Accounting in a small business can be a challenge. Most of the time, small business owners wear many hats in the company, and when it comes to keeping the books, mistakes can be made, and data can fall through the cracks. Though there is lots of great bookkeeping software out there, at some point, most small business owners will realize they need to hire a bookkeeper. Before you hire a bookkeeper, there are a few things you need to consider.
Do I Need a Full-Time Bookkeeper?
Most small businesses will not need to employ a full-time bookkeeper, but some will be the exception if the daily inputs are extensive. If you do need a full-time bookkeeper, you will need to go through the recruiting and hiring process. You will want to find a certified bookkeeper with experience in small business and preferably with experience specific to your type of business.
If you don’t need a full-time bookkeeper, you may want to consider hiring a freelancer or a firm that will send a bookkeeper however often you and they agree you need one. It is important that you determine your needs to understand what you need when it comes to a bookkeeper.
What is My Budget for a Bookkeeper?
Because most small businesses are low on capital, especially in the first few years, it is important to determine how much you can afford for a bookkeeper. This determination will help you figure out if you can afford a full-time bookkeeper or other bookkeeping options.
If you are on a lower budget, most freelancers tend to be a little less expensive, but you are on their schedule more or less. The flexibility can make it easier for you both when it comes to availability. If you can afford a full-time bookkeeper, while it will be the most expensive option, having the books handled daily will ensure no errors or discrepancies and make a difference when filing taxes or getting financing.
If you can afford something a little more middle of the road, hiring a firm that would do your books regularly might be right for you. They are more on the expensive side from hiring a freelance bookkeeper, but they have a staff of bookkeepers, so you would have them when you needed them without having to hire a full-time employee.
Have I Fully Considered Bookkeeping Software?
Accounting and bookkeeping software has come a long way, and there are multiple great and affordable choices that have all the features you need and have been made user friendly. You don’t have to be a certified bookkeeper to learn how to use the software, and as long as you are good about inputting data, it will be accurate and reliable.
When choosing software, however, you need to consider what your needs are. If you need basic bookkeeping, there is free software that can do the job. However, if you need to cover inventory and payroll in your software, you will need to choose more robust features.
The other thing to consider is whether you want to use cloud-based bookkeeping software, which gives you the flexibility to access your company’s books from anywhere. It also will give you the ability to share it more easily should you do a combination of using software and hiring a professional.
Conclusion
Every business needs a bookkeeping system. As the business owner, it is up to you to determine how to fulfill the needs when it comes to bookkeeping. You have to determine the budget, time, convenience, and other bookkeeping needs before you proceed with hiring a bookkeeper or implementing bookkeeping software.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
How to embrace the cloud into bite-sized portions from Jennifer Brazer, founder and CEO of a completely cloud-based company based in the US.
I have created a company that is 100% in the cloud and I want to share with everyone my thoughts on how to embrace this type of company. I have gathered some great points about embracing the cloud, take a look at what I’ve come up with.
Connecting Staff
Making sure your staff are able to continue producing the work/product you need to deliver to your customers is of primary importance. Everything else comes second to that. But how do you monitor, train, mentor, and incentivize staff that you cannot see from day to day? Here’s how we bridge that gap:
Remote Desktop Services
Coupled with a VPN, any good system administrator can create a permission-based environment for staff to log in to a remote server or cloud VM (virtual machine). If your work is stored on a local server, this might be the time to consider migrating to a cloud service or managed service. Be careful to use the appropriate protections to protect the sensitive data stored on your new system.
Work Tracking Software
Installing a work tracker on your system allows you to see when your staff members log in to work, how long they work, what tasks are performed, and whether they are using their work time efficiently. I always suggest a business model wherein staff members are paid for time worked and incentivized with bonuses for completing more work better. Avoiding the 9 to 5 construct provides staff with more freedom to work as needed and save the employer labor costs as staff work only when there is work to do.
Timesheet
A timesheet can be much more than a place for staff members to record their time and billable tasks. I recommend you develop the timecard to include hourly wage information and any bonus qualifiers that are part of your incentiveprogram. If you are giving staff members a profit share bonus for completing their work efficiently, provide a field on the timesheet that calculates that bonus. If you are providing a bonus for completing certain milestones, such as a new client onboarding, be sure to make room for that on the timesheet. If you make it easy for staff to track their earnings as they complete their work, it provides them with a greater sense of control and makes them more likely to strive to reach the goals you have set for their role.
Scope of Work
This is the hardest part. It involves training your staff about the work that needs to be done, the methodologies you want them to use, and the deadlines they must meet. If you put your expectations in a written document by role, that is best. It provides a framework for the processes the staff member will be completing and a place to look at if they ever need clarity. It also makes staff expansion easier, adding new people quickly because training is a breeze.
Connecting Customers
Now that your staff is up and running, how do you get your clients on board? They may not have as many opportunities to interact with you digitally, but when they do, you want it to be seamless and impressive so that the experience will build trust. A clunky and difficult experience may leave them feeling insecure.
Alone or in combination, these tools and strategies will position your business as savvy and supportive as you bridge the technology gap.
Freelancing, as a full-time business, is becoming more and more popular. Generally, freelancers take a skill or multiple skills they used in the business world and converted into their own freelance business. For many reasons becoming a freelancer is appealing.
Being your own boss
Flexibility in your schedule
No limit to income
Only taking work you want to
The most popular freelance jobs are writing, graphic design, and consulting. While all three are very different from one is another, there are some common aspects of freelancing that will be the same no matter what kind of freelance business you operate. Here are eight tools that every freelancer should have.
Wunderlist
Staying organized is essential for every freelancer’s success. Wunderlist is a simple and intuitive task list application that can be viewed on the desktop or mobile device app. Tasks can be organized by project and client and then broken down into smaller tasks required to complete each item. Other features include the ability to add notes and files to each task, set deadlines, and create reminders with automatic data synchronization on all your devices.
Trello
Trello is a project management tool that allows you to keep track of ideas, to-do lists, events, and completed tasks using a virtual whiteboard. Each element is configured as a map that can be dragged and dropped into categories making it easier to organize projects and your entire business. To make an account is free, and you can start using it immediately upon creating your account.
My Minutes
My Minutes is a productivity app that is only available for Apple users. This helps you set and reach productivity goals by using the “at least” and “at most” system. For example, you could set it to “spend at least two hours on client A’s project” or if you could set it to “spend no more than one hour on answering emails.” This application is meant to keep you ontask and productive.
RescueTime
RescueTime is an app running in the background and recording all of your usage and time spent online and other apps. The point of this app is to help you see where your time is being spent on time management. It is also a great way to track how many hours you work if you bill clients by the hour. This application can be a real eye-opener as far as where and how you are spending your time.
Self-control (App)
Self-Control was designed for those who are easily distracted. This open-sourced distraction app lets people block their access to specific sites even if they remove the act or restart the computer. It will only block during a certain timeframe set by you. You create a blacklist of distracting websites such as Facebook or Twitter, or even your email. Once you click start until the time is up, you will be restricted from access to whatever sites are on the blacklist. The point of Self-Control is to keep you from distraction by restricting your access during certain times.
FreshBooks
FreshBooks is cloud-based accounting software for non-accountants. Not only does it track billable hours, but it also integrates them with an easy online billing system that automatically calculates totals and taxes to generate invoices quickly. FreshBooks also offers hassle-free spending tracking that automatically imports and classifies bank account and credit card expenses and records expenses simply by taking a snapshot of revenue. Its financial reporting tools include expense reports, quarterly analyzes, profit and loss, payments collected, tax summaries, and more.
QuickBooks
Quickbooks is an accounting and bookkeeping software that is perhaps the most used accounting and bookkeeping software on the market. This highly-rated software integrates more than 150 third-party applications and features time tracking and payroll services. Quickbooks has dozens of other features and now offers an online cloud-based version.
Conclusion
Whether you use one or all of these applications, you must use every tool available to you as a freelancer. These tools help you manage time, business organization, and accounting and bookkeeping. These areas are critical, especially to the freelancer who must operate their business on their own.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The food industry is thriving and flourishing. People have started investing in food businesses because they are less likely to fail in the current market. Everybody likes to eat, but not everybody loves to cook. This is where the food industry comes into play. Homemade food or restaurants, people like eating delicious food. Here are eleven tips to follow to help you start a food business.
Research: The food business is more competitive than any other business, so it is imperative and smart to do some research before starting a food business. Before starting a food business, try to find out what is trending, what new trends can be worked upon, and what you can do differently than others. Do some online market research to measure market needs and what people look for in terms of food quality, taste, and affordability. Try taking notes from a food business that failed; try to find out what went wrong in it and refrain from making a similar mistake.
Marketing: Marketing begins as soon as the business starts or sometimes before even that. Marketing attracts a large number of clients and makes a product talk of the town. Marketing has many ways. It is done online as well as offline. Marketing through social media platform requires less investment and targets a maximum number of people.
Menu & Pricing: Strategize the menu. Offer the best of food that can be made. Pricing the menu perfectly is an art in itself. When the menu is balanced, it helps to gain more profit. Price should be decided according to the cost of the ingredients. Prices should not fluctuate. It is not only unethical but also results in losing existing customers.
Law: Every industry is run under some laws and regulations. The food business is not an exception. The basic concept that follows the law and regulations of the food business is transparency and food safety. To avoid any problem in the future, follow and achieve compliance with the law and the requirement it states.
Edible Logistics: Research and work out about food delivery and packaging. Food delivery is more complex than any other logistics. The packaging should be decided smartly. The food should be packed in spill-free containers.
Organize: Food business needs planning. Every detail should be planned and put into a checklist. Multiple things should be organized before starting a business, storage, inventory, ingredients, packaging, orders management, etc.
Nature of business: The food business can be dual in nature. Orders can be taken offline as well as online. Decide if the business will just run offline or online or on both platforms. There is a lot of scope for running the business online. Social media, blogs, and websites can acquire more orders as the reach is maximum through an online platform.
Follow SOP: If the food tastes nice, the business gets permanent customers. People do not like to switch from one kind of taste to another. For making sure people stick to one specific brand and food business, follow the same recipe, the same raw materials and ingredients, and the same technique. Write down everything and then keep the following everything to ensure consistency.
Staff: Hire staff intelligently. From the chef to the waiter, everyone should be trained. Invest time to train each staff personnel. Remember changing staff frequently in the food business is risky and can lead to losing permanent customers.
Bestsellers: No matter how long the menu is and how many items it has. There are always some key selling items and dishes. Every food business has a specialty that people love. Identify the best seller and use it as the focus of the menu.
Feedback: Always trust your customer’s feedback. Be open to feedback and customize the food according to the ratings. The food industry is very competitive. It is essential to know what best can be offered to the customers and then launch the business. Food should be appealing, tasty, and different to get an edge over other competitors.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Tax Professional vs Tax Software: What’s Best for You?
Tax professional vs tax software choices depend on your specific tax situation—use software like TurboTax for straightforward returns with W-2 income and standard deductions to save money, but hire a CPA or enrolled agent when dealing with business income, rental properties, or multiple income sources to maximize deductions and minimize audit risks.
I’ve spent over 20 years as CEO of Complete Controller helping thousands of small businesses navigate tax season, and I’ve witnessed firsthand the costly mistakes that happen when business owners choose the wrong tax preparation method. From watching clients switch from software to professionals after missing $15,000 in deductions to seeing others waste money on CPAs for simple returns, I’ve learned that making the right choice between tax software and professional help can save you thousands of dollars and countless hours of stress. This article breaks down the real costs, hidden benefits, and practical decision framework you need to choose the tax preparation method that fits your unique situation.
Tax professional vs tax software: What’s best for you?
Tax software costs $0-$179 and works best for simple returns with W-2 income, standard deductions, and no complex investments
Tax professionals charge $200-$1,500+ but excel at finding hidden deductions, handling multi-state filings, and providing audit protection
Software saves time with automated calculations but can’t answer nuanced questions or provide year-round tax planning
Professionals offer personalized strategies and IRS representation but require scheduling appointments and higher upfront costs
The hybrid approach—using software for data entry and professionals for review—cuts costs by 30-50% while maintaining accuracy
Pros and Cons of Tax Software for Everyday Filers
Tax software dominates the market for individual filers, with 41% of all returns now self-prepared electronically compared to just 30% a decade ago. This shift reflects both improved technology and growing taxpayer confidence in digital solutions.
Modern tax software guides users through a step-by-step interview process, automatically calculating deductions and checking for errors. Programs like TurboTax and H&R Block software import W-2s directly from employers, reducing manual entry mistakes. Most platforms include audit support features and secure document storage for seven years.
TurboTax and similar tools: Ease and speed
The biggest advantages of tax software include:
Immediate filing – Complete your return in 1-2 hours versus waiting weeks for appointments
Real-time calculations – See your refund update as you enter information
Error checking – Built-in reviews catch common mistakes before filing
Multi-device access – Start on your phone, finish on your computer
Automatic updates – Tax law changes integrate seamlessly
Hidden limitations of tax software
Software struggles with several critical areas that cost taxpayers money:
Complex scenarios – International income, cryptocurrency, or multiple businesses often exceed software capabilities
Missed deductions – Studies show self-employed filers miss an average 21% in potential deductions
No personalized advice – Software can’t recommend tax strategies for your specific situation
Peak season glitches – Server crashes and slow performance plague filing deadlines
Limited audit support – Most include basic defense but won’t represent you at IRS meetings
Advantages of Hiring a Tax Professional for Complex Returns
Professional tax preparers bring expertise that software simply cannot match, particularly for business owners and investors. CPAs and enrolled agents complete extensive training and maintain licenses through continuing education.
The value shows in the numbers—professionals identify an average 20-30% more in deductions compared to self-prepared returns for clients earning over $50,000. They also provide year-round support, not just during tax season.
Maximizing deductions and audit protection
Tax professionals excel at:
Finding overlooked deductions – Home office, vehicle expenses, retirement contributions often missed by software
Audit representation – CPAs and EAs can speak directly with the IRS on your behalf
Multi-state expertise – Navigating reciprocity agreements and credit calculations
Business structure optimization – Recommending S-corp elections or LLC formations for tax savings
Depreciation strategies – Maximizing Section 179 and bonus depreciation benefits
Year-round tax planning missing from software
Unlike software that focuses on filing past returns, professionals provide:
Understanding the true cost requires looking beyond sticker prices to consider potential savings and risks.
Factor
Tax Software
Tax Professional
Basic Return
$0–$60
$200–$300
Complex/Business
$100–$179
$300–$1,500+
Hidden Costs
Upgrades, state filing fees
Consultation fees, amendments
Potential Savings
Quick filing, no appointments
Average 20-30% more deductions found
Audit Support
Basic coverage included
Full representation and defense
Small business owners particularly benefit from professional help—one client saved $22,000 last year by restructuring from sole proprietor to S-corporation based on their CPA’s recommendation.
Real-World Case Study: When Software Failed a Growing Business
A concrete example illustrates the software limitation problem. An e-commerce owner used TurboTax for three years, reporting increasing sales across multiple states. The software handled basic Schedule C filing but missed crucial multi-state nexus requirements and inventory accounting methods.
The IRS eventually sent notices for underpaid taxes across three states, plus penalties totaling $8,000. After hiring a CPA, they discovered $15,000 in missed deductions including:
Cost of goods sold adjustments using proper inventory methods
Multi-state apportionment reducing taxable income in high-tax states
Research and development credits for website development costs
Section 179 deductions for equipment purchases
The CPA amended three years of returns, eliminating all penalties and securing a $12,000 refund. The business now saves approximately 25% annually on taxes through proper planning and quarterly reviews.
Hybrid Approach: Combining Tax Software and Professionals
Smart taxpayers increasingly adopt a balanced strategy—using software for routine tasks while engaging professionals for optimization and review.
TurboTax draft + professional filing – Self-prepare to understand your return, expert files officially
Year-round software tracking + quarterly professional meetings – Continuous recordkeeping with periodic optimization
DIY personal return + professional business filing – Split approach for mixed income sources
This hybrid model typically reduces professional fees by 30-50% while maintaining expert oversight.
Transition tips for your business
Start implementing a hybrid approach with these steps:
Organize digitally year-round using accounting software or apps
Schedule quarterly check-ins with a tax professional for planning
Prepare draft returns yourself to understand your tax situation
Engage professionals for final review and strategic advice
Document everything to maximize efficiency during professional consultations
The Human Expertise Gap in Tax Software
Beyond calculations and forms, professional relationships provide intangible benefits software cannot replicate.
Building trust with year-round guidance
Tax professionals offer:
Personalized explanations of how tax laws affect your specific situation
Proactive communications about deadlines and opportunities
Business advisory services beyond just tax compliance
Referral networks to attorneys, financial advisors, and lenders
Peace of mind knowing an expert reviews your filings
Software may calculate accurately, but it can’t calm your nerves during an audit or explain why converting to an S-corp saves money long-term.
Conclusion
Choosing between a tax professional vs tax software ultimately depends on your return complexity, available time, and comfort with tax laws. Simple filers with only W-2 income save money using software, while business owners, investors, and anyone with multiple income sources benefit significantly from professional expertise. The hybrid approach offers the best value for many—leveraging software efficiency while maintaining professional oversight for optimization and compliance.
I’ve seen businesses transform their financial futures by making the right choice here. One Complete Controller client reduced their tax burden by $22,000 annually simply by switching from DIY software to professional guidance. You don’t have to navigate these decisions alone. Visit Complete Controller for a free consultation with our tax experts who can assess your situation and recommend the optimal approach for your business.
Frequently Asked Questions About Tax Professional vs Tax Software
Is tax software or a tax professional cheaper?
Tax software costs $0-$179 for most returns, while professionals charge $273+ on average. However, professionals often find enough additional deductions to more than offset their higher fees, especially for business owners or those with investment income.
Can tax software handle business taxes?
Software works adequately for simple sole proprietorships with straightforward expenses. However, it struggles with multi-state operations, inventory accounting, depreciation strategies, and entity selection—areas where professionals excel.
What if I get audited using tax software?
Most software includes basic audit defense services, but these typically provide only guidance and document preparation. Professional preparers offer full representation, attending meetings and negotiating directly with the IRS on your behalf.
Do I need a CPA or just any tax preparer?
CPAs and enrolled agents provide the highest expertise level and can represent you before the IRS. For complex returns involving businesses, investments, or multi-state issues, choose credentialed professionals over uncertified preparers.
When should I switch from software to a professional?
Consider switching when you acquire rental property, start a business, receive stock options, have multi-state income, face an audit, or when your income exceeds $75,000 with multiple deduction opportunities.
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.
No matter the business’s size, recruiting is one of the most crucial aspects of running your business. While it is true, you can put your job opening online and receive applications and possible candidates, recruiting is the best way to ensure that you get top candidates for the position. The recruiting process used to be more challenging before the Internet opened up the candidate pool. The challenge now is to get through numerous applications to find the most qualified candidates to receive an interview. Recruiters are becoming more creative to help find the best employees for the businesses they represent. Here are five ways recruiters are effectively recruiting candidates that you can emulate for your small business.
Recruitment Marketing
Recruitment marketing has become something new in the respect that the online environment has changed the face of recruiting. When looking for an excellent candidate, recruiters use every resource they have to find them. But as a small business owner, you can cut out the commission and recruit like a pro yourself. Because we live in a world where social media is so heavily used daily by anyone with a device, using social media as a recruitment tool is vital.
So, where do you start? First, if you don’t already have one, you need to make a business page for your business on Facebook and LinkedIn platforms. Once you have these pages in place, you can begin to target recruiting efforts using your pages. Having these pages will give you a base and a place where possible candidates can see your business and how they might fit into it.
Target Audience Recruiting
Just like when selling a product or service, you need to figure out your target audience when it comes to recruiting the right candidates. Demographics are just as important in recruiting as they are in sales. When you have an open position, you need to imagine what the perfect recruit looks like to fill that position. Once you’ve determined the perfect candidate’s demographics for the job, all your efforts need to go towards putting your job posting in front of those who may be the right fit.
Social media is the perfect arena to help you target your key candidate demographic. Search for groups that are geared towards your demographic. Though the position you are offering may be better suited for someone of a certain age or gender, you still have to be careful not to alienate or eliminate any possibilities. However, suppose you heavily advertise the position in areas that are geared towards your key candidate demographic. In that case, you are more likely to get candidates that fit what you’re looking for in an employee.
Content Focus
When you identify where to target your ideal candidate demographic, it is time to focus on content that will attract the right candidate to your business. Creating content may require trial and error, especially if your target demographic is not your own demographic. However, since almost everyone with a device or the Internet is on social media no matter their age, gender, location, or beliefs, your net will already be widely cast. To narrow down the possibilities to viable candidates for the position, using a variety of good content to attract candidates could make all the difference.
Exciting Branding
Just like advertisements are meant to excite people to use products or services, you should use exciting branding to attract qualified candidates to your business. This is the time for you to be flashy and attract people through wonderful graphics, video content, written content, and overall business branding. When your business gets in front of the candidates you’re trying to target; you want them to look at your business and desire to work there.
When it comes to branding focused on recruiting, there is absolutely no difference between that type of branding and sales branding. The only difference may be that you show more of what goes on in the background to entice a possible employee candidate.
Go International
Though there may be plenty of qualified candidates in the US, don’t be afraid to go international with your reach. Many highly qualified and eager candidates will work very hard who want the opportunities working in the United States. Expanding your recruiting pool will never be a bad thing other than giving you too many great options.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Financial risks are taken on by every business, no matter the size. For the large business owner or shareholders, the risks are minimized by the amount of revenue coming in that covers it. For the small business owner, every decision carries a risk. Most small businesses fail within the first five years. The highest percentage of those are within the first year. However, this does not have to be the case. The failures don’t stem from poor decision making alone. They stem from not understanding the risks and safeguarding your business from these risks to eliminate them or minimize them.
Preparation for your small business should include making a business plan. Within that plan, there should be market and financial analysis. This analysis is where you can discover and assess the risks of starting your small business and how to handle them so your business will succeed. Here are four financial risks small business owners face and how to minimize or eliminate them.
Failure to Plan
Every aspect of starting and running a small business is a financial risk. This risk comes from issues with financing and working to turn a profit during your first year in business. Depending on the type of business, you usually don’t start in the black as far as finances. This means that you have to acquire financial backing, whether from your savings, investors, or lenders. If you obtain financing from alternative sources, the financial risks increase as they are either looking for a return of investment or repayment of the loan. Both carry risks against your business if you are unable to produce.
To minimize or eliminate this risk, you should have a strong financial projection in your business plan, and beyond startup, you need to continue implementing financial forecasting. If it is your first year in business, you can use market and competitor trends to forecast month to month what your business finances may look like. If you have been in business for more than a year, you can use your previous year’s financial statements to help you forecast. Financial forecasting will help you prepare for downturns or business slowdowns if they are expected. It will also help you plan how to utilize the money best in those times when business is booming.
Product or Service Failure
Though you may believe you have the best service or product idea or business plan, customers may disagree. Every business is dependent on some level of sales to survive, but if what you are selling isn’t any good or if it is good but not something people need or want, your business will not survive, and that could potentially no only hurt you as the business owner. Still, it could hurt any other investors in your business.
To avoid this, you should do a market analysis. The market analysis is as it sounds. You research and analyze the market to which your product or service belongs. You don’t want to just focus on current trends because those can come and go, and if you are only offering something that is currently on-trend, you will go out of business when it is no longer the hot thing. Your focus should be on a product or service that has a long life ahead of it.
Don’t count trends out totally. If you have a central and timeless product or service, you can then add some products and services on trend to give your business boosts. If you are creative, you can even be the one setting the trends.
Risky Financing
Most small businesses can’t operate at startup or the first few years without outside financial sources. Therefore, you will need to seek out financing. While there are many reputable lenders and investors, there are equally those that are not. Before entering into any contract for financing, make sure you go through the contract thoroughly. It would even be suggested that you consult a lawyer to ensure nothing in the financial contract could later come back to hurt you or your business. Both investors and lenders can add things into the contract that could give them your business should you fail to return on their investment or repay the loan.
Though all financing carries some level of risk, some are riskier than others. When seeking financing, you must do a lot of research and choose wisely.
Not Knowing Your Target Market
Many business owners make the mistake of believing that their product or service is perfect for everyone. While this kind of confidence is encouraged, it is not realistic. Even products or services that everyone uses varies from person to person. Also, when considering your target market, it is not always the person who will use the product that you target but rather the one going to do the purchasing. For example, grocery shopping is generally done by one household member. Each person in the household may need things from the grocery store, but the person making the purchase and selection may not use the product. So in some cases, those who sell grocery items may only want to target the person doing the purchasing, not necessarily the person who will be consuming the product.
Market and target audience analysis are crucial if you want to get your share in the market. Once you identify your target market, then you should put all your marketing efforts towards them. This targeting will increase sales and minimize financial risks.
Conclusion
For the small business owner, part of owning a business is facing financial risks. However, as long as the small business owner recognizes the risks and understands how to overcome them, they will not affect the business. Owning and operating a business can be fulfilling and challenging all at the same time, but if you’re prepared, you can overcome those challenges, and your business will succeed.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
No matter if a person is running a small or medium business or SME, it is important to hire a professional to perform tax services. Tax accountants are responsible for preparing and filing your business’s taxes. Furthermore, the tax accountant’s job is to do a detailed assessment to ensure that the business’s financial activities are running smoothly. The tax accountant also plays a major role in keeping the business operations in a prosperous and healthy state. A business person who is thinking of initiating a startup needs to make a proper plan. This plan includes including different strategies on how to engage professionals, tax compliance, and cash flow.
Instead of using accounting software or doing the business taxes yourself by hand or using handwritten books, hiring a tax accountant for the business makes good sense. Here are six reasons you should hire a tax accountant for your SME.
Helps the Business Save Time
As a business owner, there are several important responsibilities to conduct properly to run business activities more smoothly. Responsibilities of an entrepreneur include marketing, selling of products and services, and budget planning. A tax accountant is responsible for ensuring that the business’s financial side gets taken care of accurately. Hiring a tax accountant will allow the business owner to run operations to accomplish business goals within a short period.
Helps the Business Avoid Costly Mistakes
Due to the number of responsibilities that a business owner has, it becomes challenging to ensure that every business operation is accurate. There is a high risk that entrepreneurs will make some serious mistakes when dealing with the tax filing process in such cases. These mistakes can either cost thebusiness a lot of money or worse; they can cause the business to be shut down.
To remedy these issues, there is a need for a tax accountant to help the organization navigate the business processes in the easiest way possible. This approach will help the organization to save the business amounts to prevent errors.
Helps Businesses Deal with Complicated Tax Filing Processes
The process of paying taxes is considered a ‘cumbersome affair’ because, to file taxes, it is important to fill out the appropriate form accurately by providing facts, including details of accounts, income, expenses, and payroll. All of these factors are necessary to keep the businesses on the right track. Hiring a tax accountant will help a business owner take care of all these issues efficiently.
Helps the Business Identify Deductions
Hiring a tax accountant will help the business owner identify the potential deductions and provide the best possible advice. This advice will help an entrepreneur to make strategic decisions concerning year-end deductions. It has been observed that business owners often forget to keep track of the items like home office space, out-of-pocket expenses, and depreciation.
Helps Reduce Tax Liability
The job of a tax accountant is to know and understand tax laws and regulations. They also understand the current deductions available to the business. Understanding the laws, regulations, and deductions and finding other ways to cut taxes by reviewing the books will ensure that the business owes as few taxes as possible.
The tax accountant can also look at ways to save on your taxes throughout the year instead of just during tax season.
Helps the Business Grow
Hiring a tax accountant can help a business grow by keeping all the financial aspects of the business well recorded. These records can produce financial statements that will help the business owner understand what kind of capital the business has for growth. With a tax accountant taking care of the business’s financial side, the business owner can concentrate on other business areas, such as operations, and focus on growth.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Creating wealth management is something every financially responsible adult should do. This doubles whenever you become a couple. Regardless of your plans for marriage, owning a home, and having kids, planning for your financial future should be a priority for you as a couple. To plan wealth management requires you as a couple to sit down and have a financial discussion.
Some couples don’t combine their finances or manage them together, let alone invest together. Whether you have joint accounts or keep your finances separate, you can still invest as a couple. It is a matter of communication. You need to come together and discuss what your investmentgoals are, clarify your expectations, and discuss your risk tolerance.
Once you have established what you desire and expect, you can find common ground and work your way from there. If you invest as a couple, it is essential that you are on the same page, or the investment process could be overly challenging and even contentious.
After you have firmly established where you want to invest and how much you want to dedicate to investing, you have to choose where to invest as a couple. Here are six ways you can invest as a couple.
401(k) or Workplace Savings Plan
Like you might do as an individual, you can both invest in your company’s 401(k) or other workplace savings plans. If both of you have company 401(k) or other savings plans, both of you should be investing money into them. However, this investment needs to be strategic. If your company (many do) offers to match up to a certain percentage of your income, you should choose the one that carries a higher percentage.
You should be investing as much as you can afford this investment. The most important thing is to leave the money in the 401(k) because withdrawals have penalties, and they also get taxed after they come out since they go into the 401(k) before taxes.
Traditional and Roth IRAs
Traditional IRAs or Roth IRAs are individual retirement accounts opened by the investor at the banking institution of their choice. A traditional IRA has tax-deductible contributions and is tax-free until withdrawal. A Roth IRA is tax-free going in and coming out as long as you withdraw after retirement.
IRAs could be invested jointly, or you could have separate IRA accounts. It would probably be more profitable to put it all in a joint IRA so that more could be invested to get you a higher rate of return.
Health Savings Accounts
Though the Health Savings Account can only be used for qualifying medical expenses, the contributions and withdrawals are tax-free; therefore, it can reduce healthcare costs. These accounts can also gain extra revenue if your company does matching contributions.
Taxable Brokerage Accounts
Taxable brokerage accounts are accounts opened at a brokerage firm after the application approval. These accounts allow the firm to trade and buy or sell stocks on your behalf. There are no limits to the number of these taxable accounts you can have. Some investors may choose to have accounts at multiple brokerage firms. Diversifying your brokerage account investments can protect you in case of a downturn in the market in which you are invested.
Individual stocks
As a couple, you can buy individuals docs and companies, which means you are buying ownership. This can be done after a company goes public and offer shares in ownership to those who can afford to buy them. These stocks can later be bought and sold on an exchange between sellers and buyers through a stockbroker. Money can be made when the stock appreciates, and you sell it, or it can be made when profits are made on the company, and you receive a portion of those profits for being a shareholder.
These investments have no limit as far as what you can make; however, that means there is no limit regarding the losses either.
Mutual Funds
Mutual funds are an investment in which you pull your money and other investors to buy more shares in a collection of bonds, stocks, and securities. The price of a mutual fund is called the net asset value. It is the total value of the securities in the portfolio then divided by outstanding shares. The price varies based on the value held by the portfolio at the end of each day. One of the differences between mutual funds and individual funds is that be investors do not own the individual stocks or investments they are investing in the fund itself.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Having a business budget is as important as having a household budget. The purpose of the two budgets is similar in some ways and diverse in other ways. A business budget is an outline of monthly operational income and expenses. Still, your business should have a yearly budget so you can work to cover it with or without financing. You should have at least a six-month business budget before you start your business and should adjust as you work through the year.
The business budget is essential for making financial decisions but can also be important when trying to obtain financing from investors or lenders. Here are five essential steps to creating a business budget.
Add Up Your Income Sources
When writing your business budget, you need to figure out all your income sources. This will be cash flow and any other positive income that you use to operate your business. This can be from financing, sales, outstanding accounts receivable, and refunds.
Once you have all your income sources, you will enter them into your budget, broken out by source, and finally calculating your total income.
Determine Your Fixed Costs
Fixed costs are those expenses that will always be the same month to month. It is best to always have your fixed costs at the top of your expenses since they will not change. Generally, fixed costs are your lease, fixed utilities, internet and phone services, and payroll. If you have any other expenses that are the same every month, you should add it to your budget’s fixed costs.
If you cannot determine your fixed costs, you can use a bank statement to see what costs were consistently the same. Once you figure out your fixed costs, you will total them on your budget.
Determine Variable Costs
Variable costs are all the expenses that don’t fall in the fixed costs category. These are any expenses that change from month to month in an amount or due date. These expenses are usage-based utilities, travel costs, commissions, or any other fluctuatingexpenses.
Since variable expenses can change from month to month, they can be difficult to budget. However, you can budget for the average or general cost each month. When looking at variable costs, if you are not making enough to cover the budget, this is where you will look for expenses to cut. This is similar to a household budget in that if you aren’t making your business ends meet, you will use your budget to help you determine where to cut.
One-Time Spending
While most of your expenses, whether variable or fixed, will be the same each month, there are also costs that only happen on occasion that need to be added to the budget. These costs can be easily forgotten when they are not a regular expense. Make a list of these expenses, so when you are making your yearly budget, you can add them and also add to the monthly budget when the time is appropriate.
These one-time expenses will fall into two categories, planned and unplanned. While you may wonder how you can add unplanned expenses, you should have a miscellaneous yearly expense that will be used to cover those unplanned expenses that inevitably come up.
The most important thing to remember when figuring out your expenses is that you are striving for your business always to be prepared for all possibilities so that nothing will leave you devastated and possibly out of business.
Putting it All Together
Once you have gathered every source or possible source of income and your variable, fixed, and one-time spending costs, it is time to put your budget together. Make sure you have every category covered and the most accurate amounts possible.
Once you have your budget put together and have totaled everything, you will use your budget to compare cash flow out and cash flow in to see your profitability and see whether you are in the black or need to seek financing.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
