors, or filing for bankruptcy under different chapters. Recognizing the potential legal ramifications and personal liabilities associated with these options is crucial. Navigating these complexities requires careful evaluation and strategic decision-making to mitigate the pandemic’s impact on small enterprises.
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.
Understand Profit Centers: Benefits and Drawbacks Explained
Profit centers pros and cons create critical decision points for businesses seeking enhanced accountability and revenue focus, while potentially introducing administrative complexity and internal competition that can undermine collaborative success. Understanding these trade-offs empowers leaders to evaluate whether profit center structures align with their strategic objectives and operational capabilities.
As founder and CEO of Complete Controller, I’ve guided hundreds of businesses through financial restructuring over the past two decades. During this time, I’ve witnessed profit center implementation both revolutionize company performance and create costly operational friction. Research shows that when Customer Success operates as a profit center with monthly upselling strategies, companies can achieve revenue growth from $2.52 million to $4.53 million over three years. This article reveals the strategic frameworks, implementation insights, and decision criteria that determine whether profit centers will accelerate or hinder your business growth.
What are the pros and cons of profit centers?
Profit centers offer enhanced accountability, revenue focus, and decentralized decision-making versus administrative complexity, internal competition, and potential goal misalignment
Enhanced accountability creates direct responsibility for revenue generation and cost management within designated business units
Revenue focus shifts organizational mindset from cost control to profit maximization and strategic growth
Administrative complexity increases overhead costs through dedicated accounting systems and management layers
Internal competition risks creating counterproductive rivalries that damage collaborative relationships and customer service
The Fundamental Benefits of Profit Centers in Modern Business
Profit centers transform traditional departments into semi-autonomous business units operating with an entrepreneurial focus while maintaining corporate alignment. The primary advantage creates enhanced financial accountability where managers take direct responsibility for revenue generation and cost management within their designated areas. This dual accountability structure generates powerful incentive systems encouraging innovative thinking and strategic decision-making at operational levels.
Performance measurement capabilities expand dramatically when organizations implement profit center structures. Unlike traditional cost centers focusing solely on expense control, profit centers generate comprehensive financial data enabling sophisticated analysis of return on investment, profit margins, and revenue growth rates. These detailed performance insights support informed resource allocation decisions and identify expansion opportunities hidden within aggregated financial reports.
Decentralized authority drives innovation
Profit center managers gain authority to respond quickly to market opportunities without lengthy corporate approval processes. This operational agility proves particularly valuable during dynamic market conditions where timing determines competitive advantage. Managers control pricing strategies, product mix decisions, and resource allocation within their units, enabling targeted responses to customer needs.
The entrepreneurial mindset fostered by profit center structures leads to innovation and efficiency improvements benefiting entire organizations. Direct accountability for financial outcomes makes managers more creative in identifying revenue opportunities and cost reduction strategies. This heightened ownership translates into improved employee motivation and performance across profit centers.
Strategic resource allocation through performance data
Resource allocation becomes data-driven when organizations implement profit center structures, as investment decisions evaluate each unit’s historical performance and growth potential. High-performing profit centers justify increased investment for expansion initiatives, while underperforming units require strategic restructuring or additional support. This performance-based allocation ensures resources flow toward productive business areas.
Profit centers facilitate accurate pricing decisions by providing clear visibility into true costs and revenue potential of different business segments. Organizations identify which products, services, or market segments generate highest margins and adjust strategic focus accordingly. Enhanced financial transparency supports sophisticated budgeting and forecasting processes improving overall planning accuracy.
Critical Drawbacks and Implementation Challenges
Profit center implementation introduces significant operational complexities that can overwhelm unprepared organizations. Administrative costs increase immediately as each profit center requires dedicated accounting systems, performance tracking mechanisms, and management oversight. According to Gartner, approximately 55% to 75% of ERP projects fail to meet their objectives, with 60% of companies experiencing failed implementations. These statistics highlight the complexity of major organizational transformations like profit center restructuring.
Cost allocation complexity creates persistent challenges when shared services and overhead expenses must be distributed across multiple profit centers. Disputes over allocation methodologies generate internal friction undermining collaborative relationships essential for organizational success. Profit centers perceiving unfair or arbitrary cost allocations develop resentment and reduced cooperation between business units.
Organizational misalignment risks
Internal competition between profit centers escalates into counterproductive rivalry damaging overall performance. Individual unit success becoming more important than corporate objectives leads profit centers to withhold resources, information, or support from other units. This siloed behavior contradicts collaborative cultures and harms customer service quality and operational efficiency.
Short-term profit maximization at unit level contradicts long-term strategic initiatives requiring initial investment periods. Organizations must carefully design incentive systems balancing unit performance with corporate strategic objectives. Goal misalignment presents significant risks when profit center objectives conflict with broader corporate strategy.
Customer experience fragmentation
Profit center structures complicate customer relationships when clients interact with multiple business units appearing to compete against each other. This fragmentation undermines the “one face to customer” principle many organizations maintain. Customers experience inconsistent service quality, pricing, or communication when dealing with different profit centers.
Resource conflicts between profit centers impact service quality when shared resources become contention points. Internal disputes create delays, reduce service quality, and affect customer satisfaction levels across organizations. These challenges require careful management to prevent customer experience degradation.
Strategic Implementation Framework for Success
Successful profit center implementation requires systematic approaches addressing structural and cultural organizational changes. Comprehensive readiness assessments evaluate current systems, processes, and management capabilities before implementation begins. Organizations determine which business units possess sufficient autonomy to operate as independent profit generators while maintaining corporate alignment.
Jack Welch’s transformation of General Electric from 1981-1985 demonstrated profit center restructuring power. He implemented a “fix, sell, or close” program requiring every business unit to rank number one or two in their market. This profit center approach achieved 35% revenue increase and 50% profit increase within five years, proving the transformative potential of well-executed profit center strategies.
Phased Implementation Approaches
Implementation should follow phased approaches, allowing gradual transition and continuous refinement. Starting with pilot programs in select business units enables organizations to identify challenges and develop solutions before full-scale rollout. This measured approach reduces implementation risks and provides management training opportunities on new responsibilities and accountability structures.
Phase 1: Assess organizational readiness and select pilot business units
Phase 2: Develop governance structures and performance metrics
Phase 3: Implement technology infrastructure and reporting systems
Phase 4: Launch pilot programs with continuous monitoring
Phase 5: Refine processes based on pilot results
Phase 6: Roll out to additional business units systematically
Technology infrastructure requirements
Modern profit center management demands integrated systems accurately tracking revenue, costs, and performance metrics for each business unit. A heavy equipment manufacturer in Virginia transformed their service business using digital supply chain tools. After equipment delivery, they couldn’t leverage lucrative service parts business due to inefficient systems. Implementing profit center structures with mobile apps and integrated reporting launched a new profitable model with clear visibility into material movements.
Cloud-based enterprise resource planning systems provide data integration capabilities necessary for reliable profit center reporting. Implementation requires significant investment in technology and training, but modern solutions reduce administrative burden traditionally associated with profit center structures. Organizations must establish data governance standards ensuring consistency and accuracy across all profit centers.
Performance Measurement and Optimization
Companies implementing profit center structures report significant operational improvements: 91% achieved optimized inventory levels, 78% improved productivity, 77% removed organizational silos, and 76% boosted supplier interactions within the first year. These metrics demonstrate the transformative potential when organizations commit to comprehensive profit center implementation.
Key performance indicators should include traditional financial metrics supplemented by operational measures reflecting efficiency, quality, and customer satisfaction. Regular performance reviews evaluate trends over time rather than focusing solely on short-term results. This approach prevents counterproductive short-term thinking while maintaining accountability for results.
Continuous improvement integration
Benchmarking capabilities enable profit centers to compare performance against industry standards and best practices. External benchmarking data provides context for internal performance evaluation and helps establish realistic targets. Comparative analysis supports strategic planning and identifies areas warranting additional investment or strategic changes.
Performance management systems should encourage innovation and strategic thinking while maintaining result accountability. Regular strategy review sessions, customer feedback integration, and competitive analysis maintain relevance and effectiveness. Communication protocols prevent siloed thinking through cross-functional meetings, shared resource planning, and integrated strategic processes.
Industry-Specific Implementation Considerations
Different industries present unique challenges for profit center implementation requiring customized approaches. Manufacturing organizations struggle with shared production facilities and complex supply chain relationships, complicating cost allocation. Service industries find implementation straightforward but face challenges measuring intangible value creation.
Professional services firms benefit from profit center structures aligning with client relationships or service specializations. Technology companies implement profit centers around product lines or market segments but need sophisticated transfer pricing mechanisms. Small and medium enterprises should focus on significant revenue-generating activities while maintaining simplified reporting structures matching organizational capabilities.
Final Thoughts
The decision to implement profit centers represents a fundamental choice about organizational structure and management philosophy significantly impacting business performance. While enhanced accountability, improved measurement, and decentralized decision-making offer compelling benefits, increased administrative complexity, potential internal competition, and goal misalignment require careful consideration.
Success depends heavily on organizational readiness, management commitment, and supporting system quality. Organizations investing in proper preparation, technology infrastructure, and ongoing management development realize full benefits while minimizing drawbacks. Harvard Business School research from 2006 revealed that traditional cost and profit center views were becoming outdated, with every unit having opportunities to support and create profit through effective strategy execution.
Throughout my career working with diverse businesses, I’ve observed that successful profit center implementations begin with clear strategic intent progressing through careful planning and gradual implementation. Organizations thriving with profit center structures view implementation as ongoing strategic initiatives rather than one-time structural changes.
For businesses considering this transformation, I recommend starting with comprehensive assessments of current capabilities and strategic objectives, followed by phased implementation approaches allowing learning and adaptation. If you’re evaluating whether profit centers could benefit your organization, contact the experts at Complete Controller to learn how our team can guide you through assessment and implementation processes aligning with your business objectives.
Frequently Asked Questions About Profit Centers: Pros and Cons
What are the main advantages of profit centers?
Primary advantages include enhanced performance measurement, decentralized decision-making authority, improved accountability, better resource allocation, and increased innovation through entrepreneurial management approaches.
What are the biggest disadvantages of implementing profit centers?
Key disadvantages involve increased administrative costs, complex cost allocation challenges, potential internal competition, goal misalignment risks, and possible negative impacts on customer experience due to organizational fragmentation.
How do you determine if profit centers are right for your business?
Evaluate your organization’s size, complexity, management capabilities, technology infrastructure, and strategic objectives. Consider conducting pilot programs with one business unit to test feasibility and identify potential challenges.
Can small businesses benefit from profit center structures?
Yes, but small businesses should implement simplified versions focusing on significant revenue-generating activities while minimizing administrative overhead. Success requires matching system complexity to organizational capabilities.
How do profit centers affect employee motivation and performance?
Profit centers typically increase motivation through enhanced ownership and accountability, but can create stress and internal competition. Success depends on designing appropriate incentive systems and maintaining collaborative organizational culture.
Sources
AccountingTools. “Profit center definition.” AccountingTools Articles, January 14, 2025. https://www.accountingtools.com/articles/profit-center-definition
Business Case Studies. “How did Jack Welch transform General Electric? (Case Study).” YouTube, June 27, 2022. https://www.youtube.com/watch?v=3ZArKoMT1nE
eFinanceManagement. “Profit Center Analysis and Management.” eFinanceManagement Resources, 2024. https://efinancemanagement.com/financial-management/profit-center
Harvard Business Review. “Digital Transformation of Business Operations.” HBR, 2024. https://hbr.org/
Harvard Business School. Kaplan, Robert S. “The Demise of Cost and Profit Centers.” Harvard Business School Working Paper, 2006. https://www.hbs.edu/ris/Publication%20Files/07-030.pdf
Investopedia. “Profit Center Definition and Analysis.” https://www.investopedia.com/terms/p/profitcenter.asp
NetSuite. “60 Critical ERP Statistics: Market Trends, Data and Analysis.” NetSuite Resource Center, September 26, 2024. https://www.netsuite.com/portal/resource/articles/erp/erp-statistics.shtml
Propel Apps. “Transformation of Supply Chain: Cost Center to Profit Center.” Propel Apps Blog, January 9, 2024. https://www.propelapps.com/blog/cost-center-to-profit-center-the-transformation-of-supply-chain
Rand Group. “What percentage of ERP implementations fail?” Rand Group Insights, August 14, 2024. https://www.randgroup.com/insights/services/solution-implementation/what-percentage-of-erp-implementations-fail/
U.S. Small Business Administration. “Measure Your Business Performance.” Business Guide. https://www.sba.gov/business-guide/manage-your-business/measure-your-business-performance
WallStreetMojo. “Profit Center – Definition, Advantages, And Examples.” WallStreetMojo, May 9, 2019. https://www.wallstreetmojo.com/profit-center
Winning by Design. “Research Paper: Customer Success as a Profit Center.” 2022. https://winningbydesign.com/wp-content/uploads/2022/05/WbD-Research-Customer-Success-as-a-Profit-Center.pdf
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.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
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.
HR Evolution: Essential Insights for Today’s Managers
The HR Evolution Manager’s Guide provides essential strategies for transforming human resources practices through AI adoption, hybrid work models, performance enablement, and data-driven decision making to meet modern workforce demands. This comprehensive framework addresses the critical gap between recognizing transformation needs and implementing practical solutions—while 79% of leaders acknowledge AI’s importance for competitive advantage, 60% lack formal implementation strategies.
As the founder of Complete Controller, I’ve witnessed firsthand how dramatically the HR landscape has shifted over two decades. My team and I have partnered with thousands of businesses across every industry imaginable, watching them navigate workforce challenges that would have been unthinkable just a few years ago. The most successful companies share one common trait: they treat HR evolution as a strategic business imperative rather than an operational afterthought. This guide distills those winning strategies into actionable insights that will transform how you attract, develop, and retain talent while building a resilient organization ready for whatever comes next.
What is the HR evolution manager’s guide?
The HR Evolution Manager’s Guide is a comprehensive framework for transforming traditional HR practices into strategic, technology-enabled workforce management systems
It integrates AI adoption strategies with proven implementation roadmaps for modern HR tools
The guide addresses hybrid work model development, including policy creation and leadership training requirements
It provides data-driven decision-making frameworks using analytics and key performance metrics
The guide outlines performance enablement approaches that replace outdated annual review cycles with continuous development systems
The AI Revolution Reshaping Human Resources
Artificial intelligence has become the defining force in modern HR transformation, with the global AI in HR market projected to reach $15.24 billion by 2030, growing at 24.8% annually. Yet despite this explosive growth, only 45% of companies currently use AI in HR functions, creating a significant competitive advantage for early adopters who bridge this implementation gap effectively.
The practical applications of AI extend far beyond simple automation. Smart recruitment systems can screen thousands of resumes in minutes, identifying candidates whose skills align perfectly with job requirements while reducing unconscious bias through standardized evaluation criteria. Performance management platforms leverage machine learning to track employee progress continuously, identifying coaching opportunities and predicting potential retention risks before they materialize. These tools free HR professionals and managers from administrative tasks, allowing them to focus on strategic initiatives that directly impact business outcomes.
Implementation success requires a balanced approach that addresses both technical and human factors. Organizations must establish clear governance frameworks that address ethical considerations, data privacy concerns, and employee trust. Start with pilot programs in low-risk areas like scheduling or benefits administration, then expand gradually as teams gain confidence and competence. Training programs should emphasize how AI enhances rather than replaces human judgment, positioning the technology as a tool that empowers better decision-making rather than a threat to job security.
Building Effective Hybrid Work Models
The structured hybrid model has emerged as the dominant work arrangement, with 37% of US companies adopting formal hybrid policies and hybrid job postings doubling from 2023 to 2024. This shift represents a fundamental reimagining of work organization that extends beyond simple location flexibility to encompass comprehensive management strategy restructuring.
Successful hybrid implementation starts with clear, well-documented policies that outline:
Eligibility criteria based on role requirements rather than seniority
Core collaboration hours when all team members are available
Office attendance expectations tied to specific business needs
Remote work technology requirements and support provisions
Performance measurement criteria focused on outcomes rather than hours
Leadership development becomes critical in hybrid environments where traditional management approaches fail. Managers must master asynchronous communication, build trust without constant visibility, and create inclusive experiences for both remote and in-office team members. Regular team meetings should follow structured agendas that give equal voice to all participants, while one-on-one check-ins focus on goal alignment and professional development rather than activity monitoring.
Strategic Skills Development and Talent Planning
The skills gap crisis demands immediate attention, with 69% of US HR professionals reporting skills gaps in their organizations—up from 55% just two years ago. Companies worldwide could lose $8.5 trillion in annual revenues by 2030 if these gaps remain unaddressed, making strategic workforce development a business survival imperative rather than an HR initiative.
Modern workforce planning requires anticipating future skill needs while developing current capabilities. By 2025, approximately 85 million jobs will be replaced or altered due to technological changes, while 97 million new roles emerge requiring different competencies. Organizations must map critical skills for current and future success, assess existing capabilities across the workforce, and develop targeted programs addressing identified gaps.
Upskilling focuses on enhancing existing competencies for improved performance in current roles, while reskilling prepares employees for entirely new positions. Research shows that 94% of workers would stay longer with companies actively investing in their development. Effective programs combine:
Self-paced online learning platforms with mobile accessibility
Mentorship programs pairing experienced professionals with emerging talent
Cross-functional project assignments that build new competencies
Recognition systems that reward continuous learning achievements
Clear pathways linking skill development to career advancement opportunities
Performance Enablement and Continuous Development
Traditional annual performance reviews are giving way to continuous performance enablement, reflecting a fundamental shift from backward-looking evaluation to forward-oriented development. With US employee engagement at a 10-year low of just 31%, representing 8 million fewer engaged employees than 2020’s peak, organizations must reimagine how they support and develop talent.
Performance enablement emphasizes providing tools, resources, and ongoing support for self-development while maintaining strategic alignment. This approach incorporates both scheduled check-ins and spontaneous coaching conversations, building trust through consistent communication regardless of physical location. Managers transition from evaluators to coaches, focusing on removing obstacles and providing resources rather than judging past performance.
Implementation requires embedding coaching conversations into daily management practices. Regular one-on-ones shift from status updates to development discussions exploring career aspirations, skill-building opportunities, and strategic contributions. Feedback becomes immediate and specific, tied to observable behaviors rather than general impressions. Technology platforms support this transformation by facilitating goal tracking, peer recognition, and continuous feedback loops that keep development conversations alive between formal meetings.
Creating inclusive leadership excellence
Cultural competency and inclusive leadership have evolved from compliance requirements to strategic differentiators. Organizations with strong DEI practices demonstrate superior innovation, higher engagement, and better financial performance. Building inclusive excellence requires intentional development of leadership capabilities that span cultural contexts and diverse team compositions.
Effective inclusive leadership development involves:
Blind resume screening and diverse interview panels to reduce hiring bias
Employee resource groups providing networking and development opportunities
Regular bias training integrated into leadership development curricula
Transparent promotion criteria and advancement pathways
Metrics tracking representation and advancement across demographic groups
These initiatives must connect to business outcomes, demonstrating how diverse perspectives drive innovation and market understanding. Leaders need frameworks for adapting their approaches across cultural contexts while maintaining authenticity and building trust with all team members.
Mastering Change Management for HR Transformation
With approximately half of all change initiatives failing due to poor execution, mastering change management becomes essential for HR evolution success. Failed transformations result in disengaged employees, reduced productivity, and lasting reputational damage that can take years to repair.
Effective change management in HR requires understanding organizational psychology and cultural dynamics. Texas A&M University’s successful transformation of their 35-year-old payroll system across 11 campuses affecting 58,000 users demonstrates the power of structured approaches. Despite complex governance structures and organizational silos, they unified HR processes through systematic stakeholder engagement and phased implementation.
Key change management strategies include:
Creating compelling visions that connect changes to employee benefits
Developing comprehensive communication plans addressing all stakeholder groups
Building change champion networks across organizational levels
Providing extensive training and support throughout transitions
Establishing metrics for tracking adoption and addressing resistance
Celebrating early wins to build momentum for continued transformation
Technology Integration and Digital Excellence
HR technology integration extends beyond process automation to create intelligent, adaptive systems that enhance human capabilities. Organizations at advanced digital maturity demonstrate seamless employee experiences, dedicated innovation teams, and integrated platform ecosystems accessible to all stakeholders.
Map existing processes to identify automation opportunities
Evaluate vendors based on integration capabilities and user experience
Conduct pilot programs with defined success metrics
Gather continuous feedback for iterative improvements
Scale gradually while maintaining change management support
Measure impact on both efficiency and employee satisfaction
Data integration becomes crucial for consolidating information across systems, enabling predictive analytics and evidence-based decision-making. Organizations leveraging integrated HR technology report 40% improvements in process efficiency and significantly higher employee satisfaction scores.
Final Thoughts
The evolution of HR represents both unprecedented challenges and extraordinary opportunities for forward-thinking managers. Success requires embracing technology while maintaining human connection, developing new capabilities while honoring proven practices, and driving change while providing stability.
I’ve learned through Complete Controller’s journey that HR transformation succeeds when it connects to real business outcomes and genuine employee needs. The strategies outlined here provide your roadmap, but implementation requires courage, persistence, and unwavering focus on the human element that makes organizations thrive. Ready to transform your HR practices and unlock your organization’s full potential? Connect with the experts at Complete Controller for personalized guidance on implementing these strategies in your unique organizational context.
Frequently Asked Questions About HR Evolution Manager’s Guide
What are the most critical skills managers need for HR evolution?
Managers need strategic thinking to align HR with business goals, data analytics proficiency for evidence-based decisions, adaptability for navigating rapid change, technological competence for leveraging HR tools, and inclusive leadership capabilities for managing diverse teams effectively.
How can small businesses implement HR transformation without large budgets?
Small businesses can start with free or low-cost cloud-based HR tools, focus on one area at a time, like recruitment or performance management, leverage online learning platforms for skills development, partner with local educational institutions for talent pipelines, and join industry associations for shared resources and best practices.
What metrics should managers track to measure HR transformation success?
Track employee engagement scores, turnover and retention rates, time-to-hire and quality-of-hire metrics, skills gap closure percentages, adoption rates for new HR technologies, employee productivity measures, diversity representation across levels, and return on investment for HR initiatives.
How do you overcome employee resistance to HR technology changes?
Address resistance through transparent communication about benefits, involve employees early in selection and implementation processes, provide comprehensive training and ongoing support, start with pilot groups to demonstrate success, celebrate early adopters as champions, and connect changes to improved employee experiences rather than just efficiency gains.
What’s the difference between HR digitization and true HR transformation?
HR digitization simply converts manual processes to digital formats, while true transformation reimagines how HR delivers value through strategic workforce planning, predictive analytics for talent decisions, continuous performance enablement, AI-powered insights for better outcomes, and integrated ecosystems that enhance employee experiences throughout their journey.
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HireBee.ai. (2025). 100+ AI in HR Statistics 2025 | Insights & Emerging Trends. https://hirebee.ai/blog/ai-in-hr-statistics
EH.net Encyclopedia. History of Labor Turnover in the U.S. https://eh.net/encyclopedia/labor-turnover-in-the-u-s/
Gallup. (2024). 42% of Employee Turnover Is Preventable but Often Ignored. https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx
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Instride. (2023). Need-to-know skills gap statistics. https://www.instride.com/insights/skills-gap-statistics/
Gallup. (2025). U.S. Employee Engagement Sinks to 10-Year Low. https://www.gallup.com/workplace/employee-engagement-trends.aspx
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SHRM. HR Technology Resources and Tools. https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/default.aspx
Harvard Business Review. (2021). What Does the Future of Remote Work Look Like? https://hbr.org/2021/04/what-does-the-future-of-remote-work-look-like
McKinsey & Company. The Irrational Side of Change Management. https://www.mckinsey.com/business-functions/organization/our-insights/the-irrational-side-of-change-management
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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.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
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.
Subcontract vs. Hire: The Best Choice for Your Accounting Needs
Accounting subcontract or hire decisions depend on your business size, budget constraints, and specific financial needs—subcontracting offers flexibility and specialized expertise for project-based work while hiring provides consistent daily oversight and deeper integration with company culture. The right choice directly impacts your bottom line, with outsourcing typically saving 20-50% compared to full-time employees when you factor in salaries, benefits, training costs, and overhead expenses.
As the founder of Complete Controller, I’ve guided over 500 businesses through this critical decision over the past 20 years. One tech startup client slashed their accounting costs by 40% through strategic subcontracting while maintaining an in-house CFO for high-level strategy—a hybrid approach that transformed their cash flow. This article breaks down the real costs, compliance considerations, and strategic frameworks that will help you make the smartest choice for your unique situation, whether you’re a bootstrapped startup or an established company ready to scale.
What’s the best choice for your accounting needs: Subcontract or hire?
Subcontract for specialized expertise, variable workloads, and cost savings of 20-50%; hire for daily oversight and consistent financial operations
Subcontracting eliminates employee benefits, payroll taxes, and training costs while providing access to niche skills
Hiring builds institutional knowledge and ensures tighter data control for sensitive financial information
Hybrid models combine the best of both worlds—outsource routine tasks while keeping strategic roles in-house
Your decision should align with business size, growth trajectory, and compliance requirements
Understanding the Core Differences: Subcontracting vs. Hiring
The fundamental distinction between subcontracting and hiring lies in the employment relationship and cost structure. Subcontractors operate as independent businesses, managing their own taxes, benefits, and professional development while charging you only for completed work. Employees become part of your organizational structure, receiving regular paychecks, benefits packages, and direct supervision while building long-term loyalty to your company.
Control levels vary dramatically between these options. With subcontractors, you define the deliverables and deadlines but cannot dictate how, when, or where they complete the work—they maintain complete autonomy over their methods and schedules. Employees work under your direct supervision, following company procedures, using your systems, and adhering to set schedules that align with your business operations.
The financial implications extend beyond simple hourly rates. A $50,000 salary actually costs employers approximately $78,000 when you include payroll taxes, workers’ compensation, health insurance, retirement contributions, and paid time off. Subcontractors handle all these expenses independently, charging higher hourly rates that still result in lower total costs for businesses needing specialized or intermittent services.
The Financial Reality: Breaking Down True Costs
Smart financial analysis reveals that outsourcing accounting saves businesses 20-50% compared to maintaining in-house teams. These savings stem from eliminated recruitment costs, reduced training expenses, no benefits packages, and avoided overhead for office space and equipment. A retail startup might invest $3,000 monthly for comprehensive outsourced bookkeeping instead of $6,000 for a full-time accountant’s total compensation package.
Hidden costs of hiring extend beyond the obvious salary and benefits. Companies spend an average of $4,000 to recruit each new employee, invest 40 hours in initial training, and lose productivity during the 3-6 month ramp-up period. Additional expenses include software licenses, continuing education, management time for supervision, and potential severance costs if the hire doesn’t work out.
Subcontracting delivers predictable costs with built-in flexibility. You pay only for actual work completed, scale services up or down based on seasonal needs, and avoid long-term financial commitments. During tax season, you might triple your accounting support without permanent payroll increases, then reduce to maintenance levels during slower periods.
Case study: Manufacturing success through strategic outsourcing
A growing manufacturing startup partnered with Farche Solutions to outsource payroll and tax compliance while maintaining one in-house controller for strategic planning. This hybrid approach reduced their accounting costs by 30%, eliminated compliance errors that previously triggered audits, and freed up $50,000 annually for product development. The key to their success: keeping daily financial oversight internal while leveraging external expertise for specialized, rules-based tasks.
Navigating Compliance and Legal Requirements
Misclassifying employees as independent contractors can trigger IRS penalties of $1,000 per worker, with 40% of unpaid employment taxes stemming from classification errors. The IRS examines behavioral control, financial arrangements, and relationship factors to determine proper classification. If you control when, where, and how work gets done, you likely have an employee regardless of your preferred label.
Protecting your business requires clear contractor agreements specifying project scope, deliverables, payment terms, and intellectual property rights. Include confidentiality clauses, data security requirements, and termination procedures. Require proof of business insurance and verify their business entity status through state databases.
Employee compliance involves different obligations: workers’ compensation coverage, unemployment insurance contributions, overtime pay requirements, and adherence to labor laws. While more complex, these requirements provide legal clarity and reduce audit risks. Document all employment policies, maintain accurate time records, and conduct regular compliance reviews.
Business Size and Complexity Analysis: Companies under $5 million in revenue typically benefit most from subcontracting due to variable workloads and budget constraints. Growing firms between $5-20 million often adopt hybrid models, combining outsourced bookkeeping with in-house financial leadership. Larger organizations usually bring core accounting in-house while subcontracting specialized projects.
Workload Consistency Evaluation: Map your accounting tasks by frequency and complexity. Daily transaction processing, weekly reporting, and monthly closings suggest hiring needs. Quarterly tax filings, annual audits, and periodic system implementations align with subcontracting advantages. Calculate hours needed monthly—if under 80 hours, subcontracting likely offers better value.
Total Cost of Ownership Calculation: Compare all-in costs including salaries, benefits (add 25-40%), recruiting expenses, training time, software licenses, and management overhead against subcontractor quotes. Factor in flexibility value—the ability to scale quickly without severance costs or unemployment claims has real monetary worth during economic uncertainty.
When Subcontracting Delivers Maximum Value
Project-based initiatives create ideal subcontracting opportunities. System conversions, acquisition due diligence, or IPO preparation require specialized expertise for defined timeframes. Paying premium rates for 3-month engagements beats hiring specialists you won’t need long-term.
Seasonal peaks demand flexible staffing solutions. Retail businesses processing 40% of annual revenue during the holidays can add subcontracted support for October through January. Tax firms scale up during filing season. Construction companies need extra help during summer building booms.
Specialized expertise requirements favor subcontracting when you need niche knowledge occasionally. International tax compliance, forensic accounting investigations, or industry-specific regulations might require monthly consultation rather than full-time staff. Access top talent without competing for permanent hires in tight labor markets.
Building Your In-House Advantage
Data sensitivity in healthcare, financial services, or government contracting often mandates internal accounting teams. When client information requires strict access controls and audit trails, employees provide better security through background checks, ongoing supervision, and legal accountability.
Companies experiencing rapid growth need dedicated financial professionals who understand evolving business models, can adapt systems in real-time, and provide strategic input during leadership meetings. An invested employee who grows with your company brings institutional knowledge that contractors cannot replicate.
Cultural alignment and team integration matter when accounting interfaces with multiple departments daily. Employees attend company meetings, understand internal politics, and build relationships that facilitate smooth operations. They become trusted advisors who anticipate needs rather than simply responding to requests.
Future-Proofing Your Financial Operations
Automation will handle 40% of traditional accounting tasks by 2025, fundamentally shifting the subcontract versus hire equation. Routine data entry, bank reconciliations, and basic reporting increasingly require less human involvement. This technological evolution makes specialized subcontractors more valuable for analytical work while reducing the need for entry-level employees.
Progressive companies adopt hybrid models that leverage both employment types strategically. They maintain lean in-house teams focused on strategy, analysis, and stakeholder relationships while outsourcing transactional processing, compliance filings, and technical projects. This structure provides stability, expertise, and scalability.
AI integration changes required skillsets dramatically. Modern accounting professionals must interpret AI-generated insights, identify anomalies in automated processes, and provide strategic context that machines cannot. Subcontractors often lead adoption curves, bringing cutting-edge tools and techniques without requiring your investment in training or technology.
Final Thoughts
The choice between subcontracting and hiring accounting support shapes your company’s financial efficiency, compliance posture, and growth potential. Through two decades of building Complete Controller, I’ve learned that dogmatic approaches fail—successful businesses thoughtfully blend both options based on specific needs, growth stages, and industry requirements.
Start by auditing your current accounting workload, calculating true costs, and identifying which tasks require daily oversight versus periodic expertise. Most thriving companies discover that hybrid models deliver optimal results: maintaining core financial leadership internally while leveraging specialized subcontractors for variable workloads and technical projects.
Your next step is clear: assess your unique situation using the frameworks provided, then design a financial team structure that balances cost efficiency with operational excellence. For personalized guidance on optimizing your accounting operations through strategic staffing decisions, connect with our experts at Complete Controller. We’ll help you build a financial backbone that scales with your ambitions while protecting your bottom line.
Frequently Asked Questions About Accounting: Subcontract or Hire
How do I protect sensitive financial data when working with subcontractors?
Require subcontractors to sign comprehensive non-disclosure agreements, use encrypted file-sharing platforms, limit access to only necessary systems, and verify their data security protocols through third-party certifications like SOC 2 compliance audits.
Can I transition a subcontractor to an employee if my needs change?
Yes, many businesses start with subcontractors to validate workload demands and cultural fit before offering full-time positions. Document the relationship change clearly, adjust tax withholdings immediately, and provide appropriate benefits to avoid compliance issues.
What’s the biggest legal mistake businesses make with contractor classification?
Exercising too much control over subcontractors’ work methods, schedules, or requiring exclusive relationships triggers employee classification. The IRS focuses on who controls how work gets performed, not just payment structure.
Do subcontractors handle year-end tax preparation and filing?
Subcontractors prepare and provide Form 1099-NEC documentation, but businesses remain responsible for filing these forms with the IRS by January 31st and maintaining accurate records of all payments exceeding $600 annually.
How does AI adoption impact the decision to subcontract versus hire?
AI automates routine bookkeeping tasks, making entry-level positions less necessary while increasing demand for specialized subcontractors who can implement, optimize, and interpret AI-driven financial systems for strategic decision-making.
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
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.
Discover the Best Electronic Billing Provider for Your Business
The best electronic billing provider combines automated invoicing, secure payment processing, and seamless integration capabilities to streamline your financial operations while improving cash flow. Leading providers like QuickBooks Online, Zoho Invoice, and FreshBooks offer scalable solutions ranging from free plans for freelancers to enterprise-grade platforms, with businesses saving an average of $15.16 per invoice through electronic billing adoption.
After guiding thousands of businesses through financial system transformations over my 20 years as CEO of Complete Controller, I’ve witnessed firsthand how the right electronic billing provider can revolutionize a company’s operational efficiency and cash flow management. The US electronic bill presentment and payment market has exploded to $49.8 billion in 2024 and continues growing at 8.9% annually—yet many businesses still struggle to identify which provider will deliver the transformative results they need. This article breaks down the essential features, pricing strategies, and implementation approaches that separate industry-leading electronic billing providers from the rest, giving you the insights needed to make an informed decision that accelerates your business growth.
What is the best electronic billing provider, and how do you choose one?
The best electronic billing providers deliver automated invoicing, multiple payment options, and robust integration capabilities
Top solutions include QuickBooks Online for comprehensive accounting integration, Zoho Invoice for budget-conscious small businesses, and FreshBooks for user-friendly interfaces
Key selection criteria encompass pricing structure, feature sets, integration capabilities, and scalability for future growth
Success depends on matching provider capabilities to your specific industry needs, transaction volume, and existing software ecosystem
Implementation typically delivers ROI within 3-6 months through reduced processing costs and faster payment collection
Understanding Electronic Billing Providers and Their Core Functions
Electronic billing providers serve as the technological backbone for modern business invoicing, transforming traditional paper-based processes into streamlined digital workflows. These platforms automate invoice creation, delivery, and payment processing while maintaining detailed audit trails and financial reporting capabilities.
The evolution from manual billing to electronic systems represents more than simple digitization—it fundamentally changes how businesses manage cash flow and customer relationships. Modern electronic billing software reduces invoice processing costs from $18-26 per paper invoice to just $2.50-$4 per electronic invoice, representing a 559% cost difference that directly impacts your bottom line.
Essential features of modern electronic billing software
The most effective electronic billing platforms integrate invoice automation with payment processing, offering features such as recurring billing schedules, automated payment reminders, and real-time transaction tracking. Advanced systems incorporate artificial intelligence for fraud detection and predictive analytics while maintaining compliance with industry regulations and security standards.
Cloud-based deployment has become the preferred model, providing scalability and accessibility while reducing infrastructure costs. These automated billing systems reduce manual intervention by up to 70% while improving accuracy and consistency across all billing operations.
Industry-specific electronic billing solutions
Different industries require specialized billing approaches, from subscription-based SaaS companies needing recurring payment automation to professional services firms requiring time tracking integration. Healthcare providers operate under HIPAA compliance requirements, while international businesses need multi-currency support and tax compliance features.
Understanding these sector-specific needs helps narrow the selection process significantly. Manufacturing companies might prioritize inventory integration, while consulting firms focus on project-based billing capabilities. The best electronic invoicing service adapts to your industry’s unique requirements rather than forcing you into a one-size-fits-all solution.
Comprehensive Analysis of Top Electronic Billing Providers
The electronic billing market offers solutions ranging from simple invoice generators to comprehensive enterprise resource planning integrations. Leading providers have differentiated themselves through specialized features, pricing models, and target market focus.
QuickBooks Online: The accounting integration leader
QuickBooks Online dominates the small to medium business segment by offering invoicing as part of a complete accounting ecosystem. Starting at $35 monthly for the Simple Start plan, it provides customizable invoice templates, automated payment reminders, and direct bank feed integration.
The platform’s strength lies in its comprehensive financial management approach, automatically syncing invoice data with general ledger accounts and tax reporting systems. QuickBooks processes over 24 billion customer invoices annually, making it one of the most trusted names in business accounting and billing service provider solutions.
Zoho Invoice: The budget-conscious choice
Zoho Invoice stands out by offering a completely free tier supporting up to 500 annual invoices with two users and three projects. This makes it particularly attractive for freelancers and startup businesses operating on tight budgets while still needing professional invoicing capabilities.
The platform includes time tracking, expense management, and customer portal features typically reserved for paid plans, though advanced automation and reporting require upgrading to Zoho’s broader business suite. Over 50,000 businesses globally rely on Zoho’s affordable electronic billing solutions for small businesses.
FreshBooks: User experience excellence
FreshBooks has built its reputation on exceptional user interface design and customer support, making it ideal for non-technical business owners. The platform excels in project-based billing scenarios, offering detailed time tracking and expense categorization that simplifies complex client billing.
Monthly pricing begins around $17, positioning it between free solutions and enterprise platforms while maintaining comprehensive feature sets. FreshBooks users report saving an average of 16 hours per month on billing and administrative tasks, demonstrating the platform’s efficiency focus.
Advanced Features That Separate Leading Providers
Beyond basic invoicing capabilities, top electronic billing providers offer sophisticated automation and integration features that significantly impact business efficiency and cash flow management. These advanced capabilities distinguish professional-grade solutions from basic invoice generators.
Automated billing systems and workflow optimization
The most valuable electronic billing providers incorporate intelligent automation that extends beyond simple recurring invoices. Advanced systems analyze payment patterns to optimize reminder timing, automatically adjust credit limits based on payment history, and integrate with inventory management to trigger billing upon shipment.
These automated billing systems can reduce processing time by over 80%, as demonstrated by REVA’s transformation from 15-20 minutes per invoice to under 3 minutes. Such dramatic efficiencygains translate directly to cost savings and improved cash flow management.
Cloud billing platforms and integration capabilities
Modern cloud billing platforms serve as central hubs connecting various business systems, from customer relationship management to enterprise resource planning. The best solutions offer pre-built integrations with popular accounting software, payment processors, and business management tools.
API availability enables custom integrations for businesses with unique workflow requirements. This connectivity creates seamless data flow across all operational systems, eliminating duplicate entry and reducing errors that cost businesses thousands in reconciliation time.
Strategic Selection Criteria for Electronic Billing Providers
Choosing the optimal electronic billing provider requires a systematic evaluation of both current needs and future growth projections. The decision impacts immediate operational efficiency and long-term scalability potential.
Electronic billing provider pricing structures vary dramatically, from completely free solutions to enterprise platforms costing thousands monthly. Consider total cost of ownership, including implementation time, training requirements, and integration costs when evaluating options.
Scalability and business growth accommodation
The best electronic billing providers accommodate business growth without requiring platform migration. Scalable solutions offer flexible user limits, unlimited invoice processing, and modular feature additions as needs evolve.
Enterprise-grade platforms provide multi-entity management, advanced reporting hierarchies, and customizable approval workflows essential for larger organizations. Consider your five-year growth projections when selecting a provider to avoid costly migrations later.
Implementation and ROI Optimization
Successful electronic billing provider implementation requires careful planning and phased rollout approaches. Organizations implementing electronic billing systems see average ROI within 3-6 months, with some achieving payback in as little as 60 days.
Full e-invoicing adoption could generate $116 billion for the US economy, with individual businesses saving $1.1 million annually in productivity gains. The Second City reduced processing time by half and saved $40,000 annually through their electronic billing transformation.
Migration from legacy systems demands comprehensive data cleanup and customer communication strategies. The most effective implementations establish clear data flow mapping between billing platforms, accounting systems, and customer management tools to maximize efficiency gains.
Final Thoughts
Selecting the best electronic billing provider fundamentally transforms how your business operates, manages cash flow, and serves customers. Through two decades of helping businesses modernize their financial processes at Complete Controller, I’ve seen the dramatic difference between companies that choose wisely and those that settle for inadequate solutions.
The providers analyzed here each serve specific business needs and growth stages. Your success depends on matching provider capabilities with your unique requirements: transaction volume, integration needs, compliance requirements, and budget constraints. The right choice accelerates growth while the wrong decision creates ongoing operational friction.
Electronic billing has evolved from a nice-to-have convenience to a competitive necessity. Take action today to modernize your billing processes and unlock the efficiency gains that drive business growth. Contact the experts at Complete Controller for personalized guidance on implementing the ideal electronic billing solution for your business.
Frequently Asked Questions About the Best Electronic Billing Provider
What is the difference between electronic billing and invoicing software?
Electronic billing providers offer comprehensive payment processing and billing cycle management beyond invoice creation. While invoicing software typically focuses on generating and sending invoices, electronic billing systems include integrated payment gateways, automated collection workflows, and real-time financial reporting capabilities.
How much can businesses save by switching to electronic billing?
Most businesses save 60-80% on per-invoice processing costs, reducing expenses from $18-26 per paper invoice to $2.50-4 per electronic invoice. Additionally, collection periods typically decrease by 20-35%, with total annual savings often exceeding $10,000 for medium-sized businesses processing 200+ invoices monthly.
Which electronic billing provider is best for small businesses?
Zoho Invoice offers exceptional value for small businesses with its free tier supporting 500 annual invoices, while QuickBooks Online provides superior integration for businesses needing comprehensive accounting capabilities. FreshBooks strikes an ideal balance for service-based small businesses requiring time tracking and project management features.
Do electronic billing providers integrate with existing accounting software?
Yes, leading providers offer pre-built integrations with popular platforms like QuickBooks, Xero, NetSuite, and SAP. Most modern providers also offer API access enabling custom integrations with proprietary systems, though integration complexity varies significantly between providers.
How long does it take to implement an electronic billing system?
Implementation typically takes 2-8 weeks depending on system complexity, data migration requirements, and integration needs. Simple setups for small businesses can go live within days, while enterprise implementations with multiple integrations may require several months. Most businesses see positive ROI within 3-6 months regardless of implementation timeline.
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.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
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.
Cash flow is the primary function of any business, and it determines whether your financials are running successfully. Positive cash flow means paying off your debts and liabilities and maintaining more equity than liability.
Businesses have often needed help maintaining their cash flow, even those with a profitable financial period. Even if your business is posting a profit, it may still need to do better in terms of liquidity and may face problems covering overhead expenses and payroll.
A business must have a positive cash flow to manage its day-to-day business and have a credible balance sheet.
Here are four ways to improve your business cash flow.
Offer Incentives for Early Payments
Try sending out invoices as soon as you send them out. It helps keep track of everything that’s going out, and the sooner it’s sent out, the sooner means, the sooner you can expect payment. Try to offer discounts to customers who pay on time.
For example, if your terms for payment are net thirty days of invoice submission, try offering incentives where you’ll give them a small discount if they complete the terms within fifteen days instead. This incentive especially helps customers buy bulk orders of your product or services.
The incentive will also help you save on your costs and liabilities, as you can get your cash faster to pay off expenses or invest further. By keeping your business liquid, you’ll be prepared for any sudden changes in the market or economy, and this is something on your balance sheet that shareholders and potential investors will be looking for.
Impose Penalties for Late Payments
Try to set it in your terms and conditions that any payment made after the Net 30 period will be penalized with a late fee. It shows that you’re running a serious business with professionalism and that there can be no compromise regarding payment collection.
It also helps expose you to the market and, through trial and error, can help you learn who to do business with. Any customer who doesn’t honor your net terms and offers late payments is ultimately detrimental to your company’s bottom line, and you would be better off not doing business with those kinds of unprofessional practices.
Keep Track of Your Spending and Remove Unnecessary Expenses
Identify and remove necessary expenses by doing monthly or semiannual expense reports. Try to cut out any unnecessary expenses as much as you can. Research and invest in software that can help your business grow, such as accounting software tools to help you do your bookkeeping more efficiently.
Keep track of your purchases and remove those that don’t show any significant purpose or that be replaced with something more affordable. Try purchasing your supplies in bulk as, just like with your Net Terms with customers; more suppliers will offer discounts if you pay them in time.
If available, take full advantage of these discounts and try paying off your vendors as soon as possible to avoid having cash tangled around in loans and back payments.
Open a High-Interest Savings Account and a Business Credit Card
Try investing in high-interest savings accounts, as it is a safe way to help generate cash and improve your cash flow in the long run. Pay attention to applying for a credit card that has cashback options.
Be sure to use it responsibly, and you’ll be able to enjoy the benefits of receiving cashback on purchases paid on time. It is also one of the best ways to help boost your business’s credit score and help get you approved for future loans and other banking benefits.
Conclusion
Cash flow is about managing expenses and keeping your business flush with cash. The more liquid your business is, the better equipped it will be to anticipate unforeseen circumstances.
It is vital for future investments, expense budgets, and the daily welfare of the organization. Regardless of the profitability of your business, it will be less successful than a company that may project fewer profits but with a much stronger cash flow statement in the same period.
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.
The digitization of the world is revolutionizing traditional customerrelationships. In the digital world that results from merging the natural and virtual worlds, the new battle for power between customers and companies is now taking place as a battle for data. Because whoever has the data also has the power.
Customer Experience Management
Companies lure with new customer experiences and want data as wages. Customers wish to get data on offers and prices to get the cheapest products and services. Here, analytics becomes essential because analytics turns data into the necessary knowledge that brings companies to glass customers and customers to the glass market.
Innovations in information technology are driving the digitization of the world. Cloud, Social, Mobile, Big Data, and the Internet of Things revolutionize our world, just as fundamentally as the steam engine at the time, which broke up and rearranged society, the economy, political systems, and even state systems at the center of these upheavals is – then as now – people whose living and working conditions are changing accordingly.
In this article, we want to highlight two aspects: the person who is a consumer in his life and the company through which the person is simultaneously involved in working life and is, therefore, part of a producer or service provider. In the digital world, he is such a digitalcustomer and part of a digital company.
Digital Customers and Digital Companies
You can define a digital customer via his digital networking and communication. He lives in his world of experience and communicates at eye level through dialogue and interaction. He maintains his social relationships. He values authenticity, transparency, and loyalty. He develops momentum and prefers simple content production. He uses diverse digital platforms (not just Facebook) and leaves traces in the digital world: customer data as part of big data.
Therefore, finding, interpreting, and using these traces in big data is one of the main concerns of digital companies because this is the only way to manage the customer’s world of experience. What distinguishes a digital company from a traditional company? A digital company is created by digital transformation within the company. Specifically, this means that information technology no longer only serves as a support process but also serves to innovate the business model and business processes. New digital business models and processes mean new sources of revenue and disruptive competitive advantages. Digital products complement the product portfolio, and information is used as a strategic advantage. In other words, the company is reinventing itself.
According to Forrester, IT departments need consulting skills and comprehensive collaboration. This requires political sensitivity and methodological competence.
Big Data Becomes Smart Data
The second essential characteristic of a digital company is that it masters digital communication. New media and channels are continually integrated into corporate contact with all business partners and at all levels. This is the only way to follow digital customers and track down all traces in the digital world. This is how you can filter big Data: Smart Customer Data is the result.
The first consequence of digitization is that small, medium-sized, and large companies no longer show the known classic differences. In the digital world, everyone is equal because the cost of taking advantage of digitalization is small.
Thanks to the cloud, computing power is equally accessible to all companies. Now, the little ones can use the same methods as the big ones. Thanks to the cloud, you can find the complex infrastructure significant data analytics needs at user-related prices. This means that all significant data sources are accessible to everyone. Everyone can individually relate all Big Data sources to their customers and put them in context: Big Data becomes Smart Data.
Data is the New World Currency
In the old world, there were currencies in which customers paid country-specific for products and services. During digitization, there is a new currency: data! If you (the customer) give me your data, I will provide (Facebook, Google, and others) a “free” service. Digitalization makes the breakthrough. Data becomes the world currency by merging the virtual with the real world.
For example, data in the virtual world are enriched by corresponding sensor data using a spatial coordinate. The localization and navigation data of smartphones and other devices make localizing the customer and offering location-based services possible. As a result, the most significant data collectors, such as Apple, Facebook, and Google, are among the highest-rated companies in the world. This is no wonder because those who use data using analytics have the power to intervene in the customer’s world of experience. Smart data (customer-related and appropriately filtered data from big data) turns customers into long-awaited glass customers.
Conversely, the power of data is available to customers. Because in the digital world, prices, product features, and services are transparent. As a result, the digital market is evident and more transparent than the traditional market. Customers use this to hunt for the best offers. A flight from Berlin to Rome can be cheaper than a taxi from Spandau to Kreuzberg. Therefore, a power struggle will occur in 2015 and the following years. Customers want to pay increasingly for data, and companies are getting hungry for data to convince customers of better customer experiences to reveal increased data.
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.
With the rapid increase of technology and the advancement of the internet, information has flown more freely today than ever before. With the click of a mouse or swipe on the phone, we can access countless archives of data and content online. No information is out of hand as news articles and comprehensive knowledge are freely available. The same goes for companies trying to improve online traffic and increase views.
Companies must flesh out a brand and identity and invest in content marketing to create a free consumer platform. However, it must have crossed every entrepreneur’s mind at some point; “Am I giving away too much free content?” It’s essential to find the balance between providing free and paid content, and here we list some of the reasons whether there can ever be too much free content provided
Create Your Brand and Identity
Keep your audience and casual viewers informed of who you are and what your brand stands for. Studies have shown that 81% of online shoppers conduct research before making a purchase, and your site should provide enough content to keep them informed of your product or services. Consumers should walk away from your product well-informed and better understand who you are and what you do.
Maintain a Solid Online Presence
Your online presence and ease of site access are imperative for generating traffic and bringing in your target audience. Regularly update your information to keep it up to date while answering queries. It’s not enough to answer questions and provide examples they can draw from to make the solutions more relatable. Avoid holding information back, and keep it as open and honest as possible. Customers will appreciate your honesty and expertise, help build goodwill with your base, and attract casual fans.
Free Content Helps Generate Traffic
Companies like Google and Facebook have built a successful model to provide free services to their consumer bases. But please don’t forget that they are Facebook and Google for a reason, and while it is crucial to reach their lofty heights, try to understand the model they’ve implemented rather than copy it. There is plenty of money to be made through ad revenue, though it’s understandable that you don’t want to give your trade secrets away for free.
There is nothing wrong with establishing your expertise. It lets your audience focus on why things are done rather than the how. More traffic on your site equals more ad revenue generated. Keep your content informative and enough to leave consumers satisfied.
Build a Connection with Your Audience
Make sure your content is engaging and has a personal feel to it. The days of professional language are long over, and more companies strive to be more relatable to their consumer base as social media spreads. There is no need to cross boundaries but to showcase a human voice behind all the explanations and marketing materials. Give a background description of yourself and your organization.
Be sure to make sure your reputation is clean and address critiques and complaints. Studies have shown that 84.3% will check out the official website of a product or service before making a purchase, and it’s essential to leave an impacting message that inspires trust and repeated business to create a loyal consumer base.
It isn’t so much about how much content you produce but rather the quality of content provided. There are upsides and downsides to both paid and unpaid content scenarios, and it’s essential that the free content you provide ticks all the boxes of being productive to your business. Experiment and see what works and gauge the cost-benefit ratio to determine whether your content produces your desired results. It’s your responsibility to your consumers that they always remain informed of your brand and services.
Conclusion
In the digital age, the abundance of free content is both a boon and a challenge for businesses. While creating a brand identity and maintaining a solid online presence is vital, finding the delicate balance between free and paid content is crucial. The strategic use of free content helps generate traffic, build connections with the audience, and establish expertise.
However, the key lies in delivering quality content that resonates with consumers and adds value to the business. Experimentation, adaptation, and a keen understanding of the cost-benefit ratio ensure the content strategy aligns with the goals, leaving the audience well-informed and fostering trust for sustained 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.
We must emphasize that the work in construction is hazardous. According to official data, in 2014, a total of 4,679 construction workers died due to the four “big” fatal causes in this industry: falls, electrocution blows, or getting caught between machinery, vehicles, or heavy objects.
Given the severe risks involved in this work, it is essential for those who carry it out to be prepared and know all the rights and protections the law offers them in this country. We will review the central requests in this post.
What Does the Law Say?
The Occupational Safety and Health Administration (OSHA) is a section of the Department of Labor responsible for reducing hazards to workers on the job site at the federal level.
To comply with that premise, OSHA imposes both rights for those working in this industry and obligations for their employers.
Rights of Construction Workers
Be able to read and review the copies of all the appropriate standards, rules, and regulations and know all the requirements that your employer must comply with within the workplace.
Access relevant data on the risks to which one is exposed as a worker, including medical information. Review the records of damages, injuries, and illnesses that occurred because of work in the past. Also, receive a copy of the exams performed to determine the presence of hazards in the worksite.
Request the visit of an OSHAofficial if there are suspicions that the workplace presents additional hazards or violates the standards established by law. In these cases, appointing an authorized employee to accompany the inspector during the site inspection is also possible.
Employees who file a complaint with OSHA have a right to confidentiality, meaning the company will not give their names to the employer. Likewise, workers have the right not to suffer discriminatory actions or retaliation due to any complaint before OSHA.
Obligations of the Construction Employer
Offer a work site free of known dangers. Train safety workers and inform them of OSHA safety and healthstandards applicable to their type of work. The standards must be written and communicated in the best language the employees understand. Ensure that employees use safe tools and equipment. Show in a place visible to all the official OSHA posters describing all the rights and responsibilities established by law.
Establish a detailed and written risk communication system, including rules for labeling containers and material safety data sheets.
Inform employees about the existence, location, availability, and exposure of their medical files to hazardous substances during their recruitment. Then, at minimum, they must report it once a year and deliver it to the worker each time they request this information.
Injury Aftermath
Depending on the type of accident and the circumstances in which the accident occurred, there are several legal ways to receive compensation after an injury suffered at the job site. Workers’ Compensation, Demand for Personal Injury, and Demand for Defective Products are the most important.
Labor Indemnification
As we explained in a previous post, workers’ compensation is insurance paid by the employer covering financial benefits or medical treatment for employees injured or become ill because of their work without pointing to guilt for the damages. When an employee is injured while working, they can request the benefits his employer owes him by law. If the employer refuses to compensate workers after an injury, the case can escalate and become a personal injury claim.
Claim for Personal Injury
Workers’ Compensation rules only apply for cases in which the relationship between the parties involved is between employer and employee. But in a construction site, there are always many parties involved: a general contractor, a property owner, several subcontractors, the architect, the engineers, and suppliers of machinery and materials, among others, and all of them must ensure the safety of construction workers. If the injured worker believes that one or more of the parties involved were guilty or liable for the harm suffered, he can take the case to court by filing a Personal Injury claim with the help of a lawyer.
A successful personal injury claim must demonstrate the following
That the accused had a duty to ensure the safety of the worker.
That the defendant failed to do so.
That the accused’s action or lack of action was the cause of the injury suffered by the worker.
Suppose it is shown that the accused party engaged in negligence that resulted in an injury, the company violated the rules established by OSHA or the worker was not trained in safety matters. In that case, the accused party must answer for the damages.
The compensation for these damages usually considers the following
Medical expenses, including treatments, therapies, and exceptional care.
Salaries were lost due to the injury.
Pain and suffering.
Loss of ability to lead an everyday life.
Demand for Defective Products
Poor equipment, tools, or construction materials may have caused a worker’s injury. When this happens, the product’s designer, manufacturer, or marketer who caused the injuries can be identified as responsible.
A successful claim for defective products usually proves that
The product was dangerous at the time of delivery by the defendant.
The product was being used correctly when the injury occurred.
The product was the cause of the damage suffered by the worker.
Construction Accident Protocol
First, try to get medical attention immediately. The damage’s severity is not always evident, and the complications of not receiving treatment in time could be severe and even fatal. Once you are safe, ask your doctor for a medical report describing the injuries you suffered at the site.
Then, inform your employer or the shift manager about what happened. Be sure to print the name of the person to whom you report what happened. Also, note any other person who was there and witnessed the incident. Collect all evidence and take pictures of your injuries.
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.
An audit is an investigation and inquiry of bookkeeping and accounts by an auditor compared to the physical verification of the stock or inventory. An audit can be done internally or by external auditors to check a company’s accounting facts and figures.
Internal audits happen by workers of an organization or the head of a specific department in a company. In contrast, an external audit is done by an external auditing company or a team of external auditors.
All government and private organizations audit and check their accounts reports—cash flows to have a transparent image and maintain a good reputation in the business community. Every business gets its auditing done once a year. An independent company or organization performs this auditing process annually, an external audit of a registered business. This self-governed company prepares a detailed report containing all the transactions and business deals that the company has done in a year. The shareholders, government assistance, and the public can utilize this audit report.
For the audit process to be clean and accurate, the company or the external auditing agency must be fair and unbiased. There is no such benefit as going through the drill of getting your accounts verified and making long and detailed reports of all your business communications.
Businesses can use accounting software in small or medium-sized, which helps keep the companies alert and always ready.
How Investors’ Confidence is Earned by Being an Audit-Ready Business
There are many advantages of being an audit-ready business; the major one is making you and your business reliable. The investors and stockholders trust you enough to invest in your business, often more than once.
No fear of accountability
An audit-ready business has its accounting reports and records clear and transparent and has no fear of responsibility. It increases the company’s credibility and makes it successful by attracting more depositors.
Increased investors’ trust
Receiving regular and up-to-date audit reports helps increase investors’ trust in a business. Suppose a company has a clean slate and its account information is precise and updated regularly. In that case, shareholders can easily infer the business’s accounting information and won’t hesitate to invest money.
Foreign investments are quickly earned
The audit-ready business will always attract clients and depositors from within their region. Foreign investors will feel comfortable investing in such companies because of their reputation and reliability.
Good business rating
Potential investors will always look at a business’s rating when they want to make a significant investment. If a company has a clear previous record and gets auditing done occasionally, it will increase its rating and become a formidable competitor in the stock market.
Banks show more reliability
An audit-ready business gains the trust of the shareholders, and foreign investment companies and other lenders and banks offer more faith in such companies.
Less prone to fraud and embezzlements
An audit-ready business is less prone to fraud monkey business. Regular audits help reduce the chances of fraud and deceit.
An accurate financial picture
Investors want to see a clear financial picture of any business they will invest a lot in, and only an audit-ready company or firm can have one with a trustworthy and reliable image in the stock market. It allows investors to invest any money without worry or pressure. An accurate financial picture can only be accomplished when accounts are maintained, and the financial statements match the cash flow.
Conclusion
So, regular audits make a business more reliable, and the shareholders do not need to get suspicious and check the business records and audit reports occasionally. Investors feel no need to check daily bookkeeping. Through these audits, a consistent check and balance can be ensured and maintained.
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.
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.
