Author: Stephen Huck

Often, small business owners have faced the question, “When should I hire an accountant?” at some point or another during their careers. It’s a tough question, and the idea of spending extra money on something you’ve been doing yourself in the past can seem daunting. If your small or new business has been faced with this question, it’s time to look at some factors. In this article, we are going to talk about situations that may call for an accountant, what they do, and what that means for your business in the future.

What Do Accountants Do?

Before we get into the nitty-gritty of whether your company needs an accountant, we should first start by clarifying what business accountants do. To begin with, not all accountants or bookkeepers are full-time. Often small businesses do one-time hires, quarterly hires, and so on. With that said, here are the five fundamental tasks business accountants perform:

• Setting up systems

As we stated before, not all accountants are full time hires. Some small businesses choose to hire an accountant at the beginning to help them “set up shop.” There is accounting software like QuickBooks that allows the average business owner to complete daily tasks; however, proper set up is key.

• Entering data (maintenance)

As businesses grow, so do their numbers. Entering data precisely and without error is key to a functional business. These tasks can be time-consuming and require additional help.

• Reporting Results and Forecasting

This task is crucial to business owners, small and large. Accountants can look at real-time facts and numbers, create reports on profits, or loss of profits, which can otherwise be confusing to non-trained business owners. Most of the accounting software available for purchase offers forecasting options, but they are basic. A real-life accountant can produce more detailed forecasting.

Another aspect of this is by creating Financial Statements. Eventually, your business may need to apply for a loan or a credit card. Banks and other institutions are going to ask for 3 Purpose Statements (P&L, Balance Sheet, and Cash-Flow Statement). These need to be precise and detailed the first time.

• Taxes

This is self-explanatory. The bigger your business grows, the more complicated your taxes get. Accountants not only do your taxes, but they also help get you the credits and deductions you otherwise would have missed.

Signs it May be Time to Hire an Accountant

Your business is growing

Business is doing great, and you’re ready to expand. Perhaps that means hiring more employees, more vendors, buying property, or even expanding. These are all wonderful but can cause some serious complications if you’re not prepared for them. When it comes to rapid growth, paperwork can become longer and harder to deal with. This is where an accountant can help take the reins and straighten out all legal, business, and tax paperwork that your growing business may accumulate. As far as expansion, when it comes to buying/selling property, an accountant can help you through the process and create a plan that will work best for your company. They also can help you avoid fees or unnecessary taxes.

Applying for loans

Like most businesses, you’ll have to apply for a loan or a business credit card. In some cases, you’ll be working with Investors. Investors, loan officers, and banks are going to want detailed and exact financial statements. Accountants can take the pressure off of producing such documents that become more complicated and detailed as your business grows.

You have a hard time with taxes

It’s no secret that the U.S. tax code is detailed and confusing and is always changing. Accountants stay up to date on all occurring changes the U.S. Tax Code may be implementing and can assure that your company complies with all new codes and structures. This way, your company is safe from any unnecessary audits, fees, or penalties. They help you do your taxes right, but they can also assure you that your company gets the right tax credits and deductions to keep costs low. *Note* If you are facing an audit and are unsure what to do, we highly recommend bringing in an accountant, no matter what the case may be.

Accounting and bookkeeping tasks are keeping you away from other priorities

Let’s say you’re good at accounting and have managed to keep yourself afloat without one for several quarters accurately, but your business could use a little “sprucing up.” Accounting and bookkeeping tasks are long and time-consuming. If you find that these tasks, as a business owner, are keeping you away from reaching your full potential, it may be time to bring somebody in so you can focus on more business development to help your company grow. 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.

Bookkeeping and Accounting are commonly mistaken for one another. Although similar in nature, some key differences set them apart. Here, we will discuss the different tasks between Bookkeepers and Accountants.

The role of Bookkeeping and Accounting is commonly misunderstood. They both share a common goal: finance. Their tasks may overlap in some areas (depending on your company or financial software.) The key difference is that a Bookkeeper’s role is to keep financial transactions and Accountants analyze the data input by bookkeepers to help business owners in forecasting and giving financial advice. This is a general and simple definition. In this article, we will discuss the key differences between Bookkeeping and Accounting in greater detail.

Bookkeeping

Generally speaking, a Bookkeeper makes far less income than an Accountant. Bookkeepers need less education (an associate’s degree is required) and usually cap out at about $20,000-$30,000/year. This is not to downplay the role of a Bookkeeper by any means. This is to give business owners an idea of what to expect. As stated before, a bookkeeper’s key role is to keep and record financial transactions. Here is a general list of Bookkeeping tasks:

• Recording and maintaining financial transactions. Such as processing invoices, recording receipts, payments, and other transactions. This is commonly known as the General Ledger.
• Maintaining the payroll system.
• Preparing financial statements (getting it ready for the Accountant).
• Managing accounts receivable and accounts payable (who owes you and what you owe).
• Creating and Maintaining Financial Systems.

*Note- this is one of those tasks that can be either/or. Nowadays, there is fantastic software such as QuickBooks that serves as a home for all your financial recordings. However, if these systems are not set up, this can cause severe problems down the road. This is one of those cases where you will want to have someone with extensive knowledge of the program and have set them up before.

Accounting

As stated before, an Accountant’s general role is to analyze financial data, past and present, and aid business owners in financial decision-making. The Bookkeeper’s role is to keep that data. An Accountant’s qualifications need at least a bachelor’s degree, and salaries generally start at $60,000/year. Notice that I said ‘start’ rather than ‘cap’ like I did Bookkeepers. This is because Accountants qualify for an array of certifications that can boost that number, such as a CPA certification. Here is a list of general Accounting tasks:

• Analyzes financial data and creates a business plan based on that data.
• Taxes
• Accountants are trained on the U.S. Tax Code. They can not only do your taxes but also make sure you get all of the deductions and rebates your company qualifies to keep costs low.
• Corporate reporting and compliance.
• Financial management advice.
• Finalizes and edits financial statements. (Balance Sheet, P&L Statement, Cash Flow)

As you can see, the Accountant and Bookkeeper have different roles. However, both are important when it comes to running your business smoothly and efficiently. If you’re looking into hiring a Bookkeeper or Accountant, one of the best ways is through word of mouth. If you are a new business owner, we recommend moving quickly because both professions are in high demand.

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 alarming two-thirds of Americans do not have a budget in place.  Unfortunately, managing money is not something that most learn while growing up.  Maintaining a home budget can reduce stress and allow you to live within your means.  Start today by reading how to create a budget.

What is a Budget, and Why is it so Important?

Let’s all agree being an adult is hard.  Can I get an amen?  Life can get overwhelming, and we can become consumed by how much we have to do on a day-to-day basis.  Finding the time to manage your money and create a budget can seem like the last thing on your to-do list.  First, let’s take an honest look at what a budget is.  A budget is a spending plan for your money. It is an itemized list of where your money is going and a balance of your expenses and income.  This allows you to track how you spend your money, correct any errors, and plan for the future.  Creating a budget is vital so that you know you are not spending more than you are earning.  Those that have budgets are much more financially secure than those that don’t.  Managing your money well can prevent you from going into unforeseen debt and also allow you to have money left over to do what you’ve always wanted to do.  Plus, once you have created a budget, you will feel empowered.  You will have much more control over your spending and feel a sense of ease instead of living your life paycheck to paycheck.

Take an Honest Look at Your Income and Expenses

The first thing you are going to need to do is to get organized.  If possible, gather all your information, such as pay stubs, receipts, monthly bills, credit card statements, savings accounts, student loans, etc. If your income is not steady from month to month, you will want to calculate an estimate of the average income you are making so that you have a clear picture of what you are bringing to the table.  Go back six months to give yourself a conservative estimate of what you can expect.  If you have a joint account with a spouse or a partner, your budget will be much more successful if you do this together. 

Next, make a list of all the necessary expenses that you are responsible for every month.  These will be items such as mortgage/rent, utilities, car payment, childcare, average grocery bills, and cell phone bills.  Open up your checking account online to see if you’ve missed anything.  It can be easy to overlook something, such as bills automatically debited from your account.  Once you’ve created this list, come up with a total, and note these are your priorities.  These are the expenses that you must pay first before spending on anything else.  Now, subtract this total from your monthly income.  What you have left, if anything, will be most important in creating your spending plan.  Knowing how much you have left over each month after the prioritized items are deducted will allow you to see the truth about where your money is going.

Take Control of Your Spending Habits

Now that you have taken an honest look at how much you are making and what your essential expenses are, let’s see where the rest of that money is going.  The fact is, most of us don’t know why we keep coming up on empty each month when we are making a decent earning.  Let’s go back three months and jot down all your extra expenses, such as eating out, entertainment, and shopping.  These are what we would call luxury items.  Purchases that may seem small at the time can add up.  Here’s where you can feel empowered.  Take a look at reality and decide how much you have to spend on these luxury items.  Do you need to eat at home more?  Or perhaps, cut back on those extra Target trips?  You can get out of control when you don’t know how much you have to spend.  Categorize these items and compare them with how much you have left in the bank.  Conservatively decide how much you would like to spend on these categories and put a cap on them so that you know you are not overspending.  Then, consider how much you would like to save each month and where you would like that money to go.

Time to Take Action with a Budget Planner

There are several ways that you can keep track of your budget now that you know how and where you are spending your money.  Honestly, looking online for a budget spreadsheet can be overwhelming because there are so many options out there.  It can be challenging to determine which is best for you.  Keep in mind that this should be an easy process.  If you make it too complicated, you are far more likely to fall off the wagon and get distracted.  So, keep it simple and easy so that you can maintain it daily.  Here are three recommended ways to manage your budget with ease and comfort.

1. Microsoft Excel.  If you happen to own Microsoft Excel already, this is a wonderful way to create a budget.  Numerous preset budget templates are user-friendly and, best of all, free.  Choose the budget spreadsheet that is right for you.  Entering your information is easy and will allow you to track your spending each month.  
2. Budgeting Phone apps.  The saying is true: there is an app for everything.  There are a variety of different apps that allow you to enter and keep track of your budget daily.  Some are free, and some come with a fee.  We will look at and compare some of the best apps in another article.  
3.  If you want to get sophisticated, Quicken is a household finance bookkeeping software that allows you to track your spending, and investments, and save for the future.  This will allow you to dig in and get to the nitty-gritty.  It can also be much more detailed, so it is up to you how much time and energy you want to spend on creating your budget.

You’re all set and on your way to creating a budget!  While managing money takes a little time and effort, in the long run, it sets you up for a more financially secure future.  Congratulations!   

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.

While most individuals are worried about strangers getting their hands on and misusing their personal information, the people who are actually most likely to commit crimes of fraud and embezzlement are those within the inner circle of trust. Businesses that have grown around a single point of contact, someone who performs all of the critical accounting functions, are the most exposed. Unfortunately, small businesses often cannot afford multiple employees to run their accounting functions. As these companies grow, that single point of contact becomes the one person who knows how to perform all functions properly. As a result, the separation of duties critical to fraud protection and accuracy is lost. What about the risk of losing that individual to sick leave, disability, vacation, or termination? This unhealthy dependency on a single key person is especially crippling in accounting, and that seems to be where we see it the most. A seasoned outsourced accounting firm will work with a business to implement protocols that encourage and support healthy accounting practices. Companies can achieve separation of duties and knowledge redundancy by working hand in hand with an adequately organized firm to split task work and create efficient workflow processes. The most efficient transfer of workload occurs in a hosted environment where the accounting programs, inflowing source documents, and data from CRM, POS, and ERD systems are accessible to both the internal team and the outsourced team at the same time. That’s why hosting the books and records within a secure environment is the perfect first step to bringing accounting to the next level. 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.

Recently, a movie was made named The Accountant.
Now we can’t perpetuate the longstanding joke in our office that ‘nobody ever made a movie about an accountant’. The fact is that accounting is not a glamourous or adrenaline-filled job, but there are some very fulfilling and exciting opportunities in the field. I’ve experienced a few of them:

• Forensic Accounting– This is really fun. It’s like being a CSI in the accounting field. I had the opportunity to help a forensic accountant review and prepare reports of findings related to divorce cases for the court. There is something very satisfying about uncovering money that someone is trying to hide.
• Start-up CFO – If you are looking for a wild ride and aren’t averse to risk, this could be just the job for you. You will have to be really good at creating forecasts based on nothing but market research and selling your projections to someone with really deep pockets. Often, you will find that your projections were wrong, and sometimes you are pleasantly surprised by new revenue streams you hadn’t even anticipated. There’s a big payoff for success!
• Tax Coach – Tax laws are very complicated; the more money people have, the more they need advice. Some accountants are building an entire career around developing strategies for helping people pay the least amount of tax possible given their current and future financial position. There is nothing illegal about paying as little tax as possible. Developing a tax coaching practice could be the key to a very lucrative and satisfying accounting career. 

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 are really excited about our new internal communications app SnapComms.

We just adopted their program last month and already have great things to say about it. They let us create custom templates, so we are using color, design, and keywords to indicate the purpose of the communication. We have segregated our messaging into departments – Tech, Staff Task Reminders, Client Quick Tips, and Fun Stuff (marketing and staff ).

We are excited to watch the stats develop as we roll out the various initiatives. They have a great reporting function that allows us to monitor who has seen our message and who engages with it.

We anticipate improved staff performance, less disruptive technology updates, and increased engagement by clients with add-on services that will enhance their experience and increase alternative revenue streams. 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.

Easier said than done, right? Many people get stuck on the ‘what you love’ part. They simply don’t know. Let’s start with the simple fact that you probably need to generate an income since you will be spending a great deal of time doing what you love. It’s easy to say, “I love making money” or “I love being financially secure”. Now challenge yourself to fill in the blank with something you love: “I wish I could make money while _____________________.”

What is it for you? Eating food? Gardening? Making artwork? Listening to music? Playing video games? Reading? Playing with kids? Solving puzzles? Helping people? Flying? Building stuff?
It is incredible how powerful and creative our thoughts can be. Once you have manifested the idea of making money by doing what you love, you will spark an awareness of opportunities to follow your dream. You will see yourself becoming curious about how the dream may come to life, and you might find yourself doing research, gathering opinions and ideas from friends and associates, and generally developing your dream further.

Next thing you know, a problem or need will arise that you can solve – by doing what you love. Anytime you solve a problem or fulfill a need, you bring value. With the right planning and execution, value translates to money.
For me, I found during the course of my life that I was particularly good at small business stuff. I like creating businesses, learning about them, structuring them to endure, and helping others to do the same. I found that for me, the really fun part was the financial planning and analysis. It was exciting to forecast future earnings and budget expenses and create a model that was self-supporting and strong. I loved it! Fortunately for me, there are many, many people who do not like financial management – the whole idea of balancing a checkbook or reviewing a financial statement makes their eyes glaze over.

So I can help others (solve a problem and fulfill a need) by doing what I love. If you are doing what you love, you will be happy, and your creative juices will flow, which fuels your passion and makes you even more valuable. Do what you love – success is imminent. 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.

Small businesses are the lifeblood of the American economy. As accountants, we see the struggle small business owners face as they build their trade or craft. They rely on support from their community, and they can give you some perks that big box stores can’t. Here are a few great reasons why shopping for small businesses is smart and fun: 

• Diversity and Creativity – Small and local shops tend to capture the local vibe or their own unique messaging when sourcing products for sale. That means their products will be different and less accessible through mainstream channels – that artistic and creative touch adds value.
• Craftsmanship – Manufacturing at the small business level tends toward higher quality and greater attention to detail. The products manufactured by local craftsmen, from screen printers to furniture makers, will be produced in smaller batches. The business owner usually performs the quality control, so you know you are getting their very best.
• Accountability – Small business owners often live in the community they serve. As such, they are motivated to provide an excellent level of service, and they are nearby in case something goes awry. Tradesmen within your community will tend to be available when bigger businesses are closed and will usually give you their cell phone in case of emergencies – now that’s service!

Put your money where your heart is and shop your local small businesses this holiday season. Celebrate our brave and clever small businesses by putting your hard-earned money back into your community – it’s a win-win! 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.

One of the books I read early in my entrepreneurial journey was The Art of the Start by Guy Kawasaki. He talks about the importance of a business being founded upon an idea that ‘makes meaning’ in people’s lives.

That has always stuck with me, and ‘making meaning’ remains my goal and most fulfilling reward as an entrepreneur. My current venture, Complete Controller, was born from a client’s request for access to my level of accounting expertise for his concerns nationwide.
To solve his problem, we created a hosted accounting desktop long before the ‘cloud’ was a prolific and accepted business environment so he could access our work and interact with the books and records regardless of his location. We made meaning for him, and he brought us our first round of clients that fed our growth and development.

As I developed processes for performing the bookkeeping and reporting services remotely, I became enamored with the luxury of being paid for my work product rather than my hours. Meanwhile, I wasn’t diluting my effective hourly rate by commuting to serve my client base. This made meaning in my life as I was finally positioned to be free to serve my clients without sacrificing my presence at home with my three beautiful little girls! As the word got around that we could provide bookkeeping services at a fraction of the price of traditional methods because we were working product-centric, and more and more businesses were asking for our service. After all, that savings made meaning to them. When their tax preparers reviewed the books and needed someone to talk with about transactional structure, financial management, and ongoing maintenance, our accounting teams were accessible and knowledgeable. So, the experience was much more fulfilling than in prior years when they only had their clients to interact with about the bookkeeping and records. This really made meaning to them, and it made good sense to encourage their other clients to work with us as well. What do I love about being an entrepreneur? That through my business, I can make meaning in all of these people’s lives in a very real way. 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 primary reason elder financial abuse is allowed to happen is the lack of transparency in our current systems and processes. Upon appointing a power of attorney or trustee, encouragement or even a requirement should be made to have an outside accounting firm either perform the bookkeeping or oversee the bookkeeping.

Furthermore, in this age of cloud technology, it is not too much to ask that the books and records be hosted on a platform where all beneficiaries and professional team members can view the financial activity. Advisors, attorneys, and accountants need to see themselves as services to the elderly client, not the trustee or beneficiaries – split loyalties can cause moral and ethical dilemmas. Those professionals should be making the recommendation for transparency right out of the shoot before any impropriety when the trustee is eager to show that their intentions are pure.

Suppose the professional is called upon to fulfill the role of trustee. In that case, there is even more reason for all to be transparent as it reduces suspicion by the family and increases accountability. In fact, it can be a positive differentiating factor for those professionals that are positioning themselves to be providers of that service. Just submitting quarterly reports is not an acceptable level of transparency today – there are better options in the marketplace for that intent upon doing the right thing – those books and records should be hosted and regularly reviewed by an outside firm! 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.