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QuickBooks is an accounting software program built for all types of organizations to perform accounting functions. QuickBooks provides end-to-end accounting solutions. Manufacturers, distributors, building contractors, non-profit organizations, and others fall under this category. This program is ideal for accounting operations like payroll, payables, inventory management, and so on.

It even offers sophisticated features, such as advanced pricing, payroll, and so on, that may be customized and implemented according to your company’s demands. If you’ve outgrown the basic versions of QuickBooks, you should upgrade to the Enterprise edition right away to earn extra benefits.

Your company, like any other, maybe one-of-a-kind in one way or another. As a result, you may require accounting software capabilities that others do not. Regardless of these differences, QuickBooks Enterprise has industry-specific capabilities that can assist you in growing your firm.

Here are the top five most crucial accounting functions that you can perform using QuickBooks.

QuickBooks can help you manage accounting and reporting tasks

Getting a clear picture of your financial transaction is feasible if you use QuickBooks Enterprise, including an “income tracker.” You may input your expense transactions with this tool, including transactions from various bank accounts in one location and in less time.

The industry-specific accounting templates can help you with your organization’s objectives, including managing your financial statements and helping you with the forecast to monitor the company’s productivity. Not only this, QuickBooks can help you to control spending, fixed assets, and tax deductions.

Inventory management is made easy with QuickBooks

QuickBooks Enterprise features a sophisticated inventory function that allows you to construct sub-assemblies without manually entering them quickly. You also don’t have to be concerned about stock levels below or above a certain threshold. You may build sophisticated price rules based on criteria such as customers, goods, vendors, and so on.

Another advantage of QB Enterprise is that it allows you to enter data accurately by scanning inventories, serial numbers, or bar codes. You can even use it to generate barcodes.

You may also use QuickBooks’ Inventory center to identify inventory tasks by browsing inventory items and reports. With this program’s built-in inventory stock status report, even restocking your goods as needed becomes easy.

Manage your user roles and permissions with QuickBooks

Not every corporate employee needs access to all types of business data and information. Additionally, having all data available to all employees raises the danger of data loss. With the aid of QuickBooks Enterprise, you can reduce this danger.

You may grant your workers role-based access to the data depending on their departments and job responsibilities. As the owner of your company, you will have central access to this program, from which you will be able to establish user roles and provide rights to your staff.

You may even choose QuickBooks Enterprise with hosting for your business to retain the level of data and application protection a notch higher. It will make you and your team more flexible at work, in addition to the data security benefits. You may access your cloud data at any time and from any location.

Managing and tracking your potential customers with QuickBooks

Monitoring sales and orders are difficult for any organization, whether small, medium-sized, or large. QuickBooks Enterprise is a program that can help you keep track of your sales more efficiently. You can track your sales agents and view expenses with this intelligent program, saving time and effort. You can also use the QuickBooks Lead Center to track leads.

You want to add as many clients, vendors, and workers as possible to expand your firm. When you use QuickBooks Enterprise, which has comprehensive user tracking tools, you can do this. With this software, you can send estimates or invoices, define and use foreign currencies for sales transactions, create custom pricing, and much more.

Employee payroll with QuickBooks

Your employees are as important as your customers. Employee management is critical for any firm, much like handling orders and customers. QuickBooks Enterprise can assist you with this area of your business. Using this software, you can quickly compute all of your employees’ earnings, deductions, and payroll taxes.

To track the time of your employees and contractors, you can get and check customizable reports. This program is all you need to save time when it comes to payroll.

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.

Understanding the Internal Revenue Code: Essential Insights

The Internal Revenue Code (IRC) is the comprehensive federal statutory law that governs all taxation in the United States, comprising Title 26 of the U.S. Code with 11 subtitles, thousands of sections, and approximately 6,871 pages of tax rules that determine how individuals, businesses, estates, and trusts calculate and pay their federal taxes. This massive body of law affects every financial decision you make—from claiming business deductions to planning retirement contributions.

After twenty years as CEO of Complete Controller, I’ve watched countless business owners struggle with tax compliance simply because they viewed the IRC as an impenetrable maze of legal jargon. Yet the truth is far more empowering: understanding basic IRC principles can save you thousands in taxes annually while protecting you from costly penalties. This guide breaks down the essential components of federal tax law, revealing practical strategies for maximizing deductions, avoiding common pitfalls, and making tax-smart decisions throughout the year.

What is the internal revenue code, and why should you understand it?

• The Internal Revenue Code is Title 26 of the U.S. Code, containing all federal statutory tax laws, regulations, and administrative procedures
• It establishes rules for income taxes, employment taxes, estate and gift taxes, and excise taxes affecting every taxpayer
• Understanding the IRC helps identify legitimate deductions that can reduce taxable income by thousands annually
• Knowledge of IRC provisions enables strategic timing of income and expenses to minimize the overall tax burden
• Familiarity with compliance requirements protects against penalties that can add 25% or more to tax bills

The Foundation and Structure of Federal Tax Law

The Internal Revenue Code represents over a century of legislative evolution, growing from just 27 pages when income tax was first enacted in 1913 to approximately 6,871 pages today. This dramatic expansion reflects the increasing complexity of modern economic life and the government’s use of tax policy to influence behavior beyond simple revenue collection.

The IRC organizes federal tax law into a hierarchical structure of subtitles, chapters, subchapters, parts, and sections. Subtitle A covers income taxes—the provisions most taxpayers encounter regularly. Subtitle B addresses estate and gift taxes, while Subtitle C governs employment taxes including Social Security and Medicare contributions. Each subtitle breaks down into increasingly specific provisions, creating a comprehensive framework for tax administration.

Key sections every taxpayer should know

Section 61 broadly defines gross income as “all income from whatever source derived,” establishing the default presumption that economic benefits constitute taxable income unless specifically excluded. Section 162 permits deductions for ordinary and necessary business expenses, providing the foundation for most business tax planning strategies.

• Section 163 – Interest deduction rules affecting mortgages and business loans
• Section 170 – Charitable contribution deductions with specific percentage limitations
• Sections 401-409 – Retirement plan provisions enabling tax-deferred savings
• Section 1031 – Like-kind exchange rules for deferring gains on property swaps

Business Deductions and the Ordinary and Necessary Standard

Section 162 of the Internal Revenue Code allows deductions for expenses that are both ordinary and necessary in carrying on a trade or business. Courts have interpreted “ordinary” to mean common and accepted in your industry, while “necessary” requires the expense to be helpful and appropriate for your business operations.

The distinction between deductible business expenses and nondeductible personal expenses often proves challenging. A marketing consultant cannot deduct suits worn to client meetings as business attire, but a television news anchor required to maintain a specific on-air appearance might qualify. Similarly, business meals face strict substantiation requirements and 50% limitations, while entertainment expenses became entirely nondeductible after 2017.

Documentation requirements for business deductions

The IRC places the burden of proof on taxpayers to substantiate claimed deductions through adequate records. For travel expenses exceeding $75, you must maintain documentary evidence showing amount, time, place, and business purpose. Vehicle expenses require either actual expense records with mileage logs or the use of the standard mileage rate with detailed trip documentation.

A cautionary example illustrates these requirements: A sole proprietor of an Ohio plumbing business received a 13-month prison sentence and $130,000 restitution order for tax evasion after directing customers to make checks payable to him personally rather than his business. He cashed these checks without reporting the income and claimed personal expenses as business deductions, demonstrating how improper deduction claims can escalate into criminal charges.

Tax Credits That Reduce Your Bottom Line

Unlike deductions that reduce taxable income, tax credits provide dollar-for-dollar reductions in actual tax liability. The Child Tax Credit offers up to $2,000 per qualifying child, with income phase-outs beginning at $200,000 for single filers. The American Opportunity Tax Credit provides up to $2,500 for qualified education expenses during the first four years of post-secondary education.

Business credits target specific policy objectives through financial incentives:

• Research and Development Credit rewards innovation investments
• Work Opportunity Tax Credit encourages hiring from disadvantaged groups
• Renewable Energy Credits support clean technology adoption
• Small Business Health Care Credit assists with employee coverage costs

Compliance Requirements and Enforcement Trends

Americans collectively spend 6.5 billion hours preparing and filing taxes each year, representing an opportunity cost of $280 billion—nearly as much as the government collects in some tax categories. This staggering compliance burden reflects the IRC’s complexity and the serious consequences of noncompliance.

The federal tax gap—the difference between taxes owed and collected—reached $688 billion in 2021, nearly double the $345 billion gap in 2001. Despite this growing challenge, IRS audit rates have plummeted. Individual return audits fell from 0.9% in 2011 to just 0.3% in 2018, while audits of million-dollar earners dropped from 7.2% to 1.6% during the same period.

Strategic compliance planning

Lower audit rates don’t justify aggressive positions or poor documentation. The IRC imposes accuracy-related penalties of 20% for substantial understatements, negligence, or disregard of rules. Fraud penalties reach 75% of the underpayment, plus potential criminal prosecution. Maintaining contemporaneous records and working with qualified professionals provides the best protection against both examinations and penalties.

Record retention requirements vary by situation. Generally, keep tax records at least three years from filing or two years from payment, whichever is later. Employment tax records require four-year retention, while records supporting basis in property should be maintained until the statute of limitations expires for the year you dispose of the property.

Adapting to IRC Changes and Planning Ahead

The Tax Cuts and Jobs Act of 2017 fundamentally altered tax planning strategies. The percentage of taxpayers itemizing deductions plummeted from 30.6% in 2017 to just 9.5% in 2022 as the standard deduction nearly doubled. Total itemized deductions fell from $1.4 trillion to $668 billion, forcing taxpayers to reconsider traditional strategies like bunching charitable contributions.

Many TCJA provisions sunset after 2025, creating planning challenges and opportunities. Individual tax rates will revert to higher pre-2018 levels unless Congress acts. The qualified business income deduction providing up to 20% reduction for pass-through entities expires. Estate tax exemptions drop by half, potentially exposing more estates to taxation.

Future-proofing your tax strategy

Effective planning balances current benefits with future flexibility:

• Diversify retirement savings between traditional and Roth accounts
• Accelerate income recognition before potential rate increases
• Consider estate planning moves while exemptions remain high
• Document business structures and agreements for potential law changes

Final Thoughts

The Internal Revenue Code shapes every aspect of your financial life, from daily business decisions to long-term wealth-building strategies. While its 6,871 pages may seem overwhelming, focusing on provisions relevant to your situation transforms complexity into opportunity. Understanding key sections, maintaining proper documentation, and planning strategically can reduce your tax burden by thousands while ensuring compliance.

Throughout my career guiding businesses through tax challenges, I’ve seen how IRC knowledge empowers better decisions. Small business owners who understand Section 162 requirements avoid audit triggers while maximizing legitimate deductions. Families familiar with credit provisions capture thousands in benefits. Companies that track IRC changes adapt quickly to new opportunities. Tax literacy isn’t just for professionals—it’s essential for anyone seeking financial success. For personalized guidance navigating these complexities and maximizing your tax opportunities, contact the experts at Complete Controller, where our team stands ready to transform tax challenges into strategic advantages.

Frequently Asked Questions About the Internal Revenue Code

How is the Internal Revenue Code different from IRS regulations and publications?

The Internal Revenue Code contains actual tax laws passed by Congress, while Treasury regulations provide official interpretations of how to apply those laws. IRS publications offer plain-language guidance but don’t carry legal authority like the IRC and regulations do.

Where can I access the complete Internal Revenue Code for research?

The full IRC is available free through the Legal Information Institute at Cornell Law School, the IRS website, and the Government Publishing Office. Commercial tax services like CCH and RIA provide enhanced versions with annotations and explanations.

What happens if Congress doesn’t extend expiring IRC provisions?

When IRC provisions expire without extension, tax rules automatically revert to the previous law. For example, if TCJA individual provisions expire after 2025, tax rates return to 2017 levels, standard deductions decrease, and personal exemptions return.

Can I rely on tax software to ensure IRC compliance?

Quality tax software incorporates current IRC provisions and calculations, but users remain responsible for accurate input and appropriate tax positions. Software cannot replace professional judgment for complex situations or aggressive positions requiring IRC interpretation.

How do state tax codes relate to the federal Internal Revenue Code?

Most states begin with federal taxable income and make state-specific adjustments. Some states automatically conform to IRC changes while others require legislative action, creating potential differences between federal and state treatment of the same transaction.

Sources

• Bipartisan Policy Center. (June 27, 2024). “Breaking Down the Federal Tax Gap.” URL: https://www.bipartisanpolicy.org
• Cato Institute. (2025). Federal Tax Distribution Analysis. URL: https://www.cato.org
• Complete Controller. “Small Business Bookkeeping: 9 Tips and Tricks.” URL: https://www.completecontroller.com/small-business-bookkeeping-9-tips-and-tricks/
• Complete Controller. “Tax Preparers Roles & Qualifications.” URL: https://www.completecontroller.com/tax-preparers-roles-qualifications/
• Internal Revenue Service. (2019). “Federal Tax Compliance Research: Tax Gap Estimates for Tax Years 2011-2013.” URL: https://www.irs.gov/irm
• Iris Reading. (2022). “U.S. Tax Code Analysis.” URL: https://www.irisreading.com
• National Taxpayers Union Foundation. (2023). “Tax Code Complexity Analysis.” URL: https://www.ntuf.org
• National Taxpayers Union Foundation. (April 15, 2024). “Tax Complexity 2024: It Takes Americans Billions of Hours to Do Their Taxes.” URL: https://www.ntuf.org
• Tax Policy Center. (2020). “What is the audit rate?” URL: https://www.taxpolicycenter.org
• U.S. Department of the Treasury. “Tax Policy.” URL: https://home.treasury.gov/policy-issues/tax-policy
• USAFacts. (July 1, 2025). “How has TCJA impacted individual income taxes?” URL: https://www.usafacts.org
• Wikipedia. “Internal Revenue Code.” URL: https://en.wikipedia.org/wiki/InternalRevenueCode
• Wolters Kluwer. (April 12, 2024). “Tax Avoidance Is Legal; Tax Evasion Is Criminal.” URL: https://www.wolterskluwer.com

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

For ordinary individuals, December is a month of enjoying holidays and Christmas. However, that isn’t the case for accountants and CPAs. The end-of-year means closing the books is approaching rapidly, and bookkeepers’ time has become increasingly scarce. As a business owner, managing your official finances is a tedious process, but it can make your taxes a nightmare if you don’t maintain the accounts. 

Without a proper bookkeeping process for your business’s finances, numerous tasks can slip through the cracks and end up costing you financial loss in the long run. With a few bookkeeping tips, you can get a firm grip on your monetary situation and even enhance your earnings. The ambition is to get a simplified procedure explaining your business finances. Having a method that combines your expenditure, cash deposits, invoices, and tax records can make your life as a business owner so much easier than you thought, especially during the tax season.

Importance of bookkeeping practices:

Bookkeeping is a crucial part o any business venture. To make this process simpler, always record your cash receipts. Having complete records of transactions will help you at the time of claiming deductions on tax returns. Keep track of your reimburse expenditures so you won’t end up paying out of your pocket during rainy days of the business.

At this time of the year, business owners rely on their bookkeepers to maintain accurate financial accounts to timely achieve the objectives. However, maintaining a good set of books doesn’t happen naturally, but we’ve to create versatile strategies for successful execution. For this purpose, here’s a list of three best year-end practices for bookkeepers.

Updating the accounts:

Bookkeeping isn’t a highly complex task. However, without the right tools and sensibility, it can go wrong. As the year comes to the closing time, you’re obliged to have a firm understanding of your business’s finances. It means extra time is needed to update your books.

If you’ve employed a bookkeeper, give them space to maintain all the necessary reports and schedule a day to review them all together. It will indicate that both the executives stand on a mutual financial decision. Also, if the financial reports are updated, preparing a tax return would be highly simplified.

When it comes to cleaning up the end-of-year accounts, the best area to begin is the source documents like cash receipts and invoices. Whether you’re managing records manually or opt for an automated system, you need to ensure all official records are present in your documents.

Reviewing accounts:

After updating the finances, it’s time to review the financial condition of your business. To recognize any year-end tactics beneficial to the company, a bookkeeper must go through records, including profit and loss statements and balance sheets.

At this point, you might also want to examine the current accounting system and understand the pros and cons of tracking the financial information. With the advancement of technology, we can also help streamline any efficiency if needed. Based on the year’s finances, it will be an excellent choice to make wise decisions for the future.

Maintaining accurate files for the account receivables and payables is always recommended. However, the year-ending period is a great time to review them at least once.

Closing accounts:

Now that you’ve updated the accounts and got a stronghold on your current finances, it’s time to close the accounts and begin preparing for the following year.

A year-ending bookkeeping practice is the most feasible way to maintain the accounts, both manually and digitally. For instance, closing out old accounts provides the opportunity of managing and clearing old customer accounts, inactive vendors, employees, and expenditure accounts.

Moreover, the year-end procedure allows you to study the previous year’s finances and prepare a budget for the coming period accordingly. By planning for the tax payments and identifying significant expenditures, you’ll get insights into potential concerns that might arise throughout the term.

If you get so preoccupied with operating your business that year-ending bookkeeping practices catch you off guard, don’t worry; execute a powerful strategy to overcome the impending obstacles regarding the company’s finances.

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.

Being an entrepreneur, if you’re already utilizing QuickBooks and you need to pay your workforce, and then consider adding a QuickBooks payroll to your scheme. Fortunately, you can access it from a similar system from which you manage the business’s bookkeeping. It allows you for the impeccable transfer of your payroll expenditures to accurate general ledger accounts.

Every business owner can set up payroll with QuickBooks and process their first pay run with a few effortless steps. Also, the subscription is budget-friendly, and there’s no obligation to provide any extra charges. However, the payroll procedure doesn’t end with only preparing the paychecks. On a schedule set by the IRS, you need to file a payroll tax return.

Furthermore, every authorized business is required to file and submit the payroll taxes to the IRS. Fortunately, if you’ve taken the QuickBooks subscription, there’ll be no other mistakes including, late submissions that might result in penalties and increased interest payments. QuickBooks offers an intuitive interface that provides an easy payroll setup for entrepreneurs.

Shift to payroll:

After logging in to your QuickBooks account, go to the payroll and click on employees. If you’ve recently bought the QuickBooks online subscription, you’ll notice a “Get started” option. Click on it to proceed to another screen.

If you’re a beginner to this platform, the system will require a few questions, such as if you want HR support and need to track your employee’s working hours. While these queries will help you match the righteous plan, you’re also free to choose one of its three payroll options manually. 

Provide information about employee’s payments:

Next, the system will inquire if you’ve paid the employees within the calendar year. In case you’re switching to QuickBooks from a manual system, then you’ll have to press “Yes.”

Besides the payment inquiries, the system might want to know the date when you’ll plan to run your first payroll in QuickBooks. For security purposes, you’ll be providing the original address of your workplace where your employees physically work.

Add Employees:

After adding the previously required information and the original company location, you will have to add the employee’s payroll details into the system, including those who no longer work for your company but received pay within the same premises.

Enter Federal Tax details:

In this section, you’ll have to add your federal tax id, and you can refuse if you haven’t received it yet. If you’re considering signing up for the employee’s section or receiving services that might be cheaper than your current plan, check the box to share your information.

Enter State Tax details:

There’s another requirement of state tax details, if applicable. The layout will depend on the type of business and your employees, so skip the part that doesn’t apply to you.

Add your Bank account details:

You’ll get the chance to review the business and principal officer info you entered previously in the setup process. Add in your bank details for checking the finances of your business. There’ll be a screen listing different banking institutions, so enter it in the search box and select the corresponding results if you’re not listed.

Covid-19 Pay features:

Unfortunately, the coronavirus pandemic has made our lives vulnerable, and we couldn’t step of our homes without getting scared of the consequences. However, QuickBooks has emerged with a helpful feature of paying the employees. It allows you to distinguish paid leaves taken by the workers. Additionally, if you’re opting for a tax credit against the employee’s income under the covid-19 aid, then you need to choose this as well.

Once you’ve provided answers for all the queries and completed the required information for every employee, you’ll notice a list of employees on your payroll for the following year. Make sure to provide all the data accurately and review it again to avoid any mishaps.

Now that we’ve acknowledged you about setting up a QuickBooks account for payroll in seven more straightforward steps, it’ll hopefully get easy to set it up on your own. If you haven’t started till now, opt for the platform with a one-month free trial.

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.

Accounting periods are a contrived method that makes financial management simpler and allows comparison between various accounting periods. Companies usually deal with them by recording transactions regularly, but compiling them at the end of the accounting period is mandatory. This completion process requires carrying out an administrative task that efficiently resets the recording of transactions before adding new ones.

At the end of an accounting period, various measures must be taken, including adjusting income statements and balance sheet accounts. Although there’s an availability of automated accounting systems to handle these processes, companies should acknowledge the complexity of the end of an accounting period. While technology might automate a majority of tasks, the rest undoubtedly require manual attention.

Anyhow, the closing procedure must be well-organized; it doesn’t have to be overwhelmed. Let’s break down the main tasks into two steps.

Temporary accounts (Income Statement):

Firstly, record the income and expenditures from the current period within the same period; otherwise, your closing income statement will show inconsistency. Ask your vendors to provide the ongoing work figures so you’ll include them in the income statement as well. All of these closed accounts are considered temporary accounts at the end of each accounting period.

Acknowledging your expenses and your revenue will lead you to better strategic decisions in the future; you’ll instantly know if you have to cut the costs or vice versa. However, closing temporary accounts is of pivotal importance for healthy business operations.

Permanent accounts (Balance sheets):

Throughout the accounting process, manage permanent accounts actively. This act is essential for determining the current business capacity accurately. Fortunately, no balance in the reports will vanish on its own, and every cash transaction adjusts accordingly. While some of these operations happen automatically, depreciation needs to be applied manually. It would help to revalue all the business assets at the end of the accounting period and make any necessary modifications.

Besides this, another vital task that requires equal discipline is the reconciliation of bank statements. Settling the prepaid assets to anticipate the value of payable amounts must be completed for a particular accounting cycle. A well-kept balance sheet calculates a business’s current status, which is ultimately crucial for its success.

Trial Balances:

Before the end of an accounting period, the remaining trial balance in every account must be accurately determined. It helps to ensure that all the debit entries are comparable to credit entries and any deviation updates through the adjusted trial balance. These reports will dictate several accounts’ opening and closing balances, which regulate your accounting system’s abnormalities and identify what you need to address.

Closing Entries:

Generally, automated accounting software will carry out the closing entries. However, it is crucial to comprehend the process. An income summary account came into being by closing off the income and expense accounts. It indicates that your income statement is ready for the next accounting period. This account will be linked to the retained earnings account and represented as equity on your balance sheet. After the tax deductions and other expenditures, the retained earnings are converted into a net income account and distributed among the shareholders as equity.

Usage of an accounting period:

The use of an accounting period means that a business manages financial operations in a consistent and righteous pattern. Remember that many companies use a double-entry system by which they record each cash transaction in two ways—recording sales once as cash received and as the loss of an item from the stock a second time.

Closing an accounting period is a requirement, and you can never understand where your business financially stands without these closing adjustments. Having the necessary information will be useless if it’s scattered and all closing entries are performed accurately for the accounting period. If a business owner can’t make these adjustments on their own, there’s no shame in hiring a professional accountant for their assistance.

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.

There are a lot of methods through which restaurant owners keep a record of finance and handle accounting. They may support a book and note down, do it themselves or through an employee, or use accounting software. If a restaurant owner has restaurant accounting books, it’s good to have command over math and a strong accounting background. Also, it’s suitable for small restaurant owners with few employees, but it’s impossible to imagine it for a restaurant on a big scale. Restaurants are generally good to go with accounting software because the most valuable part of using it is saving time and money. It will inform you about tax deadlines and give payroll guidelines. It also automatically works for keeping track of inventory. There are a lot of points that reveal the advantage of using accounting software for a restaurant.

• Saves time and energy

Manual bookkeeping wastes a considerable amount of time while performing the accounting process. The manual bookkeeping data entry process requires a lot of time and concentration, and still, there are chances of mistakes and errors. A lot of effort is needed to ensure the proper entry of each record. On the contrary, accounting software not only mentions errors automatically, but it also saves time and takes a shorter time to complete the procedure.

• Simpler adaptation of data

If you are using accounting software, it will help you to do calculations automatically on your behalf. You can show data in a systematic format, and the advantage of this feature is that it will allow you to access the information quickly. Whenever you incorporate accounting software in the network, it will automatically collect cash and accustom made into a report.

• Reach your data any time

Accounting software makes it easy to access accounting data anytime. It also helps to get your data whenever or wherever you want. It also does not matter from whichever device you want to access your information because it is computerized accounting software. You can use online accounting software from any computer, mobile phone, or laptop. All you need is a properly working device connected to a good Internet connection and an accounting software app or browser.

• Real-time tracking and reporting

One of the most top advantages of accounting software is that it takes your accounting data in real-time. It accommodates your business bank accounts with the software, and as a result, you will be able to reach out to your expenses in real-time and allow you to report about all accounts that you want to check anytime.

• Reduce using bookkeeping data entry

Nowadays, in the 21st century, no one has time to write and note down records. It is a time-consuming process to deal with paperwork. If you have access to create a copy with just one click, why do you waste your time making photocopies? Financial statements and reports are always available online in accounting software. Whenever you create an invoice, it appears automatically in the cloud. Anyone can access it at any time. Invoices can be sent to the client directly through accounting software.

• Save money and improve sustainability

If you are using accounting software, this will help you save your business from wastage of money. It will prevent you from doing things like repetitive tasks. It will take you into consideration time wasted on other procedures such as creating reports for finance. And accounting software usually costs between $7.00 to $50 a month compared to ERP software which costs $10,000 per month. Accounting software is the most affordable method to do accounting for your restaurant. Furthermore, it will prevent wastage of time and waiting to complete more straightforward tasks such as bank reconciliation.

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 business owners discover over time that manual bookkeeping is less than ideal for their business as keeping an accurate set of books is essential for any business. Not only is it time-consuming, but it also leaves a lot of room for human error which eventually leads to mismanagement and complicates easy tasks like managing vendors and buyers, accounting, tracking, and reporting. Every business should be equipped with accounting software like QuickBooks to avoid these mishaps. QuickBooks is one of the most popular accounting tools; hundreds of companies around the globe use it for tracking and maintaining the finances of their businesses. Companies use QuickBooks to manage business operations, reduce time spent on repetitive tasks, keep more accurate records, manage vendors, produce professional-looking financial reports, and avoid any potential problems with their bookkeeping. There are various other advantages of using QuickBooks, but this article will only discuss how QuickBooks helps manage your vendors.

Other businesses and subcontractors who receive money from your business in exchange for goods are your suppliers or vendors. QuickBooks supports both customers and vendors. You will need to add your vendors to your business account, and then you will easily manage your businesses’ vendors.

Gather your vendor’s information

Before you add new vendors to your QuickBooks business account, you will need to gather all necessary information regarding each vendor your business uses to conduct business. Having all the information in one location will make the process easier and less time-consuming.

The information you will need of each vendor is:

• Company name
• Contact name
• Billing Address
• Email address
• Contact numbers
• The rate you pay to service vendors
• The amount you owe the vendor before using QuickBooks
• Employer identification number (EIN)

How to add vendors in QuickBooks?

You can add new vendors to your business account manually in three easy steps;

Click the ‘expenses’ menu and then select ‘vendors’ from the left menu bar.

Choose the option ‘new vendor’ and fill in all the necessary details such as vendor’s name, title, billing address, etc.

Select ‘save and close.’ Completing the addition of the new vendor to your QuickBooks account.

Ensure that all the vendor’s information is correct before entering the data, and ensure that you don’t add the same vendor multiple times.

Transactions involving a vendor

By using QuickBooks, you can also locate all transactions involving each vendor in a single location. You can choose the vendor’s name from the ‘expenses’ menu and select the ‘transaction list’ option, bringing up all transactions that have taken place between your business and the vendor you’ve chosen. Not only this, but you will also be able to print all transactions involving the particular vendor if you wish to keep a paper trail of your cash flow.

Advantages of setting up vendors in QuickBooks

Using QuickBooks to manage vendors will save time and money. Setting up vendors in QuickBooks will save time when you enter an invoice. Instead of manually adding all the vendor and invoice details every time, you will be able to select the vendor’s name from a drop-down menu, automatically filling in all the information regarding the vendor.

Not only this, QuickBooks lets you automate invoicing and payments by expediting bill processing. This automation means costs can be processed on time using the vendor information already present in the system, and you can send reminders about your pending charges. Automated invoicing and payment can cut down on critical business time.

Track expenses

Setting up vendors in QuickBooks will also allow you to track your expenses and cash flow. It can generate reports showing the amount of money spent and the products purchased from each vendor, allowing the business owner to understand how they are doing and prevent any cash flow shortage.

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.

A sharp vision of your ideal client is critical to the success of your organization. You will be able to identify the people to buy, eliminate those who do not require your services and gain a greater grasp of how your products and services are genuinely effective.

One of the most typical mistakes made by new business owners is attempting to help everyone they can. While this may appear to be a good concept at first, the problem is that the larger your target market becomes, the more difficult it becomes to connect with them in a meaningful way.

What kind of customers are you looking for?

It is an ideal question which tells you about the customers of your client. This question gives you the knowledge of which type of customers your clients deal with. Some of your clients might have smaller customers, whereas those with million-dollar customers would be more beneficial for you.

What external issues do you have to deal with?

Understanding the day-to-day operation is vital for you. One recommendation is to know the problems your client is going through during daily operations.

External issues are the issues that others can see and are dealing with on the surface. Continuing with the social media manager, a potential external concern for their ideal customer could be an uneven Instagram feed lacking aesthetic cohesion.

What internal issues are you dealing with?

Internal issues are the opposite of outward issues. These are the thoughts, emotions, and sentiments connected to an issue or a source of discomfort.

Returning to our social media manager’s ideal customer: They are embarrassed by their Instagram feed’s visual inconsistencies. They are concerned about what others think of them because they do not post regularly, and their photos are not of excellent quality.

The ability to recognize and accurately describe your prospective client’s internal issues will aid you in developing a solid relationship with your audience and gaining community trust. Yes, external problems are crucial to comprehend and resolve since they are visible to the rest of the world. However, it is resolving internal issues that foster connection and loyalty with your ideal client.

What value do they look for?

Understanding your client’s customer is especially important. It is not always possible that the services you provide to clients meet their customer requirements. It may seem like you offer accounting services to your clients, but what value them the most is how you respond to them and what value you provide them.

What services are you looking for and your expectations?

If you provide multiple services, it is best to ask the client about the services he would purchase from you. It is best to discuss the benefits, their nature, and the scope of the services. Your client may look for an accounting and taxation service. Thus, offering them an IT consulting service would be a waste of time and loss of expectation. Budget vs. actual evaluations, asset management services, and strategic planning may be a natural next step if they have already engaged in tax and cash flow management. Asking these questions with your leadership team can help you make smarter decisions about investing in marketing and business development, technology, talent, and procedure to attract your ideal customer.

What are the expectations from these services?

Understanding the client’s expectations is essential. Client purchases the services to enhance their sales and meet the company objective. The firm must provide these services in alignment with the client’s business objectives. It is not worth assisting if it does not meet the client’s goals. The resources allocation on completing the client’s project follows the expectations of the client.

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.

Victorious bookkeepers instantly identify that client satisfaction should be their topmost priority as it’ll ultimately prosper their company. For business owners, bookkeeping can be a tremendous hassle, and multiple issues arise during the entire process just because of the lack of general comprehension. Therefore, companies always consider their client relationship a partnership, even when their journey might go down a challenging route.

Many clients are calm, easy-going, and appreciate the efforts made by bookkeeping advisors. Also, they acknowledge the dynamics of the trade. In this regard, clients usually compensate the bookkeepers based on the policies they mutually agreed to before beginning the work. 

However, there are times when bookkeeping firms have to deal with complex clients, but the ratio of their appearance is pretty low. These clients are demanding and become rude or anger even on the slightest issues. At times, they can consume much of a bookkeeper’s valuable time.

For these reasons, differentiating between the potential clients is of pivotal importance. Here’s a short guide for understanding the nature of such clients.

Aggressive personality:

The aggressive clients intend to impose their perspectives on bookkeepers and are very strict about deadlines. Such clients get angry instantly and often verbally abusive.

Over-efficient ones:

The kind of client who appears to showcase his wisdom about a bookkeeper’s services as if he knows everything better than him, and in the wake of displaying such services, such a client becomes highly arrogant.

Complainers:

The clients who are always unhappy regardless of satisfactory services are the complainers. It is because they feel like being treated unjustly.

Confused clients:

The confused clients keep asking the same questions about a particular service, and they can’t decide independently.

Top 4 strategies to handle bookkeeping client issues:

It is pretty tough dealing with demanding clients, and the main challenge is dealing with their superiority.  Usually, we reciprocate the behavior we get. However, this would lead to losing valuable clients and the goodwill of your bookkeeping firm. To solve any conflict, we’ve to deal with them gently and patiently.

The following ways can help you resolve the issues with the bookkeeping clients.

Listen to the client’s queries:

In case of disturbance in providing the services, clients often get frustrated. However, there are situations when the issues don’t arise from your end. In such cases, clients expect bookkeepers to listen to them attentively, and they also want the problems to get resolved without any delays. Being a bookkeeper, you must answer their queries with utmost patience and vent out their exhaustion.

Comprehend and Apologize:

Dealing with demanding clients is a significant area where many bookkeepers falter. When a bookkeeper faces a complicated client, he usually starts challenging the client or makes excuses. He tries to end the dispute instantly to ease his distress. Remember that when clients get irritated, all they expect from the advisor is an apology to put things right for them. For this purpose, identifying what has disappointed the client instead of making excuses would be more feasible.

Analyze the problem by asking questions:

The most appropriate way of handling a rude customer is by showing compassion. A cordial speech would be enough to mellow down the client’s anger. Once he gets calmed down, ask him questions regarding the current issue. This activity of questioning will present your concern about the challenges facing the client.

However, the questions you ask must be relevant, and you need to provide reasoning where required. Also, keep the conversation precise and positive. In case you can’t handle the case single-handedly, you can always opt for better professional advice.

Generate creative strategies for their cases:

Since demanding clients behave in a wrong way, they wouldn’t hear your explanations, even if it doesn’t occur by your platform. They don’t care if you’re stuck too, and all they want is to get their problem resolved. Being a bookkeeping consultant, you need to acknowledge their concerns and develop practical solutions to solve them. Sometimes you have to go the extra mile for their contentment, including asking for their suggestions and ideas.

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.

A cashier facilitates cash transactions for customers by accepting money, checks, or credit cards. Since cashiers manage a heavy cash flow regularly, they’re required to be honest and reliable with their dealings. Cashiers play a significant role in your business management, and they carry out the majority of the cash transactions. Not only do they manage the incoming cash, but they also influence customer retention and prevent fraud.

Cashiers are usually required to manage cash frequently while making sure that the cash transactions are righteous. However, slight mistakes could lead to inefficiency and adverse impact on the workplace. In contrast, a well-organized cashier can serve a balanced cash drawer, shorter positions in the checkout counter, and most essentially satisfied customers.

However, there’s always room for errors in the works done manually. Here’s a list of a few common mistakes that occur occasionally.

 Switching cash journal during the shift:

This mistake is often made by cashiers jumping from one cash register to another during working hours. Some transactions may require alterations to cater to the customer’s needs. Still, without a login procedure, it can cause other cashiers closing counts to be wrong because it wouldn’t allow tracking the cash flow each cashier handled. Also, an authorized account determines the areas of mistakes. 

Providing exchange without counting:

While giving an exchange, cashiers have to offer the appropriate amount of change to the customers. However, sometimes cashiers provide excess amounts mistakenly and realize it afterward. As a consequence, many companies might experience theft or fraud unknowingly.

Being careless about the policies:

Cashiers should follow strict procedures when handling cash due to the insurance policies and guidelines regarding cash handling. A failure to follow cash handling procedures adversely impacts the finances of the business.

Counting change repeatedly:

Counting change twice might seem to be a good intuition. However, it could consume extra time and results in higher labor penalties. In the business world, loss of time leads to incurring additional costs.

Cash transactional errors:

A checkout terminal is an exhausting place throughout the day. At times, the cashiers might be processing tons of cash transactions per hour. In such situations, it is possible that a cashier count changes incorrectly or forgets to add it in the books. It appears to be a minor mistake, but it has a significant influence on financial operations. Remember that even a slight miscalculation during returning cash might cost a lot to a firm.

Handling cash manually:

Manually handling cash can be an inaccurate and complex process. As mentioned earlier, the checkout area is highly packed, so manually counting the money and checking balances consumes time. To avoid this, shifting to automated software would be the most suitable option.

Ignoring rules and regulations:

Being a cashier keeps you in charge of the company’s most valuable asset, and some take it for granted. Often, they ignore the rules and regulations and create a comfortable environment where employees are not bound to follow the rules seriously.

Entering wrong entries in the journal:

Entering wrong entries into the cash register indicates that you’re not concentrating on the current tasks. Lack of concentration might also contribute to customers getting frustrated over the delay.

Delaying the tasks:

As a cashier, it is crucial to perform mental calculations instantly and return the correct amount of change to the customer. When cashiers are distracted by a significant transaction, their calculations may be off. As a consequence, they have to cancel the return, causing further delays and upsetting the customers.

Incorrect refund and returns:

Sometimes, the customer might decide not to buy a product, causing the cashier to suspend the transaction at the last moment. It is possible that the cashier entered an incorrect value or mismarked prices. According to the policies, a cashier should navigate the cash transaction by providing them the right to refund and return.

Undoubtedly, a cashier’s job provides a lot of pressure, and even the best of them can sometimes slip up. In a busy retailing sector, they’re obliged to deliver excellent customer service and ensure accuracy during each cash transaction. They might feel the need to be efficient and quick. Above all, they must pay attention to their surroundings to stay on guard against potential issues.

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.