Author: Complete Controller

According to recent research, around 10% of businesses can succeed, and other startups have the lowest profit rate regardless of economic crisis or pandemic. According to other statistics, startup owners can’t profit, especially during the first year after the inauguration. There is a risk of business failure for existing and already successful enterprises. What’s the reason? Do you have an idea where businesses make mistakes? Perhaps, it happens due to a lack of budget or knowledge about business management and finances.

Regardless of any reason, you must know the essential possibilities of business failure whether you have business management expertise or not. According to successful startup owners, there is no business failure season, irrespective of a small or large enterprise, fundraising plans, or colossal investment. You can face it any time.

So, businesses must make a proper business plan. It will help you to create strategies to cope with business failure. But, most of all, you must know that your business can become unsuccessful. As there is no specific season of encountering business failure, you should prepare this year too. Before diving into this, I will discuss business operation rates’ survival, ups, and downs.

Crucial Facts About Business Survival

As mentioned before, many businesses fail within their first year of inception. There is no specific season to face business failure. Similarly, some encounter this nightmare within five years or ten years. A few of them can survive. But in 2020, they made the condition of business management and its growth profoundly tricky. The reason for this is the COVID-19 pandemic. Famous startup owners recorded a significant drop in sales due to the lockdowns imposed due to the virus’s spread.

The consequences of this business condition significantly impacted sales in 2021. But you can resist it by considering the following factors.

Factors Causing Business Failure

According to experienced startup owners, you can protect your business from failure by considering the following factors. This trick will help you to make an effective business plan. It will also encourage you to streamline your business management on a specific note.

Unsuitable reasons for the business inauguration

The business inauguration has a specific purpose, but enterprises must face a significant business failure. The reason for that is to have ineffective aims of businesses. It includes doing business to make money, spending time with family, and avoiding being answerable to anyone. According to well-experienced business management authorities, your enterprise can’t be successful with such aims.

For robust power to resist business failure, you must have solid reasons for running and growing a business with effective influence. It is crucial to be passionate about your business. You should sell the most demanding products and services in the market. Also, you must be patient and have a positive attitude to drive a successful campaign. Create a high-quality business plan based on research analysis and goals. This way, you will have multiple ideas to cope with successful challenges. You must have full-fledged business management expertise so no one can defeat you.

I am not having a specific market for trade or lack of it

There is an extreme need to have a particular market to sell your products and services quickly. But it can become impossible, especially during a pandemic or due to economic changes. The biggest mistake of startup owners is that they don’t act with planning in the business world. They don’t have a proper business plan to help them implement their business strategies according to the market demands and aims.

According to experienced business management authorities, you don’t have a ready-made market; you must create it. You can do this until you find customers and provide them with the best experience of your services. For this, you need to make your brand prominent. You must respect the changing dynamic of your targeted audience’s demands.

Poor business management

Business needs a decorum that identifies its worth and caliber. You need to operate all activities under a proper business management system. If you are not careful about this, your business will fail.  

There is an extreme need for relevant business management expertise in different departments of your company. They can include finance, selling and purchasing, production, recruitment, and human resource sections. When your company successfully maintains its caliber, it will surely provide the best experience. It will not only grow your business but also increase your sales. Otherwise, you must face a significant business failure. Then, your business won’t get recognized in the market as it should.

Endnote

Whether you have a large enterprise or are just starting your business, business failure is a realistic possibility. There is no specific reason for that. So, it would be best to prepare yourself to face this reality. To cope, you must consider or avoid the factors/mistakes mentioned above. 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.

A budget is an essential element of business planning and includes an overview of categorized expenses per your requirements. Budgeting essentially means allocating a set amount of finance for a specific task. 

Some of the basic categories in the budget include fixed and variable expenses. The fixed costs in a budget are payroll, office rentals, selected product procurement costs, and any fixed interests or mortgages. Variable costs include marketing budgets and amenities etc. It is, however, essential to categorize your budget such that you dedicate an optimized amount of money for each business requirement. 

Budgeting is pivotal for the effective management of business resources. It plays a crucial role in setting goals and targets and helps you seize new business opportunities, plan expansion, and gauge the performance of your business. 

While this might seem like one of the most manageable tasks in planning your business’s finances, budgeting is tricky and requires a critical approach to avoid any false expectations and projections. 

According to a recent survey, over 60% of small businesses didn’t create an official consolidated budget in 2018. The lack of funding means the free allocation of finances per the hour’s need. Allocation means an increased risk of finance leakage and overspending, which can drastically affect your business’s overall performance. 

According to the Harvard Business Review, 27% of IT projects went beyond their budget due to ill-planning and ineffective budgeting. Even more shocking is that 1 out of 6 of these projects that went beyond their budgets exceeded by over 200%. 

While budgeting for small and medium-sized enterprises is still less complicated, and a single budget can conveniently cover the planning for the various departments, budgets become more complex as the company grows. Most large enterprises introduce secondary and tertiary budgets or wise department budgets to better allocate finances to each department. 

Preparing your budget allows you to turn revenue, expenses, and planned growth into concrete numbers that guide all your efforts.

Here are some of the key benefits of effective budgeting for small businesses. 

Get a financial road map: Budgets help the business owner understand the roadmap for the business. It helps to devise the execution plan based on the availability of resources and capital. The allocation of funds specific to functions serves as an essential planning tool for business owners. The baseline budget must be considered, which utilizes current spending to project future requirements. While working on a baseline budget, it is best to use conservative or realistic figures, as exaggerated figures can end you with failed expectations if you do not meet the sales quota. Creating a pessimistic budget is, therefore, crucial for controlled expenses. Non-profit organizations should not feel constrained to prepare a balanced budget (revenues = expenditures). There are good reasons why a budget would have a surplus in some years and a deficit in others.

Budgets amplify revenue generation: Layout concrete numbers for each business functionality, making revenue generation and tracking easier. You know whether you need loans or investments or what areas to push further to boost the profits of your organization. An adequate budget tells you a lot about cash flow leakages and helps you secure loans to expand your business. 

Effective performance management tool for business: Budget also serves as an effective performance management tool for businesses. It allows easy comparison between the spending, the allocated budget, and the generated revenue (direct or indirect contribution). If a proper budget isn’t in place, it will be almost impossible to identify the problem areas in the business performance and calculate accurate future business projections. 

Budgets cap expenses and implement internal control: A budget is a capping tool for your costs. If you put in a little more money, you might think one marketing campaign will bring in numbers, but a limited budget will restrict it. 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 have an online store, and you are also using an online management system. It is a cloud software or a traditional ERP software on-premises. In either case, you may realize the problems that come with both tools being separated and not interacting. You need to integrate your ERP with your e-commerce platform.

In this article, we want to show you the benefits of integrating your ERP software with your online store and what you must do to better manage your e-commerce information on various sites.

 

The Benefits of Integrating Your ERP and Your eCommerce

Integrating your ERP online with your online store means that both applications.

That means that the information will appear on both sites. That is when you upload it to the ERP, it will also appear in your online store, and when there is, for example, a sale in your online store, it will already appear in your ERP.

Let us see how this ERP + online store integration can benefit your business.

1. Less work, less time, and more automation

When managing your catalog, it is absolute madness that your ERP goes on the one hand and your online store on the other. In the store with discontinued products, or if a purchase occurs online, you must manually register the invoice in the ERP. In short, if you integrate the two systems, you will work much less and automate more.

2. Less human errors

The more manual labor, the more human errors occur. That is the reality. If you must register invoices every day manually, the chances of you making a mistake in the data are much higher.

You will reduce human errors to the maximum with maximum automation if you do not find later invoice books with mistakes or catalogs with incorrect prices.

3. Better organization and higher productivity

The organization is a mess when the online store goes one way, and your ERP goes the other way. Who manages the catalog, the person who manages the roster in the store, or who controls the ERP? You would have to communicate to see who does what constantly.

At the operational and internal management level, it is absolute madness that the people who manage the ERP and control the online store platform must communicate continuously to avoid making mistakes.

A benefit of ERP and online store integrationists is that your workers can be more productive and focus on their areas of expertise. For example, we upload the products to the ERP with all the corresponding data, and in the online store part, we look more at aspects of marketing and product sales.

4. Fewer problems with your customers

When store catalogs have errors and are not up to date (prices, stocks), purchases with failures, for example, someone buys a product for $22 when it is worth $26.50? Because the price has gone up, but the company has not updated it on the web.

You would have to call the customer, explain the situation, and tell him that the product is worth more, which can generate a lack of confidence in the user. But the problem can be even worse when you do not have the product in stock, which is discontinued, so you must return the money.

Returns in an online store with daily sales become a tremendous job—null purchases, price errors, and breaches of the terms and conditions. You are giving erroneous information to your customers about prices.

5. Synchronization and teamwork

In your company, managers or departments must access different areas of the ERP, in the area of ​​accounting, warehouse management, purchasing, and sales. The information of your ERP and your online store must be synchronized so that everyone can work efficiently and productively. 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.

Electronic invoicing has eliminated printing, messaging, and storage processes, resulting in a significant cost reduction for businesses and users. An example of this is the cost of sending print an invoice, the time it took to generate it, and finally deliver it to the customer. Nowadays, this process is done in a few seconds through a web portal, tablet, or smartphone and using email or services.

Security and Speed in the Issuance of Vouchers

When you make your electronic invoicing with an authorized PAC, you are hiring the services of a company that meets all the requirements imposed by the SAT in terms of security.

Simplification of Administrative Procedures

Electronic billing systems simplify your administrative processes since you can assign different tasks and register users with additional authorizations. On the other hand, the organization that allows an electronic system will help you store your tax documents and the location of information in them and facilitate the processes of possible internal or external audits.

Improve Customer Service

By having a customer portal, they can process their invoices directly in the system and from the comfort of their homes or offices. Likewise, saving time and money will allow you to better reinvest it in customer service activities.

Reduces Errors in the Process of Generation, Capture, Delivery, and Storage

Because our system uses previously registered databases, you will significantly reduce errors in your tax documents.

Greater Document Control

By having better organization and storage of the information about your products, services, and customers, you will have greater control over the documentation issued by you or your company.

Security Against Fraudulent Activities

Electronic invoicing has developed a secure system. It lessens the possibilities for fraudulent activities or document forgery. Buyers and suppliers issue e-invoices with unrepeatable seals and certificates. Electronic invoices are entirely different from the printed invoice.

Systematic Accuracy

The electronic invoicing solution of SERES, an Automotive Industry Company, guarantees systematic accuracy for the best service. That is why businesses avoid human errors while entering data during documentation, labeling, and classification. 

Increase Efficiency

With an electronic invoicing system, there will no longer be repeated tasks and duplication. It makes the integration process with different documents and files easy and quick. It happens due to the automatic classification method of e-Invoicing. 

Sense of Responsibility

Companies make a commitment to themselves and their employees through electronic invoicing. Environment, suppliers, society, and customers come under this commitment due to its transparency, security, and care of the ambiance. 

Reduce Economic Savings

With e-Invoicing, businesses reduce their material (ink, paper, postage), storage (rental, electricity), and handling expenses. There is no need to put in physical effort; it will save time and money. E-invoicing helps you to deliver 60% to 80% price savings.

Enhance Management Expenses

There is constant pressure on companies to decrease costs. Companies with a controlled labor force, client service, and product development always try eliminating waste or inefficiency. Price management programs can track waste, abuse, and fraud sources. They make it possible by aggregating data from buying, contracts, and AP systems into a data warehouse. With all of them, you can analyze price-saving opportunities. You can take its examples like maverick reduction and off-contract purchasing. The last one includes canceling unused services and consolidating expenditures with minimum suppliers. Cost management provides insights that can diminish prices by 2% to 10%, including travel, telecommunications, utilities, and legal expenses. With cost management programs, you can receive e-invoices from suppliers. 

Self-Service of the Vendor

The most expensive way of invoice processing is to manage call centers for vendor support and inquiries about their payment activities. After payment collection, the AR team and supplier call the buyer for invoice approval and receipt confirmation—the supplier inquires about the actual payment date after getting consent. Significant duration and expenditures sustain when purchasers respond to the vendor’s calls and look for the invoice status. It would be best to use a portal for the electronic program as it builds the ability to check vendor approval processing or planned payment status.

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.

A stock is a financial security that portrays a business’s ownership situation. It means that the stockholder legally owns a share of the profit and assets of the company.

History has demonstrated that investing in stocks is one of the most straightforward and most advantageous approaches to developing one’s wealth over a long time. In recent times, investing in stocks has become the most productive and valuable method for people and families to collect money, develop wealth and build their capital.

With the rise of the prices of everyday products, it becomes troublesome for a person to maintain the current way of life with each year that passes. An individual must invest or search for a substitute source of income so that there are no financial difficulties in the future. The stock market is one of the most wanted investments because it offers more profitable returns than other options.

Even if you have just started to think about investing in stocks, the following article will prove to be a helpful guide that will help you once you start investing in stocks.

 The first thing an individual should know is that there are two types of stocks: common and preferred.

The stocks which everyone refers to when talking about them are common. Common stocks are stocks in which stockholders are eligible for their share of the profit and loss of the business. Stockholders hold the right to choose the Board of directors representing them.

Preferred stocks are a certain kind of stock, which usually is more profitable yet has limited upside. These are the stocks in which the stockholders get a particular profit at predetermined periods. The profit paid to the stockholder of the preferred stocks is frequently paid before the profit is paid to the stockholders of common stocks. If a business goes bankrupt, stockholders of the preferred stocks are chosen instead of the common stocks for recovering their investment from sales and recovery from the bankruptcy representative.

To help an individual to begin investing in the stock market, the following are guidelines one should follow:

• Before individuals invest the money in the stock market, they should ensure that it is worth their money.
• Individuals should constantly move towards market negotiators with the Stock Exchange rather than those not enlisted.
• Individuals should ensure a clear interaction between them and the agent, stockbroker, or delegate.
• Individuals should read the information and the dangers before investing.
• Before submitting a request to the stockbroker, individuals should make sure that they verify the business credentials and other essential information.
• Individuals should know the highs and lows of stocks.
• Individuals should make investments after proper examination and research analysis.
• An individual should not thoughtlessly follow the crowd mentality or media theories regarding stocks and the stock market.
• An individual should not give in to the feelings of selfishness and distress that dominate their knowledge and understanding.
• An individual should not agree to or sign any terms and conditions without ensuring that they comprehend it.
• Optimistic thoughts can be as dangerous as pessimistic thoughts. Individuals should not agree to an investment with the expectation that it will recover its price sometime in the future. Staying positive is the wrong aspect of life to incorporate feelings in. An individual should only make decisions that use facts.

Stocks are an essential part of one’s life if one is serious about it. A beginner should know everything there is to know regarding stocks and the stock market. We hope that the information mentioned above makes it a bit easier for you to decide how to invest in the stock market. 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.

Understanding How Financing Works

While work, intelligence, and creativity can help take off a business, eventually, it will be necessary to resort to financing to meet its growth objectives. It is when the company is most vulnerable.

When a company is small, it has little to lose, and most mistakes have a solution, but when the company accelerates its growth, its need for cash increases exponentially.

Although the first option is to resort to friends and family members in search of financing, other options, such as private equity funds or bank loans, have advantages and disadvantages worth analyzing.

 

Debts and Your Credit History

Having debts is the fear of people, and the single word causes suspicion; however, the ability to borrow well is a powerful tool for a business. If a company can benefit from debts is debatable.

For raising funds and finances, keep up with your credit history. As credit history is the first thing that investors consider even before the scope of your project, with a negative score, you can lose potential investors in the blink of an eye. And you cannot change your credit history easily once you get a dent in your reputation, so you ought to keep up with it when you are in your initial stages.

Financing

Once you enter the financing phase, you realize it is one of the most challenging things to start your venture. From crowdlending to crowdfunding and traditional methods of acquiring finances, you have tons of ideas and options. The routes are limitless, and you have more options to choose from, so once you are in this phase, consider your alternatives wisely. It will lead you to more outstanding results.

Consequently, obtaining finance from angel investors or investment funds involves transferring part of the company in exchange for capital. However, private financing is the only growth engine of the company.

According to executives, you can find out if the investment you are opting for is detrimental to your business or helpful in any way.

Sometimes the investor will want to participate in the business, and the entrepreneur will have to consult the significant decisions of the company with them. On the other hand, if the investor’s experience, perspective, and availability complement how the company works, the partnership will be valuable for the company’s growth.

Private financing implies a vote of faith in the entrepreneur. If the project is successful, everyone will win, but if all else fails, then, in the end, everyone loses, and you can do nothing about it. This idea may contrast with a loan. As banks are the lenders of the loans, they never want to lose when it comes to banks.

You Do Not Have to Choose Just One

The sources of financing are complementary, and there is no need to choose only one. When your company is growing, combining funding from diverse sources is faster and more practical.

Loans from friends and family, government funds to support entrepreneurs, angel investors, banks, and even crucial employees who accept shares in exchange for salary are available.

However, it is essential to remember that the best source of financing will always be sales because they allow for improving cash flows, profitability, and long-term subsistence.

Bottom Line

With loads of financing options, consider the tidbits and even the slightest details of your business. It will lead you on the right track. The routes are innumerable; however, considering options that work for your company will take all your time and effort. As your life, sweat, and efforts are at stake, a single wrong decision can take your business downhill.

Take help from the experts in this case. Consider their suggestions and understand what they are asking from you. 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.

Being a consultant means enjoying certain freedom, yes, but not only. Consultants sometimes want greater organizational flexibility for work, family, and leisure. This flexibility is pleasant and essential but comes with significant responsibilities. Without an employer to offer you an illusion of stability, it is up to you to build your wealth and plan for your retirement or financial freedom. Whether it is your expenses, your earnings, or your future, the solution is in planning.

It is occasionally hard to track down shared conviction among our kindred people; however, everybody shares one thing for all intents and purposes: We all need to be monetarily free. You may adore your activity, anticipate work each day, or resemble a large number of others longing for the day you can leave. Whatever the situation for you, I am willing to wager that accomplishing money-related opportunities is a fantasy you have had for quite a while.

So, being a consultant can allow more flexibility than as an employee, but it also means getting to know yourself, setting your limits, and planning for the long term.

Earning More, Spending Less: An Essential Balance

Do not confuse speed and precipitation. Money can enter quickly and well, especially in the early days, but freedom comes at a cost. The periods between contracts can sometimes be longer than expected. More extended periods are a difficulty that you must be able to cope with, and depending on your expertise, it can make the status of a consultant more uncertain. However, it is possible to organize well.

What if you started with the simplest? Evaluate your expenses and your income. Targeting your unnecessary costs and defining your actual needs is the best solution.

Then you can consider diversifying your sources of income. In addition to the direct revenue generated by your professional activity, you should be interested in so-called passive income: investments, real estate, or passive investing in companies. Demystifying these different options and adapting them to your situation is also part of online advice through webinars.

You can build your long-term vision once you have a contemporary, global, and precise portrait of your financial situation.

Aim for an Ideal and Realistic Amount to be Independent

Earn more, spend less to achieve what? The magic number. Behind this designation hides the amount that you consider sufficient to stop working and enjoy life or have the choice to continue. I notice clients who do not necessarily want to stop working but want to reach this amount to choose to work only on stimulating projects.

Your magic figure can be broken down into annual or monthly income so that you can set more realistic short-term goals. It may seem logical, but consultants do not take the time to calculate this amount.

My reasoning? If you know your magic number, you will find the means to reach it. Financial independence is freedom, planning, and a sharp vision.

Use Time Thoughtfully 

Time is an enemy or an ally. A day has only 24 hours, and thinking about your obligations, everyday life, and future is often a feat. However, have you never noticed that if you take the time to plan well before getting started, you will save time?

Let us take a concrete example: retirement. It is essential to start by saving. It is necessary to target the ideal solutions for you and determine the level of risk that you accept to tolerate. Regardless of age, it would be best if you continued viewing time as an asset. As you evolve, your needs and desires become clearer.

It is never too late to plan your retirement thoughtfully. The times will sometimes be shorter to get there, but you can put solutions in place to keep your magic number achievable. Do not hesitate to contact me or participate in my webinars to orient you, depending on the stage where you are.

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

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

Blockchain’s Impact on Our Daily Lives: Discover How It Transforms Us

Blockchain’s impact on our daily lives manifests through secure digital identity management, streamlined cross-border payments, automated smart contracts, and enhanced supply chain transparency. This revolutionary technology is quietly reshaping how we interact with financial systems, verify our identities, and conduct business in ways most people don’t yet recognize.

Over my 20 years as CEO of Complete Controller, I’ve witnessed numerous technological revolutions, but blockchain stands apart for its potential to democratize financial access. With cryptocurrency users surpassing 560 million globally in 2024—adding 40 million new users in late 2024 alone—we’re witnessing adoption rates that mirror the internet’s growth in the 1990s. I’m excited to share these transformative applications that aren’t just theoretical but already creating tangible benefits across industries and daily transactions.

What is blockchain’s impact on our daily lives, and how does it transform us?

• Blockchain technology impacts daily life through secure identity management, streamlined payments, automated contracts, and transparent supply chains
• Digital identity solutions built on blockchain reduce fraud by securing personal data while giving users control over their information
• Smart contracts eliminate middlemen in transactions from real estate to insurance, cutting costs and increasing speed
• Decentralized finance (DeFi) platforms democratize access to financial services for the 1.4 billion unbanked people globally
• Supply chain applications enable tracking products from source to consumer, reducing counterfeiting and enhancing sustainability verification

How Blockchain is Redefining Digital Identity Management

Blockchain technology creates a fundamental shift in how we manage and protect our identities online. Traditional identity systems store our personal information in centralized databases vulnerable to breaches and hacks. Blockchain-based identity solutions flip this model by putting control back in users’ hands through cryptographic security.

Blockchain identity systems could have prevented $17.5 billion in identity theft losses in 2016 by securing personal data like Social Security numbers and birth dates. This staggering figure demonstrates why digital identity remains one of blockchain’s most compelling use cases.

Decentralized control over personal data

Blockchain-powered digital wallets enable users to store credentials like passports, diplomas, and medical records securely while sharing only necessary details with third parties. This selective disclosure gives individuals unprecedented control over their personal information.

The practical benefits extend beyond security. Employers can verify job applicants’ credentials instantly without contacting universities. Healthcare providers can access patient histories securely across institutions. Government agencies can streamline services without duplicating identity verification processes.

Eliminating password fatigue

Blockchain replaces multiple passwords with biometric verification and zero-knowledge proofs, enhancing user convenience and security. This technology allows you to prove your identity without revealing unnecessary personal details.

• Single sign-on solutions built on blockchain eliminate the need to remember dozens of passwords
• Biometric verification paired with blockchain creates multi-factor authentication that’s both secure and convenient
• Self-sovereign identity systems give users control over what information they share and with whom
• Blockchain technology and digital identity verification systems are already being implemented by forward-thinking organizations worldwide

UNICEF’s blockchain-based identity solutions for marginalized communities demonstrate how this technology addresses real human needs. By providing digital identities to refugees and stateless individuals, blockchain helps secure access to essential services and financial inclusion.

Transforming Payments: Speed, Access, and Inclusion

Blockchain technology is fundamentally rewiring how money moves around the world. Traditional cross-border transfers typically take 3-5 business days and cost 5-7% in fees. Blockchain-based payments settle in minutes or seconds at a fraction of the cost, creating tangible benefits for both businesses and consumers.

This efficiency unlocks new possibilities for global commerce and financial inclusion, especially for the 1.4 billion adults worldwide who lack access to basic financial services.

Cross-border transactions for all

Blockchain-based systems like stablecoins enable instant, low-cost global payments. For instance, a merchant in developing nations can accept crypto payments through networks like Ethereum or Ripple, bypassing traditional banking fees and settlement delays.

GMO Trust demonstrated this potential by using Fireblocks’ blockchain tools to launch regulated JPY/USD stablecoins, tripling profitability by enabling 24/7 transactions and reducing manual processes. This case study highlights how blockchain removes friction from cross-border commerce.

How It Works

1. Checkout Integration: Merchants add crypto payment options via providers like BVNK or directly through blockchain wallets
2. P2P Transactions: Customers send funds directly to merchants’ wallets, verified by blockchain nodes
3. Settlement: Transactions confirm within minutes, with no intermediary banks or clearinghouses
4. Optional Conversion: Merchants can automatically convert crypto to local currency if desired

Financial inclusion through DeFi

Decentralized finance for enhanced personal finance management has emerged as one of blockchain’s most transformative applications. DeFi platforms provide financial services without traditional banks, creating opportunities for the unbanked and underbanked worldwide.

• Decentralized lending platforms like MakerDAO provide microloans to individuals without credit histories
• Peer-to-peer insurance models reduce costs while expanding coverage to previously excluded populations
• Yield-generating savings protocols offer interest rates significantly higher than traditional banks
• Decentralized finance explanation and cryptocurrency benefits showcase how these systems operate outside traditional financial frameworks

By mid-2025, Ethereum’s DeFi ecosystem held $62.5 billion in assets, with platforms like Lido and Aave dominating the landscape. This represents real economic activity occurring outside traditional banking systems, demonstrating blockchain’s growing role in everyday financial activities.

Smart Contracts: Automating Agreements in Everyday Life

Smart contracts represent one of blockchain’s most practical applications in daily life. These self-executing agreements with terms directly written into code eliminate middlemen, reduce costs, and increase transaction speed across multiple industries.

Smart contracts for real-world applications of blockchain are transforming everything from real estate transactions to insurance claims processing. By removing human intermediaries, these automated agreements reduce both cost and potential for disputes.

Real-world applications

Smart contracts power numerous practical applications that streamline everyday transactions:

• Rental Contracts: Tenants pay rent automatically via pre-programmed smart contracts when conditions (e.g., occupancy dates) are met, eliminating disputes and simplifying record-keeping
• Supply Chains: IoT sensors trigger payments when products arrive at destinations, cutting fraud in logistics and ensuring timely payments to suppliers
• Insurance Claims: Policy conditions encoded in smart contracts automatically process claims when verifiable conditions are met, speeding payments to policyholders
• Royalty Payments: Musicians and content creators receive immediate, transparent compensation when their work is used or streamed

Real-world applications of smart contracts extend to nearly every industry where agreements between parties occur. The efficiency gains come from removing human processing time and potential errors.

Case study: Blockchain in global shipping

The shipping industry provides a compelling example of blockchain’s practical benefits. Casper Labs reports 12% of enterprises now use blockchain for streamlined operations. For example, Maersk’s blockchain platform tracks container shipments in real time, eliminating paperwork delays and reducing administrative costs.

However, the TradeLens blockchain shipping platform, created by Maersk and IBM, ended in 2023 due to lack of industry-wide collaboration. This case highlights an important lesson: blockchain adoption requires cooperative standards across industry players to reach its full potential.

Blockchain’s Role in Social Equity and Governance

Blockchain technology offers powerful tools for addressing social inequities and improving governance systems. By creating transparent, tamper-proof records and enabling direct participation, blockchain helps build more inclusive and accountable institutions.

These applications extend beyond financial services to fundamental aspects of civic life, including voting, property rights, and charitable giving.

Transparent voting systems

Blockchain-based voting platforms ensure tamper-proof election results, critical in both established democracies and regions with weaker institutional safeguards. These systems provide cryptographic proof that votes are counted accurately while maintaining voter privacy.

• Digital voting systems reduce barriers to participation for disabled voters and those in remote locations
• Immutable blockchain records prevent retroactive tampering with election results
• Cryptographic verification allows voters to confirm their votes were counted correctly
• Public blockchains enable independent verification of election integrity

UNICEF uses blockchain to track donations and ensure aid reaches vulnerable populations, applying similar principles of transparency to humanitarian assistance. This accountability builds trust in charitable organizations and maximizes impact.

Empowering marginalized communities

Blockchain technology creates new pathways to economic participation for marginalized groups. By removing traditional gatekeepers and providing secure digital identity, blockchain empowers those previously excluded from formal economic systems.

• Tokenized assets allow refugees to prove property ownership claims or access microloans without traditional documentation
• Decentralized ID systems help stateless individuals assert their legal existence and access services
• Blockchain-based land registries prevent property theft in regions with weak governance
• Microfinance platforms built on blockchain provide capital to entrepreneurs in developing regions

These applications demonstrate blockchain’s potential to address systemic inequities by creating secure, verifiable systems that operate independently of existing power structures.

Blockchain’s Future: Energy Efficiency and Innovation

Early criticisms of blockchain centered on energy consumption, particularly for Bitcoin mining. However, the technology has evolved rapidly to address these concerns while expanding into new applications across industries.

With 56% of Fortune 500 executives confirming active blockchain projects in 2024, enterprise adoption continues to accelerate. These implementations focus on practical business problems rather than speculative cryptocurrency investments.

Sustainability efforts

Modern blockchain networks have dramatically improved their environmental footprint through innovative consensus mechanisms:

• Proof-of-stake consensus models (e.g., Ethereum 2.0) reduce energy consumption by 99% compared to traditional proof-of-work blockchains
• Layer-2 scaling solutions batch transactions to minimize computational resources
• Enterprises adopt hybrid networks to balance security and efficiency while minimizing environmental impact
• Carbon-neutral blockchain initiatives offset remaining emissions through verified sustainability projects

These advancements address one of the primary criticisms of early blockchain implementations, making the technology viable for environmentally conscious organizations.

Emerging trends by 2025

Trend	Impact
Tokenized Loyalty Systems	Retailers reward customers with NFT-based perks that can be traded or redeemed across partner networks
AI-Blockchain Synergy	Predictive analytics combine with blockchain verification for enhanced fraud detection and automated compliance
Regulatory Clarity	Government frameworks balance innovation with consumer protection, creating standardized rules for blockchain implementation
Institutional Adoption	Traditional financial institutions integrate blockchain for settlement, custody, and trading infrastructure

 

Blockchain’s growth mirrors internet adoption in the 1990s, which reached 400 million users by 2000. Both technologies achieved mass adoption in under 30 years, suggesting blockchain’s transformative impact may be approaching an inflection point.

Final Thoughts: Embracing Blockchain’s Transformative Potential

Blockchain technology has moved beyond hype to deliver tangible benefits across industries and daily life applications. From securing our digital identities to democratizing financial access and streamlining global commerce, blockchain’s impact continues to expand in practical, measurable ways.

As the founder of Complete Controller, I’ve witnessed how emerging technologies transform business operations and personal financial management. Blockchain represents the next frontier in this evolution—a tool that simultaneously increases security, reduces costs, and creates new opportunities for individuals and organizations alike.

The blockchain revolution isn’t about replacing humans with technology; it’s about removing friction from systems to enhance human connection and opportunity. By automating trust through code, blockchain frees us to focus on innovation, creativity, and building meaningful relationships.

To learn more about how blockchain and other financial technologies can benefit your business or personal finances, reach out to our team at Complete Controller. We’re committed to helping you navigate the changing landscape of digital finance with confidence and clarity.

FAQ

How does blockchain affect everyday transactions?

Blockchain reduces transaction costs by eliminating intermediaries, speeds up processing through automated verification, and enhances security through cryptographic protection. For example, cross-border payments that traditionally take days complete in minutes through blockchain networks, while smart contracts automate agreements without requiring third-party enforcement.

What are the benefits of smart contracts compared to traditional agreements?

Smart contracts provide automated enforcement without requiring trust between parties, significantly reduce legal costs by eliminating intermediaries, and offer real-time transparency for all participants. They execute automatically when predefined conditions are met, preventing disputes and delays that occur with traditional paper contracts.

Can blockchain really solve identity theft problems?

Yes, blockchain addresses identity theft by enabling self-sovereign identity management where individuals control their personal data instead of storing it in vulnerable centralized databases. Cryptographic security makes altering or stealing information nearly impossible, while selective disclosure allows sharing only necessary information with third parties, minimizing exposure risk.

How does decentralized finance (DeFi) help unbanked populations?

DeFi provides financial services to the 1.4 billion unbanked adults worldwide by removing traditional banking requirements like physical branches, minimum balances, and credit histories. Through blockchain-based platforms, anyone with internet access can save, borrow, lend, and transfer money without permission from centralized institutions, creating pathways to economic participation previously unavailable.

Is blockchain environmentally sustainable given concerns about energy consumption?

Modern blockchain networks have addressed environmental concerns through new consensus mechanisms like proof-of-stake, which reduces energy consumption by 99% compared to early proof-of-work systems. Ethereum’s transition to proof-of-stake in 2022 demonstrated that blockchain can operate efficiently at scale, while carbon offset programs and renewable energy mining further improve sustainability.

Sources

• 101Blockchains. (2020, January 19). “How Blockchain Changes the World.” URL: blockchain101.com/articles/how-blockchain-changes-world
• Bit2Me News. (2025, May). “DeFi on Ethereum Sees Record TVL Growth.” URL: news.bit2me.com/en/defi-ethereum-crecimiento-tvl-2025
• Building Brands Marketing. (2024, November 15). “Why Blockchain Technology Matters in 2025.” URL: buildingbrands.com/blockchain-2025
• BVNK Blog. (2025, March 13). “Blockchain in Cross-Border Payments: 2025 Guide.” URL: bvnk.com/blog/blockchain-payments-guide
• Cherry Bekaert. (2025, April 29). “Cryptocurrency Trends for 2025.” URL: cherrybekaert.com/insights/crypto-trends-2025
• Coinbase. (2024, June). “Fortune 500 Firms Fuel Crypto Adoption.” URL: cryptobriefing.com/fortune-500-blockchain-growth
• CrustLab. (2025, February 13). “Blockchain Future in 2025: Predictions and Opportunities.” URL: crustlab.com/blockchain-future
• Fireblocks. (2025). “Customer Story: GMO Trust.” URL: fireblocks.com/customers/gmo-trust
• Investopedia. “Decentralized Finance (DeFi) Explanation.” URL: investopedia.com/terms/d/defi-decentralized-finance.asp
• LNCT Group. (2025). “Future of Blockchain by 2025: Retail and Loyalty.” URL: lnct.com/blockchain-future
• Maersk Newsroom. (2022, November). “Discontinuation of TradeLens.” URL: maersk.com/news/articles/2022/11/29/maersk-and-ibm-to-discontinue-tradelens
• Nokhbeh Zaeem & K. S. Barber. (2020). “How Much Identity Management with Blockchain Would Have Saved Us?” University of Texas. URL: identity.utexas.edu/sites/default/files/2020-10/How%20Much%20Identity%20Management%20with%20Blockchain%20Would%20Have%20Saved%20Us%3F.pdf
• Statista. (2025, May). “Crypto Users Worldwide 2016-2025.” URL: statista.com/statistics/1202503/global-cryptocurrency-user-base
• UNICEF Venture Fund. (2025, March 24). “Blockchain in 2025: Beyond Transactions.” URL: unicef.org/innovation/blockchain-2025
• Webisoft. (2025). “40 Blockchain Applications for 2025.” URL: webisoft.com/blockchain-applications
• Wikipedia. “Blockchain Technology.” URL: wikipedia.org/wiki/Blockchain
• Wikipedia. “Smart Contracts.” URL: wikipedia.org/wiki/Smart_contract

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.

Inheritance comes under the category of state tax. You must pay this tax when you have wealth or have owned property from your ancestors. The beneficiary of the inherited assets must pay federal estate tax rather than the estate. In 2019, six countries imposed this tax even though citizens are exempt from paying this tax. Lowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania are those states. States’ laws change with time. You will have to check with your country’s tax agency.

Inheritance tax is a headache when we receive an inheritance. As a tax transferred to the autonomous communities, each sets different conditions. It means that you will pay for the same concept depending on where the deceased person has lived for the last five years. So, you do not get lost in this fiscal labyrinth, and we share a complete guide to the inheritance tax by communities.

Inheritance and Donations Tax

The Inheritance and Donations Tax, its full name, taxes the increases in equity obtained for profit. In other words, it is a direct tax: it applies to inheritances and donations received by natural persons. You must pay it in the first six months after accepting the estate.

How Does Inheritance Tax Work?

Before explaining the inheritance tax by communities, you must know how it works. The first is to calculate the tax base on the net hereditary mass. To calculate the absolute value of the goods and rights plus the household goods (for example, that table stretcher you never liked), you must subtract the charges, debts, and deductible expenses. For instance, you inherit a property with household goods worth $200,000 from your father but also a deficit of $50,000. Therefore, the net hereditary mass amounts to $150,000.

When the divided assets go to the beneficiaries, the concept of inheritance tax emerges. Each beneficiary separates the calculated amount of tax from the other. Hence, the tax payment becomes compulsory. For instance, a country charges a 5% tax for overall inheritance greater than two million dollars. If your grandfather leaves five million dollars in his will, you must pay only $3 million tax, which is $150,000. The country would need you to write this information on an inheritance tax form.

Reductions

Reductions can be applied to the tax base depending on the autonomous community, the degree of kinship, the nature of the assets, and other factors. Once you have calculated this reduction, you finally get the amount over which the percentage of inheritance tax by communities.

As a result of applying the rate, you get the inheritance fee. And although it seems incredible, the calculations are still ongoing. But do not worry, we will help you make them. Now it is time to apply the multiplier coefficients: they change depending on your assets before inheriting and your kinship group with the deceased.

What are Kinship Groups?

There are four kinship groups:

• Group I: descendants and adopted children under 21 years.
• Group II: descendants and adopters of 21 or more years, spouses, ascendants, and adopters.
• Group III: brothers, third grade (nephews, uncles), and ascendants and descendants by affinity.
• Group IV: cousins, more distant and strange degrees.

Once you are clear about the group you belong to and your heritage before inheritance, you cross the data in the table of Article 22 of the Law and obtain the multiplier coefficient that you must apply to the quota. We should see it with our example, in which you inherited a net mass of $150,000 from your father, which yields a fee of $31,875. Consider that you have an estate before inheritance of $90,000. If we cross the data in the table, we get a multiplier coefficient of one. That is, the quota is not modified.

Finally, now that you know how to calculate inheritance tax, it is time to see the differences between communities. Also, those with no relation with descendent will have to pay higher inheritance tax.

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.

In this case, pre-agreed financial protection or compensation is granted to the debts or relatives of a person if he dies under the circumstances.

Life insurance, therefore, has a personal connotation. It implies a desire to ensure economic stability for loved ones in case of the premature death of the contractor.

Life insurance is a tool that they consider necessary because, through this type of policy, their families would have a source of income that would allow them to exist in the absence of who contributes the payment to the family. It would protect them against debt obligations left by the deceased.

However, knowing the advantages and disadvantages of life insurance before buying one is essential, as there are particularities, costs, and risks that You should not take lightly. We will then explain what life insurance is and its advantages and disadvantages.

Types of Life Insurance

You can purchase life insurance in diverse types, coverage amounts, and conditions, as can be done with any other kind of loss or damage insurance in the market. In the United States, the varieties sold most frequently are Term Life Insurance and the one known as Cash Value Life Insurance.

The Life Insurance Cash Value characterized premiums will pay part of the insurance cost, but a part of the investment instruments attached grow over time. Products related to this type of policy include variable life, whole life, universal life, and paid insurance.

Despite minor differences, these insurance plans are the same. All Life Value Cash Insurance policies include a death benefit and a cash account when a customer makes a premium payment.

On the other hand, Term Life Insurance is significantly different from the previous rate. It is the most basic of all existing life insurance.

In this model, the interested party chooses how much the policy’s coverage will be and how years it will be valid. You can hire policies with a duration of 1 to 30 years. In policies equal to or less than five years, it is possible to renew it for longer when it expires or change the amount of economic coverage.

In Term Life Insurance, premiums will only pay the cost of coverage. As the name implies, it only covers a specific time. If a term life insurance policy expires before the contractor dies, it must acquire another approach to remain covered.

Advantages of Buying Life Insurance

Both cash-value life insurance and term life insurance have their advantages. In the case of Cash Value life insurance, the most important benefit is its ability to offer coverage throughout the life of the insured, which is remarkably interesting for young people with families in training or adults in full productive age.

In fact, in the United States, young people must acquire these policies, taking advantage of the durability advantage of this type of insurance. Young people get insured because premiums will be ridiculously cheap in a youthful and good health contractor, even if you choose a significantly high coverage amount.

For example, buying insurance with high coverage in the United States with initial monthly premiums of just US $20 to US $30 is possible.

In this case, one of the advantages is that with this small monthly expense, an individual could protect his family at the time of death and must cover financial debts acquired over the next 2 or 3 decades for things like purchase loans of vehicles, mortgages, and payment of education of their children.

In addition, cash value accounts linked to these insurances may also be subject to partial withdrawals or collection during the policy term, which gives a possibility of income for the insured at any time they need it.

Another advantage is that the insured pays taxes on interest or earnings attached to the cash value accounts of these insurances. Finally, companies and entire families can buy these insurances for all their members.

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.