Every organization and business, irrespective of its size, keeps a record of its business transactions, such as sales, expenses, and other financial transactions that occur every day. Bookkeeping is the recording of financial transactions; the individual responsible for the recording is called a bookkeeper. A bookkeeper is responsible for recording day-to-day transactions and presenting the data to the accountants, who form different statements like income, balance sheets, profit, and loss statements. However, some entrepreneurs and small businesses prefer doing the job themselves, leading to other problems. This article explains the different situations and conditions in which one must hire a professional bookkeeper for the job!
When the Workload Increases
At the beginning of a venture, a small team can manage the workload and assign different tasks to each member. However, as the business grows, the responsibilities grow as well. It increases pressure on the team members, which may affect the quality of the work; therefore, it must reassign the tasks to ensure efficiency. Bookkeeping requires attention and accuracy, as the financial management and projections depend on the revenues and expenses incurred by the company. When a person has various things to look after, some costs may go unrecorded, making it difficult to track the efficiency and profitability of the company.
When the Expenses are Not Categorized Accurately
It is important to track expenses accurately. The business must know when to incur the costs and the nature of the costs incurred. If the expenses are not categorized correctly, the company may pay more tax credits or face several other deductions from the business. A person who does not have a proper understanding of bookkeeping is likely to make mistakes in categorizing expenses that will lead the company to pay more. Often, the extra amount paid is more than the expense of keeping a bookkeeper. A bookkeeper will ensure that all costs are adequately categorized to avoid further payments.
Lack of Organization
A growing business for an entrepreneur means a lot of chaos and hassle until one develops a team to manage different tasks. The work can be overwhelming, leading to unorganized work and unfinished tasks. Also, a new business must maintain a good reputation amongst stakeholders and ensure timely vendor payments. It can be a problem for entrepreneurs and small businesses because various tasks appoint one individual, and the pressure may lead to errors. To avoid organized behavior, a company must hire a bookkeeper to handle financial recordings. It will help keep the business organized and manage the work well.
Moving Towards a Bookkeeping Software
A variety of bookkeeping software allows entrepreneurs and small businesses to practice bookkeeping without hassle. Some people may struggle with this software as they use technical terminologies that may not be easy to interpret by people who do not understand finance. Also, the software may seem confusing if he is unfamiliar with finance. When the company grows, the business may consider hiring a bookkeeper, and the need for formal and organized bookkeeping merges. Instead of involving yourself in the software, hiring a bookkeeper would be a great idea.
When Bank Statements Need Reconciliation
Bank reconciliation is integral for ensuring accuracy and eradicating all errors in the financial data. Therefore, it is essential to have accurate data in hand. The accuracy of the data confirms that the company is paying the correct amount in taxes. However, suppose an entrepreneur or a small business struggles with bank reconciliation and does not have time to do it regularly. In that case, hiring a bookkeeper is the only option left. A bookkeeper will handle all these matters to keep the financial data accurate and updated.
Hiring a bookkeeper can reduce costs that the company would otherwise be due to financial errors. Is it time for your company to hire a bookkeeper?
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The growth in the need for impactful entrepreneurship that creates highly relevant solutions for societal problems could never be stressed more than it is now. An entrepreneur’s job is to identify pain in society or a gap in the market, anything that consumers might need but is not present for use, and fill that gap while keeping the factor of wealth creation and maximization minds.
It is quite observable that small businesses around the world contribute a lot to global economic development. The worldwide growth and expansion of the entire entrepreneurial sector mainly depend upon these tiny startups and medium enterprises. Small and medium-scale businesses are the backbone of any country’s economy. According to economic analysts, most business sector growth is due to young prospective entrepreneurs’ creative ideas.
Many people become entrepreneurs because they think an entrepreneur’s routine is much better and more rewarding than an employed person’s monotonous routine. Some also believe they can change society for good and positively impact the global economic sector.
There are various approaches to entrepreneurship, and the field can be divided into several subcategories.
Social Entrepreneurship
For instance, social entrepreneurship has surfaced lately and caught the eye of many people interested in business. However, it is a kind of entrepreneurship strikingly different from the traditional type. This significant difference is that social entrepreneurship has a distinct value proposition from the other entrepreneurship types.
Also, it is not just about the value proposition, but the money this type of entrepreneurship makes is solely for the benefit of society and to promote a noble cause. One of the significant roles that social entrepreneurship plays in society is the development of humanity itself. Social entrepreneurs work for the betterment of society in many ways. Societal transformation is all about how social entrepreneurs address ongoing issues and help create solutions to those problems.
This sector’s progress is determined by how well the system moves toward betterment and how well people cope with the change on an individual scale. One thing that has revolutionized social entrepreneurship in recent times is IT’s involvement in every corporate sector. The participation of the latest social networking techniques and the creation of solid networks has brought about a massive revolution in entrepreneurship. It has made its key processes more efficient and effective.
The Impact of IT
The involvement of IT has also brought nations closer by making communication faster and more convenient. Entrepreneurs have been utilizing networking services. Particularly in social entrepreneurship, networking has played a pivotal role in expanding the horizons of social services.
As we know, every organization’s traditional business model revolves around wealth maximization, and social entrepreneurship differs from this conventional type at this very point. The sole purpose of social entrepreneurship is societal development and a positive system transformation.
Social entrepreneurship has never been in demand as it is in the current era. The reasons are simple and prominent. Industrialization has positively and negatively impacted the system and nature, where social entrepreneurship is needed to balance things. For instance, at a basic level, pollution’s adverse impact over the past few years is right before us. To revert it all, organizations felt the need to develop an industry with the primary objective of undoing all the damage.
Conventional trade and its players have gone so far in the race for profit maximization that they have almost ignored what they owe to society in the name of corporate social responsibility. That is where social entrepreneurship has taken the driving seat and done a lot to better nature and the system.
It would be safe to say that social entrepreneurs have played an essential role in securing the future of humanity. Social entrepreneurship has also impacted the changing conventional mindset of business and has proven in front of the world that it maximizes wealth, considering the welfare of nature. It has also shown the global economic sector that wealth maximization shouldn’t be the only objective of the corporate sector; they should also keep a check on what they owe to the society and system.
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.
Running a business in today’s world is challenging, especially after the pandemic. A lot of companies suffered devastating losses, forcing many to shut down. In a way, these losses taught many business owners that not just internal factors but external factors play a vital role in keeping your business up and running. Many business people learned this the hard way, but the world doesn’t end there. Let’s take this pandemic as a starting point to understand what other factors could influence your cash flow.
Political Instability or Changes
In economics, political instability is the number one factor affecting a region’s businesses. Whether small, medium or large, any business will suffer political instability or constant change in the political environment. Politics are one of the reasons enterprises experience variable growth rates during election years. Most major corporations of the world try to minimize their business activities during this period and wait for new policies to emerge. Then, these businesses adjust their internal procedures accordingly. Therefore, any entrepreneur should always watch for any political change that could adversely affect their business.
Economic Ups & Downs
While most major corporations of the world tend to enjoy the economy’s ups and downs, most small and medium businesses suffer significantly due to it. If you are in the import and export business or are selling imported products, then the chances are that the regular increase or decrease in dollar prices might affect your business’s cash flow. If your country’s currency’s exchange rate is down, then your overall business landscape might suffer.
Social Norms & Influences
Society as a whole plays a vital role in shaping the demand and supply situation within a country. Fashion, trends, and taboos can hurt your business directly. For instance, during this recent pandemic, face masks became a significant business. Many widely known apparel and sports brands dove into the business of manufacturing face masks simply because their other products weren’t doing well enough. Almost the entire 2020 was in a state of lockdown. Government officials advised people not to do luxury shopping. Therefore, apparel and fashion accessories did not perform well. For many such businesses, the only viable option was switching to producing face masks and gloves.
Technological Advancements
For businesses that deal with technological products and services, staying up to date with the recent trends is a dire need. For instance, Nokia was the largest cell phone manufacturer just 10 years ago, and today, the company is not even in the top 5. Why? Simply because they could not keep up with their consumers’ technological demands. While the world was moving towards Android & iOS-based smartphones, Nokia was trying to compel them to switch to Windows smartphones, which backfired, and as a result, the company almost went bankrupt.
Social Media Influence
Social media is, quite possibly, the most powerful tool in human history to shape our choices and mindsets. Social media is used worldwide by people to express their pleasure and displeasure with products and services. If you make one wrong move, your business will appear on Facebook or Twitter with a negative review. Regular social media management and reputation management are essential to avoid such instances.
How to Prepare for External Factors to Better Manage Your Cash Flow?
Feeling helpless is natural when you cannot control the externalfactors that can have adverse effects on your cash flow. However, while you cannot control the elements themselves, you can manage your reaction to them and be better prepared. Maintaining a backup cash flow is crucial in today’s business climate. Of course, this might not be the best solution for every business, but restraining your spending and being flexible while maintaining your cash flow usually work for most companies. Adopting a flexible cash reserve strategy with pre-determined goals in mind can help you have enough cash reserve for rainy days.
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.
Internet-based accounting, or cloud accounting as it is known, has paved the way for finance professionals to work from anywhere via remote systems. Previously, accounting teams had to be at a specific location to access and work on financial data. Managers were to share the data with employees due to data leakage or theft threats. However, today, with the advancements in cloud technology, it has become easier to share financial data with their teams for remote work. Enhanced security, better workflow software, and backup services have made this possible.
How Exactly Does Internet-Based Accounting Work?
Even today, the terms ‘cloud’ or ‘internet-based’ pose a threat to most traditional businesses. Financial teams are still skeptical about using cloud-based services, considering that data sales to advertisers and competitors are standard. However, this is not the case anymore today. Free cloud accounting software may be prone to such threats, but the paid and advanced ones aren’t. Cloud accounting today offers a plethora of benefits that traditional accounting or desktop-based accounting software may not. Here are some of the top help your company can enjoy while using an internet-based accounting software:
Easy & Reliable Connectivity from Anywhere
Probably, the most significant advantage of any cloud-based service is that you can access your data from even the farthest nooks and corners of the world. You can access the data quickly and work on it if you have an internet connection. This mobility reduces the hassle of your accounting team being at your office whenever you need anything done. You can easily access your accounting data using smartphones, tablets, and laptops.
Instantly & Regularly Updated Information
Another significant benefit of cloud-based accounting software is that you will always find your data up to date. Cloud-based accounting software regularly updates and saves any changes made to the data and displays it to all necessary parties. This way, whenever you log in to check your data, you will find it updated. Previously, you had to prevent months of data from detecting a simple and minor change in your reports. Today, you can view the change history in minutes to understand the flow.
Third-Party Integrations for Advanced Functionalities
Most cloud-based accounting software today allows you to connect third-party applications or their applications to the software. By doing this, you can customize the accounting software as per your needs. In addition, you can integrate your customer relationship management (CRM) software, inventory management software, and the like into your accounting software to have all your financial data in one place.
Live Updates 24/7
For many businesses, it is a hassle to keep tabs on their recurring, accrued, or incoming payments. Asking the bank within the working hours may not be the solution. With cloud-based accounting software, you can quickly get back notifications on your smartphone. Similarly, any transactions made will appear as a notification to instantly inform you of the update.
Higher Security, Lesser Risk of Data Loss
With cloud-based accounting software, your data is always on the cloud, continuously backed up and protected. Companies that offer internet-based accounting software comply with the national laws of data protection. One could say that top-notch security means are in place to ensure your data is never misused. Unlike desktop applications, where your information is stored in your computer and is easily a target of hackers, your data is under top-level security with cloud software.
Tax Filing Made Easier
Most cloud-based accounting software offers you the ease of filing for taxes. You have to download your income reports, tax reports, etc., to have all the data you need for filing taxes.
Should You Opt for Cloud-Based Accounting Software?
Today, especially after the COVID-19 pandemic, it is impossible to imagine your entire workforce regularly coming to your office. Lockdowns and safety measures might hinder the process. With cloud-based accounting software, you will efficiently work on the data from home or wherever you are.
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.
Below, we explain solutions that the law allows you to cushion the impact of taxes in the accounting of your business but also the options of saving your obligations with Social Security:
Income tax and VAT deductible to save more
However, the deductions of expenses in the IRPF and VAT should not be taken lightly by the self-employed worker, who taxes indirect estimation as an easy saving formula. Apply according to the legally established expenditure affected by the activity, duly justified and accounting registered, to help you save and increase your solvency.
We detail the tax deductions in the IRPF. This year, the Law of Urgent Reforms of Autonomous Work added a novelty. The deduction in Personal Income Tax of 30% of the expenses on the percentage of housing affects the activity and the deduction of allowances in the same terms as the workers of the General Scheme.
Also, remember that you can also benefit from deductions for maternity, large family, and descendants or ascendants in charge with disabilities.
Discharge of expenses before the start of an activity
The beginnings can be challenging. Therefore, it is better for you than ever to seek maximum savings. Hacienda allows the deduction in the IRPF and VAT of necessary expenses for the start-up of the business. These are investment expenses that you can deduct provided that these requirements:
Give notice to the Treasury of the intention to undertake to present model 036 and check box 504. This procedure notifies a discharge before the start of the activity.
Invoices issued with a date after said previous discharge in the Treasury.
A posteriori, you must proceed to a second registration in the Treasury to start your activity.
Pension plans
Contributions to pension plans also have an essential fiscal advantage if the self-employed person can deduct up to a maximum of 8,000 euros or up to 30% of the net income from economic activities or work.
Health insurance
Do not forget to take out the health insurance. The medical insurance allows the self-employed to deduct the premiums up to a limit of $500 per person. The self-employed person can also include the spouse’s fee and children under 25. The limit of $500 per person extends to $1,500 for a person with a disability.
Reduction per start of 20% per start of the activity
Suppose you start economic activity indirect estimation without having exercised any other in the previous year. In that case, you can positively reduce by 20% your net return (income – expenses) in the first year and the next—20% on your income tax. If you have losses in the first year, you will not accept the reduction, although it is reserved for you when you fulfill the conditions.
Moving from a natural person to a legal entity
The autonomous tax determines the benefits it obtains. For this reason, the tax burden of the self-employed person, a natural person, is generally greater than that of a legal person. When you’re billing as self-employed, and the threshold of $46,000 exceeds, you should consider switching from autonomous to society.
Recover VAT from defaults with a rectifying invoice to save more
Unfortunately, unpaid bills are a continuum in independent accounting. Despite this, nobody escapes the quarterly appointment with the Treasury to declare and pay VAT through the 303 models. Still, the self-employed can recover the amount of the tax and thus the liquidity it needs.
This possibility, for which a judicial or notarial injunction process must be carried out, is subject to the debtor’s requirements as self-employed or a company. The collection of the invoice must not be during the six months following its issuance. The solution to the problem lies in the distribution of a rectifying invoice, canceling the VAT quota of the original, which you will submit to the Treasury, and you will include it in the quarterly model of the period in which you issue it.
Welcome to the self-employment quota bonuses
Already in the section of Social Security, the reductions in the quota of self-employed are among the most remarkable savings tricks of this top ten.
The most notable of the bonuses is that the current flat rate represents a saving of up to $2,700 during the first year for newly self-employed people who take advantage of it. This saving is reduced by tranches during the second and last years, except for self-employed under 30 and the autonomous ones under 35 who enjoy the bonus during the third year.
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 small business owner, it’s essential to understand the concept of debt and its implications thoroughly. Good debt refers to borrowing money to invest in activities that will generate positive returns for your business in the long run, such as purchasing equipment, hiring additional staff, or expanding operations. On the other hand, bad debt represents borrowing money for expenses that do not contribute to your business’s growth and can result in long-term financial troubles. Therefore, it is vital to manage your finances prudently and use debt as a tool to fuel your business’s growth rather than a burden that impedes your progress.
Understanding Debt
Good debt
Good debt is typically used to invest in assets that will generate a return on investment, such as property, equipment, or inventory. These assets can help your business grow and increase revenue over time. Additionally, good debt often comes with lower interest rates and longer repayment periods, making it more manageable for your business.
Bad debt
Bad debt, on the other hand, is typically used to fund expenses that don’t provide a long-term benefit to your business. This might include things like credit card debt used to cover day-to-day expenses or loans taken out to pay off other debts. Bad debt often comes with high-interest rates and short repayment periods, which can make it difficult to manage and pay off.
So, what are the most important tips for managing your small business finances? Here are a few to keep in mind:
Create a Budget and Stick to It
One of the most important things you can do as a small business owner is to create a budget and stick to it. This will help you track your expenses and ensure that you’re not overspending in any one area. Make sure to include all of your expenses, including debt payments, in your budget.
Prioritize Debt Repayment
If you have debt, make sure to prioritize repayment. Focus on paying off high-interest debt first, as this will save you money in the long run. Additionally, consider consolidating your debt into a single loan with a lower interest rate to make it more manageable.
Use Credit Wisely
Credit can be a powerful tool for small business owners, but it’s important to use it wisely. Make sure to only use credit for expenses that will benefit your business long-term, and avoid using it to cover day-to-day expenses.
Build an Emergency Fund
Unexpected expenses can arise at any time, so it’s important to have an emergency fund in place. This will help you cover unexpected expenses without having to rely on credit or other forms of debt.
Seek Professional Advice
If you’re struggling to manage your finances, don’t be afraid to seek professional advice. A financial advisor or accountant can help you create a plan to get your finances back on track and ensure that you’re making the most of your resources.
Summary
Small business owners face various challenges when it comes to managing their finances. It’s essential to have a clear understanding of the difference between good and bad debt. Good debt, such as loans for business expansion, can help grow your business, while bad debt, such as high-interest credit card debt, can damage your financial health. Creating a budget is another crucial step in managing your finances, as it helps you keep track of your expenses, income, and cash flow. Prioritizing debt repayment is also crucial, as it helps you pay off high-interest debts first and avoid accumulating more debt. Moreover, using credit wisely can help you avoid unnecessary debt and build your credit score. Building an emergency fund is another important step, as it provides a financial cushion during unexpected situations. Finally, seeking professional advice from a financial expert can help you make informed decisions and avoid costly mistakes. By following these tips, you can effectively manage your small business finances and ensure that your business is on the right path to success.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Social Security in the United States: A Complete Guide to Benefits, Eligibility & Strategic Claiming
Social Security in the United States is a federal program providing retirement, disability, survivor, and supplemental income benefits to eligible workers and their families, funded by payroll taxes and based on your earnings history. The program serves over 72.9 million Americans—more than one-fifth of the entire U.S. population—delivering monthly payments that average $2,015 for retired workers, $1,580 for disabled workers, and varying amounts for survivors based on family composition.
As the founder of Complete Controller, I’ve spent over 20 years working alongside entrepreneurs and retirees, watching countless clients navigate Social Security decisions that directly impact their financial futures. My team and I have discovered that understanding these benefits early—and integrating them with proper bookkeeping practices—can add tens of thousands to your lifetime income. This article breaks down the essential components of Social Security, from eligibility requirements and benefit calculations to strategic claiming decisions and common pitfalls, giving you the knowledge to maximize your benefits while avoiding costly mistakes.
What is social security in the United States and how do you navigate it?
Social Security provides retirement benefits (age 62+), disability coverage, survivor support, and supplemental income to qualified Americans through payroll tax funding
Retirement benefits start at age 62 with reductions, reach full value at full retirement age (66-67), and increase 8% yearly if delayed to age 70
Disability benefits require recent work credits and strict medical criteria; SSI assists low-income individuals regardless of work history
Survivor benefits support spouses, children, and dependents based on the deceased worker’s earnings record
Benefits include annual cost-of-living adjustments—2.8% for 2026, adding approximately $56 to average monthly payments
What Are Social Security Benefits in the United States?
Social Security operates as the nation’s most comprehensive social insurance program, touching nearly every American family through its multi-faceted benefit structure. The system distributes five primary benefit types: retirement income for workers age 62 and older, Social Security Disability Insurance (SSDI) for those unable to work due to severe medical conditions, Supplemental Security Income (SSI) for low-income aged or disabled individuals, survivor benefits for families of deceased workers, and dependent benefits for qualifying family members.
The program’s massive scale demonstrates its central role in American financial security. Currently supporting 72.9 million beneficiaries with 93% of the workforce contributing through payroll taxes, Social Security processes approximately 6 million new benefit awards annually. Monthly payments vary significantly by benefit type and individual circumstances:
Retired workers average $2,015 monthly
Disabled workers receive approximately $1,580
Widow(er)s with two children can receive up to $3,761
SSI recipients average $698 for individuals, $1,048 for couples
Spousal benefits range from 32.5% to 50% of the worker’s amount
Eligibility Requirements for Social Security in the United States
Qualifying for Social Security requires meeting specific work history, age, and status criteria that vary by benefit type. The foundation of eligibility rests on earning work credits through employment covered by Social Security taxes—you can earn up to four credits annually, with 2025 requiring $1,810 in earnings per credit.
Retirement eligibility
Standard retirement benefits demand 40 work credits (typically 10 years of covered employment) and reaching age 62. Your full retirement age depends on birth year: 66 for those born 1943-1954, gradually increasing to 67 for anyone born 1960 or later. While you can claim as early as 62, benefits permanently reduce by up to 30% compared to waiting until full retirement age.
Disability and SSI rules
SSDI eligibility requires both a qualifying disability and sufficient recent work history—generally 20 credits earned in the last 10 years, though younger workers need fewer. The Social Security Administration applies a strict five-step evaluation process, requiring proof that your condition prevents any substantial gainful activity for at least 12 months.
SSI operates differently, focusing on financial need rather than work history. Individuals must have limited income (below $943 monthly in 2025) and resources (under $2,000 for individuals, $3,000 for couples) while being 65 or older, blind, or disabled.
Family and noncitizen qualifications
Spouses, divorced spouses (married at least 10 years), and children under 18 can receive benefits based on a worker’s record without earning their own credits. Noncitizens must have lawful permanent resident status and either 40 credits or qualifying military service, with special rules for refugees and asylees.
How Social Security Benefit Amounts Are Calculated in the United States
Your Social Security payment depends on a complex formula using your 35 highest-earning years, adjusted for wage inflation to create your Average Indexed Monthly Earnings (AIME). The Social Security Administration converts AIME to your Primary Insurance Amount (PIA) through bend points that provide higher replacement rates for lower earners—90% of the first $1,226, 32% of amounts between $1,226 and $7,391, and 15% above that threshold in 2025.
Early vs. Delayed claiming impact
Timing dramatically affects your monthly benefit amount. Claiming at 62 with a full retirement age of 67 reduces benefits by 30%, meaning you’d receive only 70% of your PIA. Conversely, delaying past full retirement age earns delayed retirement credits of 8% annually until age 70, potentially increasing benefits by 24% to 32% depending on your birth year.
Recent behavioral shifts validate delay strategies—since the mid-1990s, average claiming age has risen from 63 to 65, with fewer Americans rushing to claim at 62. This trend reflects growing awareness that patience pays: someone entitled to $2,000 at full retirement age would receive only $1,400 at 62 but could collect $2,480 by waiting until 70.
Women face particular challenges with average monthly benefits of $1,780 compared to men’s $2,181—a $401 monthly gap stemming from career interruptions and wage disparities. However, women’s longer life expectancy means total lifetime benefits often exceed men’s, making strategic claiming especially important.
Common Mistakes When Claiming Social Security in the United States
Many retirees stumble over earnings restrictions, missing thousands in potential benefits through poor timing or overlooked strategies. Understanding these pitfalls—and their solutions—protects your retirement income from unnecessary reductions.
Working while receiving benefits
The earnings test trips up countless early claimants who continue working. In 2026, beneficiaries under full retirement age lose $1 for every $2 earned above $24,480 annually. The year you reach full retirement age, the limit jumps to $65,160 with only $1 withheld per $3 excess. These withheld benefits aren’t lost forever—Social Security recalculates your payment at full retirement age, potentially recovering the full amount over your lifetime.
Tax and Medicare deductions
Up to 85% of Social Security benefits become taxable when combined income exceeds thresholds—$25,000 for individuals, $32,000 for couples. Medicare Part B premiums, automatically deducted from benefits, consumed $185 monthly in 2025 for standard beneficiaries, with higher earners paying income-related surcharges up to $600 monthly.
Consider Tom and Deb’s strategic approach: retiring at 60 with $2 million saved, they optimized by having Deb claim at 62 ($2,100 monthly) while Tom delays until 70 (growing to $5,800). Combined with Roth conversions during early retirement, their plan achieved a 94% success rate across 1,000+ market scenarios while saving $600,000 in lifetime taxes.
Family and Survivor Benefits Under Social Security in the United States
Social Security extends beyond individual workers, creating a safety net for families through auxiliary benefits. Eligible family members can receive up to 50% of your benefit amount while you’re living, with higher percentages for survivors after death. Total family benefits face a maximum limit, typically 150% to 180% of the worker’s PIA.
Spousal and ex-spousal rules
Current spouses age 62 or older qualify for benefits worth up to 50% of the worker’s PIA at full retirement age, reduced to as little as 32.5% if claimed at 62. Divorced spouses meeting the 10-year marriage requirement can claim identical benefits without affecting the worker’s or current spouse’s payments. Uniquely, divorced individuals can claim spousal benefits at 62 even if their ex-spouse hasn’t yet filed, provided both meet age requirements and have been divorced at least two years.
Survivor benefits offer more generous terms—widows and widowers can claim as early as age 60 (50 if disabled) and receive up to 100% of the deceased worker’s benefit. A 2023 SSA case study highlighted a widow who switched from her own $1,300 retirement benefit to $1,832 in survivor benefits at age 60, demonstrating how comparing benefit options can boost income by 40% during critical years.
How to Apply for Social Security Benefits in the United States
Successful benefit applications require preparation and proper documentation. Start your application up to four months before you want benefits to begin, using Social Security’s online portal at SSA.gov, calling 1-800-772-1213, or visiting a local office with an appointment.
Required documents by benefit type
All applicants need proof of identity (driver’s license or passport), Social Security number verification, birth certificate, and direct deposit information. Additional requirements vary:
Retirement: W-2s or self-employment tax returns
Disability: Complete medical records, treatment history, work history details
Survivors: Death certificate, marriage certificate, dependent birth certificates
Divorced spouse: Marriage certificate, divorce decree
Through my experience at Complete Controller, I’ve watched clients lose months of benefits due to missing paperwork. Create your mySocialSecurity account immediately—even years before claiming—to verify earnings records, estimate benefits, and spot errors requiring correction before they impact your payments.
Changes and Planning Tips for Social Security in the United States
Social Security faces an urgent financial crisis that demands your attention: the Old-Age and Survivors Insurance trust fund will deplete in 2033, potentially triggering automatic 23% benefit cuts unless Congress acts. This looming threat—affecting today’s 59-year-olds at their full retirement age—makes strategic planning more critical than ever.
The 2026 cost-of-living adjustment brings a 2.8% increase, adding approximately $56 to average monthly benefits. However, retirees often find COLAs insufficient because they’re based on working-age spending patterns rather than retiree expenses, particularly healthcare costs that typically rise faster than general inflation.
Medicare integration and future adjustments
Coordinate Medicare enrollment carefully—sign up during the seven-month window starting three months before your 65th birthday to avoid lifetime premium penalties. High earners should budget for income-related Medicare surcharges that can add hundreds monthly to healthcare costs.
Strategic integration with tax planning multiplies benefits: timing Roth conversions, managing retirement account withdrawals, and coordinating spousal claiming strategies can save hundreds of thousands over retirement. Consider how SSI operates differently, funded by general revenues rather than payroll taxes, providing a safety net regardless of work history.
Conclusion
Social Security in the United States forms an essential pillar of retirement security, delivering critical income through retirement, disability, survivor, and supplemental programs to nearly 73 million Americans monthly. Maximizing these benefits requires understanding eligibility rules, calculating optimal claiming ages, avoiding common pitfalls like earnings test surprises, and leveraging family benefit options that many overlook.
My two decades leading Complete Controller have shown me how proper financial tracking transforms Social Security from a confusing bureaucracy into a powerful wealth-building tool. Smart claiming strategies—like coordinating spousal benefits or delaying claims for higher payments—regularly add $100,000 or more to clients’ lifetime income. Take action today: create your SSA account to verify earnings records, then contact the experts at Complete Controller for guidance on integrating Social Security optimization with comprehensive financial planning that secures your future.
Frequently Asked Questions About Social Security in the United States
What is the minimum age to receive Social Security retirement benefits?
You can start receiving Social Security retirement benefits as early as age 62, but your monthly payment will be permanently reduced by up to 30% compared to waiting until your full retirement age of 66-67.
How many work credits do I need for Social Security benefits?
Most people need 40 work credits (about 10 years of work) for retirement benefits. Disability benefits require fewer credits based on your age when you become disabled—as few as 6 credits for workers under 24.
What is full retirement age for Social Security?
Full retirement age ranges from 66 to 67 depending on your birth year. Those born 1943-1954 reach full retirement at 66, while anyone born 1960 or later must wait until 67 for unreduced benefits.
Can I work while receiving Social Security benefits?
Yes, you can work while receiving benefits, but earnings above $24,480 (2026 limit) reduce benefits by $1 for every $2 earned if you’re under full retirement age. After reaching full retirement age, no earnings limits apply.
What documents are needed to apply for Social Security?
Basic requirements include your Social Security number, birth certificate, proof of citizenship or lawful status, W-2s or tax returns, and bank information for direct deposit. Disability claims also require detailed medical records and treatment documentation.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
Technology is constantly evolving. This evolution clears paths for solving problems that would otherwise require valuable staffing resources.
There are many ways technology has upgraded the quality of life for people while also providing ease and comfort. Innovation has seeped into the workplace as well, as people can now take the help of technological advancements to make their tasks easy for them.
Automation has been available to bookkeepers and accountants for some time now. However, a theme of hesitancy is seen all around, which prevents them from moving towards automation.
Before diving into the advantages of automation in the accounting and finance department, let us first analyze the reason behind this hesitancy on the part of bookkeepers.
Why are Bookkeepers Hesitant to Get an Automated System?
Bookkeepers and accountants struggle to keep up with automation and cannot get their tasks sorted through this comparatively easy system.
The reason why they avoid an automated system could be one of two reasons.
Little knowledge
It is possible that since not many people are aware of technology’s advantages, they are skeptical about it. Often, bookkeepers are not entirely aware of how much automation can change their work game completely. This lack of knowledge compels them to stay away. Companies can count on this by paying extra attention to education to give all the bookkeepers the needed understanding. This education will equip them with the information required to receive their work well in a competitive market.
Fear of being replaced
Another trend identified in bookkeepers is that they often fear being replaced by technology for their jobs. With newer technology rolling out all the time, people are worried they will lose their jobs. These bookkeepers fail to understand that technology is there to assist them, not replace them. The work of an automated system combined with the brains of a bookkeeper would create a phenomenal result within the workplace. Bookkeepers should focus on their advantages, their professional careers, and the company that employs them.
How To Introduce Automation to Bookkeepers?
Automation has a lot of advantages in the vast world of bookkeeping.
First of all, the managing staff must ensure that the bookkeepers are receptive to the idea of automation. For this purpose, they must have open conversations where the bookkeepers can speak their minds and share their concerns.
They must then have the required knowledge of automation and use it to make their tasks easier. It would help if you informed them that it would not only take away more than half the burden but also develop a momentum that would increase the workflow. These benefits add to the client’s value, which makes it a win-win situation for all.
Advantages Of Automation in Bookkeeping
You can stay in contact with your clients at all times. Communication may be challenging if you aren’t using automation, but a bookkeeper can contact you with an automated system. An automated system assists them in building a good relationship with their client, which might deteriorate if the client cannot get a hold of the bookkeeper in time.
Automation allows you to always stay in contact with the rest of the staff. Group communication promotes efficacy within the system since all the staff members can communicate when and where required.
Having an automated system gives the bookkeeper a bird’s eye view. They can see the bigger picture, allowing them to identify any issue with the plan and cater to the problem before it reaches a point of no return.
Automation holds more advantages for bookkeepers than they realize. It is high time that all bookkeepers look into how automation could potentially change their bookkeeping game forever.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The first step in this process is to establish a financial plan. But don’t worry, it’s not that difficult. Only by starting to save will you be able to enhance your equity. It is a basic approach that requires a lot of self-awareness regarding your financial condition and spending habits.
Essentially, it would be best to consider how much you earn and how much you spend to determine how much you can save each month. Also, if you have debt, you must first pay it off. Planning your bill payment without taking out loans or being caught off guard by an unexpected cost is a significant benefit for the vast majority. Many people lose track of their finances precisely because they have no idea how much they spend or spend more than they make. That’s why you must know your current financial situation so it’s easier to understand what you need to do to get where you want to go.
The essence of sound financial planning is this. It is possible to be disciplined and structured in a basic manner. You don’t need to be an expert or a finance enthusiast to get financially organized. Did you realize that control tools available today can make your job easier?
This conduct will follow you for the rest of your life. In addition to demonstrating that it is feasible in practice, to begin with, a small amount of money!
Make a Habit of Saving
The second stage is to save what you can from your budget once you’ve identified your financial status and defined your ability to save. It occurs when money saved can be used toward an emergency fund or invested for a medium- to long-term goal. Developing a habit of saving money is a wise method to get your ideas off the ground and, as a result, enhance your wealth.
Saving takes a lot of commitment and willpower, just like any new habit. Changing your thinking one step at a time might lead to a new method of managing your finances. One way to make this work more accessible is to utilize the “pay yourself first” concept, which entails separating the percentage you want to invest as soon as you receive your salary after considering your expenses.
You might begin with a lower percentage and progressively increase it. The critical thing is to take the initial step, regardless of the percentage. It is a simple shape that can help you break free from your state of lethargy.
The 52-week methodology, which advises that every new week be set aside for an entire year to save $1 more than the previous week, is another exciting method that demonstrates the strength of the saving habit. If the person started with only $1 in the first week, they would have saved $1,378 by the end of the time.
Although the accumulated amount is negligible in this example, developing the habit of saving—through the exercise of discipline, implicit in the technique—is significantly invaluable since this behavior has a positive effect throughout the rest of your life. In addition to showing in practice that it is possible to start with little!
Invest According to Your Profile
Investing your money is just as vital as saving. Knowing your investor profile is critical for this. You can figure out which apps are best for you with this information. Several investment options are accessible in the market for people seeking to expand their wealth. Among them stand out:
Government funds (Direct Treasury)
Private securities (CDB, LCI, and LCA)
Investment trends
Stock change shares
However, before investing to increase your equity, you must first examine your risk tolerance or how you deal with losses. Each application has its own set of attributes that are suggested for different investors. Not everything good for one person is also suitable for another. Conservative investors, for example, place higher importance on security, even if it entails lesser returns. On the other hand, those with bold or aggressive personalities enjoy taking risks and embracing the prospect of losses in exchange for a more significant potential reward. The investor with a moderate profile prefers to balance the possibility of losses with profitability. In other words, it would be a compromise.
Knowing your profile makes it easier to define which type of investment is most recommended for you. This way, you can increase your equity without worry and in accordance with your expectations.
People who equate investing with the chance of rapidly becoming wealthy or believe investing in the stock market is the fastest midway increase in money are not uncommon. But that’s not all; remember that increasing equity is a difficult task that takes time and effort. Many people can lose money and feel dissatisfied with their investments at this time. As a result, investing according to your profile is the most responsible strategy for enhancing your equity.
Always Try to Diversify Applications
In addition to investing according to the profile, diversification is another essential piece of advice for developing equity. It is a fantastic investing technique that tries to shield an investor’s money from market swings that might negatively influence results. Because it is impossible to win every time, spreading the money over numerous assets is a technique to offset losses in some by gaining in others.
After all, each investment entails some level of risk. Even the most secure apps might suffer losses due to market volatility, legal changes, or government intervention. As a result, instead of concentrating resources on a single investment, an optimal risk management strategy is to spread them among at least a few different assets, preferably with varied hazards.
For individuals who don’t know what they’re doing, Warren Buffet, an American billionaire, the approach of investing in numerous forms of investments makes more sense. “Diversification is a safeguard against ignorance,” an eminent investor said.
As a result, persons with less investment knowledge should be cautious when allocating funds to specific types of assets. As a result, before diversifying, it’s critical to have a well-thought-out strategy that allows for quick and precise answers when needed. On the other hand, those who are new to the financial market may not have a plan in place or may not know where to begin. Here’s why it’s critical to get the assistance of someone well-versed in the subject.
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.
Temporary disability is a situation caused by a standard or occupational disease or an accident, whether work or not, that prevents work and requires healthcare.
You can attribute the right to a subsidy to alleviate your lack of income while receiving Social Security health care and continuing to be prevented from working for a maximum period of 12 months, extendable for another 6 when it is assumed that during them, the worker can be discharged by cure.
The work accident of the self-employed worker shall understand the one that occurred as a direct and immediate consequence of the work performed on their account and which determines its inclusion in the field of application of said Space Regime. It does not include accidents suffered by the worker when going to or from the workplace (except in the case of TRADE), those due to force majeure foreign to work, and those due to intentional recklessness or recklessness of the worker.
For the same purposes, you shall understand professional illness as contracted due to work carried out on its account.
It causes the action of the elements and substances and in the activities specified in the list of occupational diseases with the relationships of main activities capable of producing them, annexed to Royal Decree 1995/1978, of May 12, which approves the picture of occupational diseases in the Social Security System.
The requirements demand common illnesses are being registered or in a situation assimilated to discharge, having contributed a minimum of 180 days during the last five years, and being up to date with the payment of fees. No prior contribution period is required in case of an accident or occupational disease.
You can obtain the amount of the benefit by applying the following percentages to the regulatory base:
If there is a common illness or non-occupational accident, 60% from the fourth day to the twenty-first casualty and 75% from the twenty-first.
If an accident at work or occupational disease occurs, 75% of the regulatory base from the day following the leave, provided the interested party had opted for coverage of professional contingencies.
The regulatory base will be the contribution base of the self-employed worker corresponding to the month before the medical leave, divided by 30.
The self-employed person has a period of 15 days to notify the Social Security of the cancellation and the situation in which the activity remains, indicating on the official form which will directly manage the business or, where appropriate, the temporary or definitive cessation of the movement.
In situations of cessation of activity after temporary disability, the self-employed person will continue to receive the IT benefit, in the same amount as the cessation of activity benefit, until it is exhausted. At that point, he will receive the economic benefit for the end of the activity that corresponds to it, discounting the time spent in the IT situation of the period of cessation of activity to which you are entitled.
The contribution for temporary disability due to common contingencies is mandatory. However, maintaining an option for self-employed persons in situations of proactivity who are listed simultaneously in another Social Security scheme and for Workers included in the Special System for Agrarian Self-Employed Workers. The contribution of the professional contingencies of occupational accidents and diseases, the RETA, however, is voluntary, except for dependent self-employed workers and those obliged to formalize said protection for performing a professional activity with a high risk of accidents. You can expand the information in our article on the bases and types of contributions.
Permanent Disability Benefit
It intends to cover the loss of salary income of those self-employed who cannot continue working because they have been affected by an illness or accident that incapacitates them from professional practice in a presumably definitive manner.
It will be necessary to have contributed to occupational accidents and diseases and have received prior or simultaneous coverage of the temporary disability benefit.
The regulatory basis for a disability derived from professional contingencies will be equivalent to the worker’s contribution based on the date of the causal event.
Without reaching the total grade, partial permanent disability causes the worker to decrease not less than 50% of his expected performance. It is only protected if it derives professional contingencies but not if it derives from common contingencies.
The total permanent disability will increase by 20% of the regulatory base for people over 55 years. It increases for those who do not exercise a paid or self-employed activity, have ownership of an agricultural or maritime-fishing operation, or a commercial or industrial establishment as owner, lessee, usufructuary, or another similar concept.
Instead of the total permanent disability pension, the self-employed person may choose to collect compensation in a single payment for 40 monthly payments of the contribution base for professional contingencies on the date of the causal event. If it derives from common contingencies, there will be 40 monthly payments from the regulatory bottom of these contingencies.
Benefit for Permanent Non-Disabling Injuries
The self-employed may opt for this benefit in case of injuries, mutilations, and deformities caused by work-related accidents or occupational diseases, which, without constituting permanent disability, entail a decrease in the physical integrity of the worker if they include the established scale to that effect.
Among the specific requirements to be met by the self-employed, they must contribute to work-related accidents and occupational diseases. They must have opted for the coverage of the economic benefit for temporary disability and be up to date in the payment of fees. The surcharge of economic benefits is not applicable due to a lack of occupational risk prevention measures.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
