Author: Stephen Huck

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

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

Bookkeeping

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

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

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

Accounting

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

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

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

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

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

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

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

Take an Honest Look at Your Income and Expenses

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

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

Take Control of Your Spending Habits

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

Time to Take Action with a Budget Planner

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

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

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

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

By: Jennifer Brazer

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.

Fact Checked By: Brittany McMillen

Effective Debt Relief Strategies to Regain Financial Control

Debt-relief strategies include consolidation, budgeting, creditor negotiation, and leveraging technology to reduce balances and restore financial stability. These proven methods help individuals and businesses eliminate high-interest debt while rebuilding credit scores and creating sustainable financial habits.

I’ve spent over 20 years as CEO of Complete Controller working with businesses drowning in debt, and I’ve witnessed firsthand how the right strategies transform financial chaos into clarity. Total U.S. credit card debt has skyrocketed from $833.8 billion in 2014 to $1.16 trillion in 2024—a staggering 39% increase that shows millions of Americans need practical solutions now more than ever. This guide reveals the exact methods our clients use to break free from debt cycles, including consolidation techniques that improve credit scores by 20+ points for 68% of users, negotiation tactics that slash principal balances by up to 50%, and AI-powered tools that automate repayment plans for maximum efficiency.

What are effective debt relief strategies to regain financial control?

• Core strategies: Debt consolidation, budget creation, creditor negotiation, income leverage, AI automation, long-term planning
• Debt consolidation combines multiple high-interest debts into single lower-rate payments through HELOCs, balance transfers, or personal loans
• Budget creation tracks income versus expenses while building emergency funds to prevent future debt accumulation
• Creditor negotiation reduces interest rates, waives fees, or settles debts for less than full amounts owed
• Income leverage applies windfalls like tax refunds, bonuses, and side hustle earnings directly to debt principal

Debt Consolidation: Your Path to Lower Interest Rates

The average American carries $6,730 in credit card debt as of 2024, paying interest rates between 18-29% annually. Consolidation transforms these scattered high-interest obligations into manageable payments at significantly lower rates.

Balance transfer cards offer 0% introductory APRs for 12-21 months, giving you breathing room to pay down principal without accruing interest. HELOCs (home equity lines of credit) provide even lower rates—typically 7-9%—for homeowners with sufficient equity. Personal debt consolidation with personal lines of credit from banks or credit unions average 10-15% for borrowers with good credit.

Choosing the right consolidation method

• Balance transfer cards work best for debts under $15,000 with excellent credit (700+ score)
• HELOCs suit homeowners with 20%+ equity needing to consolidate $30,000+ in debt
• Personal loans help those with fair credit (650-699) consolidate $5,000-$50,000
• Debt management plans through credit counseling agencies negotiate lower rates without new loans

TransUnion research confirms that 68% of consumers who consolidate see credit score improvements of 20+ points within six months. The key lies in selecting the right tool for your specific situation and maintaining discipline to avoid accumulating new debt during repayment.

Creating a Budget That Actually Works

The median U.S. emergency fund sits at just $8,742 in 2025—far below the recommended $35,217 needed to cover six months of expenses. This gap explains why unexpected costs push so many into debt cycles.

Start by documenting every dollar flowing in and out for 30 days. Apps like Mint or YNAB automate tracking, but a simple spreadsheet works equally well. Apply the 50/30/20 framework: allocate 50% to needs (housing, utilities, minimum debt payments), 30% to wants (entertainment, dining), and 20% to savings and extra debt payments.

Emergency fund building while in debt

Building reserves while paying down debt seems counterintuitive, but money management tips to help avoid a deficit show that even $1,000 prevents most financial emergencies from derailing progress. Start with $500 as your initial goal—achievable by cutting discretionary spending for 2-3 months.

• Save $20 weekly by brewing coffee at home instead of buying
• Cancel unused subscriptions (average American has 4 forgotten subscriptions)
• Sell unused items through Facebook Marketplace or eBay
• Direct deposit $50 per paycheck into a separate savings account

Budgeting for financial health becomes automatic once these habits take root. Clients who maintain budgets post-debt elimination report 73% lower chances of returning to debt within five years.

Negotiating with Creditors: Strategies That Work

Credit card companies write off billions in bad debt annually, making them surprisingly willing to negotiate when approached professionally. Direct negotiation saves the 25-35% fees charged by debt settlement companies while achieving similar results.

Contact creditors before missing payments for maximum leverage. Request hardship programs that temporarily reduce interest rates to 0-9% for 6-12 months. Many issuers offer these unpublicized programs to customers experiencing job loss, medical issues, or other financial hardships.

Settlement negotiation tactics

Settlement involves paying less than the full balance to close accounts. Creditors typically accept 40-60% of the original debt when accounts are 90+ days delinquent. A resident physician recently consolidated $600,000 in student loans using federal forgiveness rules, demonstrating how policy knowledge amplifies negotiation power.

• Document all conversations with date, time, representative name, and agreement details
• Request written confirmation before making any payments
• Negotiate removal of negative credit reporting as part of settlement
• Consider credit counseling and debt management strategies for structured plans

Kathy, a teacher drowning in $40,000 of credit card debt, worked with a nonprofit credit counselor to create a debt management plan. Her interest rates dropped from 24% to 8%, allowing full repayment within three years while rebuilding her credit score from 580 to 720.

Leveraging Income Opportunities for Faster Payoff

The average tax refund exceeds $3,000, yet most Americans spend these windfalls on discretionary purchases rather than debt reduction. Strategic income leverage accelerates payoff timelines dramatically.

Apply every dollar of unexpected income directly to your highest-interest debt. This includes tax refunds, work bonuses, stimulus payments, insurance settlements, and gift money. The psychological impact of seeing balances drop motivates continued progress.

Side hustle selection for debt elimination

Modern gig economy platforms make earning extra income more accessible than ever. Choose side hustles matching your existing skills for immediate income generation without lengthy learning curves.

• Freelance writing pays $50-200 per article for experienced writers
• Food delivery driving generates $15-25 hourly during peak times
• Online tutoring earns $20-60 hourly for subject matter experts
• Virtual assistance provides $15-40 hourly with flexible scheduling

Debt settlement options become unnecessary when aggressive income strategies reduce principal balances quickly. One client paid off $25,000 in credit card debt within 18 months by dedicating Uber earnings exclusively to debt payments.

AI and Automation: The Future of Debt Management

Artificial intelligence transforms debt collection and management through predictive analytics and personalized communication strategies. These tools identify optimal payment schedules, predict default risks, and automate reminder systems.

Modern debt consolidation strategies incorporate AI-powered apps that analyze spending patterns and automatically transfer funds to savings or debt payments. Platforms like Digit and Qapital use algorithms to identify “safe to save” amounts without impacting daily expenses.

Implementing automated debt systems

• Set automatic minimum payments to avoid late fees and credit damage
• Use round-up apps to apply spare change toward debt principal
• Schedule bi-weekly half-payments to reduce interest accumulation
• Enable balance alerts to prevent overspending

AI chatbots now handle initial creditor negotiations, gathering account information and proposing settlement terms based on historical success patterns. While human oversight remains essential for complex cases, automation handles routine communications efficiently.

Long-Term Financial Planning Beyond Debt Freedom

Debt elimination marks the beginning, not the end, of financial transformation. Maintaining momentum requires systematic approaches to wealth building and protection against future crises.

Monitor credit reports monthly through free services like Credit Karma or annualcreditreport.com. Dispute errors immediately—25% of reports contain mistakes significant enough to impact lending decisions. Build positive payment history through secured credit cards or authorized user arrangements on established accounts.

Creating sustainable financial habits

Post-debt financial planning centers on three pillars: income growth, expense optimization, and investment discipline. Redirect former debt payments toward retirement accounts, taking advantage of employer matching and compound interest.

• Increase 401(k) contributions by 1% every six months
• Open high-yield savings accounts for short-term goals
• Invest in low-cost index funds for long-term growth
• Consider term life insurance to protect dependents

Education drives lasting change. Free resources from nonprofits, community colleges, and online platforms provide ongoing financial literacy development. Complete Controller clients who participate in quarterly financial reviews maintain debt-free status at rates 85% higher than those who disengage after debt elimination.

Conclusion

Breaking free from debt requires strategic action, not wishful thinking. Whether you choose consolidation, negotiation, or automated solutions, success depends on consistent implementation and professional guidance. I’ve watched thousands of entrepreneurs and individuals transform their financial futures using these exact strategies, proving that anyone can overcome even overwhelming debt with the right approach.

Take the first step today by listing all debts with balances, interest rates, and minimum payments. Choose one strategy from this guide and implement it this week. The team at Complete Controller stands ready to provide personalized guidance for your unique situation. Visit Complete Controller to discover how our cloud-based financial services help you implement these debt relief strategies while building sustainable business growth.

FAQ

How do I get out of debt quickly when living paycheck to paycheck?

Start with the debt avalanche method—pay minimums on all debts while attacking the highest interest rate first. Simultaneously, earn extra income through gig work (even $200 monthly accelerates progress) and negotiate with creditors for reduced rates. Most importantly, build a $500 emergency fund to prevent new debt from unexpected expenses.

What are the best debt relief services for people with low income?

Nonprofit credit counseling agencies approved by the National Foundation for Credit Counseling offer free consultations and low-cost debt management plans. Avoid for-profit debt settlement companies charging upfront fees. Government programs like income-driven student loan repayment and utility assistance programs provide additional relief without damaging credit.

Should I choose debt consolidation or debt settlement?

Choose consolidation if you have steady income and can afford monthly payments at reduced interest rates—this preserves credit scores while simplifying repayment. Select settlement only for severe hardship when you cannot maintain minimum payments, understanding it damages credit for 7 years but eliminates debt for 40-60% of original balances.

How much does debt relief hurt my credit score?

Debt consolidation through new loans causes temporary 5-10 point drops from hard inquiries but improves scores long-term through lower utilization. Settlement drops scores 100-150 points initially but allows rebuilding after accounts close. Bankruptcy impacts scores 200+ points for 7-10 years. Credit counseling DMPs may note “managed by credit counseling” but don’t inherently lower scores.

What alternatives to bankruptcy should I try first?

Exhaust these options before bankruptcy: debt management plans through credit counseling (reducing rates while paying full balances), debt consolidation loans or balance transfers, negotiated settlements with creditors, hardship payment plans, and selling assets to pay debts. Consider Chapter 13 bankruptcy only after attempting these alternatives for 6-12 months without success.

Sources

• Experian. (March 12, 2025). “Average Credit Card Debt Increases 3.5% to $6,730 in 2024.” Chris Horymski. https://www.experian.com/blogs/ask-experian/state-of-credit-cards/
• TransUnion Newsroom. (2025). “Debt Consolidation Often Results in Higher Credit Scores.” https://newsroom.transunion.com/debt-consolidation-often-results-in-higher-credit-scores-and-better-credit-performance/
• CBS News. (May 13, 2025). “Most Effective Debt Relief Strategies.” https://www.cbsnews.com
• WVU Extension. (April 1, 2025). “Smart Strategies for Debt Management.” https://www.wvu.edu
• Bankruptcy-Law-Seattle. (January 4, 2025). “2025 Tips to Avoid Bankruptcy.” https://bankruptcy-law-seattle.com
• NCRi. (January 10, 2025). “Top 10 Debt Collection Strategies.” https://ncri.com
• National Debt Relief. (April 14, 2025). “How to Take Control of Debt.” https://www.nationaldebtrelief.com
• Investopedia. (May 5, 2025). “Your Emergency Fund Should Be $35,000. Here’s Why.” Hiranmayi Srinivasan. https://www.investopedia.com/your-emergency-fund-should-be-usd35-000-here-s-why-11725755
• WisMed Assure. (December 6, 2023). “Consolidation Leads to $600,000 Student Loan Forgiveness.” Mark Ziety. https://wismedassure.org/fyinsurance/consolidation-leads-to-600000-student-loan-forgiveness-a-case-study/
• Money Management International. (February 1, 2018). “Kathy’s Story.” https://www.moneymanagement.org/improving-lives/stories/kathy-d
• Consumer Financial Protection Bureau. (2025). https://www.consumerfinance.gov/
• MyMoney.gov. (2025). https://www.mymoney.gov/
• Wikipedia. “Credit Card Debt.” Accessed May 31, 2025. https://en.wikipedia.org/wiki/Creditcarddebt
• Wikipedia. “Debt Settlement.” Accessed May 31, 2025. https://en.wikipedia.org/wiki/Debt_settlement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This simple job costing calculation doesn’t include your indirect expenses. Some indirect expenses include insurance, employer-paid taxes on wages, interest and finance charges, vehicle expenses, and equipment depreciation. An indirect expense is necessary for the completion of projects but cannot be tied directly to a single job. Instead, it is paid as the ordinary course of business and then allocated to each job through a multiplier. That is a subject for another day. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

By: Jennifer Brazer

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.

Fact Checked By: Brittany McMillen

The Hostage Situation: Breaking Free From In-House Accounting Challenges

In-house accounting challenges can create a business “hostage situation” when your financial professional holds all the knowledge, processes, and access with little transparency or documentation. Many business owners find themselves trapped in this scenario, unable to access timely financial information or understand their own accounting processes. Transitioning to outsourced accounting solutions offers a strategic path to improved transparency, efficiency, and control over your financial operations.

Recognizing the Signs of an Accounting Hostage Situation

When your business’s financial health is controlled by a single individual who hasn’t created transparent systems, you’re essentially being held hostage. This dangerous business position leaves you vulnerable in multiple ways.

The invisible workflow problem

Do you understand exactly what your bookkeeper or accountant does on a daily, weekly, and monthly basis? For many business owners, the answer is a resounding “no.” This knowledge gap isn’t just an inconvenience—it’s a significant business risk.

The typical scenario unfolds like this: You’ve hired someone to manage your accounting. They’ve developed their own methods and systems over time, but nothing has been documented or standardized. You receive monthly financial reports weeks after month-end—if you’re lucky. When questioned about delays, your accountant provides excuses or, worse, shifts blame to you or your team.

According to the Association of Certified Fraud Examiners, businesses with fewer than 100 employees are particularly vulnerable to accounting fraud, with a median loss of $200,000. Undocumented processes contribute significantly to this risk by creating opportunities and reducing oversight.

The information bottleneck

Perhaps the most frustrating aspect of the accounting hostage situation is the information bottleneck it creates. You repeatedly request specific reports or insights, but they never materialize. When your accountant takes time off, basic financial operations grind to a halt because no one else understands the systems.

This information asymmetry creates a power imbalance that no business owner should tolerate. Your financial data belongs to you, not your accountant.

The Hidden Costs of In-House Accounting Problems

Beyond the obvious frustrations, problematic in-house accounting creates substantial hidden costs:

• Delayed decision-making: Without timely financial insights, business decisions are made with outdated information
• Increased fraud risk: Lack of oversight and controls creates vulnerability to embezzlement and error
• Business continuity threats: What happens if your accountant suddenly leaves or becomes unavailable?
• Compliance vulnerabilities: Undocumented processes may not properly address tax and regulatory requirements
• Scaling limitations: As your business grows, an inefficient accounting function becomes increasingly problematic

Research from Deloitte indicates that businesses with outdated financial processes spend 47% more time on routine accounting tasks than their peers with modernized systems. This inefficiency directly impacts your bottom line.

Breaking Free: Transitioning to Outsourced Accounting Solutions

Liberating your business from an accounting hostage situation requires a strategic approach. Here’s how to execute a smooth transition to outsourced accounting services:

Introduce outsourced support as a collaborative solution

The most diplomatic approach is to bring in an outsourced accounting firm as a supportive resource to “lighten the load” for your in-house person. This framing reduces defensiveness while establishing the external expertise your business needs.

Select a firm that provides cloud-based accounting platforms with transparent access controls. This technological approach immediately moves your financial data from behind the wizard’s curtain into a secure but accessible environment where you and authorized team members can view real-time information.

Redistribute accounting responsibilities strategically

Once your outsourced accounting partner is established, strategically reassign responsibilities:

• Assign routine transaction processing, reconciliation, and standard reporting to your outsourced team
• Create oversight and review processes where professionals examine every transaction
• Maintain a clear separation of duties to enhance internal controls
• Establish documented workflows with defined timelines and deliverables

This redistribution creates natural checks and balances while ensuring consistent, professional execution of core accounting functions.

Document all existing processes and procedures

Request that your in-house accountant document all current processes and procedures in a comprehensive but accessible manual. This exercise serves multiple purposes:

• Creates transparency around existing workflows
• Allows evaluation of current processes for efficiency and necessity
• Identifies gaps in financial controls or reporting
• Establishes institutional knowledge that remains with your business regardless of personnel changes

Pay close attention to resistance during this documentation phase. Significant pushback often signals deeper issues:

• The accountant may be hiding inefficiencies or errors
• They might feel threatened by transparency
• Job security concerns could be overriding their commitment to your business’s best interests

Implement enhanced financial reporting and analysis

With your outsourced team in place and processes documented, establish improved financial reporting that delivers actionable insights:

• Standardized monthly financial packages delivered within days (not weeks) of month-end
• Cash flow forecasting and management tools
• Industry-specific KPI tracking and benchmarking
• Scenario planning and budget variance analysis

These enhanced capabilities transform accounting from a necessary administrative function into a strategic business asset.

The Benefits of Successfully Transitioning to Outsourced Accounting

Businesses that successfully transition from problematic in-house accounting to professional outsourced solutions typically experience:

• 30-50% reduction in accounting costs when considering full employment expenses
• Improved financial accuracy with error rates declining by 40-60%
• Enhanced business continuity with redundant staffing and documented processes
• Access to specialized expertise across tax planning, system optimization, and industry requirements
• Scalable solutions that grow with your business without requiring new hires

Perhaps most importantly, you’ll regain control of your business’s financial management. Rather than being held hostage by an individual’s knowledge or availability, you’ll have a transparent, accessible system supported by a team of professionals.

Taking the First Step Toward Financial Freedom

If you recognize the signs of an accounting hostage situation in your business, don’t delay action. The longer inefficient or problematic accounting systems remain in place, the more difficult and disruptive the eventual transition becomes.

Begin with a comprehensive assessment of your current accounting function, identifying specific pain points and risks. Then explore outsourced accounting options that address your unique business needs and industry requirements.

Remember that with the right outsourced accounting team, you can evolve quickly regardless of the changes required. You’ll finally be free to run your business instead of having your accountant run you.

For more information on transitioning to outsourced accounting, explore our virtual bookkeeping services or download our free financial toolkit to begin assessing your current situation.

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

While most individuals are worried about strangers getting their hands on and misusing their personal information, the people who are actually most likely to commit crimes of fraud and embezzlement are those within the inner circle of trust. Businesses that have grown around a single point of contact, someone who performs all of the critical accounting functions, are the most exposed. Unfortunately, small businesses often cannot afford multiple employees to run their accounting functions. As these companies grow, that single point of contact becomes the one person who knows how to perform all functions properly. As a result, the separation of duties critical to fraud protection and accuracy is lost. What about the risk of losing that individual to sick leave, disability, vacation, or termination? This unhealthy dependency on a single key person is especially crippling in accounting, and that seems to be where we see it the most. A seasoned outsourced accounting firm will work with a business to implement protocols that encourage and support healthy accounting practices. Companies can achieve separation of duties and knowledge redundancy by working hand in hand with an adequately organized firm to split task work and create efficient workflow processes. The most efficient transfer of workload occurs in a hosted environment where the accounting programs, inflowing source documents, and data from CRM, POS, and ERD systems are accessible to both the internal team and the outsourced team at the same time. That’s why hosting the books and records within a secure environment is the perfect first step to bringing accounting to the next level. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

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

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

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

We are really excited about our new internal communications app SnapComms.

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

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

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

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

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

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

So I can help others (solve a problem and fulfill a need) by doing what I love. If you are doing what you love, you will be happy, and your creative juices will flow, which fuels your passion and makes you even more valuable. Do what you love – success is imminent. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

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

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

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