Author: Complete Controller

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

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

Mobility vs. Stability

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

QuickBooks and Your Computer

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

Features

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

Conclusion

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

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

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

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

Accounts Receivable

Problem

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

Solution

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

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

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

• Increase prices

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

Inventory

Problem

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

Solution

• Slow Down

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

• Plan for damages/malfunctions

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

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

Accounts Payable

Problem

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

Solution

• Negotiate with your vendors

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

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

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

Budget

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

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

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

Small Business Banking: The Foundation of Financial Success

Have you ever wondered why some small businesses thrive financially while others constantly struggle? The answer often lies in something deceptively simple: small business banking. With 34.75 million small businesses in the US generating $16.2 trillion in revenue, proper banking isn’t just a nice-to-have—it’s essential. Small business banking creates a financial foundation that helps you manage cash flow, access capital, protect assets, and scale smartly. Whether you’re launching your first side hustle or managing an established company, choosing the right banking solutions is often the difference between barely getting by and building long-term success.

Key Takeaways

• Keep business and personal finances completely separate to simplify taxes and protect your personal assets
• Use banking services like business checking accounts, credit cards, and merchant services to streamline daily operations
• Explore small business loans with knowledge of approval rates (small banks approve 54% while big banks only 14.6%)
• Implement online banking tools and fraud controls to safeguard accounts and optimize cash flow
• Choose a bank that understands your industry and offers scalable solutions as your business evolves

What is Small Business Banking and Why Do I Need It?

Small business banking is a suite of financial services designed specifically for business owners. These essential tools include:

• Business checking and savings accounts
• Merchant services for accepting payments
• Business loans and credit lines
• Payroll integration support
• Cash management tools like zero balance accounts

When you rely on a personal account to handle business finances, things spiral quickly. Tax time becomes a nightmare. Your business loses credibility. And worst of all? You unknowingly jeopardize your personal assets. Having dedicated business bank accounts helps you stay organized, provides legal protection, and opens doors to financing when you need it most.

What Are the Benefits of Having a Business Bank Account?

Opening a business bank account ensures your finances are clear, accurate, and easy to track. But the benefits go much deeper than organization.

Here’s what you really gain:

• 🧾 Clean separation of business and personal expenses for easier bookkeeping
• 🧠 Professionalism that boosts credibility with vendors and customers
• 💳 Access to business credit cards and loan products with better terms
• 💼 Legal protection by reinforcing your company’s separate financial identity
• 📈 Streamlined financial reporting when preparing for taxes or audits

Most importantly, dedicated small business checking accounts build trust—with your bank, your accountant, and every partner you do business with. This foundation of trust becomes invaluable when you need financial flexibility to grow.

How Do I Choose the Right Bank for My Small Business?

Not all banks are created equal, especially for small businesses. I advise clients to treat choosing a bank like hiring a business partner—find one who understands your goals and industry.

Recent data shows that small business owners with low credit risk are more likely to be approved by small banks (83%) than by large banks (76%). For medium or high-credit risk businesses, approval rates are similar at both types of institutions.

Here’s my recommended checklist:

• ✅ Low- or no-fee business checking with digital tools
• ✅ Easy-to-use online and mobile banking platforms
• ✅ Access to small business financing options
• ✅ Fraud protection tools and responsive customer support
• ✅ Specialized services for your business type (high transaction volume, international, etc.)

Pro tip: Many small business owners overlook credit unions or online-only banks, but these often offer fantastic rates and more personalized service. Take time to compare best banks for small businesses before making your final decision.

What Types of Small Business Loans Are Available?

When your business needs capital, there’s no one-size-fits-all solution. In 2025, only 14.6% of small business loans were approved by big banks, while 54% of applicants received financing from small banks. This stark difference makes understanding your options critical.

Historical context is important too: in 2023, small banks approved 75% of loan applications for at least some financing, compared to 66% at large banks.

Banks offer various small business loans and small business financing options like:

1. Term loans – Great for large purchases or expansion
2. SBA loans – Government-backed with lower interest rates and longer terms
3. Lines of credit – Revolving access to funds for cash flow gaps
4. Equipment financing – To lease or buy business equipment over time
5. Invoice factoring – Get paid upfront while waiting for customer invoices to clear

The SBA consistently finds that about 7 percent of small business credit applicants seek loans, lines of credit, or cash advances, showing the ongoing need for accessible financing.

Your eligibility often depends on your credit score, time in business, and monthly revenue. And remember—relationships matter. Building trust with your bank makes access to future loans much smoother.

How Can I Protect My Business from Financial Fraud?

Fraud doesn’t play favorites. Whether you’re a tech startup or a retail shop, you’re vulnerable—but you can take action right now to secure your accounts.

Start with these three essential moves:

• Use two-factor authentication on all online banking accounts
• Limit who has access to banking logins—especially for payroll and transfers
• Set up account alerts to catch unauthorized activity early

Don’t underestimate the importance of fraud detection and prevention systems. Also, talk to your bank about setting daily withdrawal and transfer limits. Most offer fraud detection tools and dedicated business protection services that go beyond basic security.

One client of mine saved over $15,000 when fraud alerts caught unusual transfer patterns, allowing them to freeze the account before more damage occurred. These safeguards aren’t just nice to have—they’re necessary.

What Cash Management Tools Do Banks Offer for Small Businesses?

Think of cash management like your business’s circulatory system. If money isn’t flowing well, operations suffer. With over a third of small firms reporting that now is a good time to expand and planning to increase employment in 2025, having proper cash management tools is more important than ever.

Banks offer tools to help you:

• 🛠️ Forecast future cash needs with clarity
• 💼 Manage accounts receivable and accounts payable
• 📊 Gain insights with cash flow dashboards
• 🔁 Set up auto-deposits, auto-payments, and liquidity sweeps
• 🏦 Connect treasury services if you’re running a larger operation

Even simple tech, like mobile check deposits and payment scheduling, can dramatically cut down time spent managing funds—and that’s time you can put back into growing your business.

For example, one restaurant owner I worked with used cash flow forecasting tools to identify their slow season patterns, allowing them to adjust inventory orders and staffing in advance. This simple change improved their cash position by 22% year-over-year.

Conclusion

Small business banking isn’t just about storing your money—it’s about managing, growing, and protecting it. When you separate your finances, partner with the right institution, and leverage tools built for business owners, you give yourself the edge to compete and scale confidently.

I’ve seen firsthand how the right banking relationship can transform a struggling business into a thriving one. Don’t fly blind when it comes to your financial foundation. Take control today and tap into the full potential of your financial strategy—and empower every dollar to work harder for your business.

Ready to build a financial stronghold for your company? Visit Complete Controller for bookkeeping, controller, and financial management services designed to help your business succeed.

FAQ

What documents do I need to open a small business bank account?

Most banks require your business license, articles of incorporation, EIN (Employer Identification Number), and personal identification for all signers. If you’re a sole proprietor, you might only need your Social Security number and ID. Call ahead to confirm specific requirements at your chosen bank.

How do online banking services benefit my small business?

Online banking lets you transfer funds, pay employees, track expenses, and monitor balances 24/7. This saves time by eliminating trips to the branch, gives you real-time visibility of your cash position, and often provides cash flow management tools not available with traditional banking.

What fees should I watch for when choosing a small business bank account?

Watch for monthly maintenance fees, transaction fees (especially if you have high volume), ATM fees, cash deposit fees, wire transfer costs, and minimum balance requirements. Some banks waive monthly fees if you maintain a specific balance or use other services like merchant processing.

Can I use my personal credit score to qualify for a business loan?

Yes, especially for new businesses without established credit. Lenders often review your personal credit score alongside your business plan and financials. As your business grows, you’ll want to build separate business credit to access better loan terms and larger amounts without personal guarantees.

How do merchant services impact my small business’s cash flow?

Merchant services allow you to accept credit cards, digital payments, and mobile transactions—helping you get paid faster and boost customer satisfaction. This improves cash flow by reducing the wait for checks to clear and lowering the risk of bounced payments, though you’ll need to factor in processing fees.

Sources

• Bank of America Institute. (2025). Small Business Checkpoint. Retrieved from Bank of America Institute.
• Federal Reserve. (March 2025). Consumer & Community Context Report. Retrieved from The Federal Reserve.
• Shore United Bank. Business Banking Q&A. Retrieved from https://www.shoreunitedbank.com/business-banking-qa
• Stearns Bank. Choosing Business Checking Accounts. Retrieved from https://www.stearnsbank.com/choosing-business-checking-accounts
• U.S. Bank. Small Business Account Info. Retrieved from https://www.usbank.com/small-business-account-info
• Unknown Author. (2025). The State of Small Business Lending: Statistics and Trends for 2025.
• Unknown Author. (2025). 35+ Key Small Business Statistics for 2025.

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.

Often, small business owners have faced the question, “When should I hire an accountant?” at some point or another during their careers. It’s a tough question, and the idea of spending extra money on something you’ve been doing yourself in the past can seem daunting. If your small or new business has been faced with this question, it’s time to look at some factors. In this article, we are going to talk about situations that may call for an accountant, what they do, and what that means for your business in the future.

What Do Accountants Do?

Before we get into the nitty-gritty of whether your company needs an accountant, we should first start by clarifying what business accountants do. To begin with, not all accountants or bookkeepers are full-time. Often small businesses do one-time hires, quarterly hires, and so on. With that said, here are the five fundamental tasks business accountants perform:

• Setting up systems

As we stated before, not all accountants are full time hires. Some small businesses choose to hire an accountant at the beginning to help them “set up shop.” There is accounting software like QuickBooks that allows the average business owner to complete daily tasks; however, proper set up is key.

• Entering data (maintenance)

As businesses grow, so do their numbers. Entering data precisely and without error is key to a functional business. These tasks can be time-consuming and require additional help.

• Reporting Results and Forecasting

This task is crucial to business owners, small and large. Accountants can look at real-time facts and numbers, create reports on profits, or loss of profits, which can otherwise be confusing to non-trained business owners. Most of the accounting software available for purchase offers forecasting options, but they are basic. A real-life accountant can produce more detailed forecasting.

Another aspect of this is by creating Financial Statements. Eventually, your business may need to apply for a loan or a credit card. Banks and other institutions are going to ask for 3 Purpose Statements (P&L, Balance Sheet, and Cash-Flow Statement). These need to be precise and detailed the first time.

• Taxes

This is self-explanatory. The bigger your business grows, the more complicated your taxes get. Accountants not only do your taxes, but they also help get you the credits and deductions you otherwise would have missed.

Signs it May be Time to Hire an Accountant

Your business is growing

Business is doing great, and you’re ready to expand. Perhaps that means hiring more employees, more vendors, buying property, or even expanding. These are all wonderful but can cause some serious complications if you’re not prepared for them. When it comes to rapid growth, paperwork can become longer and harder to deal with. This is where an accountant can help take the reins and straighten out all legal, business, and tax paperwork that your growing business may accumulate. As far as expansion, when it comes to buying/selling property, an accountant can help you through the process and create a plan that will work best for your company. They also can help you avoid fees or unnecessary taxes.

Applying for loans

Like most businesses, you’ll have to apply for a loan or a business credit card. In some cases, you’ll be working with Investors. Investors, loan officers, and banks are going to want detailed and exact financial statements. Accountants can take the pressure off of producing such documents that become more complicated and detailed as your business grows.

You have a hard time with taxes

It’s no secret that the U.S. tax code is detailed and confusing and is always changing. Accountants stay up to date on all occurring changes the U.S. Tax Code may be implementing and can assure that your company complies with all new codes and structures. This way, your company is safe from any unnecessary audits, fees, or penalties. They help you do your taxes right, but they can also assure you that your company gets the right tax credits and deductions to keep costs low. *Note* If you are facing an audit and are unsure what to do, we highly recommend bringing in an accountant, no matter what the case may be.

Accounting and bookkeeping tasks are keeping you away from other priorities

Let’s say you’re good at accounting and have managed to keep yourself afloat without one for several quarters accurately, but your business could use a little “sprucing up.” Accounting and bookkeeping tasks are long and time-consuming. If you find that these tasks, as a business owner, are keeping you away from reaching your full potential, it may be time to bring somebody in so you can focus on more business development to help your company grow. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

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

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

Bookkeeping

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

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

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

Accounting

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

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

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

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

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

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

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

Take an Honest Look at Your Income and Expenses

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

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

Take Control of Your Spending Habits

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

Time to Take Action with a Budget Planner

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

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

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

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

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.

You work all day at whatever it is you are good at, but when do you find the time to record the business’s activity in the books and invoice your clients? If you don’t do it every day, it becomes difficult to remember what you bought, for what project, and why. When will you do it?
In the morning, you check your calendar, catch up on critical information, and coordinate your staff – no time for bookkeeping. Mid-day, you are in the thick of it, keeping your clients happy and developing processes that make your business more efficient, effective, and profitable – it doesn’t really fit here. Maybe at night when the day is done? Your bookkeeping can be a kind of daily summary of what happened, and if you take the time to analyze your numbers, it can be a good indicator of what is yet to come. The end of the day is really the best alternative, but that can leave you with bookkeeping burnout.
Face it; most entrepreneurs’ days don’t end until nighttime. By then, you are tired, and bookkeeping becomes what you have to do, not what you want to do. As a result, you do just enough to get by and don’t really spend time with your numbers. Let’s be honest: after a hard day’s work, the numbers start to blur together anyway…. Wouldn’t it be nice to have an expert team that managed your bookkeeping tasks for you?
They could ensure the work was done, only ask you about things they can’t decipher, and provide intuitive reports. Would that help you to dive into the numbers and use them to help you understand your performance cash flow and make informed decisions? Could your finances become a light that shines the way to success and enables you to see approaching pitfalls? You might even be empowered to think up new ways to get paid earlier or easier or reduce costs and inefficiencies – after all, you will have some more time on your hands since someone else is doing the grunt work. Someone smart – an accountant who is trained in bookkeeping and enjoys it (yes, those people exist). 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.