Author: Complete Controller

First-time users of QuickBooks may find the decision between QuickBooks Pro vs. Premier difficult. In this article, we will outline the prices and features of each to help your business make the best decision.

QuickBooks is accounting software used by business owners and accountants. Intuit offers two types of accounting software: online and desktop. In this article, we will be talking about the differences between the two desktop software, Pro vs. Premier. To learn about the differences between desktop software vs. online software, click here.

QuickBooks Pro

Price

$219.95 onetime purchase. It’s important to know that both software only have a shelf life of about three years.

Features

Below is a list of QuickBooks Pro’s most important features:

• Hosts up to 3 users, in addition to an external accountant, which is free.

It is only necessary if you need multiple users on a file simultaneously.

It can have 1 “external” accountant user for free in addition to the three users.

Audit trail tracks are used from separate users so the company can see which users made edits or inputs.

• Print checks. (Checks can be ordered through QuickBooks or 3rd party vendors; they do not come with software.)

If you use your bank’s online bill pay capability, you may not need to order printable checks- it can save your company a lot of money.

• Pay bills.

If you connect your financial institution with QuickBooks, you can often use this bill pay feature to send the command to your bank to process a bill payment to your vendor- completely paperless.

• Manage expenses.

Enter the bills you need to pay as they come and wait to pay them when cash flow allows. This is called accrual basis accounting. This is a great way to manage your payables.

• Track sales, customer payments, credit cards, and sales taxes.

This is a really important feature if you don’t get paid right away or if you have to track sales tax on sellable items. Warning! Be careful setting this up.  If it isn’t done correctly, it can be very problematic and difficult to fix. This is where you might want to consult a professional.

• Manage payroll, payroll taxes, and direct deposits. (Advanced payroll add-ons can be purchased through QuickBooks.)

Managing payroll in QuickBooks is a great way to keep everything in one place and allows you to charge hours to different jobs or different tasks and see the different results on your P&L statement.  This is another feature that, if not set up correctly, can cause problems and be difficult to fix.

• Set reminders and create to-do lists.
• Imports data from Excel and Imports data from previous versions of QuickBooks. (Remember, about every three years you will have to replace your software.)

3rd party applications are available to help format the Excel data for easier transfer. Improper import can mean hours of hitting the delete button. (Make sure you have a backup.)

• According to your bank, it can download bank and credit card transactions.

Works excellently with major banks but can cost you and your bank money. Smaller institutions, such as credit unions, will often not collaborate with this feature.  

• Offers multiple currencies.
• Create a budget. (only one budget per business year)
• Let you customize your invoices and other forms.
• Basic inventory tracking. (Read below for additional inventory tracking on Premier.)

Emphasis on basic. If you are planning to integrate a 3rd party inventory system or you have more than 10 SKUs, you might consider Premier.

QuickBooks Premier

Price

$379.95 onetime purchase

Features

QuickBooks Premier offers all of the features available on Pro. In addition to these features, QuickBooks Premier offers:

• Host up to 5 users.
• Create inventory assemblies and bills of material.

This feature also needs to be set up carefully and properly. As for other features, we recommend a professional set this up for your company.

For this feature, your company needs a system & staff internally that maintain and utilize these features.

• Create a business plan. (Basic)
• Forecast sales and expenses.

Based on vendor bills and customer invoices that you have put in the system. If you are not using AR or AP properly or you are not entering these things in a timely matter, this feature is useless.

• Allows you to create industry-specific reports.
• Price levels per item.
• Billing rate levels.

Great for law firms and consulting firms that may charge different rates for different people performing various tasks.

• Additional Job costing, reporting functionality, and capabilities.
• Filter sales orders according to current availability.
• Backorder viewing. (Inventory function)
• Closing date exception report.
• Availability tracking. (Inventory function)
• Previous reconciliation reporting.

This is perhaps the most important feature that Pro does not offer.

• Reverse journal entry.
• Creates purchase orders from estimates.

It can save tons of time and prevent inaccuracies. If your company uses POs, then this is a great reason to buy Premier over Pro.  

Premier offers quite a few more features than Pro. It is a no-brainer that accountants and bookkeepers prefer Premier over Pro. As reviews suggest, Premier is the better option for companies dealing with large amounts of inventory. On the other hand, if your small business offers a service as opposed to products, Premier would be overkill, and Pro should be your option. It is also important to note that QuickBooks offers a variety of add-ons as well as ‘extra’ license agreements to improve your QuickBooks 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.

As a new business owner, when you finally turn a profit, you are tempted to stuff all of that money directly into your wallet. Well, be patient. Here are some reasons why delaying your gratification will pay off! Invest profit into your business with these simple guidelines.

Reinvesting into my Company, I need Personal Income, Too!

Building your company to be profitable can be a grueling process. You are working extra-long hours, scraping pennies together, and working harder than anybody else for little reward. Once a profit is achieved, you think your work has paid off, and it has, but if you want to continue to increase that profit, be careful to choose your next money move wisely. Before you cash out, remember it takes money to make money. Investing some of that money back into your business will be invaluable. Of course, you have your own financial responsibilities, and you need an income, too, so find the right balance.

Reinvesting about 50% of profits will move you in the right direction. This means if your net profit is $60,000, you can afford to invest $30,000 into your company and now have a modest $30,000 a year salary. Invest that $30,000 into the building and advertising your company. That number will increase as your company grows. Pocketing that money halts your growth, you will continue to generate a net profit of $60,000. Let’s say we invest $30,000, and because we were able to improve our company, next year, your net profit is $120,000; again, we invest half. Still, we are pocketing that $60,000 that we refrained from keeping last year but with the opportunity to double our profits again!

Three Areas to Invest in Your Business

We have established that it takes money to make money, but how can be a tricky question that depends on your business and how much time and money you have to spend. Three options that are sure to be valid are advertising, getting your name out there and showing the world who you are; investing in increasing your skill set so you and your employees can benefit from new coaching and experiences; building your company to its potential, don’t underestimate your company, invest in its growth.

Advertising

There are tons of affordable ways to advertise your company and, with the World Wide Web, a lot of places to do it!

• You are making your company a website.

If you don’t have a website, this is a great way to get across information about you and your services in a place that is easy for your potential clients to find and access.

• Social Media.

Use social media to post your information. This can even be free; use Facebook, Twitter, and Instagram.

• Make a commercial

You can show this commercial for free and post it on your website or YouTube.

Increasing Your Skills

By strengthening your and your team’s knowledge and skills, you add value to your service. Invest in certifications related to your service, have someone come in to teach you how to advertise, have an expert guide you on how to maintain your website, and attend conferences. This will take time and money, but you will have a new skill set that will be continuously useful. You are never done learning.

Building Your Company

Invest in your company’s growth; look at what you will need to develop and expand if your company does start to generate more business. Hire new employees, rent new office space, or find another company to team up with. Envision the change you want to see and know that your company’s growth will demand optimal performance. Always calculate the risks of your investments and choose which options are most helpful for your company at the time. Do your homework, plan for future investments, move forward when you are comfortable making them, and watch 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.

Deciding between QuickBooks Online vs. Desktop can be confusing and time-consuming. In this article, we will compare features, reviews, and pricing in detail.

Ever since QuickBooks launched its new Online version (QBO), business owners have been contemplating making the switch. New business owners who have never used either software may be looking into which software may be best for their company. QuickBooks Online vs. Desktop?  The details can seem confusing for those who are not trained in the art of accountant lingo. Have no fear because, in this article, we break down the key differences and similarities, the future of QuickBooks, and prices for both.

Mobility vs. Stability

Intuit is actively encouraging its QuickBooks Desktop (QBD) customers and future customers to start using their newest cloud-based software. Entering Intuit’s QuickBooks Desktop vs. Online page, where both products are offered, it would seem like a no-brainer that QBO is the better choice. But this switch may seem unnecessary. To begin, let’s look at the key difference between the two: mobility. The main difference between cloud-based software vs. desktop software is the ability to access your accounting software on the go. For larger companies who need the extra features offered on QBD (feats. discussed later in the article) while also needing to be able to access your account on the go, companies offer cloud hosting for QBD at an extra cost.

QuickBooks and Your Computer

Still haven’t decided whether QBO or QBD is for you? Let’s talk about your computer. It’s easy to forget that one of the key factors in this decision is the device that will be running your software. Because QBD is software downloaded onto your computer, the internet is not required, and vice-versa for QBO. Because QBD is downloaded onto your computer and does not require internet access, it uses less processing power/memory to operate the program and perform tasks. You will have to download the program thus use computer storage, but the rest is up to the program. When you are operating such a large task online, your computer will need more short-term processing power to complete tasks. Therefore, the answer may lie in your computer and how new/old it may be or how willing you are to buy a new computer so you can run QuickBooks Online.

Features

As far as features go, QBO has more mobility features as well as instant access for accountants, phone support, and up-to-date upgrades without the extra charges. QBD ranks higher for accountants and bookkeepers because it has more time-saving features.  With that said, business owners prefer the easy to use cloud-based software over the desktop software because of its straightforwardness and lack of accountant jargon. A key deciding factor for you or your company may depend on how large your company is, the products or services you offer, and the number of accountants you will be sharing QuickBooks with. For small businesses, who don’t use accountants or use one accountant, QBO may sound more appealing.

Conclusion

Ultimately, the choice between QuickBooks Online and QuickBooks Desktop comes down to the specific needs of the business. If mobility and accessibility are a priority, QuickBooks Online may be the better choice. However, if advanced features and customization options are needed, QuickBooks Desktop may be the way to go.

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

Cash Flow management is one of the main challenges for small businesses. Proper budgeting skills can forecast cash flow 15-30 days out. In this article, we will discuss what cash flow is, common problems, and solutions to understand better and manage cash flow.

Cash Flow is the flow of usable cash for purchases/business operations. The management of money coming in and money going out. Every business is going to have a product or service to sell and generate cash. Retrospectively, every business will have some costs to produce the product or service they sell. As simple as it may sound, often, companies find themselves unable to make payments or accounts payable because they do not have the cash to pay it right now. This article will discuss the main areas that commonly affect Cash Flow (CF) and solutions to these problems.

Accounts Receivable

Problem

Accounts receivable are the money people owe you for purchasing your product or service. If you’ve ever heard the term “cash is king,” you may understand it from a business perspective. The quicker you get paid for your product or service, the better. Often, companies give their clients or customers invoices with a set period to pay for their product/service, or they extend credit. For instance, say you own a Lawn Care company, and you’ve completed your first lawn and invoiced the clients a bill for $100 due within the next 15 days. You were hoping they would pay you in 5 days because that’s when your bill is due for the loan you took out to buy all your lawnmowers. The client forgets to pay you until the 16th day (after a friendly reminder that their bill is due), but you are now scrambling to pay your lawnmower loan. This may sound like a silly mistake, but, in reality, it happens more than you’d think.

Solution

So, what can you do to prevent your new lawn mowing company from going under? Here are a few suggestions taken from the Pros:

• Negotiate the terms of your contract with clients
  • Pay up-front or directly after service is performed.
  • Decrease the amount of time the bill is due.
  • Late fees (last resort.)
• Set up monthly direct deposit to accounts receivable

Most recurring home service companies go this route. Before lawn service, have your clients sign up for a monthly subscription. That way, you know exactly how much you are getting paid, from whom, and when.

• Increase prices

If you find that you are still scrambling with your cash flow management, it may indicate that you need to increase the price of your lawn service to make up for the lost cost.

Inventory

Problem

Inventory is another excellent example of how businesses are in a cash flow management scramble. For this problem-example, we’ll use a widget manufacturer to explain. Let’s say you opened a small business making and selling widgets to retailers. You found a retailer who loves your widget and wants to buy 1,000 of them from you to sell at their store. O.K. great! You’ve done the math, and it costs you $2.00 to make each widget, and you sell it to the retailer at a wholesale price of $4.00, and they sell it for a retail price of $8.00 a widget. But wait, if you make 2,000 widgets, the price goes down to $1.75 per widget. You figure this is the better deal. Now you have 2,000 widgets, and you’re out $3,500 when you were initially supposed to have 1,000 widgets and be down $2,000. Bills start rolling in, and you’ve sold 200 widgets, and 30 of them had to be returned because of malfunctions. You now have more widgets than you can sell and are scrambling to pay your bills.

Solution

• Slow Down

Although the bulk option may seem more appealing because the price per widget cost goes down, you still don’t know how your widgets will do on the market. Take it slow, and don’t create more inventory than you can sell immediately. These costs add up and can come back to bite you.

• Plan for damages/malfunctions

It would be best never to assume that every widget that sells at the retailer will function correctly (as much as you’d like to think your widget is the best); technology does fail. You must budget for these returns in advance, even if that means accounting for more malfunctions than actuality in the beginning. Better safe than sorry. By the time you’re up and running the largest widget factory in the world, this type of forecasting will become easier.

• Know your retailer’s terms
  • Where the items are being displayed in the store.
  • How quickly do they pay you when you invoice them for your widgets?
  • What do they charge for damages/malfunctions?

Accounts Payable

Problem

Sometimes, events happen in life that cause an unforeseeable decrease in sales, and you are short of paying your vendors. For this example, we’ll use a restaurant. Let’s say you’ve been in business for years, sales have been good, and you’ve always paid your vendors on time. There’s a storm that lasts for about a week, severely hurting your restaurant’s sales and causing you to scramble to pay your meat and vegetable vendors. Typically, you pay them when they deliver the food to your doorstep, but today, when they come, you are short the cash to pay them.

Solution

• Negotiate with your vendors

Vendors typically will negotiate terms of payment, whereas banks do not. Instead of whipping out your rainy day (literally) credit card with outrageous interest rates, talk to your vendor first. See if you can negotiate the terms of your payment. Chances are, if you’ve been a loyal customer for several years and have always made timely payments, your vendor will let you extend your payment period.

• Make sure you have enough equity to cover your costs.

This would be the “rainy day” example. Life happens, and sometimes businesses take a hit. Although you can’t prepare for when your business will take a hit, you can be prepared for when it happens.

Budget

The goal for any profitable business is to have more money coming in than coming out. You always want to make sure you’re making more than you spend. This is what a well-maintained budget is for. You can forecast cash flow out 15-30 days in advance by maintaining accurate bookkeeping. But, when life happens, and you temporarily spend more than you are making, ensure the cash deficiency is covered by equity or available debt. Before you run to your credit cards, ensure that the debt + interest < the return on the investment. In conclusion, understanding your budget is always the best defense.

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.

Choosing a bank for your small business can be a tough decision. Picking the best bank for your specific needs can save a lot of time and money. In this article, we have put together a list of questions to ask yourself before making this important decision.

Starting a new small business is not easy and has obstacles that need to be identified and controlled before everything is complete. Small business owners need to spend more time doing their bank “homework” but often don’t. Choosing the wrong bank can cost time and money. On the flip side, choosing the right bank can mean saving time and more money in your pocket. It’s important to remember; banks are competing for you. Don’t let bank shopping intimidate you, because when it comes down to it, you are the one handing out the final rose. In this article, we will list six questions you should be asking (either yourself or the bank), the difference between local-small banks, and large corporate banks and the pros and cons of each.

Questions You Should Be Asking

• What services do I need and how much do they cost?

This is perhaps the most crucial question and predecessor to everything else. What do you need? Do you need a loan, a credit card, employee checking accounts? Think about all the services you will need your bank to offer to you. Banks are familiar with these types of questions, and often, business deals will be offered in “bundles.” Make sure you aren’t paying extra for a service you don’t need. Banks will push the most expensive bundle, so it’s important to know what you need- no more or no less.

• Does your bank offer SBA loans? (Small Business Administration)

SBA loans are federally subsidized loans. The purpose of these loans is to advocate for small businesses while protecting the banks offering them. This could be important because if you’ll need a loan, this could ensure you get the one you need.

• What do your bank’s fees look like?

If you’ve ever used a bank before, you are aware of sneaky hidden fees. I think it’s safe to say we’ve all been there at one point. If not, congratulations! But you’re now entering the world of business banking, where banks consider this their bread and butter. Going back to knowing what services you need- make sure you aren’t paying for a bonus service you don’t need and pay attention to all the details. It’s important to know what you are getting, what you are paying for, and the rules for each account. Get out your reading glasses because it’s time to read that fine print!

• What kind of support do they offer?  

This may seem like a silly question, but if something hits the fan at 3 am on a Saturday night, you’ll be thankful you went with a bank with a great customer support team.

• Does your bank have any kind of transaction caps?

Transaction caps are just what they sound like, caps on your transactions. This means they could block the amount of times you withdraw or deposit a month. This may not be high up on your list but, if it is, it’s important to know that this is a real thing in the world of banking.

• What is your bank’s reputation?

This is the fun part; you get to be a private investigator! Do a little research and see what your fellow small business owners have had to say about these particular banks. Don’t be alarmed at every angry blog post you read about each bank; look for the important ones. It’s like your favorite restaurant, at least one person has written a bad review about them.

Small Banks vs. Big Banks – Pros and Cons

• Small Local Banks

Pros: Friendlier, more one-on-one time with loan officers or bank managers, and often judge good nature and accountability rather than the credit score system. A lot of times, these banks are willing to work with you more when times get tough. You’re a person with a name, not a number, in a database with a credit score.

Cons: Smaller, local banks are going to have longer waiting periods on loans and smaller lending authority. Smaller banks are also going to have fewer bonuses and features. This can come in the form of online features, 24/hour support, or little “gifts” here and there for being a customer. Also, expect higher interest rates.

• Big Banks

Pros: Big banks are going to be much quicker to pass out loans so that you can expect money in your pocket sooner. They are also going to have more lending authority with lower interest rates on those loans. You may also expect to find a larger line of credit when you apply for a credit card. You can also expect extra little bonuses and features, as stated before.

Cons: As you might have guessed, you are not going to experience the “hometown-friendly” feeling as much when you enter a big bank branch. Your credit score is your name and zero sweet-talking big banks. This is not to say you won’t be familiar with your particular branch managers, but they are going to have a lot less power than they would at a smaller bank.

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

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.

Mounting debt is scary and overwhelming. We are going to discuss the best ways to get out of debt and start living within your means.  Whether you merge or pay off your debt over time, you can act now to get out of debt sooner than you think.

Imagine Living a Debt-Free Life.  Where do You Begin?

Regardless of if you are in hundreds or thousands of dollars in debt, you can find a way out. You need to ask yourself some questions to give you a picture. What are your spending habits?  Do you have a budget?  Are you spending more than you are bringing in?  An alarming 90% of Americans make purchases outside their means.  We have become a culture that thrives on instant gratification.  That can get us in trouble when it comes to our pocketbooks, as 78% of Americans live paycheck to paycheck.  We are continually trying to keep up with our neighbors and end up digging ourselves deeper into debt.

First, devote an entire day to your task.  Gather all your credit card statements, medical bills, loans, pay stubs, monthly bills, and expenses.  You will need three columns.  In the first column, include all monthly expenses such a mortgage, utility bills, childcare costs, phone bills, food, and entertainment.  Add all your expenses so you have a clear picture of what you are spending.  In the second column, make a list of total income that you have coming in each month. In the third column, make a list of all your outstanding balances, including the interest rate for each creditor and when those monthly payments are due.  If your monthly expense total is more than your monthly income, that is the first problem.  It can be overwhelming because, often, our debt list is far greater than our income list.  Take a deep breath.  You are not alone, and you can get out of debt with discipline and structure.

 

Now That We Have a Complete Picture Let’s Learn How to Get Out of Debt   

Once overspending is determined, we need to assess where to cut costs.  Perhaps it’s eating at home more or giving up expenses that would be considered a luxury.  Even if we are forced to change our lifestyle, for the time being, the goal is to become debt-free.  Once we have made a serious effort to cut our costs, look into ways we can bring in extra income.  We may be shaking our heads no, but getting out of debt will be well worth it in the long run, and it can happen faster than you think.

First, create your financial goals.  How much time would you like to give yourself to become debt-free?  This will be different for each individual and correlates to the amount of debt we each have.  We can do more and feel less overwhelmed when we have a goal in mind.  Next, call each creditor to ask about lowering your interest rates.  Creditors are more willing to work with you than you may think.  You may be entitled to a much lower interest rate, which would drastically reduce the amount of time it will take to pay off your debt.  If you cannot afford your minimum monthly payments, call your creditor and see how they can help you.  Communication is key. 

The Importance of Knowing My Credit Score and Paying Off Debt  

Credit scores are so important.  Not only do they determine whether or not we may be approved for a line of credit, but they also matter in areas we don’t even realize.  Most often, if you are trying to lease an apartment, get a cell phone, or even obtain a home or auto insurance, companies will look at your credit score to determine your level of responsibility.  It might not seem fair, but it is the truth.  Your credit score can hurt or help you.  Scores range between approximately 300-850. The higher the score, the better the credit.  There are several free websites where you can keep an eye on your credit score, such as Credit.com and Credit Karma.  You can also check here to make sure that you have not missed any outstanding debts that you have from the past. It is important to check for accuracy.  When paying off debt, you must be aware of your score.  It can also be a great motivator to see your credit score improve gradually as you pay off your debt.  

You Have a Clear Picture.  You Have a Goal.  Let’s Get Out of Debt  

There are two different ways to tackle getting out of debt, and it depends on where you stand with your income and expenses. Let’s take a look at both.

1. If your income is larger than your expenses, it is easier to start paying off your debt.  Once you have determined your goal on how long you would like to take to pay off your debt, decide how much money you can put towards each debt.  Once you have made the phone calls to reduce your interest rates, you now need to take a look at which debt still has the highest interest rate.  Focus on paying as much as you can towards this debt first while still making your minimum monthly payments on the rest of your debts.  This ensures that you are not spending time paying off other debts and letting the highest interest rate continue to build.  It’s also good to focus on paying off one so that you feel successful and, once paid off, you can move that to the next debt with the second-highest interest rate.  Tackling debts individually will pay off your debt faster and allow you to feel more successful.  Keep in mind you must continue to make the minimum monthly payments on your other lines to keep them from going to collection agencies.  Once you stick to this plan, you will see that getting out of debt happens quicker than you think, and you’ll find yourself paying off your last debt with pride and resilience.  
2. If you have found that your expenses far outweigh your income, you can still get out of debt.  After looking at what you can cut out from your budget and exploring ways to make extra income, a credit counseling agency can be of great help.  You must find the right credit counseling for you. Make sure to do your research to make sure they are a reputable company.  Check with your local consumer protection agency and state Attorney General’s office to see if there have been any complaints filed against them.  Protect yourself before you make a move.  Once you find a reputable source, agencies can help you with your financial situation.  A debt consolidation loan may be a great option for you.  You can pay off your debt bit by bit until you are finally debt-free.  In other scenarios, your only options may be to ask your credit card companies for debt settlement or even file for bankruptcy.  Keep in mind that your credit score will take a big hit if this is the case, but it may be your reality to get out of debt finally.  

After Learning the Best Ways to Pay Off Debt, Make Sure You Stay Out of Debt for Good

Once you find yourself debt-free, you can continue to improve your credit score and maintain a healthy financial status.  Make sure that you regularly check your spending habits.  Create a realistic budget.  Check your credit score each month.  Cancel your lines of credit with a high-interest rate; however, keep a few lines of credit open, as this can help your credit.  If you are disciplined enough, put small items such as gas or groceries on credit cards with low interest rates and pay them off completely each month.  This will show creditors that have a responsible and active credit history.  And, lastly, take a deep breath and be proud of yourself for tackling your goal.  Paying off debt isn’t as hard as we make it out to be, and it can be your reality. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

For many Tradesmen, job costing is the golden ring that they just can’t catch. Our company sees it all the time. If you are in the construction trades and are wondering how to capture job costing to monitor your company’s performance, this article will help guide you.

First, let’s understand what job costing is exactly. Job costing is the determination of all income and costs related to a given project. The costs are reflected as a percentage of the income so you can compare projects across the board and see if job performance varies from project to project. Using a percentage will help you to find your ‘norm’ and your ‘goal’ and adjust your pricing and/or costs to meet your goals. It is actually relatively easy to determine the cost of any given project as long as you are following some simple processes within your company to make sure that data is captured. We will talk about that next.
The capturing of job costing data is generally where contractors fall short. We hear any number of excuses, but the most common are: ‘My guys have enough to do already’; ‘They aren’t going to want to do this’; ‘They aren’t smart about this stuff, they are good at _(name your trade)_, not paperwork.’ All of these are why the team leader must be 100% behind the job costing effort. The most common best practice is to base the worker’s commissions or bonus pay on their job-costing performance. They suddenly become willing and able to comply as soon as they find out their paycheck is more significant when they do. You do not want to be chasing them and babysitting the process, so make it very simple for them by preparing the forms to provide you with all the data you need for your calculation: invoice, timesheet, and stock pull sheet.

It is also advisable to provide them with a checklist to complete to submit the job as closed. The checklist might look something like this:

• Job Number
• Customers Signature Accepting Completed Work
• Payment Received In Full
• Timesheet Completed
• Stock Pull Sheet Completed
• Helpers Timesheet Entry Approved

Notice that we added a job number to the checklist. If you really want to measure job by job performance, not just worker performance, you should assign a job number to all jobs. It’s just easier this way.

You could have a shared spreadsheet document from which your workers can pull the following job number any time a proposal is accepted, or you can require them to call dispatch to obtain the job number. If you want to be really efficient, have each worker-run their own set of consecutive job numbers and just have them precede each job number with their unique identifier followed by a dash.

Example: RED – 25123. In this example, RED is the worker’s identifier (it doesn’t have to be a color; it could be a number or initials – anything you choose), and the job number is 25123.

• Income – It is pretty easy to calculate a project’s income (also known as revenue). It is simply the total of all amounts invoiced to the client for work performed. Many contractors will opt to use only income received in their calculation, so they will wait until all payments on the job have been received before calculating the job costing. By doing this, they avoid paying commission on a job that looks like it has satisfactory job costing, only to find out later that the client is withholding payment for whatever reason. If your bookkeeping is proper, you should be able to easily toggle between the amount invoiced on a job and the amount paid to determine if the project is paid in full – in fact, most accounting software has a special report just for this purpose.
• Labor – Measuring labor can be a little more tricky. Some service and repair companies pay commission only (carefully check that your state will allow this practice and structure your agreement accordingly). In these cases, labor is not calculated until after the job costing is completed. They will often pay a different level of commission based on the tradesman’s job costing performance. For instance, if the company’s job costing goal is 50% and a worker’s jobs are coming in at 30%, you will want to reward them for their excellent performance with a higher commission rate. If their jobs are coming in at 75%, you will want to think about terminating them. These are examples – you will want to run job costing calculations for a few periods before deciding on the acceptable job costing rates for your business. If you are paying hourly, use timecards. Any staff member who tells you they do not have time to complete a timecard that reflects their hours worked properly is hiding something. Even if they are salaried, they should provide a timesheet so you can determine how much of their total time was spent on each job. Be sure to have a code for Administrative time (time spent filling out timecards will go here) so they have somewhere to put those hours, and you know how much time they spend not making money for the business.

Use the timecard to determine the total number of hours spent on the project and then multiply that by the worker’s hourly rate. If they are salary, you can figure out their hourly rate by dividing their weekly salary by the total number of hours they recorded on their timecard. If a helper or apprentice is needed on the job, that labor cost should also be figured in the job costing calculation. Whether you have your helpers schedule their job assignments by day, half-day, or hourly, their time should be recorded on their own timesheet indicating the project they worked on. Be sure to have the helper get their time approved by the managing worker on that job before moving on to the next project. Approval can be simply indicated with initials beside the time entry. Again, use the timesheet to determine how many hours were worked on any given job and multiply them by the helper’s hourly rate.

• Materials – There are two ways to get materials: out of inventory or custom purchased for that job. Inventory in stock is the stuff your workers have in their trucks (truck stock) and the parts that you house in a warehouse or shop. You will need a list of all items stocked in those locations, along with the purchase price of each item. Usually, your supplier will gladly give you that pricing if you send them the stock list. Put it into a spreadsheet that lists the item in one column and the price in the next column, leaving plenty of room for tick marks. Your workers will use a separate truck stock sheet for each job and tick off the items they pull. When they restock at the shop or warehouse, a different worker should review the ticks and restock the truck accordingly. If the truck stock count falls short, then you know that something got used without it being recorded, and you will be able to follow up on that right away to get it job costed. This simple process will eliminate theft since your workers know that every stock item that is pulled must be associated with a job, and their performance will be affected by the cost of the stock item against their job.

Custom-purchased materials are much easier to track. Your workers, or your runner if you have one, will make purchases at the supply house, being careful to get separate receipts for each individual project’s purchases and to separate any stock purchases. Upon purchase, a picture should be taken of the receipt and shared with the Administrative email address with the job number in the subject line. If they are using a company credit card, every day, you should be checking that no new charges exist for which receipts were not received. It is not suggested that this be done weekly; daily monitoring is really the best way to stay on top of company card use.

• Equipment – If you require any specialized equipment for a job, you will want to include the rental cost in your calculation. If you need to purchase equipment that will be utilized solely for the purpose of completing that job and cannot continue to be useful on other future projects, then you should include these expenses as well.

• Final Calculations – Now that you have all of the pertinent data you need to run a simple job costing calculation, follow these steps:

1. Income – (Labor + Materials + Equipment) = Job Profit
2. Job Profit/Income = Job Cost
3. Job Cost x 100 = Job Cost Percentage

This simple job costing calculation doesn’t include your indirect expenses. Some indirect expenses include insurance, employer-paid taxes on wages, interest and finance charges, vehicle expenses, and equipment depreciation. An indirect expense is necessary for the completion of projects but cannot be tied directly to a single job. Instead, it is paid as the ordinary course of business and then allocated to each job through a multiplier. That is a subject for another day. 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.