Closing is defined as the completion of accounting records, collecting supporting papers, and all transactions that potentially affect a company’s balance sheet in the accounting dictionary.
Accounting programs and accounting software allow you to freeze an account and carry it over to the following year.
When is the business account going to be closed?
Aside from freelance labor, businesses have the freedom to determine the end of their fiscal year. When a company is formed, the directors decide on the start and end dates of the fiscal year. Each financial year must be 12 months long. Startups, which may have more or fewer financial years, are exceptions.
Every year, the fiscal year’s end date must be the same. Companies with seasonal events can use this flexibility to determine a more appropriate period than the calendar year. Practical concerns usually dictate the choice not to choose a fiscal year that runs from January 1 to December 31.
All businesses required to file balance sheets with the government are affected by the accounting closure. Although micro-entrepreneurs (previously auto-entrepreneurs) are exempt from this procedure, financialstatements must nevertheless be prepared to examine all activities.
Balancing the books and amending tax returns
Taking inventories and accounting for all financial transactions that influenced the company last year is part of closing accounting entries. A balance sheet and income statement can be created using the information in the company’s books. Prepare a tax return that details the company’s net income. It is how taxes are computed, and the amounts vary depending on the tax system used.
The stage of editing these documents is crucial. It is a detailed depiction of a company’s financial situation.
Before being deposited in the Arbitration Court’s Register, all these items will be presented to the General Meeting of Shareholders for approval. All records and ledgers are frozen if VSE, SME, or MGE accounting software is closed. After then, you must archive them along with the necessary supporting documentation.
Examine the company’s financial situation at the end of the reporting period
Comparisons between financial years are possible thanks to a company’s accounting records. An entrepreneur can track the growth of his revenue and expenses and their impact on the company’s financial status. It is an analysis that may be done during the year, for example, using BI reports to compare the current quarter’s turnover to the prior years. As a result, the company’s strategy was tweaked during the fiscal year. The box office verifies the strategy decision’s outcome. The keys are then in the hands of entrepreneurs to establish their following objectives and put in place the necessary measures to attain them: investments, recruiting, advertising campaigns, changes in inventory management procedures, and so on.
The close can calculate the profit announced to the manager and publish the balance sheet and income statement at the end of each financial year.
Complete all stages of the annual closure successfully
The balances of revenue and spending accounts, the closing of ledger accounts, and the termination of journal entries are steps in closing an account. Checking the consistency and consistency of all charges that make up the income statement is part of the income statement balances. This phase allows you to calculate the balance (positive or negative) between the account’s assets and liabilities or profit and loss.
The movement of balance accounts is halted when the main accounts are closed. The total balance for each account is calculated once they are added together. The comparison of the debit and credit columns of the journal (buy, sale, bank, etc.) with the final accounting balance after the inventory is the posting stop in this situation. They must be on an equal footing.
Here are the specific steps you should do every year at the end of the fiscal year:
Gather all supporting documentation that attests to the presence of each accounting entry and transaction.
If you haven’t already, keep track of all your entries in a journal. To make reading and typing easier, sort them by month and category.
Separate accounts payable and receivable to meet the chart of accounts’ requirements.
Post-sales data and new acquisitions data to summarize your assets and liabilities.
Do the same thing with your stock.
Calculate and record depreciation charges, as well as obey the requirements.
Determine the final tax and record it.
Go over all your accounting documents with a fine-toothed comb.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The most important lesson I’ve learned is the difference between a leader and a manager – not all managers are leaders, and not all leaders are managers. Adopting short-term goals and systems is one thing; inspiring people to a bigger plan is entirely different. I would say that the most successful people do both.
In other words, the mark of a true leader knows when to lead and when to manage.
So, what is the distinction between leadership and management? Here are the eight most significant differences between being a leader and being a manager, so you can start using your best skills in your work.
Influence VS Power
Managers, for the most part, have titles that confer authority. However, if you’ve ever worked for a boss obsessed with results, you know what I’m talking about following the rules and controlling outcomes. You know there’s a big difference between power and influencing people. Not all managers can motivate and influence others, which is an essential hallmark of leadership.
On the other side, some of my company’s most inspiring people include junior developers who come to work every day excited about finding solutions that help our clients. They don’t have a “manager” in their name, but their great ideas and enthusiasm motivate the rest of us to keep our company’s long-term vision in mind, making them incredible leaders.
Having followers versus having subordinates
The central part of a manager’s job is to ensure that company policies and procedures are followed. While this is an important role, it does not automatically create a leader. Leadership is more about building trust and respect and, as a result, being perceived as someone worth following.
One sure way to decide if you are a leader is to count the number of people who come to you for advice (excluding your direct reports).
I worked for a software company before starting my own company. One of my coworkers constantly had Coworkers come up to him and ask him questions. He wasn’t a manager, but his work ethic and integrity were admirable. They made people see him as a leader.
Instead of focusing on the present, consider the future
I remember the fear I experienced as a child when my parents told me to clean my (reputedly very dirty) room. The only thing that is going me to keep the room tidy is the end-of-week cash payment (about $1)
As I got older, I started thinking a little more judiciously. I intended to put money down for a new bike, but I knew I would need to make a lot more than $1 a week for that to happen. So, I asked my parents to work harder, and after months of hard work doing laundry and dishes, I got home my shiny red bike.
I didn’t know it at present, but I thought as a leader. Managers manage activities to cross them off a to-do list, but leaders are motivated to complete tasks because they can see the big picture. While managers tend to focus on current tasks (cleaning the room to avoid trouble), leaders see the future.
Vision of Opportunity for Growth VS Vision of Failure
Since managers tend to obsess over-rules and results, failure tends to become blacker and whiter for them. Being politically aware can be a positive thing, but an overemphasis on right and wrong means that one “bad” move can ruin morale and motivate your team.
More far-sighted leaders may see an opportunity in perceived failures. Losing a significant client or receiving negative feedback from a team member is not a step in the wrong direction but a chance to reevaluate systems and develop creative solutions.
Empowerment vs. Efficiency
After all, managers are more focused on improving efficiency. They are looking for ways to save money and time. On the other side, leaders are willing to invest time in their employees’ development.
My basketball coach didn’t have to remain after practice for an hour to assist me in hitting my free throws, but his inefficient approach was more effective in the long run. I got more points as the season progressed because he took the time to invest in me.
The same principle applies in any organization: when we make time as leaders, we can stop thinking we have to develop our team members to delegate more significant and more critical tasks in the future.
Final Thoughts
Leadership may not always seem easy or practical, but a strategic vision (and a willingness to execute it, even if it wastes time) will generate tremendous success and motivation. It is a victory for everyone.
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.
Job costing is essential for the accounting process for companies in development, contracting, manufacturing, or consulting. It permits them to keep track of and estimate job costs, ensuring that they are profitable and delivered on time. It also facilitates effective project management, from direct new business proposals to project lifecycle management and closing.
Make Sure Your Bill of Materials is Correct
Any business’s principal purpose is to sell and win new business. While the objectives are broad, every corporation confronts difficulties in pricing its products. Companies attempt to offer things at prices that customers will accept.
Many businesses use a work order costing method. This accounting technique makes it easier to determine how much material or component was utilized to make the final report. While this may appear to be a straightforward task, risks are involved. If the project is complicated, carefully controlling these risks is the best approach to assure anticipated rates of return through cost. Using executive costing in the firm is the appropriate solution to this problem, significantly if profit margins are not projected to be significant.
Cost Accounting’s Importance in Business
Controlling business operations without competent accounting is inconvenient. More sections, ranging from work-in-progress (WIP) reports to the cost of products sold reports, are necessary to account for each company’s activity. When such cost concerns develop, it is not always evident. More than one job may be running or operating simultaneously during this time; there’s a good chance you erroneously assigned the costs and discovered no problems with the costing. Furthermore, there may be a lack of proper cost control, which increases the risk of cost overruns and extra charges, threatening the capacity to assist the company in meeting its profit goals.
Advantages of Correct Job Cost Estimation
The lack of comprehensive and precise expense reporting is why businesses abandon accounting software like QuickBooks. It can appear tedious and pointless to set up and operate a work cost system. If you use accounting software, you must complete the entire procedure correctly to obtain the desired results; otherwise, it will be useless to your company’s financial success.
Financial Stability of the Company
Businesses must maintain a particular degree of creditworthiness when it comes to financial lenders. When it comes to linking operators and customers, companies must be able to track and predict project outcomes successfully. Organizations that cannot do so with confidence will find it more challenging to perform their duties efficiently.
Workplace Administration
Using data from cost reports, business managers and executives can better track the success and effectiveness of their company operations. They can then encourage staff to decrease costs and improve profits.
Workplace Costs are Actual
As a small business owner, the essential decision you will make is how to price work and services. The job costing process keeps track of the exact cost of providing a service or task so that the company may establish the right price to meet its gross margin goals. Because they have the following features, service organizations that use their employees’ work as a product can profit the most from labor costs:
Payroll is a company’s most expensive expense.
Time is easily squandered, and services are quickly terminated.
They require real-time KPIs daily to make price decisions.
Support Your Claim
The labor cost can help with legally enforceable claims. The report must show the genuine worth of a recognized breed, and the foundation for such a claim emphasizes the need to account for business costs.
Increase the Number of Future Jobs
Cost reports can provide valuable information to appraisers preparing a bid or performing work linked to pricing. These reports separate and distinguish the variable costs that need to be paid special attention to.
Payments are Processed More Quickly
Project-specific costs must be billed at or around the end of the project. If there is a wage gap, being willing to bill now ensures speedier payments.
Improved Control of Business Operations
The company has an accurate cost plan for efficient bookkeeping using labor cost accounting. The work calculation fixes all violations and helps find promptly corrected errors. It can quickly identify inconsistencies and provide an opportunity to correct them. Each project is independent of other projects.
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.
Can leadership be learned? Since ancient times, this topic has worried people, but there is still no clear answer to this question. Not so long ago, a girl named Sarah asked this question to members of one of the international HR groups on LinkedIn. The community exploded with comments, with people from worldwide sharing their thoughts and considerations for nearly two months. I can’t remember any other topic that generated so much interest, controversy, and emotion.
Opinions were divided almost in equal proportions as follows:
Not! You cannot learn leadership; it is an innate quality. Leadership is in the DNA, in the human genes. You can see the leader in the sandbox. Leadership charisma is a gift from God, and someone who is deprived of this gift from birth will never succeed in becoming a leader.
Yes! Everyone can learn leadership. Leadership is a skill. A good mentor or the American army will teach anyone leadership. (I involuntarily remembered Verochka from “Office Romance”: “Well, you understand, you can, of course, teach a hare to smoke. In principle, nothing is impossible”).
The truth is in the middle! Leadership is not a given. If a person initially has leadership potential, it can and should be developed. The Leadership Formula is Potential x Experience x Desire.
A leader has an eye for the future, who has his idea, and the determination and will to promote it, the one who is followed by people attracted by both the idea itself and the personality of the leader.
I don’t think that every child who masterfully commands their peers in the sandbox will inevitably mature into a true leader. Not every soldier succeeds in becoming a general. And the most exemplary mentor will not be able to fashion a leader if the source material is not suitable.
Although, of course, to the passionate question of one of the supporters of the first approach, “Who, in your opinion, taught Alexander the Great?” adherents of the second point of view gave a worthy answer: “Aristotle taught Alexander.” The last issue of contention is closest to me: if a person has the correct inclinations, even if not ideal, and there is a desire to develop, then with the help of practice and training, he has a good chance of becoming a leader. Last year’s Oscar winner, The King’s Speech, is about just that.
What makes a true leader? Let’s look at the statements of famous people on this topic. “You must embody the change you want to bring about in the world” (Gandhi). “The leader sells hope” (Napoleon). “Dreamlike you will live forever” (Steve Jobs). “If you consider yourself a leader, look around and see how many people are following you” (Ambani).
One day, I came across a fascinating study on what competencies are least common in people and what competencies are critical to the success of top-level leaders. The rarest and most necessary qualities for success practically coincided. The list included vision, creativity, innovation, strategic thinking, the ability to work under uncertainty, and the ability to motivate a team.
In the 15th PwC CEO Survey of the World’s Largest Countries, two-thirds of CEOs said they intended to grow leaders within their companies rather than recruit them outside. Our company’s strategy also focuses on attracting young employees and developing future leaders from within. Most of PwC’s business partners came to our company during their student days. We build leadership qualities at all levels of the career ladder. In junior positions, leadership manifests itself in the initiative, active contribution to the team’s success, deepening expertise and sharing knowledge, and in senior positions, in creating new products and ideas and educating a new generation of “stars.” Partners often ask: “Is he a leader? And who did he raise?
Many people know the 70-20-10 development formula, according to which 10% of success comes from classical training, 20% of success depends on observation and mentoring, and the remaining 70% comes from experience and practice. When I first caught this approach, I thought the training department didn’t want to work. Then I remembered how I learned to drive a car: I took courses (10%) and rode with an instructor (20%), but the real skill appeared when I began to drive to and from work every day (70%).
When discussing leadership, the first thing that comes to mind is a strong-willed and tough authoritarian style, an “iron hand.” Pyotr Ustinov once said: “The qualities necessary for a leader … In German, a leader is a Fuhrer.” But still, I think that the Fuhrer, Stalin, and Ivan the Terrible do not correspond to the characteristics of authentic leaders of our time. Yes, they were powerful and decided the fate of countries and peoples, but what is their memory of them? What values did they profess? Would we like to live under such leaders? Do we want such a fate for our children? If not, we need to focus our efforts on developing leaders of a different quality.
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.
Debit cards are registered payment and settlement plastic cards that depositors use to make non-cash payments for goods and services with reserves from their account to withdraw cash from an ATM. This payment instrument does not allow exceeding the number of funds on the card account.
There are no significant differences between the systems. The difference lies in the settlement currency, which matters if the purchase is made abroad. For Visa cards, the currency is US dollars. For MasterCard – euros in the EU countries. Differences may affect the conditions for making payments abroad, promotions, and bonuses from payment systems.
The national payment system (BELKART cards) uses the BELKART-Maestro system to pay for purchases abroad. The BELKART debit card also has advantages: it is cheaper to issue and maintain.
Plastic cards are divided into classes according to their functionality and security. The most common gradations: Standard, Classic, Gold, Platinum. The higher the course, the safer and more functional they are, for example, the ability to make remote payments and additional services (gifts from banks and their partners, various discounts). These gradations are not noticeable when paying for goods in stores, but the Standard level is not enough for payments on the Internet.
Using debit cards
In our country, the first debit cards began to appear in the 90s. Their goal was to reduce the share of cash turnover and provide the population with a convenient tool for mutual settlements.
Today, citizens use a debit card to:
Replenish the account, withdraw, store, and accumulate cash.
Pay for goods in retail stores and on the Internet through a personal statement.
Receive wages, pension accruals, allowances, and scholarships.
Transfer funds from your account to other accounts.
Pay loans, utilities, etc.
If the card is lost, a person must contact the bank with a request to block it or do it on their own through their account. You can get a new card at the bank branch where the card account is opened. It will protect the user from attacks on his funds by scammers.
Benefits of having a debit card
Convenience – no need to carry banknotes with you, which require a separate place, and the ability to make payments outside the country.
When saving time, you don’t have to look for the right amount and wait for the change when paying for a purchase.
Efficiency – You can quickly receive money at any time.
Security – no need to worry about the safety of money. When paying through a terminal or ATM, you will need a pin code known only to the owner.
The possibility of accumulation – many banks charge% (interest) on the card account balance.
Gifts – banks offer loyalty programs to customers (a receipt of cashback, overdraft services, online services, etc.).
The dissimilarity between a debit card and a credit card
Externally, plastic carriers almost do not differ from each other. Sometimes, you can find the inscription Debit or Credit on the front side. To avoid unpleasant surprises, users need to know the difference, such as creating debt or writing off commissions.
Source of income: The debit card stores the plastic holder’s own money, which he earned or received as income. A credit card permits you to spend funds that the bank lends to the user under a signed agreement. In this case, the person must return the paid money within the prescribed period. If there is a delay, interest for use is charged at an increased rate.
Getting cards: To apply for a credit card, you need to collect a package of documents. Debit cards are issued at the client’s request, which is a private person or an employer.
Interest accrual: The credit card owner pays interest for the use of the loan provided by the bank. With a debit card, interest is accrued on the balance of money on the card account.
Limit: A credit card has a credit limit or an overdraft line. Debit cardholders are limited to the amount that is available on the account.
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.
According to a study by Graydon, 40% of bankruptcies can be prevented. This is a shockingly high percentage, and therefore it is worth looking at how one can avoid bankruptcy. According to the research, several reasons lead to bankruptcy. In this blog, I discuss the three leading causes, and we look at what you can do in advance to prevent them. Thousands of companies go bankrupt every year. This can result from an economic crisis or a sharp decline in the market, but often the cause of the bankruptcy lies within the company itself.
Incompetent entrepreneurship (27%)
The most significant cause of bankruptcy is incompetent entrepreneurship. Insufficient knowledge of the entrepreneur, little experience, no diplomas, no thorough preliminary work, too locally focused or uncompetitive; there are many reasons why an entrepreneur cannot keep his head above water. Without explanation, most failing companies are younger than four years old, and most entrepreneurs that go bankrupt are younger than thirty-six. A necessary precaution is to seek advice in those areas where you fall short. However, this requires some degree of self-knowledge and self-reflection. It is also wise to talk to customers, suppliers, other entrepreneurs, and specialists in your field. As an entrepreneur, it is necessary always to remain alert. Last year, a successful product or business model may now be outdated due to new developments. Therefore, keep a close eye on what is happening in your field of work and make sure you keep up with all products. By continuing to innovate, you prevent your company from becoming obsolete, and you ensure the continuity of your company.
Lack of understanding of the market is a common reason companies go bankrupt.
To keep your business running, you must understand your competitors, customers, and market trends. If you do not keep up and your competitor does, it can cost you a lot of customers and eventually even lead to bankruptcy.
The most significant cause of bankruptcy is incompetent entrepreneurship.
Business reasons (18%)
The leading cause here is poor administration and lack of effective debtor management†. In short: the customers do not pay or pay extremely late, and you do not notice it. To please customers, overdue payments are often covered with the cloak of love. However, it is essential to have a good insight into your customer’s creditworthiness and payment behavior. You can pick up signals from changes in payment behavior, which indicate that your customer is not doing well. In addition, part of the cause for this often lies with the entrepreneur himself. Send an invoice on time, charge interest on delinquent payments, and send reminders immediately when the payment term has expired; there is often still a world to win.
Many entrepreneurs know what their cost is. However, it is imperative to know that. This applies to companies that make or sell products, but certainly also to companies that provide services. If you do not see the cost price for your product or service, you also do not know to what extent your company is profitable. Without insight into your cost price, bankruptcy can happen without you noticing it.
Financing problems (15%)
Problems with financing often arise in companies that are already not doing so well. Banks have tightened the reins since the monetary crisis and want the extra security of the funding. When a company is already in trouble, not getting enough financing is often the death toll. An entrepreneur can prevent this by committing to the budget for a longer time in good times, ensuring there is always some room for setbacks, and delving into the different forms of financing. To increase as an entrepreneur, capital is needed. The bank often provides wealth in the form of a current account area. These are short-term debts. However, these debts are often used for far too long, so entrepreneurs must deal with high-interest rates and financing costs for a long time. Instead, you want to pay off your current account as quickly as possible.
Other causes of bankruptcies are still fraud (11%), personal circumstances (9%), competition (6%), and outdated business operations (5%).
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.
Starting independent entrepreneurs often have a desire to run entirely independently. This is also possible when you join a franchise organization. You are your boss. As a professional and entrepreneur, you build up your clientele and make your own choices.
So, you remain your boss and become part of a greater whole. How about that? If you join a franchise organization, you benefit from the franchise organization’s brand, knowledge, and skills. You are often asked to go along with the image of the franchise organization. The typical appearance of you and the other professionals ensures recognizability among customers.
Benefit 2: Boot support
A franchise organization has many years of experience supporting them in starting their own business. As a result, she knows exactly which steps must be taken to successfully start up her own company. As a professional, you benefit from this. You will receive comprehensive support and advice when starting up your business.
Many franchise organizations also research the feasibility of the new business before starting a new business. Based on this research, the success of your new business is predicted. That way, you know a little bit about what to expect.
Benefit 3: National brand awareness of your company
Most franchise organizations are active nationwide because the affiliated companies are located throughout the country. This gives your company national name recognition.
All affiliated professionals benefit from national brand awareness through national marketing campaigns. The customers know the national marketing brand and see your company in their area. This creates recognition and trust for many people.
Benefit 4: Business support
Both the franchise organization and the professional strive for the same goal: to make the company successful. A franchise organization relies on the success of the affiliated companies. Without excellent and successful professionals, a franchise organization cannot be successful.
Franchise organizations can provide support in several ways. Below we describe three typical examples.
Operational
management General operational management is one of how support is offered. General business operations mean everything that has to do with running a business successfully. Usually, these are things like sales and calculation. These parts of business management help you earn a good living from your work as a professional.
Marketing
Earlier in this article, it was about national marketing that you can benefit from as a professional. In addition, franchise organizations also offer support for your marketing as a professional. Usually, you get ready-to-use tools that you can use for local marketing. This is intended to promote your business locally.
Administration
An entrepreneur always has to do with keeping the administration. This while many (starting) entrepreneurs have had little experience with administration. Therefore, a franchisor can provide administrative support. This can be done, i.e., by taking care of the entire administration, a permanent partner with knowledge of the market, or by offering administrative tools suitable for you as an entrepreneur.
Benefit 5: Always be able to fall back on the bigger picture
Affiliated with a franchise organization, you are an independent entrepreneur, but not alone. You are part of a greater whole. You can use the knowledge and skills of the bigger picture. Because you are affiliated with a franchise organization, you have many fellow entrepreneurs who represent the same brand. This ensures that you can always fall back on these fellow entrepreneurs.
Extra Tips
SMS marketing
SMS is the most effective channel to employ if you are having a sale or want to update your clients about their orders. SMS ensures that your subscribers get and read your messages even when they are offline, thanks to its quick delivery and excellent engagement rates.
For your food business, SMS is an effortless way to get started. The channel is ideal for deals and discounts that you must complete within a specific time. To begin delivering SMS, install a Shopify SMS marketing tool like TxtCart.
Apart from time-sensitive offers, SMS promotions may upsell clients by suggesting things they are likely to buy based on recent purchase patterns.
Loyalty program
Loyalty programs are a tried-and-true Shopify marketing approach. Customers that remain loyal are worth ten times more than those who make their initial purchase. However, how can you persuade your clients to keep communicating with you?
Many food businesses use Shopify to set up loyalty programs to encourage customers to act and earn incentives. This immediate pleasure enables customers to keep connecting with the company to win additional incentives.
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.
Traditionally, people have misunderstandings about mortgages, which make them suspicious when it decides. There are many unknown truths about mortgages, and learning them can benefit everyone. Five benefits of a long mortgage are as follows:
Building Equity
This equity can be utilized for various purposes, such as weddings or education fees. As a result, consumers believe that a larger mortgage will reduce the equity they attempt to establish. On the other hand, a large mortgage loan can have a minor impact on a home’s overall equity. Consider a $50,000 down payment on a $400,000 property. The remaining $350,000 is the loan balance, which you must repay in 30 years at 4%. The ‘down payment’ represents the initial equity, and if the house’s value increases at 3% per year, it will be worth $722,444 in 20 years.
Even if the person can only pay $200,000 of the $350,000 initial payment, this is a significant sum. The difference of $572,444 represents the house’s overall equity. This is accomplished by subtracting the residual loan amount ($150,000) from the home’s overall value. As can be seen, the size of the mortgage has no bearing. This means that you can develop equity regardless of the size of your mortgage.
Low-Interest Rate
Mortgages are one of the cheapest loans a person can get. However, some may argue that credit cards offer 0% interest for six months. But interest rates exceeded 18% in the first six months, and if someone wanted to borrow $100,000 at that high-interest rate and if they needed to repay, they would not be able to repay. It was paid over 30 years. You are only suitable for a loan if you can prove to your bank (or mortgage company) that you can repay the loan within the allotted time. The higher the bank’s confidence in an individual’s repayment ability, the lower the interest rate. In this case, the mortgage is the type of loan that has the least risk on the part of the bank. The bank can claim a mortgage if the borrower fails to repay the loan. So, interest rates are so low that it makes sense for people to take advantage of them.
Tax-Savings
Mortgage interest is beneficial for tax filing, as mortgage interest is tax-deductible. For example, interest paid up to $1 million to buy a home is tax-deductible. If the borrower buys a 5% mortgage with a 33% tax rate, the cost of the loan will be 3.35% tax. On the other hand, if he invests 5%, the profit will be taxed at 20%, and the profit after tax will be 4%. Therefore, the investment can return less than the amount paid by the loan, increasing the profitability of the loan.
Easier EMIs in long-run
For most borrowers, it can be challenging to pay a mortgage in the initial stages of the loan being first withdrawn. However, in the case of a fixed interest rate loan, the amount will be less than the monthly income. Such loans do not increase your monthly payments, but your income grows steadily. On the other hand, the value of a home can also increase significantly over time. Borrowers who buy a home with a single down payment may be missing this vast profit.
Allows Better Investments
Consider a scenario where a person buys a second home for money he received from the sale of the first home. For example, if he gets an amount of $300,000, should he consider spending the total amount to buy a new home for $500,000, or with a down payment of $50,000 and use the rest as an investment? Is it wise to do it? Most people will argue that spending the total amount is applicable. In this case, you only must repay $200,000, and it is easy to do. However, the second option is one that individuals need to consider if they want to build wealth eventually. By investing the remaining amount at a much higher interest rate, he can get enough income from his earnings and enjoy a more significant tax credit. With the tax savings thus saved, you can repay even large loans at slightly higher interest rates. Borrowing a considerable loan and using the return on investment to pay for EMI is always better than a small mortgage with no return on investment.
These are some ingenious reasons borrowers may benefit from a large mortgage. People usually ‘pity’ someone who has a large loan because PITI (Principal, Interest, Taxes, and Insurance) characterizes mortgages. On the other hand, these advantages may function as a wake-up call.
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.
When advanced computers began to appear in the 1980s, and the prospect of the development of the Internet echoed in the air, many thought that digital technologies would make work easier, leaving more time for personal life.
After 20 years, not a single office could do without computers.
The digital technology revolution has not just happened but triumphantly marched around the world, covering all areas of activity. But the next massive leap in computer technology was yet to come. Today, a person’s life in a developed society is unthinkable without a smartphone or other portable device that provides Internet access everywhere. And this means that your work accompanies you around at any time of the day, not just in the office for 8 hours a day. As a result, technology did not make life easier but only increased work productivity, distributing it in a thin layer over a sin. Home dinner must be combined with business correspondence with the chef and walking with a girl; you suddenly remember that you must check your e-mail urgently. And so, it becomes increasingly often until your life turns into routine maintenance of your career. Subsequently, this can lead to burnout and stress. You can avoid this if you find the right balance between work and personal life.
What does work-life balance mean? The modern rhythm of life of many people looks like some interests are superimposed on the framework of other goods. You will not surprise anyone with the phrase “I’ll be late at work,” “let us meet next weekend. Otherwise, I am working this”, etc. There can be several explanations why a person imperceptibly refuses his personal life. Lack of money and career ambitions are one side of the matter, material and therefore more meaningful. But there is another – psychological. A forced workaholic can cause dissatisfaction with personal life. The cause and effect are flipped, but the negative impact on the person remains the same. Balance allows you to equally appreciate both components of life – work and pleasure, which not only do not mutually ban each other but bring additional meaning.
How important is the balance? The fact is that high professional employment in our time is no longer perceived as a forced sacrifice. Violation of the balance between work and life in favor of the first is becoming increasingly popular, turning into a fashion trend that indicates the demand or success of a person. It has gotten to the fact that many perceive the intervention of work in personal life as the only way to secure a high working status and remain competitive in the eyes of the head. This opinion is erroneous and resembles an attempt to justify the inept distribution of working time or unwillingness to do something else. We do not intend to discredit overtime work as such. You are working above the norm. For example, at the rudimentary stage of a career, the initial stage of a business, or when managing a complex project. But when it becomes an endless series of filling in the gaps, we are talking more about the wrong approach. Your productivity in the workplace is unlikely to improve if you give yourself carte blanche to fix things at home. In addition, by reducing attention to other aspects of life, at some point, you may believe in their lesser significance.
If you push into the background, say, the relationship with your girlfriend, then in return, you will receive a corresponding negative response. And this will be another erroneous argument for the importance of work over personal life.
Instead of personal life, we choose work. The catchphrase often justifies excessive devotion to one’s profession: “Choose a job you love, and you won’t have to work a day in your life.” This statement can be accepted as accurate, with the only amendment that the love of one’s work does not exclude the significance of everything else. If your favorite dish is fried chicken, then this does not mean that you should exclude all other foods from the diet.
Other parts of your life require just as much attention. It is great luck to find your favorite thing, for which, moreover, you can get good money. But think about whether you would agree to this if it deprived you of the other pleasures of life.
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.
Why firms need a CPA goes far beyond basic tax preparation—a certified public accountant serves as your strategic financial partner who identifies tax savings averaging $12,000 annually, prevents costly compliance failures, and transforms financial chaos into sustainable growth through expert cash flow management and business structuring[8][11]. The difference between businesses that merely survive and those that strategically thrive often comes down to one critical decision: partnering with a CPA who brings specialized expertise in tax optimization, regulatory compliance, and financial strategy.
As the founder of Complete Controller, I’ve witnessed firsthand how businesses transform when they move from reactive financial management to proactive strategic planning. Over 20 years of supporting companies across every industry imaginable, I’ve seen the pattern repeat: businesses struggling with cash flow, missing tax credits worth thousands, or facing surprise audits that could have been prevented. The right CPA partnership changes everything—from uncovering $120,000 in missed tax credits for a restaurant group to saving a food truck owner $1,000 monthly while clearing dangerous compliance issues[10][8]. This article reveals the concrete ways CPAs drive business success, backed by real case studies and the financial data that proves their value.
Why should every firm consider a CPA for success?
Firms need a CPA for strategic tax planning, compliance management, audit defense, and growth-oriented financial guidance
CPAs identify an average of $3,534 in annual tax overpayments that DIY bookkeepers miss[19]
Professional CPAs help businesses capture the 70% of tax credits that go unclaimed each year[11]
Expert financial management prevents joining the 82% of businesses that fail due to cash flow problems[16][17]
CPAs provide audit representation that saves $4,000-$20,000 in defense costs when IRS issues arise[6]
Strategic Tax Planning: The Hidden Profit Center Most Businesses Miss
CPAs transform tax season from a dreaded expense into a strategic profit opportunity through year-round planning that captures every available deduction and credit. Small businesses routinely leave money on the table simply because they lack awareness of available tax benefits or the expertise to claim them properly.
The distinction between deductions and credits illustrates why professional guidance matters. A $5,000 deduction might save $1,000 at a 20% tax rate, while a $5,000 credit saves the full $5,000 in tax liability[11]. Yet approximately 70% of eligible small businesses fail to claim tax credits they qualify for, including the Research and Development Credit, Work Opportunity Tax Credit, Employee Retention Credit, and Disabled Access Credit[11].
Consider these real-world results:
A 3-unit restaurant group recovered $120,000 in federal tax credits through the Work Opportunity Tax Credit program—savings their previous accountant never identified[10]
An Ohio restaurant claimed $20,000 in R&D tax credits for recipe development and POS system modifications[15]
A Jacksonville food truck saved $1,000 monthly ($12,000 annually) after a CPA restructured their tax approach[8]
CPAs also optimize business structure for maximum tax efficiency. Converting from an LLC to an S-Corp can reduce self-employment tax burden by 50% or more for businesses generating substantial profits[1]. For a business owner earning $150,000 annually, this structural change alone could save over $10,000 in self-employment taxes each year.
Building Bulletproof Compliance: Protection Against Costly Penalties
The scale of tax non-compliance reveals why professional guidance proves essential. The federal tax gap reached $688 billion in 2021, with small businesses accounting for $271 billion through underreporting alone[3]. This massive compliance failure stems from three primary causes that CPAs systematically address:
Poor Record-Keeping: Without organized financial records, accurate tax reporting becomes impossible, creating audit risks and potential penalties[3].
Entity Misclassification: Operating under the wrong business structure leads to years of unnecessary tax liability or compliance violations[3].
Regulatory Complexity: Constantly evolving tax obligations exceed what business owners can reasonably track while managing operations[3].
Audit rates vary significantly based on business income:
Under $25,000 gross receipts: 1% audit rate
$100,000-$200,000 gross receipts: 2.4% audit rate
Over $1 million gross receipts: 4% audit rate[6]
When audits occur, costs mount quickly—correspondence audits cost $2,000-$4,000, office audits run $4,000-$10,000, and field audits exceed $10,000-$20,000[6]. CPAs provide audit defense infrastructure that reduces both audit probability and impact, legally representing clients in IRS discussions while maintaining the documentation quality that expedites resolutions.
Cash Flow Mastery: Preventing the #1 Business Killer
Cash flow mismanagement causes 82% of small business failures, making it the single largest threat to business survival[16][17]. The paradox strikes growing businesses hardest—companies can double revenue while simultaneously approaching financial crisis if cash conversion cycles aren’t properly managed.
CPAs prevent these crises through sophisticated forecasting and working capital optimization:
Cash Conversion Analysis: Examining the timeline between spending cash and collecting revenue to identify bottlenecks
Payment Term Negotiation: Structuring supplier and customer terms to maximize cash availability
Inventory Optimization: Reducing cash trapped in excess stock without sacrificing sales capacity
Strategic Debt Structuring: Creating working capital buffers for growth periods or operational slowdowns
Small business owners spend over 20 hours monthly on financial tasks, representing $36,000 in annual opportunity cost at $150/hour[19]. Meanwhile, 40% consider themselves financially illiterate, and 60% lack sufficient accounting knowledge[19]. CPAs eliminate this knowledge gap while freeing owners to focus on revenue-generating activities.
Real-World Transformations: Case Studies That Prove CPA Value
Manufacturing turnaround success
A manufacturing company struggling with inefficiencies partnered with a CPA firm specializing in operational analysis. The CPA team identified $50,000 in annual cost savings through process improvements, renegotiated supplier contracts saving 15% on materials, and implemented inventory management systems reducing carrying costs by 20%[9].
Restaurant group tax recovery
Beyond the $120,000 Work Opportunity Tax Credit recovery mentioned earlier, restaurant CPAs regularly identify industry-specific savings:
Menu engineering analysis improving profit margins by 5-8%
Labor cost optimization through scheduling efficiency
Not all CPAs offer equal value—choosing the right partner requires evaluating specific criteria:
Industry Experience: CPAs familiar with your sector understand unique challenges and opportunities
Proactive Communication: Regular strategic meetings, not just annual tax preparation
Technology Integration: Modern accounting systems providing real-time financial visibility
Advisory Mindset: Focus on business growth, not just compliance
Team Depth: Resources to support your business as it scales
Red flags to avoid include CPAs who only contact you at tax time, lack familiarity with your industry, resist technology adoption, or treat you as just another tax return rather than a strategic partner.
Final Thoughts
After two decades helping businesses navigate financial complexity, I can state definitively that partnering with a qualified CPA represents one of the highest-ROI decisions any business can make. The evidence speaks clearly: from preventing cash flow failures that destroy 82% of small businesses to capturing tens of thousands in missed tax credits, CPAs deliver measurable value that far exceeds their cost.
Your business deserves more than reactive bookkeeping—it needs proactive financial strategy that drives growth while protecting against costly mistakes. The team at Complete Controller combines CPA expertise with modern technology and industry-specific knowledge to transform your financial operations from a source of stress into a competitive advantage. Visit Complete Controller to discover how strategic financial partnership can accelerate your business success.
Frequently Asked Questions About Why Firms Need a CPA
What is the main difference between a CPA and a general accountant?
A CPA (Certified Public Accountant) has passed rigorous licensing exams and completes mandatory continuing education, qualifying them to perform audits, represent clients before the IRS, and provide strategic tax planning—services general accountants cannot legally provide[5][9].
When should a small business hire a CPA?
Hire a CPA when your business reaches $100,000 in revenue, faces complex tax situations, plans major growth initiatives, needs audit representation, or when financial management consumes excessive owner time[5][13][17].
How can a CPA help with business financial planning?
CPAs provide cash flow forecasting, budgeting, scenario analysis, and strategic guidance that enables informed decisions supporting sustainable growth while avoiding common financial pitfalls[1][18].
Are CPA services worth the cost for startups?
Yes—CPAs help startups avoid costly entity selection mistakes, identify startup-specific tax credits and deductions, establish scalable financial systems, and prevent the cash flow failures that kill most new businesses[5][14].
What compliance areas can a CPA help with?
CPAs monitor and maintain compliance with federal and state tax requirements, payroll regulations, industry-specific reporting obligations, sales tax collection, business licensing requirements, and audit preparedness[3][17].
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
Before being deposited in the Arbitration Court’s Register, all these items will be presented to the General Meeting of Shareholders for approval. All records and ledgers are frozen if VSE, SME, or MGE accounting software is closed. After then, you must archive them along with the necessary supporting documentation.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
