Author: Complete Controller

When a business undertakes a new project, the management team must first identify and determine the project’s goals and objectives. This can include input from sponsors, a board of directors, or stakeholders. Harvard Business Review also notes that a project manager is required to determine “which activities will produce the intended results. He then prepares and schedules work, supervises day-to-day execution, and keeps track of progress until he assesses performance, wraps up the project, and documents the lessons learned.”

The project manager is responsible for ensuring a project is completed successfully and on schedule. As a result, having the correct person in this role is vital if you want the project to be successful. Below are the characteristics of an efficient project manager.

Can See the Big Picture

Whether the project manager comes from outside the business or from within, they must have a broad understanding of the project and its components. The project manager should mentally visualize the project as planned so that they understand how every aspect works together and have a better comprehension than anyone else in the room. While they may lack the technical abilities to complete each project component, they must first comprehend the overall purpose and goal to ask appropriate questions and monitor progress.

Is Flexible

While the broader picture is crucial, an innovative project manager will know the project’s high-level ramifications and the details. They can operate within both sides of the spectrum by understanding that focusing on the large picture or the minute details will sabotage your project’s success. Similarly, every successful project manager can communicate and collaborate with big-picture and detail-oriented team members.

Is a Leader

Although numerous projects are technical, project management success requires strong communication and “soft skills.” In a variety of contexts and circumstances, good project managers successfully interact with all sorts of personalities on a project. Good communicators can ask the questions that aid the team in developing a successful project strategy. Additionally, past facilitation experience or natural abilities in the field are beneficial. A project manager’s effective facilitation may help team members succeed by guiding, motivating, and supporting them.

Can Adapt

Only some projects run well from beginning to end. In reality, many projects that have veered off track cannot be corrected and salvaged. A competent project manager sees where things have gone wrong and realizes that getting back on track will require adapting, maneuvering, and patience.

Will Say No

Good project managers understand that they must be brutally honest occasionally. They recognize when the individuals clamoring for the results need to be informed that their expectations are unreasonable. Companies all too frequently “overlaunch” by initiating projects without considering resources, capacity, and unreasonable expectations.

Subsequently, some project managers may hesitate to deny upper management, so they attempt a project and over-extend resources only to fail. It would help if you had a project manager who is not scared to communicate and highlight facts and reasonable concerns even when the truth is unpopular.

Will End the Project

In a similar spirit to the capacity to say “no,” the most successful endeavor is sometimes the one you do not complete. Ending a project to which one has devoted a substantial amount of time and energy is difficult, mainly when it affects a team of individuals who have also committed a significant amount of time and energy. Some initiatives, however, should not be finished for various reasons. Effective project managers understand this distinction and may persuade their management and teams that time would be better spent working on other projects with a higher chance of success.

Conclusion

In conclusion, the success of a project hinges on the meticulous identification and determination of its goals and objectives by the management team. The project manager plays a pivotal role in this process and orchestrates the project from conception to completion. Essential qualities of an efficient project manager include the ability to envision the big picture, flexibility in navigating between high-level implications and intricate details, effective leadership and communication skills, adaptability to address unforeseen challenges, and the courage to say no and, when necessary, to bring a project to a timely and strategic conclusion. These characteristics collectively contribute to the project’s success and underscore the significance of selecting the right person for the crucial role of a project manager.

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.

When acquiring a home and opting for home insurance, it’s imperative to deliberate on critical considerations. Whether compelled by financial institutions or embraced as a proactive measure, obtaining home insurance becomes necessary. With time, homes are susceptible to significant and minor damages, impacting not only the residents but potentially extending to third parties. A well-crafted policy serves as a protective shield, mitigating challenges and financial repercussions that may arise in the event of damages.

Differences to Consider in Home Insurance

When selecting home insurance, it’s crucial to have a clear understanding of critical concepts that enhance our comprehension of the policy:

Continent

This category is vital for creating the home-encompassing elements integral to the housing structure. It depends on factors such as the home’s square footage and type. Components like foundations, walls, doors, fixed installations, pipes, decorative elements, shutters, garages, and storage rooms fall under this classification.

Content

This pertains to the possessions housed within the residence and varies based on the coverage limit chosen, considering personal valuables. Within this category, it’s essential to differentiate between items such as furniture, jewelry, money, and objects of exceptional value. Understanding these distinctions is crucial for making informed decisions when tailoring insurance coverage to one’s needs.

Home Insurance Coverage

In home insurance, the extent of coverage hinges on the specific terms agreed upon with the insurance company. It is paramount to ensure coverage for direct material damage. The damages encompassed within this coverage include protection against a spectrum of perils, such as:

• Fire
• Explosion or implosion
• Accidental smoke production both inside and outside the premises
• Lightning strikes
• Atmospheric phenomena (wind, rain, stone, hail, or snow)
• Water leaks
• Glass breakage
• Damage to moons, mirrors, stained glass
• Acts of vandalism
• Vehicle collisions

A comprehensive understanding of these covered damages is vital for homeowners to tailor their insurance policies to safeguard against potential risks and uncertainties.

Supplementary Home Insurance Coverage

Supplementary home insurance coverage goes beyond the introductory provisions, offering additional safeguards for homeowners. This supplementary coverage includes protection against various scenarios, such as:

• Robbery on Public Roads: Extending coverage to incidents of theft that may occur outside the confines of the home.
• Repair for Electrical Damage: Providing financial protection for damages resulting from electrical issues within the home.
• Compensation for Fraudulent Use of Credit Cards: Mitigating the financial impact of unauthorized and fraudulent credit card transactions is essential.
• Replacement of Locks: Offering coverage for replacing locks and enhancing security measures in case of a breach is a proactive approach to safeguarding against potential risks.
• Breakage of Glass-Ceramic or Countertop: Providing coverage for damages to glass-ceramic surfaces or countertops in the home.

These supplementary coverages add a layer of protection, addressing specific vulnerabilities that standard home insurance policies may not cover. Homeowners can benefit from a more comprehensive safety net against various unforeseen events and potential financial losses.

Supplementary Home Assistance Coverage

Supplementary home assistance coverage extends a helping hand beyond traditional insurance provisions, offering valuable support for a variety of urgent needs. This coverage empowers the insured to address critical situations, including:

• Family Assistance: Providing financial assistance or support services in emergencies involving family members.
• Home Repairs: Covering urgent repair services for essential home components that may require immediate attention.
• Travel Assistance: Offering assistance during travels, ensuring that unexpected challenges are addressed promptly.
• Pet Insurance: Extending coverage to include the well-being of pets, covering veterinary expenses and related costs.

This supplementary home assistance coverage goes beyond the standard scope of insurance, providing a holistic safety net for homeowners during unexpected crises. It recognizes the diverse needs of homeowners and aims to offer comprehensive support across various aspects of life.

Exceptional Coverage in Home Insurance

Exceptional coverage in home insurance addresses specific circumstances that go beyond standard provisions. This specialized coverage is designed to provide financial support for:

1. Lodging Expenses: If a home is under repair or rendered uninhabitable, this coverage ensures that the insured is financially supported in covering temporary lodging expenses.
2. Replacement of Documents: Covering costs associated with replacing important documents that may be lost or damaged due to covered perils is a valuable aspect of comprehensive protection.
3. Furniture Movement: Assisting with the expenses related to furniture movement, facilitating the process during repairs or other necessary situations.

Expenses Not Covered in Home Insurance

Expenses not covered in home insurance delineate specific situations where the policy does not provide financial protection. Home insurance typically excludes coverage for:

1. Insured Neo-Intelligence: Damages arising from deliberate acts by the policyholder are not covered, ensuring that purposeful actions leading to losses are not financially compensated.
2. Deterioration Due to Time or Use: Home insurance generally does not cover normal wear and tear, gradual deterioration of property over time, or damage resulting from regular use.
3. Humidity Problems: Damages caused by humidity issues, such as mold or mildew, are typically excluded from coverage unless explicitly specified otherwise.
4. Natural Disasters: Home insurance may not cover damages caused by certain natural disasters, such as earthquakes, floods, or hurricanes. Additional coverage or specialized policies may be required for protection against these events.
5. Armed Conflicts: Damages from armed conflicts or war are generally excluded from standard home insurance policies.

Civil Liability in Home Insurance

Civil liability coverage in home insurance provides a broad scope of protection, encompassing legal events within the home and in shared communal areas. This coverage offers the insured the following benefits:

1. Legal Events Coverage: The policy extends coverage to legal events that may occur within the confines of the insured home or in communal areas shared with neighbors.
2. Defense Coverage: In legal proceedings, the insured can request defense coverage, ensuring financial assistance for legal representation.
3. Legal Advice: Home insurance policies often include provisions for obtaining legal advice. Policyholders can seek guidance from the insurer to navigate legal complexities.

Details to Consider in Home Insurance Coverage

Insurance for Jewels

Standard home insurance typically covers treasures up to a certain amount. There is supplementary insurance for gems. This coverage extends to jewels, pearls, precious stones, precious metals, works of art, old books, and collectibles without limits on damage or theft.

In the event of theft, a complaint must be filed within 72 hours, and a claim must be submitted to the insurance company to ensure protection for these valuable belongings.

Flood Insurance

Standard home insurance often covers only a portion of damages caused by heavy rains. To enhance coverage, homeowners can opt for complementary flood insurance. This additional coverage ensures comprehensive protection for damages to the house and personal belongings (documents, furniture, clothes, appliances) caused by flooding. It may also include services for house cleaning and restoration.

Fire Insurance

While insurance companies may offer fire insurance with limitations to reduce policy costs, most insurers cover total damages caused by fire. In a fire, a claim should be made directly to the insurer. Homeowners may approach the General Directorate of Insurance and Pension Funds for resolution if there is no response within two months.

Coverage for Aesthetic Damage

This coverage addresses aesthetic damage during the repair of covered material damage. However, it’s important to note that this coverage is limited in scope.

Conclusion

Crucial considerations warrant attention when investing in a home and securing home insurance. Whether mandated by a financial institution or adopted as a preventive measure, obtaining home insurance becomes paramount. Over time, homes are susceptible to major and minor damages, impacting residents and potentially affecting third parties. A comprehensive insurance policy is a safeguard, alleviating complications and financial burdens in the face of unforeseen damages. Understanding home insurance coverage is essential for homeowners to make informed decisions that align with their needs and provide comprehensive protection against unforeseen events.

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.

To grow a small business, it needs exceptional sales and generate a profit. If things are going differently than planned, a company will often ask for a loan. A small business owner can seek out a lender in several different places. However, banks are the first option. Many small business owners apply for a loan without realizing that banks have a reputation for declining small business loans.

Telling others that you intend to take a business loan is often met with their opinion and advice on which institution to contact. Be cautious not to fall into debt unnecessarily, but if you are ready to move forward and secure a loan, consider the following reasons for small business loans.

Build Credit 

If you need to secure financing in the next couple of years, the process can be started by obtaining a smaller short-term loan. Smaller businesses usually have a more challenging time applying for a long-term loan if neither the owner nor the company has a good credit report. If you start by taking smaller short-term loans, you can build a much stronger loan credit for your business and ensure future financing.

This also ensures you can build a good relationship with the lender. Once the lender trusts that you can and will pay him, he is more inclined to lend more than you requested. Be sure you request a loan amount that you can repay. One late payment on a smaller loan can affect your credit score and lender relationship more than if you had never applied for a loan.

Expand the Location

Imagine your workspace is bursting at the seams, and your new assistant needs to set up a desk inside the kitchen. It seems like you have outgrown your original office location. Or perhaps you run a retail store or restaurant with so many customers inside and outside that you need to increase the physical space to serve them properly.

These pains are good because they prove your business is growing and you are ready to expand. Unfortunately, business expansion needs do not mean you will have cash to pay for them. As such, you might need a term loan to support your big move, whether you must expand your location or completely change it.

Before committing to an expansion loan, consider changes that might occur in your revenue because of expanding your location. Ask yourself if you could still cover your loan cost and earn some profit. Similarly, if you plan on setting up a second location, you must research the area and move thoroughly, or you might end up in even more debt than before.

Banks are interested in financing large businesses because of their benefits and can present various reasons to reject your small business loan approval.

Below are some common reasons banks reject small business loan requests.

Cash Flow

Credit history is a factor that can impact a bank’s decision to approve your loan request. A short credit history increases your chances of rejection, but a long credit history is not a guarantee either. Any financial blemish on your credit history can force banks to decline your application. Likewise, one of the essential considerations is your business’s cash flow. When you face cash flow issues, you risk receiving a decline from the bank. Poor cash flow often indicates you cannot consistently repay your loan.

The Preparation

Sometimes, a business succeeds, and the business credit score is satisfactory. However, a business plan with the proper groundwork for loan approval may be lacking. Banks ask individuals to present a lot of documentation with loan application requests. Some of the documents that you will be asked to present at the bank are:

• Existing loan documents
• Income tax returns
• Personal financial documents
• Financial statement
• Business lease documents
• Affiliations and ownership

You must be careful while presenting these documents to the bank because any discrepancies can result in loan rejection.

Credit History 

The most common barrier you and your business loan can face is a credit history. A bank looks at your personal and credit reports during your application review. The length of your credit history affects the loan approval, too, and it can be negative or positive, depending on the history.

The more information your bank has to assess your business, the easier it is to approve the loan. But if your business is new and its credit history is short, banks are unwilling to extend the desired loan amount.

Conclusion

While applying for a loan, ensure that you can repay it and that it is beneficial for your business to take it. If so, try borrowing small amounts to ensure repayment, increase your credit history, and build lender relationships to help you secure future long-term loans.

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

These are extraordinary times, and you find yourself walking a tightrope. As you check your online banking, the predominant color is a stark red, signaling that your business is in “emergency mode.” The urgency to act quickly is palpable; your business continuity hinges on your immediate response.

Amidst the anxiety, worry, and burden, it’s all too common to lose perspective, leaving you uncertain about the following steps. The many challenges may feel overwhelming, making it difficult to discern a clear path forward. You’re tasked with extinguishing numerous fires, and in the midst of it all, the clarity you need is obscured by a mountain of problems, leaving you unsure of where to turn. 

Here are some tips for getting your business out of crisis and into cash flow.

How to Use Your Time to Get Your Business Going

In times of urgency, operating in “emergency mode” is crucial, directing our efforts solely towards activities that swiftly attract customers and generate revenue. The key is to trim away anything unnecessary, allowing us to channel our focus on initiatives that yield immediate results.

But Where do You Start?

When determining where to start, the most effective approach is to focus on activities closest to generating immediate revenue. Essentially, prioritize anything representing the shortest path between the present moment and securing capital. Everything else can be deferred.

In times of emergency, your primary concern in the short term is to identify and invest time in activities that yield maximum benefits as quickly as possible, helping you navigate out of the current situation. You no longer have the luxury of working on tasks geared towards long-term, gradual growth. Your sole priority at this juncture is to ensure immediate financial stability.

Every day, your activities should be strategically planned across three distinct categories:

Category #1: Immediate Revenue Generation

Focus on tasks that bring in money immediately or within a concise timeframe. This includes activities such as:

• Sending targeted emails to your customer list
• Crafting an article for your website featuring a special promotion
• Issuing reminders or invoices to customers with outstanding payments
• Reaching out to potential affiliate partners who can swiftly promote your initiatives in the coming week

These activities take precedence over everything else during the emergency mode. Despite the potential discomfort associated with tasks like sending promotional emails or chasing overdue payments, it’s crucial to remember that the alternative—risking the loss of your home or the closure of your business—is far more painful. Now is not the time for leisure; it’s the time for decisive action.

Category #2: Near-Term Gains

Allocate time to tasks that contribute funds to your checking account within a relatively short timeframe, typically between 2 and 3 weeks. This category encompasses activities such as:

• Completing a product or finalizing a sales page that is on the brink of generating revenue
• Advancing ongoing projects with the potential for immediate benefits

If you find yourself on the cusp of completing projects with promising possibilities for generating revenue, capitalize on these opportunities. Leverage your unfinished initiatives that have solid potential to contribute to your financial goals in the near term.

Category #3: Future Opportunities

This category encompasses projects likely to generate revenue within the next 3-6 weeks. However, it’s important to emphasize that these activities should never take precedence over the first two categories. Activities in this category include:

• Sending project proposals to potential clients
• Sending personalized emails to individuals who may be interested in hiring your services
• Initiating collaboration with colleagues in your industry for joint projects

Maintain a sharp focus on activities that are objectively likely to yield benefits. In your day-to-day operations, you may encounter tasks that don’t fit into these three categories but are perceived as necessary, such as social media presence, website maintenance, or participation in networking activities.

The reality is that these tasks hold little significance during the emergency mode. For instance, if you abstain from social networks for three months and dedicate that time to acquiring new customers, your business can weather the storm, even if your follower count stagnates or declines. Similarly, neglecting networking activities and personalized outreach won’t jeopardize your business survival in the short term, compared to the critical focus on revenue-generating activities outlined in the first two categories.

Conclusion

In times of exception, it’s imperative to relegate activities focused on the future—those seeking future opportunities—to the back of your priority list. The immediate goal is to secure liquidity swiftly, as it holds the key to overcoming the current challenges and building a more prosperous future. Prioritize actions that bring in revenue promptly, ensuring your business remains resilient and well-positioned for the times ahead.

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.

Creative decision-making has been known to be linked with creativity. Brands in the past have employed creative and digital marketing agencies for this skill and have created campaigns and ideas that sent internet contributors buzzing. However, due to artificial intelligence and its many branches, brands are changing how they want things done. 

Artificial Intelligence (AI) has caused panic in industries worldwide, with countries employing its different branches to outperform the competition. AI has been a rapidly growing innovation, leaving researchers and scientists to find ways to employ it. Predictive algorithms and machine learning are teaching us something about human behavior every other day, helping brands make decisions that align with emerging trends. 

How Has Artificial Intelligence Impacted Creative Decision-Making?

Data collected by innovative AI programs are changing the creative decision-making arena into a systematic process. More brands want to create strategies and design campaigns around what data interpretations tell them. As the industry dictates, brands are investing in technological solutions for decision-making rather than basing their decisions on creativity. 

Because most companies want to make a profit, this method of consumer insights works perfectly in their favor. For instance, extensive research and statistics show consumer preference for non-plastic goods for packaging. This has also led brands preceding plastic bottles to provide a more sustainable and environmentally friendly solution. 

Data-Driven Creativity

Technological advancement and the rapid pace of data collection online have rarely afforded brands the luxury of time to develop purely creative campaigns. This urgency has created an objective creativity phenomenon, where creativity emerges from a place of uniformity. Brands now have access to similar kinds of data. The starting point of most creative decision-making processes has been set, thanks to AI. 

Companies and their strategies are now driven by data and what popular trends exist. Creative think tanks where teams sit down and put their heads together based on a crazy, disruptive idea for a brand from scratch seem to be a past technique. Technology has made the process of successful campaigns one step shorter.

Evolution of Content Creators

Content creators will shortly move from solely writing and content creation to more decision-making roles based on the interpretation of data. Marketers often feel pressured when they need to roll out multiple campaigns quickly. For instance, within a typical year, brands have a combination of campaigns, starting with New Year’s Campaigns, Seasonal Campaigns, Product Launch Campaigns, Brand Awareness Campaigns, and more. 

Brands can depend on data-driven statistics to keep up with changing customer demands and competitor brands. Not only will this approach help managers reach more milestones, but it will also help them cut down multiple costs and save time. 

The Impact of Automation on Content Creation and Photography

An incredible amount of automation of processes means more content creators are entering markets. AI efforts can now create journalism content, forcing people entering the field to be open to an evolving industry in the future. Similarly, photography will no longer be perfected for four years of college education. 

The evolution of intelligent, professional cameras and smartphones has helped interested parties learn editing and photo enhancement with the click of a few buttons. Artificial intelligence reduces the time to complete redundant tasks, leaving more space for people to think even more creatively. As a result, what is considered a professional process today will just be a skill you can pick up tomorrow. 

Harmony of AI and Human Creativity

However, the progress of AI is not to be mistaken for replacing human creativity. On the contrary, humans will have more time to spend being creative once the monotonous tasks have been reduced and outdated data collection and interpretation processes are replaced. With so many ways of measuring creative effects, creative decision-making will transform into science and no longer be about art.

What Is Next for Creative Decision-Making?

With monotonous tasks reduced, we can focus on creative ways of developing and executing campaigns. Artificial Intelligence and its rapid growth benefit companies by saving essential resources such as time, costs, and human resources from being devoted to tasks that can easily be carried out with the help of algorithms and machine learning. 

Changing times call for innovation and subsequent adaption to stay relevant. Technological changes are the silent helpers to take care of tedious tasks, so more important aspects of businesses can be worked on while saving valuable assets. 

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.

In the contemporary world, almost everyone possesses a card. These cards come in various forms, including banking cards (both credit and debit), establishment cards (enabling purchases within a network of stores or businesses), and telephone or point accumulation cards.

However, our attention will be directed towards a specific category of cards that can lead to complications if lost or stolen – namely, credit, debit, or establishment purchase cards. The criminals’ potential misuse of these cards can lead to unwelcome alterations in our financial accounts.

Loss of Credit, Debit, or Purchase Cards

When it comes to credit, debit, or purchase cards, a crucial piece of advice is to carry only a select few at a time, considering the current era. The loss of a wallet is a bitter experience, given the array of cards it typically holds – from IDs and driver’s licenses to insurance cards and Social Security.

However, if an unfortunate loss occurs, swift action is imperative. Ensuring the safety of your cards and maintaining a constant awareness of their whereabouts is paramount. This vigilance is the key to promptly realizing their absence and taking the necessary steps.

Theft of Credit, Debit, or Purchase Cards

In the event of the theft of credit, debit, or purchase cards, it is crucial to take immediate action. If you have evidence that your cards were stolen, such as a robbery, break-in, or car theft, your first step should be to call the respective card issuer to cancel them. Simultaneously, report the theft to the authorities promptly.

Filing an official complaint is a crucial document detailing the day and time of the incident. This documentation becomes invaluable when addressing any potential misuse of the cards. While you may be fortunate enough to cancel the cards before unauthorized individuals use them, the risk of monetary loss or unauthorized purchases remains. Therefore, swift reporting and follow-up actions become essential in such circumstances.

Understanding Responsibility for Unauthorized Card Transactions

In instances of theft, customers are typically held responsible for unauthorized transactions made before the official complaint, with a liability limit of $150. The financial institution will assume responsibility for amounts exceeding this limit. However, suppose funds are withdrawn from our accounts via an ATM using our PIN. In that case, the entity may not bear responsibility, as it could be considered product misuse, especially if the PIN is readily available (e.g., written down somewhere). It underscores the importance of safeguarding personal identification information to prevent unauthorized use in case of card loss or theft.

Unauthorized Establishment Charge

If the card has been used for purchases in establishments following a report of theft or loss, the user should file a complaint referencing the earlier report. Any purchases made after the denunciation date will not be the user’s responsibility. This is supported by evidence that the user did not sign the receipts for those purchases, and the establishment failed to identify the cardholder through their ID accurately.

Consequently, the establishment is obligated to refund the money to the cardholder. When making purchases at establishments, it is advisable to avoid losing sight of the card to prevent the duplication of the magnetic strip. Additionally, retaining all purchase receipts is recommended to safeguard against being charged amounts exceeding those documented on the invoice. This proactive approach helps protect the cardholder from potentially fraudulent transactions and ensures a smoother resolution of any disputes.

Unauthorized Online Charge

When dealing with online purchases, fraud becomes more intricate, mainly when establishments are located in different parts of the world, making the claims process more challenging. In such cases, reporting the incident to the authorities and promptly canceling the affected cards are crucial steps.

To proactively prevent misuse of cards on the internet, it is imperative to ensure that the websites where card information is entered are exclusively secure. This means using pages with security certificates, identifiable by the “HTTPS” at the beginning of the web address – indicating security. Additionally, a padlock icon should be visible in the lower-right part of the screen. These security measures help users verify the legitimacy of online platforms and enhance protection against potential fraudulent activities.

Duplication of Cards

In the unfortunate event of card duplication and subsequent fraudulent use, it is crucial to report the incident promptly and cancel the affected cards. Moreover, it’s essential to be aware that in such situations, cardholders typically have the right to avail themselves of insurance coverage to address the theft.

Many cards come with built-in insurance coverage that extends to various contingencies, including those discussed here. This insurance can offer financial protection and assistance in mitigating the consequences of unauthorized transactions resulting from card duplication. Therefore, in addition to taking immediate action to address the security breach, cardholders should explore and leverage the insurance coverage associated with their cards to facilitate recovery and resolution.

In summary

In summary, when faced with the loss or theft of cards, the immediate and crucial steps are to call and cancel them as soon as possible. This swift action is essential to mitigate potential risks, prevent unauthorized use, and initiate the necessary procedures for reporting the incident to the authorities and relevant card issuers. Additionally, proactive leveraging of insurance coverage associated with the cards can contribute to a more comprehensive and efficient resolution of the situation.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud 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.

2020 was a year of struggle and challenge for people and industries, but the housing market stood firm in adversity. Now, in 2024, markets are recovering and stabilizing, adapting and evolving around new innovations and shifting demands. 

Here are some trends and innovations to consider if you enter the housing market this year.

Rising Prices

Prices in the housing market have been on the rise for some time now, having more than doubled in the past 30 years. This trend is about to stay the same, but data shows that prices are now rising slower than in previous years, which is a good sign.

Low Inventory

The primary cause for the consistent rise in prices in the industry is a low inventory; too many people are trying to buy houses, and not enough homes. COVID-19 exasperated this issue further when people started trying to move to locations with lower infection rates. Even after the pandemic ends, it is unlikely that this problem will be resolved.  

Rising Mortgage Interest Rates

Not long ago, the middle class could take on a mortgage to pay the full price for a new house and pay it back gradually over time. This has become increasingly difficult as mortgage rates have risen to impossible highs.

The COVID-19 pandemic positively impacted mortgage rates as interest rates across the country fell in 2020. Market analysts predict that this decline should continue downward throughout 2024.

Demographics

Since 2019, Millennials have surpassed Gen X and Baby Boomers as the dominant age group in the home-buying market. This trend will continue as more Millennials consider buying their first homes.

From Cities to Suburbs

More people have started to migrate away from urban city developments instead of looking for homes in smaller suburban communities. As the new predominant demographic in the buyers’ market, Millennials prefer suburbs over city residences because they are more affordable and experience lower crime rates.

Virtual Reality  

As Millennials have taken over as the primary demographic in the housing market, the tech-savvy generation has brought technological innovations quickly, pushing the industry in a bold new direction.

One such innovation is using Virtual Reality (VR) in the housing market. Virtual Reality housing tours were already a niche practice offered by a few realtors and agencies before 2020. However, the pandemic saw VR becoming a popular method of conducting long-distance house tours.

VR home tours have many advantages over in-person ones for both agents and buyers. 

• VR allows real estate agents to market and sell properties with little investment.
• It allows buyers to participate in several daily tours, making their home-buying journey much faster and more efficient.
• Thanks to VR, buyers can experience house tours from their homes and across cities and countries if they hope to move internationally.
• It allows potential buyers to experiment with the interior design and décor of the house by instantly customizing a digital 3D representation of it in VR, as per their liking, when such modifications to the real house would be time-consuming and expensive.

Smartphone Applications

Since smartphones started using applications over a decade ago, they have become an important part of our everyday lives. There seems to be an app for everything, and we are always connected to our smartphones in some capacity. Seeing this, real estate agencies have also decided to leverage the power of apps, creating their own apps that make the home buyer experience easier and more efficient. Apps allow buyers, sellers, and agents to remain connected and provide a platform upon which buyers can find the best options currently on the market.

Cryptocurrency

The sky-high price of Bitcoin has made it difficult for the virtual currency to function as a standard means of exchange. But with prices rising daily, the housing market may be the perfect space for Bitcoin to thrive. Experts believe the technology upon which cryptocurrency is produced and traded, Blockchain, could also be a tool for innovation in the housing industry.  

Conclusion

In conclusion, the housing market, resilient in the face of the challenges of 2020, is now in a phase of recovery and adaptation in 2024. Despite ongoing struggles like rising prices fueled by low inventory, the market is showing a positive sign with a slower pace of price increases. Demographic shifts, particularly with Millennials as the dominant force, influence preferences toward suburban living and drive technological innovations. Virtual Reality (VR) and smartphone applications have transformed the home-buying experience, offering efficient and customizable solutions.

Moreover, the potential integration of cryptocurrency, such as Bitcoin, into the housing market reflects a dynamic landscape open to innovation. Navigating these trends and embracing technological advancements is crucial for those entering the housing market in 2024, ensuring a successful engagement with the industry’s evolving dynamics.

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.

By: Jennifer Brazer

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.

Fact Checked By: Brittany McMillen

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.

Strategic Decision Framework for Your Business

Statistics show 37% of small and medium businesses now outsource accounting functions, with cost savings cited as the primary driver by 65% of companies. Your optimal choice depends on several critical factors that require honest assessment.

• 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.

Sources

• Better Accounting. (2025). “Hiring vs. Outsourcing Accountant.” URL: https://betteraccounting.com/hiring-vs-outsourcing
• Brady CFO. (2025). “Outsourcing Accounting Services vs. Hiring Internally.” URL: https://bradycfo.com/outsourcing-vs-hiring
• CFO Hub. (2024). “Hiring an Accounting Manager? Why You Should Outsource Instead.” URL: https://cfohub.com/outsource-vs-hire
• Complete Controller. (2024). “Accounting Subcontract or Hire?” URL: https://www.completecontroller.com/accounting-subcontract-or-hire
• Cook CPA Group. (2025). “How to Account for Independent Contractors.” URL: https://cookcpagroup.com/independent-contractors
• Deloitte. (2024). “AI in Finance.” URL: https://www2.deloitte.com/us/en/pages/finance/articles/ai-in-finance.html
• DPE AFL-CIO. (2025). “Misclassification of Employees as Independent Contractors.” URL: https://www.dpeaflcio.org/factsheets/misclassification-of-employees-as-independent-contractors
• DVF CPA. (2025). “Hiring an Accounting Firm.” URL: https://dvfcpa.com/hiring-accounting-firm
• Farche Solutions. (2024). “Cost Savings and Business Growth Through Outsourcing Accounting.” URL: https://farchesolutions.com/franchising/cost-savings-and-business-growth
• Gentle Frog. (2025). “Bookkeeping Subcontracting: Expectations vs. Reality.” URL: https://gentlefrog.com/bookkeeping-subcontracting
• Housecall Pro. (2024). “Subcontractor vs. Employee.” URL: https://housecallpro.com/subcontractor-vs-employee
• Invedus. (2024). “Top Accounting Outsourcing Trends You Need to Know for 2025.” URL: https://invedus.com/blog/top-accounting-outsourcing-trends
• Investopedia. (2024). “Total Cost of Ownership.” URL: https://www.investopedia.com/terms/t/totalcostofownership.asp
• IRS. (2024). “Independent Contractor Self-Employed or Employee.” URL: https://www.irs.gov/newsroom/independent-contractor-self-employed-or-employee
• Lucey Accounting. (2022). “To Hire or Not to Hire.” URL: https://luceyaccounting.com/to-hire-or-not
• NOW CFO. (2025). “Outsourcing Accounting For Business Growth.” URL: https://nowcfo.com/outsourcing-accounting-growth
• Personiv. (2025). “Learn How to Maximize Accounting Outsourcing Cost Savings.” URL: https://insights.personiv.com/blog-personiv/accounting-outsourcing-cost-savings
• Reconciled Solutions. (2025). “Subcontractors vs. Employees.” URL: https://reconciledsolutions.com/subcontractors-vs-employees
• Tesseon. (2023). “Subcontractor vs. Employee.” URL: https://tesseon.com/subcontractor-vs-employee
• TGG Accounting. (2024). “Outsourced Accounting vs. Hiring In-House.” URL: https://tggaccounting.com/outsourced-vs-in-house
• TMD Accounting. (2022). “Bookkeeping for Independent Contractors.” URL: https://tmdaccounting.com/bookkeeping-contractors
• Voolt. (2024). “Subcontractor vs. Employee.” URL: https://voolt.com/subcontractor-vs-employee

Effective communication is the cornerstone of successful relationships, and this holds, especially in the realm of customer interactions. Shifting the focus from viewing customers as mere conduits for profits to acknowledging them as individuals is a fundamental step in enhancing communication skills. The language you choose and how you convey messages are pivotal in shaping these interactions.

Whether it’s face-to-face communication or digital correspondence, the methods employed and the content of your messages significantly impact the customer’s perception. Avoid the temptation of sending generic email blasts and expecting swift responses. As you observe how a shopkeeper addresses you, recognize that your customers are equally observant of your approach.

How do you build relationships with people? These techniques are the same ones you would use to build a relationship with your customer. First, the foundation for building any relationship is trust. When you put your trust in someone, and they trust you in return, you both work on building something that can last for a long time. If that relationship is the foundation of your business, then trust is the cement used to fortify that relationship.

Improve Your Communication Skills

Communication is the bedrock of any good relationship. Work on how you communicate with your customers and treat them as humans instead of a means for profits. If you notice how a shopkeeper talks to you, it stands to reason that your customers would notice the same in you.

Language choice is critical, and communication methods and messages matter significantly. Do not send email blasts and expect quick responses. If a customer walks in, be prepared, and do not give them the impression that they are an imposition.

Consumer’s Point of View

Some states require a form of agency disclosure at the beginning of a relationship. Forget about legal requirements from the agency from the perspective of the licensee and regulatory agencies. The main reason agencies exist is to impose the licensee’s fiduciary duties that need them to protect the customer. Customers trust you because you are representing them under agency employment. You are bound to keep their information confidential, disclose facts, obey the lawful instructions, safeguard all monies entrusted, and be loyal to them.

Consumers do not care about the intricate nature of the regulatory agency rules. They genuinely care whether we will protect their interests and if they can count on us.

Use Realtor Pledge of Performance

The National Association of Realtors (NAR) has summarized the Code of Ethics in a single-page document. The document sets a promise that each realator is bound to uphold in working with consumers and ensuring that their interests are placed above all others.

Ensuring customers that they can trust you because you adhere to a code of ethics and will promote their interests increases customer confidence and loyalty.

Gather and Use Testimonials 

Trust is essential, but you cannot convey that clients must trust solely you. Take a lesson from those businesses and companies that have spent millions of dollars learning and using the power of customer testimonials. When we go to Amazon to purchase a book, what is the first thing we see? Testimonials from others. What determines when you look up a new restaurant or hotel? Testimonials. People tend to trust others’ experiences more than what the hotel or restaurant has to say.

Gather testimonials from your previous and current clients and post them on a visible platform like LinkedIn, Facebook, YouTube, and your website.

Ask for Feedback and Use it

When you ask for feedback, the customers feel heard and valued. It also helps improve your brand, products, services, and processes.

Ask your customers to review your products online and check your reviews at least every week. Timely replies to feedback show how attentive you are to your customers. However, feedback is only valuable when you act on it, so be attentive to customer needs and demands for maximum profit. Be aware of customer feedback because it is critical to building any relationship.

Conclusion

You must do your best to build a long-lasting relationship with your customers. Customers want to buy something from a company they can trust and support. Similarly, create a necessity and use all your selling skills, but remember that customers are people just like you who want a positive buying experience.

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.

By: Jennifer Brazer

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.

Fact Checked By: Brittany McMillen

Choosing the Right Business Structure: The Key to Unlocking Growth

Have you ever wondered why some businesses scale effortlessly while others stall at every turn? Sure, product and marketing matter—but often, it’s their fundamental structure that’s either propelling them forward or quietly holding them back. From taxes and liability to investor appeal and growth potential, the business structure you choose isn’t just paperwork—it’s a financial strategy. I’ve helped hundreds of founders make the right move early—and today, I’ll show you how to do the same.

Key Takeaways

• Understand the real-world financial impact of each structure on taxes, liability, and funding
• Learn how your business structure shapes future scalability and investor readiness
• Uncover hidden compliance costs and regulatory landmines across states
• Access a step-by-step approach to match your structure with your growth stage
• Learn from a real startup founder who saved thousands by transitioning from a sole proprietorship to an LLC

Why Your Business Structure Matters: Beyond Basics

Think business structure only affects taxes? Think again. Your choice lays the foundation for nearly every financial move you’ll make—which investors you attract, how banks view you, and even whether you keep your retirement benefits intact.

Let me break this down a bit more:

• ⚠️ Liability Protection: Structure determines whether your personal assets are protected during legal disputes. Only LLCs, S-Corps, and C-Corps provide this shield, while sole proprietorships and general partnerships do not. This can save you from losing your home or personal savings if things go wrong in business.

• 💡 Investor Appeal: It influences your ability to issue shares and attract partners. A study by Ronstone OpeX shows that C-Corps are preferred by investors due to their ability to provide equity, making them more attractive for venture-backed startups[3]. Having the right structure can open the door to the funding you need.

• 🚀 Scalability: It supports—or limits—your plan to scale, exit, or innovate. For instance, a SaaS founder I worked with started as a sole proprietor. Their product took off, but their structure didn’t support outside investors or employee stock options, leading to missed opportunities. The switch to an S-Corp not only saved them time and revenue but allowed them to scale effectively.

When you know better—you pick better.

Overview of Common Business Structures and Financial Implications

Let’s level-set. Here’s a breakdown of five core business structures and what they mean financially.

Sole proprietorship

• ✅ Simple to set up
• ❌ No legal separation between you and the business
• 🧾 All income is taxed once, but you foot the bill for all liabilities

👉 Best for: Freelancers, hobby businesses, or solo practitioners testing an idea.

General partnership

• ✅ Shared responsibility and decision-making
• ❌ Each partner is fully liable—yes, even for the other’s mistakes
• 💼 Less formal, but often messy unless agreements are airtight

👉 Best for: 2–3 co-founders exploring ideas with limited external risk.

Limited liability company (LLC)

• ✅ Keeps your assets safe while allowing for flexible management
• ⚖️ Pass-through taxation by default, with the option to be taxed as a corp
• 👍 Favored for its balance between protection, flexibility, and relative simplicity

👉 Best for: Serious startups ready for growth but not VC funding—yet.

S corporation

• ✅ Pass-through taxation while limiting self-employment tax
• ❌ Comes with stricter eligibility and formalities
• 📊 Ideal when you’ve got consistent profits and want tax efficiency

👉 Best for: Service-based businesses with stable income and few shareholders.

C corporation

• ✅ Best for raising capital and issuing shares
• ❌ Double taxation (corp level + dividends)
• 💰 The go-to for venture-backed startups and companies with expansion on their minds

👉 Best for: High-growth businesses seeking investment, IPO potential, or international operations.

📊 Here’s a quick comparison of business structures:

	Structure	Taxation	Liability Protection	Investment Friendly	Compliance Level
	Sole Proprietor	Pass-through	No	Low	Low
	Partnership	Pass-through	Limited	Medium	Low–Medium
	LLC	Pass-through/Corp	Yes	Medium	Medium
	S-Corp	Pass-through	Yes	Medium	High
	C-Corp	Double Taxation	Yes	High	High

The Hidden Financial Effects of Business Structures

There’s more under the hood than most guides reveal. Here’s what you may not hear:

• 📈 Business Credit Score: Your structure can affect your business credit score. Statistically, businesses with an LLC or corporation status have higher credit scores compared to sole proprietorships.

• 💸 Funding Approval: Lenders often prefer LLCs and corporations for funding approval due to the reduced personal risk. This preference can make or break your chance at securing the necessary financing.

• 👩‍💼 Employee Benefits: Offering benefits like 401(k)s is much easier as an S-Corp or C-Corp. Research shows that these structures can provide more robust benefits packages, attracting top talent[2].

• 📉 Grants and Insurance: Some grants and insurance policies are only available to incorporated entities. This means that if you’re a sole proprietor, you might miss out on opportunities that could mitigate risk.

🧠 Case Study: A Denver-based tech company restructured from a general partnership to a Delaware C-Corp. Within four months, they secured $2M in VC funding—funding that would’ve been impossible without the change. Why? Investors need equity, not just ideas.

Regulatory and Compliance Considerations That Impact Your Financial Health

Most founders overlook this important stage—and it costs them.

• Different states = different annual fees, franchise taxes, and filing rules. Be aware that what works in one state may not work in another.

• Noncompliance (even accidental) can mean penalties, lost statuses, or serious legal issues. This could sink your ship before it even sets sail.

• Multi-state businesses? You may owe taxes in more than one state if you cross that invisible “nexus” line. This complexity can blindside you if you’re not prepared.

🔎 Pro Tip: Use tools like ZenBusiness or hire a compliance service to track filing dates. A $99 annual service can save thousands in penalties.

How To Evaluate Your Business Stage and Growth Plans

Ask yourself these five questions:

1. Do I plan to raise capital in the next 12–18 months?
2. Is protecting my personal assets critical right now?
3. How many partners (or future partners) do I anticipate?
4. Can I commit to regular compliance documentation?
5. Am I building for lifestyle or for long-term enterprise value?

Each answer nudges you toward the structure that fits your road ahead.

✔️ Startup with high growth goals? Consider an LLC with the option to convert.

✔️ Consulting solo? A sole proprietor is okay—for now. Reassess after $50K revenue.

✔️ Ready to scale? You’re likely looking at an S-Corp or C-Corp.

Step-by-Step Roadmap to Selecting Your Business Structure

Here’s your no-fluff, crystal-clear path:

1. 🎯 Define your financial goals (tax savings, funding, protection)
2. 📞 Book a CPA or attorney consult — ask about taxation, compliance risk, exit strategy
3. 📊 Build a pros/cons matrix based on your top 5 priorities
4. 📝 Register your entity properly — get your EIN, bank account set up, and licenses
5. 🔄 Need to switch structures later? Plan it during low-revenue months to minimize the impact

⚠️ Pitfall to avoid: Mixing personal and business expenses before your structure update. It wrecks audits and affects credit lines.

💬 Founder Tip: Erica from @CompleteController tells me, “What we see again and again is that tight, accurate books during a structure transition make everything smoother—from tax time to due diligence.”

Case Study

Meet James, a Florida-based photographer who started as a sole proprietor. At first, this setup was easy. But when he started landing commercial projects, clients requested liability insurance, contracts, and an EIN.

He transitioned to an LLC, which cost him $125 and took one afternoon—and here’s what changed:

• 🌟 Secured over $40K in corporate bookings
• 💳 Qualified for a $15K line of credit
• 🧾 Reduced self-employment tax burden through smart write-offs

Lesson? The right structure unlocks doors you didn’t know existed.

Advanced Strategies: Using Structure as a Wealth Engine

Savvy founders don’t just pick a structure—they use it.

Here’s how:

• Use pass-through entities like LLCs or S-Corps to avoid double taxation.

• Issue stock options to attract talent as a C-Corp.

• Create multiple LLCs under a holding company for diversified ventures.

• Drop your tax rate by forming an international entity (but this is only advisable for advanced operators).

💡 Planning for investment? Investors want a Delaware C-Corp—it’s clean, standard, and compliant.

Building a Future-Proof Business Structure

The business world is changing fast. Your structure should evolve, too.

Here’s what’s trending:

• Digital-first structures with virtual compliance dashboards
• Hybrid LLC/Cooperative models in values-driven businesses
• AI tools that alert you to compliance tasks, tax benefits, or state changes
• Structures designed for social enterprises (like Public Benefit Corporations)

Bottom line? What worked in 2014 won’t cut it in 2025. Be proactive and adapt.

Conclusion

Choosing the right business structure isn’t a boring back-office chore—it’s a smart, strategic decision that echoes across your taxes, growth plans, and legal risk.

Start with clarity. Choose based on your vision, not just convenience. And when in doubt, get expert help early—not after mistakes cost you.

Need help keeping the books clean as you transition? Visit CompleteController.com for hands-on support designed to grow with your structure.

FAQ

How do I know which business structure fits my goals?

Review your growth targets, funding plans, and risk tolerance. Our roadmap above should help.

Can I change my structure later?

Yes, but plan carefully. It involves paperwork, tax changes, and possibly renaming/rebranding.

LLC vs. S-Corp tax savings?

LLCs are more flexible; S-Corps reduce self-employment tax if you take a reasonable salary + dividends.

Will my choice affect my personal liability?

Yes. Only LLCs, S-Corps, and C-Corps limit personal liability. Sole props and partnerships don’t.

Are there hidden costs?

Yep. Annual state fees, filing compliance, and CPA costs can sneak up—budget for at least $500/year.

 

For more on mastering your business financials, explore:

🟢 Internal Links:

• Why Bookkeeping Is Crucial in Early Growth Phases
• 5 Founders Who Regret Their LLC (and What They Did Next)
• How to Prepare for Your First Business Tax Season

🔵 External Sources:

• IRS Business Structures Overview
• SBA Guide to Choosing a Business Structure
• NerdWallet’s Startup Legal Basics

Now you’ve got the full map—time to chart your best course!

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