Author: Complete Controller

A credit business is a loan designed to bridge the buying and selling cycles. Depending on the financial situation, lines of credit might be secured or unsecured. It’s a vital instrument that companies can employ to fund operational costs, inventories, and receivables. Finally, businesses can use a line of credit to assist expanding or seasonality firms in reaching their full potential.

Lines of credit are frequently misapplied.

Here are a few points to assist your firm in making the most of a business line of credit.

Evaluate whether a business is a good fit for a credit line. Companies can use a line of credit to purchase goods before a busy season by mature companies or industries with seasonal sales cycles, such as shops or wholesalers preparing for the holidays. Companies that require a line of credit expand and need short-term funding to raise inventory or finance accounts receivables.

Before borrowing, you should know what you’ll finance and when you’ll be able to repay it. Always be honest with your creditors and with yourself. Securing a line of credit and using it to buy items or goods won’t help your business if you can’t pay it back before the line expires. The majority of Business credits are only good for a year. Banks offer several financing options that can be tailored to the needs of the business. Know what you’ll use the cash for and when to repay it.

Prepare to speak with your creditor. Like any other lender, your borrower will want to see complete and up-to-date financials. Yes, it will take time, but it is a chance to have a new set of eyes on your business growth objectives. The better your banker knows your company and expansion ambitions, the more likely you will receive the correct funding to get you there.

Entrepreneurs are thriving thanks to their ideas, passion, and motivation. However, most business owners are not accountants, so here are five steps to effectively manage your business credits.

Check if you now have a business obligation file. Minor business proprietors must know if they have a D & B business loan folder. If you do not have a business credit file, please apply for and create a DUNS number. SMEs should apply for a unique business identification number, the DUNS number, immediately after they commence a business and start making a business credit file. If you call or officially visit the D & B website and find that you before now have a business credit folder, check it thoroughly to understand the information contained therein. Add or modify the knowledge to help reviewers of business credits (sellers, suppliers, financial institutions, etc.) make informed and accurate decisions. Top of Form
Create a credit history for your business. When many business owners start up, they use their credit and money to get their businesses on track. Instead, keeping your credit history by tracking expenses (e.g.) is a good idea.

Pay your invoice punctually and comprehend the other factors affecting your credit score. The most important thing to increase your commercial obligation score and build a positive payment history is to pay your bills on time. Be cautious to keep your business manageable, and use each credit line wisely. Payment history is significant, but credit scores include several elements. For example, D & B updated 150 creditworthiness factors such as industry, sales, and employees.

Observer and keep your business credit file modern. By checking your business credit folder, you will know valuation changes before they affect your dealings with customers, suppliers, and financial organizations. Credit records must be up-to-date and accurate, reflecting location changes, number of employees, proceedings/liens in dispute, revenue, and more. All of this affects creditworthiness. According to D & B, the creditworthiness of about one in three companies is within just three months.
Monitor customer and supplier creditworthiness.

Checking credit files that give you a clear and complete picture of your customer’s creditworthiness can help you determine the amount and terms of credit you need to update.

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.

#1 – Give them Control of the Money

If children do not have authority over their money before they reach adulthood, they will learn that money will always be given by someone else, and they will not be accountable for its spending or future.

#2 – Teach them to Save to Achieve Financial Goals

They will want to buy something more significant than the amount they have on hand. Once kids realize they can do more with their money than spend it on whatever they want. Now is the moment to teach them about achieving financial objectives.

#3 – Teach them that Reducing Expenses Allows Goals to be Reached Faster

This given lesson is a continuation of the previous one.

If you teach them about financial objectives, they will likely pick it up independently.

Kids have realized they need to save more to attain a goal faster. It also means less money spent on other things.

#4 – Teach them How Money can Make Money

It is an investment lesson that many of us may benefit from.

One thing is putting money into a savings account and earning 10% a year. However, compound interest will likely go unnoticed if your children have short-term ambitions.

The next step is to encourage your youngster to set a long-term goal. This objective may be a trip after high school, a down payment on a car, or even something smaller if he’s a youngster.

#5 – Teach Them About Budgeting

It doesn’t have to be a problematic budget; instead of having a large sum of money that diminishes with each impulsive buy, you want to educate them on organizing their spending.

Then, show them how to split the money and keep it focused on the various objectives.

#6 – Teach Them to Pay Bills

Do you have a cell phone for your adolescent? Who is responsible for paying the bill?

Allow them to spend the planned amount each month and pay the bill monthly.

If they do not pay on time, you will terminate the service. Your children will figure out how to pay their bills on time.

You can even add payments for a car (if they drive), cable television, or the Internet.

#7 – Teach Them About the Dangers of Debt

Kids will probably not grasp this lesson at six, but they will undoubtedly get the notion as adolescents.

You’ll have to talk about debt difficulties, including loans, credit cards, and other sorts of debt.

They’ll quickly discover that paying their monthly credit card payment limits how much money they may spend on other things and that this form of debt might jeopardize their monthly budget.

#8 – Teach Them that Earning More Money Brings Them Closer to Their Goals

If you have financial objectives, you may cut back on your spending to get closer to achieving them. You may also earn extra money by doing so.

As a child, your children should begin learning this lesson through additional cash. This money should come from something other than domestic tasks since they must learn to participate at home without expecting a monetary reward.

#9 – Teach Them About the Effects of Advertising and Consumerism

Most of us grow up unconscious of the impacts of advertising, marketing, and consumerism on us and our purchasing patterns; thus, this should be taught both at home and school. Teach them about advertising’s goal: to persuade us to buy things or services by causing us to spend money.

Also, discuss consumerism and how it damages us financially, is unhealthy, and, most importantly, causes us to clutter our homes with expensive and completely disposable items.

#10 – Teach Them About Impulse Buying

Like the previous lesson, Impulsive purchase results from advertising and consumer psychology. Teach your children to consider their assets before making them and recognize the indications of impulsive buying.

An excellent method is to compile a list of the extraneous items we wish to acquire and then wait 30 days to decide.

Instruct them to stay away from shopping malls and e-commerce sites (shopping over the Internet).

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.

Direct Treasury

Most fixed-income funds invest most of their assets in public debt securities. So why not dispense with the intermediation and costs and buy these papers yourself? It is possible through the Tesouro Direto platform.

The main advantage is in costs. While funds charge a management fee of up to 4% per annum, many brokerage firms practice zero fees at Tesouro Direto. The price paid to B3 (the São Paulo Stock Exchange, which is responsible for the custody of the securities) is only 0.3% per year. This investment is also quite affordable: the minimum to apply is $30.

CBD

An option for public bonds is private bonds issued by banks and financial institutions to raise money and offer credit to their customers.

CDBs offer the so-called daily liquidity, the name given to the possibility of asking for redemption at any time, which makes this investment attractive to make an emergency reserve. One of the most famous is the CBDs, as mentioned above. When investing in CDB, you lend that amount to the company, which commits to paying it with interest within a specified period.

Savings

Savings are the first thing that comes to mind for most Brazilians when deciding where to store money safely. It is a direct investment: deposit any amount into an account of this type, and the money will earn interest every 30 days.

On the one hand, most likely, your checking account has a savings account linked to it and allows transfers between the two without fees or costs.

Investment Fund

Mutual funds are an effortless and practical way to save. They bring together a series of investors interested in pooling resources to invest in different assets, always under the supervision of a specialized manager.

In other words, they act as an intermediary: you invest an amount, and the fund managers use the money to buy financial assets and earn income. In the case of fixed-income funds, professionals invest in public and private bonds that pay interest.

Bills of Exchange

Generally, less known, Bills of Exchange (LC) are not related to the trading of foreign currencies, contrary to what the name may indicate. They are closer to CBDs.

In other words, an LC works as a loan for a financial institution interested in raising funds. The only significant difference to other fixed-income applications issued by private entities is that the money collected in this modality is intended to grant financing.

Notes

US government bills or notes, often referred to as treasuries, are assisted by the complete confidence and credit of the US government to make them one of the safest investments in the world. Long bonds are exempt from state and local taxes and are available in different maturities. Accounts are sold at a discount; they will be worth their total par value when the bill matures. The difference b/w the purchase price and the face value is the interest. For example, you can purchase a $1,000 account for $990; at maturity, it will be worth up to $1000.

Treasury Bills

On the contrary, Treasury notes are issued with maturities of 2, 3, 5, 7, and 10 years and earn a fixed interest rate every six months. In addition to interest, T notes can be charged at face value at maturity if purchased at a discount. Treasury bills and notes are available with a minimum purchase of $100.

Private Pension

The difference between the two types of personal assistance is related to the Income Tax declaration.

• VGBL

VGBL is recommended for those who use the simplified IR declaration model (whose discount is standard 20% and does not consider deductions).

You cannot deduct investments made in the pension plan throughout the year from Income Tax; when the invested amount is redeemed, you will pay the tax only on the value of the earnings, not the accumulated total.

• PGBL

It is recommended for investors who use the full declaration model because they can deduct the amount invested in the pension plan throughout the year from the tax. However, when you redeem the investment, you will pay tax on the total invested and his income in the period.

• LCI and LCA

The Real Estate Letter of Credit (LCI) and the Agribusiness Letter of Credit (LCA) are similar options to the CDB to save money but with a difference. The funds the financial institution raises can only be used in credits in these two sectors of the economy.

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 recent years, in the face of the challenges of low-cost airlines, many airlines worldwide have launched the “subdivision economy class” marketing strategy. Delta Air Lines subdivides economy class into introductory, economy, and premium economy classes. Others have different names, such as Air France’s Premium Economy Class and Cathay Pacific’s Premium Economy Class. Still, the motive is the same: to broaden the profit model, open up “gold-absorbing” channels, and attract passengers who want to pay more for relatively comfortable services—to maximize revenue.

The availability of these carbon-neutral fuels and other forward-thinking technologies reveals a central truth: Environmental action and economic development are not mutually exclusive; we can make sustainability a top priority without sacrificing today’s need for business flights, connecting citizens, businesses, and communities to an economic opportunity like never before.

Consider the data behind this economic equation: In Europe, business aviation flights support 374,000 jobs and $87 billion for the economy: these are often jobs needed in tomorrow’s workplace, including careers in Engineering, Technology, science, and Mathematics STEM majors.

Traditionally, elite first- and business-class passengers with full-ticket tickets have been airlines’ most prominent “financiers.” Industry statistics show that 70% of general airline revenue comes from 25% of high-end customers. However, with fragile global economic growth and tight corporate travel budgets, customers willing to buy first- and business-class tickets are declining. As a result, the super economy class in the economy class came into being. The US budget airline JetBlue’s financial statements show that the first year of the launch of the premium economy class brought in an additional $40 million in sales revenue for the company.

“Subdivided economy class” is a reasonable upgrade and optimization based on the super economy class. In a sense, it is an expansion and innovation of the airline’s existing profit model. According to media reports and Delta Air Lines, American Airlines and others have also indicated that they will introduce a tiered ticket law. In the eyes of these airlines, you must segment an economy to “catch every passenger from the stingy to the generous.” American Airlines forecasts that segmenting the economy class could bring an additional $1 billion in revenue annually.

“Selling point.” you can check more spacious seats, more high-end meals, more comfortable facilities, more thoughtful service, and more luggage for free, and the price is not much higher than that of regular economy class. These are all tempting “subdivided economy classes.” There are usually only four passengers in British Airways’ super economy class. There are about eight passengers in a row in the economy class of ordinary wide-body aircraft. Several other European airlines have also emphasized their premium economy class as better value for money and have high hopes for the profitability of the cabin.
Given that it is expected to become a new lever for the development of the aviation market, more and more airlines are making further adjustments to existing aircraft, including creating new spaces to assemble upgraded economy class, etc. According to a Colorado-based HIS Consulting Group report, “segmented economy class” will be the fastest business growth point in the global aviation industry in the next ten years. To impact and cannibalize its adjacent class seats (business class), open-source, increase efficiency, and expand revenue.

Management guru Drucker famously said: “The customer is the difference.” The difference in the customer leads to the difference in the service. The revelation of “subdivided economy class” is that if any company wants to be invincible in the increasingly fierce market competition, it must break the inherent operating mode and inertial thinking and seek new market positioning with a keen eye. Segment the market, refine and strengthen service awareness. Highlighting differentiated, individualized, and humanized services is necessary to improve civil aviation services. In this way, airlines can outperform their peers in an environment of increasing market pressure. 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 following is a list of all the most common reasons for bankruptcy worldwide. The number of persons unable to pay their obligations has risen dramatically. Congress recently discussed the situation with legislation that makes it extremely difficult to certify for this status. The following is a list of the most common reasons for bankruptcy today.

If the term “bankruptcy” is still used, this situation corresponds in law to a company’s “insolvency.”

Suspension of payments should be distinguished from other difficult situations that companies may encounter, such as insolvency, temporary embarrassment, or continued loss-making operations.

So when should a business be considered “bankrupt”? A company is in a state of insolvency when its available assets (cash in hand and the bank as well as anything that you can transform into money very quickly) no longer allow it to meet its current liabilities (debts for which the payment can be claimed immediately by creditors, such as employees, suppliers, or the Public Treasury). In other words, a manager may consider his company bankrupt when his accounting and financial situation no longer allows him to honor his debts with his funds: the company must then “file for bankruptcy. »By declaring the cessation of payments to the court within 45 days.

The suspension of payments can affect all companies, whatever their legal status and the nature of their activity. Whether you carry out a commercial, craft, or agricultural activity in your name or through a company, it is essential to recognize your business’s first signs of failure to preserve it and prevent the situation from degenerating. It is strongly recommended that professionals accompany you to identify the difficulties encountered quickly and take measures to overcome this ordeal.

What are the Leading Causes of Business Failure?

The manager must understand and monitor the events that could cause the bankruptcy of his company to anticipate them as well as possible and avoid incurring responsibility. The causes linked to a company’s bankruptcy can be external or internal to the company.

Events outside the company cause some bankruptcies. These causes are linked, for example, to a particular economic context, a bad economic situation for the specific field of activity, or a social crisis (such as strikes by yellow vests). The Covid-19 health crisis has thus precipitated many companies, some already in difficulty, into bankruptcy.

Is your company experiencing difficulties related to this exceptional context? Note that to limit the devastating consequences of the Covid-19 epidemic, the government has adopted rules relating to companies in hardship, particularly the safeguard procedure. Thus, until August 23, 2020, inclusive, your company’s state of insolvency is assessed in relation to its situation on March 12, 2020.

Apart from specific external events, a company’s bankruptcy is often linked to one or more internal causes.

• The problem can sometimes exist right from the start of your business if a lousy strategy has been defined in its business plan and its financial viability cannot be precisely estimated. It is essential to build up a solid legal arsenal from the start of the business to avoid any risk of insurmountable blockage after that.

Many bankruptcies are paradoxically caused by the company’s rapid and uncontrolled growth! Your business can also go through difficulties because it is in a sensitive phase that requires all your vigilance. It is the case during the first years following its creation and development.

• The lousy organization of the company (such as a disagreement between its leaders or significant waste) or even unpaid customers can also weaken its situation.
• Finally, other causes of bankruptcy that appear during the life of your business may characterize mismanagement. You can put your business at risk because of bad investments or inadequate strategic choices. Likewise, the inability to anticipate or react to competition, technological innovations, or market changes can lead your business to bankruptcy. Knowing your environment to prepare your business for changes will preserve it and ensure specific longevity.
• Warning: A manager who voluntarily commits one or more faults endangering his company’s financial health and activity could be liable.

What to do When Your Business Difficulties Persist?

If your business experiences persistent difficulties, several procedures are in place to help you deal with them. A manager cannot be told responsible for the sole reason of not having been able to make his business viable. The law, therefore, helps entrepreneurs in difficulty or in a situation of failure to enable them to negotiate with the main creditors.

The ad hoc mandate and the conciliation procedure allow you to settle the financial difficulties of your business in an amicable and preventive manner.

If these settlement measures prove insufficient, you can opt for legal action by opting for a so-called “collective” procedure: the safeguard, reorganization, or liquidation procedure. The procedure will then vary depending on whether your business has been breached.

When encountering difficulties you cannot overcome, you can ask the judge to open a safeguard procedure. This preventive legal procedure can allow you to reorganize your business and thus continue your economic activity, maintain jobs, and settle liabilities.

But the backup procedure can be unnecessary (or late!) When the difficulties are too intense, your business is already in insolvency. If this is the case, you are required to declare the situation of suspension of payments of your company within 45 days of the date of termination, under penalty of committing a management fault that could engage your liability (the court could then make you bear all or part of your business debts).

Once the declaration of cessation of payments has been made, the judge may decide to place your company in receivership. It will thus be able to continue operating its activity within the framework of a judicial review to settle its liabilities and seek prospects for recovery. The opening of judicial liquidation proceedings may be decided if your company’s situation is irreparably compromised.

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.

There are many options for personal finance apps that can be used in routine, bringing practicality to this monitoring. Some are entirely free, but most have free basic features and more advanced options for purchasing the plans.

Here are the main functions offered for free. It’s not a list of the best personal finance app but a map with the parts of apps that can help you deal with money.

1. Organize

This personal finance app aims to map all day-to-day expenses so the user knows exactly where the money goes. Among the main features of the free version is the control of up to two accounts, a credit card, and reports with graphs, in addition to the option to set three spending goals.

2. Easy Budget

It’s a free, ad-free personal finance app. It is possible to record and control earnings and expenses, analyze expenses on a timeline, and set a budget for the coming months, in addition to other features.

The app generates graphs and has intuitive features to make numbers more visual and understandable for the user.    

3. Olivia

Technology is used to learn spending habits, predict spending, and recommend better managing your finances. This free personal finance app is driven by an artificial intelligence called Olivia. The proposal makes the user understand the expenses, spend better, and save.

Integrated with the user’s bank account, the AI (Artificial Intelligence) automatically categorizes daily and monthly expenses and presents planning tips.

4. Wise

One way to handle money smartly is to make it work. Through the Wise application, it is possible to have numerous features that contribute to this.

Having the app installed, you can make faster and cheaper money transfers to more than 80 countries, access a real exchange rate, and view the total amount disbursed from the beginning. Having a debit card to pay internationally in more than 200 countries is also possible, even converting amounts into local currencies.

Users can receive payments in different countries by opening multi-currency accounts, where they can receive values locally and transfer and pay deals in other currencies, among other advantages.

5. Money lover

It’s a beautiful application with well-organized functions to help you categorize and manage your expenses, create budgets, and keep track of your savings and invoices. It has a free and a premium version.

The most satisfying thing is that you can use it from the following browser and download the app on your computer or mobile phone. The cloud stores the data, and accessing the account from any device is possible.

It makes it possible visually to register daily expenses and create categories to understand the main cash flows.

6. My Finances

The app has several features to organize your financial life and can be integrated with the bank application. Tracks income, expenses, savings, and credit cards, categorizing and creating a history. It allows you to export and monitor this data visually, graphing expenses statistics by day, week, and month and forming comparatives.

It is possible to integrate with the Google Calendar and others available on the device to save reminders and notify expenses when they are due. It also offers the possibility to make encrypted backups to your Google Drive.

7. Monte

It is an app for those looking for practicality, without many steps to register and use. The goal is to simplify the user experience. Allows entry of income and expenses, registration and reminder of future costs, and the visualization of statistics. You can sync all information to the cloud for access across multiple devices.

The free version of this finance app has some ads, which will no longer appear in the premium version, and some add-ons.

8. Furniture

This personal finance app offers a limited version for those who choose the free option, only available for smartphones. This version provides categories of expenses and income and synchronization once a day.

The best app is only for premium users. Features like cloud sync, organizing credit cards, setting goals, and creating budgets are limited – but can be checked out in a 7-day trial version.

9. Toshl

You can fully use the application for an evaluation period, and some features are reduced. Allows tracking of two financial accounts and creating two budgets.

You can only access functions such as creating reminders, viewing recurring bills, viewing charts, and planning paid versions.

10. Fortune

With the option of a free basic plan, this app aims to be practical and straightforward, helping users to handle money better. This version allows for organizing income and expenses, receiving pending alerts, managing two accounts and a card, and creating budgets. The tool even generates graphs and reports.

Some features such as generating a monthly balance of finances and exporting data, are left out, being released only for premium users, reducing the option.

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.

Young people do not consider credit a problem; it is an opportunity to get the desired thing right now. The choice to apply for a loan is often impulsive, and only some people think about the consequences when applying for a loan.

You Cannot Take Loans for “Eat,” “Walk,” or “New Smartphone”

Tell your children not to take out loans for food, go to the sea, or buy the latest iPhone. Many people say, “I can afford to buy the most sophisticated TV or smartphone” – no, you can’t if you don’t have the total amount for the purchase right now. It is a general mistake to think that if you have a job or a salary, you can take out a loan for 1-2 years and then gradually pay it off.

Of course, giving away $20,000 immediately is a pity, so taking out a loan and paying $500-$1,000 monthly seems more profitable. At the same time, no one considers the overpayment for the entire period, and the longer it is, the more you will give to the bank.

Long-Term Loans are 3-4 Times Overpayment

Long-term loans are even more dangerous. If you take a mortgage for 10-15 years, then for the entire period, you will pay the bank for 2-3 apartments. Please note that for all these years, the borrower has been imprisoned; he must make a mandatory payment every month. At the same time, the apartment belongs to the bank, and, in case of delay, you can lose both real estate and money.

When buying a car on credit, prepare for new expenses – fuel, repairs, parking, insurance, and monthly loan payments. As the vehicle leaves the showroom, it immediately drops in price by several thousand, so you cannot sell it at the initial cost.

The Financial Situation May Deteriorate

When applying for a short-term or long-term loan, you must ensure that you keep your job and that unforeseen situations will not arise. For example, in 2008, banks in Ukraine issued mortgage loans, but there was a global crisis, the dollar rose, and borrowers could no longer pay off debts. Rates increased even more during the crisis of 2014, and those who bought apartments in 2007 found themselves in a difficult situation.

Banks will never work at a loss; therefore, their contracts stipulate that in the event of force majeure, they can unilaterally change the lending terms or require the client to repay the loan ahead of schedule.

You Must Repay any Loan

Explain to the children that no matter how profitable the loan may seem, it must still be paid back after a while. Some companies issue the first loan at 0%, and borrowers think: “Oh, class, I will take $3,000 at 0% – no overpayment anyway,” a month later, they realize that they need to look for $3,000 somewhere to pay off the debt.

If you do not repay the loan on time, the bank will charge a penalty and a fine. After that, it will knock out debts through collectors or the court. If the court decides to recover, you will deduct the amount with the accrued interest from the borrower’s salary. They can also seize property, and you cannot sell it.

Delays negatively affect the borrower’s credit history; he will not qualify for a loan from any company.
Instead of loans, it is better to save money for a purchase.

Is it possible to pay the bank every month? If you want a new phone or TV, you need to save up for them. So that there is no temptation to spend money, set aside part of your salary for a deposit without the ability to draw early; many people say they can’t procrastinate.

Want to renovate your apartment? Take your time with a loan; buy building materials gradually – wallpaper this month, paint next month.

Loans are Addictive

Some people have everything on credit – a car, an apartment, furniture, and appliances. These are not poor; they have a good salary but do not properly manage money. As soon as they repay one loan, they immediately come up with something else to buy. It is a habit to pay the bank every month.
The worst is when children take out a loan and parents repay it. Parents need to stop paying off their children’s debts. Otherwise, a vicious circle will occur: children will irresponsibly take out a new loan, and parents will pay.

What are the Reasons You Can Take Out a Loan?

You can take out a loan only if the money brings income over the interest on the loan. For example, for business development, you will immediately sell several times more expensive to purchase goods or things. You can buy a car on credit if you need it for work, and not go to the sea once.

When You Need Money, Return it on Time

Tell the children that credit is not a magic bullet but a responsibility. Before deciding, you need to study the contract, calculate the overpayment amount, and think about a fallback in case.

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

How to Start a Business: Unlock Your Entrepreneurial Potential

It’s time to stop dreaming and start doing—because knowing how to start a business isn’t reserved for the lucky few. With over 82,000 startups in the U.S. in 2025 and growing, the opportunities are boundless. I’ve guided entrepreneurs from living rooms, garages, and coffee shops into thriving six-figure enterprises. If you have an idea, I’m here to help you transform it into a profitable business—step by step. This guide provides the tools, insights, and proven strategies to unlock your potential and pave the way for real financial success.

Key Takeaways

• Draft a crystal-clear business plan supported by thorough market research and financial forecasting.
• Choose the right business structure and navigate the legal registration process.
• Seek startup funding through diverse avenues such as investors, loans, or crowdfunding platforms.
• Learn the transition from a solo hustler to a visionary business owner.
• Create a 90-day launch plan that propels your idea into income—fast.

Crafting Your Business Plan: From Idea to Reality

Before you invest a dime, your business blueprint needs to be rock-solid. A solid business plan isn’t just paperwork—it’s the roadmap that reveals where you’re headed, how you’ll get there, and the required resources.

Identifying your niche

Here’s the truth: A business for everyone is a business for no one. Specificity is your ally.

• Utilize Google Trends to find what your potential customers are searching for.
• Analyze your competitors—what are they doing well, and where do they stumble?
• Ask yourself: “What problem do I solve better than anyone else?“

By pinpointing a niche that addresses a real need and understanding your customers better than they comprehend themselves, you’re on a sturdy foundation.

Building your business model canvas

Instead of drafting a 40-page document, create a one-page canvas for your business. The Business Model Canvas allows you to define:

• Your unique value proposition
• Target customer segments
• Channels (how you’ll reach them)
• Revenue streams and key resources

Keep it clear and avoid unnecessary complexity.

Navigating the legalities of business formation

This phase may appear daunting, but breaking it down simplifies the process.

Business Structure Options

Should you go solo or establish an LLC? The right choice varies by situation, but here’s what to consider:

• Sole Proprietorship: Easy to start, but lacks liability protection.
• LLC: Safeguards your personal assets and provides tax flexibility.
• Corporation: Ideal for larger ventures or if you’re courting outside investors.

Pro Tip: Consult a small business attorney to select a structure that aligns with your goals.

Registering Your Business

Here’s your checklist:

• Register your business name (ensure availability via your state’s website).
• Apply for an EIN through the IRS for tax purposes.
• Secure local business licenses and permits.

Once you’re legitimate, it builds confidence among customers and partners—no one wants to deal with a “sketchy” operation!

Exploring funding options for your startup

While you may not need millions at the start, strategic capital is vital.

Venture Capital and Angel Investors

If you have a high-growth idea, these investors might be interested:

• Perfect your elevator pitch: What problem do you solve, and why is it urgent?
• Construct a basic pitch deck: outline your vision, solution, business model, and numbers.
• Network tirelessly—use platforms like LinkedIn, attend local meetups, and explore referral circles.

Crowdfunding and Community Support

If traditional investors aren’t your vibe, consider grassroots funding. Platforms like:

• Kickstarter
• Indiegogo
• GoFundMe

…turn your audience into investors. Craft a compelling story and imaginative rewards.

Important Funding Insights

Did you know that 77% of startups rely on personal savings for initial funding? Only a tiny percentage actually tap into venture capital, signaling the power of perseverance and personal investment!

Entrepreneurship Tips for Long-Term Success

Having an idea is one thing; turning it into sustainable success takes resolve.

Innovation and adaptability

Your initial idea may not be the final one—and that’s perfectly fine!

• Stay attuned to your customers: Their feedback is your guiding light.
• Be prepared to iterate: Adjust your offerings, pricing, or delivery model.
• Watch emerging trends, but never overlook the fundamentals.

Building a strong team

No one scales mighty businesses alone. Great teams build great brands.

• Hire slow, fire fast: Foster a culture that aligns with your vision over mere qualifications.
• Define clear roles and objectives—avoid leaving team members hanging.
• Celebrate victories, no matter how minor.

Case study: Amazon—from garage to powerhouse

Let’s roll back to 1994. Jeff Bezos wrote down a list of products he could sell online. Books grabbed the top spot—not out of personal preference, but because the supply chain was logical.

Amazon began in a garage. Within two decades, it blossomed into one of the world’s most valuable companies.

Lessons learned?

• Start with one laser-focused offering.
• Optimize your logistics before scaling.
• Customer obsession isn’t mere rhetoric—it’s a genuine strategy.

How Technology Can Drive Business Efficiency

In today’s landscape, technology isn’t optional; it’s essential.

Leveraging AI and automation

Freeing up your time and minimizing costs is paramount:

• Utilize tools like Zapier to automate recurring tasks.
• Implement AI for customer support (chatbots can be a game-changer).
• Manage your content, CRM, and analytics without the need for extra hires.

Cybersecurity measures

A single breach can cost you trust – and financial stability.

• Secure your website using SSL.
• Enforce two-factor authentication for team logins.
• Regularly back up data, both online and offline.

Mastering marketing and branding strategies

Your brand exceeds a mere logo; it encapsulates how customers feel about you.

Social Media and SEO

• Focus on 1–2 platforms where your audience is active—don’t spread yourself too thin.
• Optimize your website for relevant keywords like “how to start a business.”
• Create engaging content that educates, entertains, or inspires.

Content marketing

• Write blogs that address genuine customer pain points.
• Share your journey—vulnerability can be your strongest asset.
• Employ storytelling for memorability (facts tell, stories sell!).

Building Trust with Clients: Communication and Transparency

Trust fosters loyalty—and in lengthy sales cycles, it can seal deals.

Client communication techniques

• Clarify contracts, deadlines, and deliverables.
• Implement regular check-ins to stay aligned with expectations.
• Solicit feedback and act accordingly.

Transparency in business practices

• Be upfront when problems arise.
• Consistently exceed your promises.
• Integrate your values into your business model, foregoing mere marketing spins.

Understanding Financial Performance Metrics

Familiarize yourself with your numbers—before they get the best of you.

Monitoring cash flow

Consider cash flow the lifeblood of your operation. If it runs dry, you’re in trouble.

• Track your monthly burn rate.
• Forecast income vs. expenses weekly.
• Keep business and personal finances separate from day one.

Interpreting financial statements

No need for a CPA, but you do need fundamental understanding:

• Income Statement (Profit & Loss): Are you profitable?
• Balance Sheet: What are your assets and liabilities?
• Cash Flow Statement: What’s on the influx versus outflux?

Sustaining Growth and Innovation

Success is not a one-time event. Keep sharpening your tools.

Continuous learning and development

• Read one business book a month—start with The Lean Startup.
• Participate in online workshops or industry certifications.
• Set and regularly review quarterly objectives.

Strategic partnerships and networking

Collaboration outperforms competition every time.

• Attend trade events and local mixers.
• Partner with complementary businesses (think web designers and copywriters).
• Join mastermind groups or incubators to leverage shared knowledge.

Conclusion

If you’re serious about building a thriving small business, start with the steps outlined here. You don’t need to be perfect—just take actionable steps towards your goal. I’ve witnessed ordinary individuals transform kitchen table ideas into million-dollar brands. Learn from their journeys, implement these strategies, and take that leap of faith today.

And when you’re ready to manage your finances like a pro, visit Complete Controller to see how we can help you remain structured, compliant, and scalable from day one.

Now, take action! Your journey to entrepreneurial success awaits.

FAQ

What are the most common pitfalls new businesses face?

Poor cash flow management, insufficient customer validation, and neglecting legal requirements are common traps.

How can I balance innovation with financial stability?

Experiment with small ideas, gather immediate feedback, and scale what proves to be effective.

What role does marketing play in business growth?

Marketing fosters awareness, drives traffic, and converts interest into sales.

Are there tax benefits for starting a small business?

Absolutely! Deductions for home office expenses, equipment, mileage, and more may be available.

How do I manage cash flow challenges in the early stages?

Keep a close eye on every dollar. Maintain low overhead costs. Use financial reserves or lines of credit judiciously.

Sources

• Amazon.com. “The Story of Amazon.” Jeff Bezos.
• CAKE.com. (January 23, 2025). “Small Business Statistics for 2025.” https://cake.com/empowered-team/small-business-statistics/
• Fortunly. (January 12, 2025). “20+ Most Important Startup Statistics for 2025.” https://fortunly.com/statistics/startup-statistics/
• IRS.gov. “Apply for an Employer Identification Number (EIN) Online.” https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• Kickstarter.com. https://www.kickstarter.com
• Luisa Zhou. (January 23, 2025). “Small Business Statistics: The Ultimate List in 2025.” https://luisazhou.com/blog/small-business-statistics/
• MIT Press. (January 19, 2024). “What Should Data Science Education Do With Large Language Models?” Xinming Tu et al. https://hdsr.mitpress.mit.edu/pub/pqiufdew
• Random House. (2011). “The Lean Startup.” Steven Smith.
• K&S Ranch. (2012). “The Startup Owner’s Manual.” Steve Blank.
• Cengage Learning. (2020). “Small Business Management.“
• Strategyzer.com. “Business Model Canvas.” https://www.strategyzer.com/canvas/business-model-canvas

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.

Scarcity

Scarcity is something that everyone understands, whether they realize it or not because everyone has experienced its impact. The core economic dilemma of scarcity is that the world has finite – or scarce – resources to fulfill unlimited wants. People are forced to judge how to deploy resources as effectively as possible to meet as many of their objectives as possible.

For example, only a fixed amount of wheat is cultivated each year. Some favor bread, while others prefer beer. Because of the wheat shortage, you can do only a limited amount of good. How do we calculate the amount of flour for bread and beer? One solution to this challenge is a market system based on supply and demand.

Supply and Demand

Supply and demand are the driving forces in a market system. For example, if many individuals desire to buy beer, the demand for beer is said to be high. You can charge a higher price for beer and generate more on average when you use wheat rather than flour to manufacture beer.

It may hypothetically lead to a situation in which more people start brewing and, after some production cycles, there is too much beer on the market – beer supply expands – that beer prices plummet.

While this is an oversimplified and extreme example, the supply and demand idea helps to explain why last year’s popular product cost half as much as this year’s.

Costs and Benefits

Cost and benefit concepts are tied to the economy’s rational choice (and reasonable expectations) theory. When economists argue that people act rationally, they suggest making decisions with the best benefit-to-cost ratio in mind.

Breweries will recruit more personnel to brew more beer if there is a tremendous demand for beer, but only if the cost of beer and the volume of beer they sell justify the higher expenses of their salaries and the resources needed to produce more beer. Similarly, the consumer will purchase the most excellent beer available, but not always the best-tasting beer in the shop.

The notion of costs and benefits may be used in various decisions that aren’t financial. Daily, college students undertake cost-benefit analyses, focusing on the classes they believe are most crucial to their success. It may also include lowering their time studying subjects they think aren’t as important.

Everything is in the Incentives

If you’re a parent, manager, teacher, or someone in a supervisory role, you’ve undoubtedly previously had the opportunity to provide a reward—or encouragement—to raise the chance of a specific outcome.

Economic incentives explain how supply and demand encourage businesses to give customers what they want while urging consumers to save their limited resources. When client demand for a product rises, so does the market price, incentivizing manufacturers to produce more to command a higher price. When the cost of raw materials or inputs for a product rises, and manufacturers restrict supply, the price they charge for the product increases, and buyers are incentivized to conserve their consumption, which is superb and reserved.

Stock and Flow

Stock and flow are two variables that differ primarily in their relationship to time.

The stock is a precise amount at a single point in time, which may have accumulated through time. The flux is a monetary sum expressed over some time, usually in the form of a charge.

You may describe the principles of inventory and flow using the following example: suppose you have a monthly rent payment of $1,000. This rent would be the cash flow, denominated in dollars ($1,000), over a while (1 month), which we may describe as $1,000/month. However, you were in debt the previous month and discovered that you only had $985 to pay your rent.

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 traditional method of accounting dates back to 1495 and was designed by an Italian monk. It is still the basis of most accounting programs but no longer suits today’s entrepreneurs. Below are the seven reasons you should no longer work with the traditional accounting method.

Many people ask me: Do you like doing bookkeeping? Most people would answer this question smiling “No!” without thinking twice. But I’ve been doing the job of an accountant for 18 years, and I can give a single answer here:

YES, I love the job of an accountant: It’s not just the company’s figures but also how these are created and what develops from my work. The statistics I prepare can have a significant impact on management’s decisions. I am also fascinated by how you can adapt processes so that the accounting department can remain lean despite the excessive growth of a company.

The Traditional Tasks of the Accountant are Automated

That’s why I’ve been thinking about how the job of an accountant has changed in recent years and how this could change in the future. The Oxford University study “The Future of Employment” inspired me to do this. Here, some scientists have asked themselves which jobs are easiest to automate and thus fall victim to automation with the help of computers the quickest. It turned out that the position of an accountant is one of the most vulnerable. Of the 702 job profiles examined, it is ranked 671! He’s far behind when it comes to job security.

In the age of Industry 4.0, the fear that new technologies will increase the unemployment rate of accountants is a constant source of discussion. But the more digitization progresses, the clearer it becomes that this fear is invalid. On the one hand, technological progress makes many traditional activities superfluous. At the same time, however, there is also an endless range of new fields of activity requiring more highly qualified workers.

Accounting for the Future Includes Controlling Strategic and Entrepreneurial Thinking

It also applies to bookkeeping: in the future, employees in the finance department will no longer have to type in invoice numbers and bank information or laboriously fill out Excel spreadsheets. Thanks to digital accounting, companies save significant time and money. With the right software, a lot of manual work becomes superfluous.

But why do you need an accountant at all? The answer: because accounting 4.0 will not make the profession die out, but rather change it. For complex bookings, the expertise of professionals will continue to be in demand in the future. In addition, the accountant will have to take on tasks such as checking and monitoring the system and digital maintenance.

In summary, the following points could include the future work of the accountant:

• Develop strategic action plans
• Formulate forecasts for future developments
• Check and optimize computer-controlled processes

According to many different forecasts, the new way of bookkeeping will prevail. The accountant will, therefore, take on more responsibility in data analysis and management consulting. In conjunction with the appropriate accounting software, the accounting system can relieve the accountant of numerous tasks depending on the range of functions.

In my forecast for the future, I have identified two megatrends in future bookkeeping. These two megatrends are:

• Cloud
• Automation

Combining these two trends will offer entirely new accounting methods in the future. In recent years, I have studied all these topics and successfully implemented them in many projects.

Nowadays, accounting can and should be done differently. With the new accounting method, ‘Entrepreneur Oriented Accounting,’ you as an entrepreneur are once again central. With this, you meet the requirements of the Tax Authorities, you understand your accounting yourself, you enter everything correctly and definitively in one go, and the reports provide you with real-time information.

All reports, even the annual report, come from the accounting system at the touch of a button. Jortt invented Entrepreneur Focused Accounting, which is suitable for all companies, from freelancers to general partnerships, BV, and partnerships with a turnover of up to $12 million annually.

Therefore, I believe the accounting profession is not dying out – no, it is changing. It may be massive for some, but the change must be accepted with the help of technology and translated into new areas of responsibility. Complete Controller is a perfect example of that. We shattered the accounting industry with our forward-thinking business model. You can learn more about us and how to thrive financially on our website and blog.

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.