5 Benefits of Long Mortgage

Posted on April 26, 2022May 27, 2022 by Jennifer Brazer

Traditionally, people have misunderstandings about mortgages, which make them suspicious when it decides. There are many unknown truths about mortgages, and learning them can benefit everyone. Five benefits of a long mortgage are as follows:

Building Equity

This equity can be utilized for various purposes, such as weddings or education fees. As a result, consumers believe that a larger mortgage will reduce the equity they attempt to establish. On the other hand, a large mortgage loan can have a minor impact on a home’s overall equity. Consider a $50,000 down payment on a $400,000 property. The remaining $350,000 is the loan balance, which you must repay in 30 years at 4%. The ‘down payment’ represents the initial equity, and if the house’s value increases at 3% per year, it will be worth $722,444 in 20 years. Even if the person can only pay $200,000 of the $350,000 initial payment, this is a significant sum. The difference of $572,444 represents the house’s overall equity. This is accomplished by subtracting the residual loan amount ($150,000) from the home’s overall value. As can be seen, the size of the mortgage has no bearing. This means that you can develop equity regardless of the size of your mortgage.

Low-Interest Rate

Mortgages are one of the cheapest loans a person can get. However, some may argue that credit cards offer 0% interest for six months. But interest rates exceeded 18% in the first six months, and if someone wanted to borrow $100,000 at that high-interest rate and if they needed to repay, they would not be able to repay. It was paid over 30 years. You are only suitable for a loan if you can prove to your bank (or mortgage company) that you can repay the loan within the allotted time. The higher the bank’s confidence in an individual’s repayment ability, the lower the interest rate. In this case, the mortgage is the type of loan that has the least risk on the part of the bank. The bank can claim a mortgage if the borrower fails to repay the loan. So, interest rates are so low that it makes sense for people to take advantage of them.

Tax-Savings

Mortgage interest is beneficial for tax filing, as mortgage interest is tax-deductible. For example, interest paid up to $1 million to buy a home is tax-deductible. If the borrower buys a 5% mortgage with a 33% tax rate, the cost of the loan will be 3.35% tax. On the other hand, if he invests 5%, the profit will be taxed at 20%, and the profit after tax will be 4%. Therefore, the investment can return less than the amount paid by the loan, increasing the profitability of the loan.

Easier EMIs in long-run

For most borrowers, it can be challenging to pay a mortgage in the initial stages of the loan being first withdrawn. However, in the case of a fixed interest rate loan, the amount will be less than the monthly income. Such loans do not increase your monthly payments, but your income grows steadily. On the other hand, the value of a home can also increase significantly over time. Borrowers who buy a home with a single down payment may be missing this vast profit.

Allows Better Investments

Consider a scenario where a person buys a second home for money he received from the sale of the first home. For example, if he gets an amount of $300,000, should he consider spending the total amount to buy a new home for $500,000, or with a down payment of $50,000 and use the rest as an investment? Is it wise to do it? Most people will argue that spending the total amount is applicable. In this case, you only must repay $200,000, and it is easy to do. However, the second option is one that individuals need to consider if they want to build wealth eventually. By investing the remaining amount at a much higher interest rate, he can get enough income from his earnings and enjoy a more significant tax credit. With the tax savings thus saved, you can repay even large loans at slightly higher interest rates. Borrowing a considerable loan and using the return on investment to pay for EMI is always better than a small mortgage with no return on investment.

These are some ingenious reasons borrowers may benefit from a large mortgage. People usually ‘pity’ someone who has a large loan because PITI (Principal, Interest, Taxes, and Insurance) characterizes mortgages. On the other hand, these advantages may function as a wake-up call.

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

5 Reasons Why Work-Life Balance is Important

Posted on April 25, 2022May 27, 2022 by Jennifer Brazer

When advanced computers began to appear in the 1980s, and the prospect of the development of the Internet echoed in the air, many thought that digital technologies would make work easier, leaving more time for personal life.

After 20 years, not a single office could do without computers. The digital technology revolution has not just happened but triumphantly marched around the world, covering all areas of activity. But the next massive leap in computer technology was yet to come. Today, a person’s life in a developed society is unthinkable without a smartphone or other portable device that provides Internet access everywhere. And this means that your work accompanies you around at any time of the day, not just in the office for 8 hours a day. As a result, technology did not make life easier but only increased work productivity, distributing it in a thin layer over a sin. Home dinner must be combined with business correspondence with the chef and walking with a girl; you suddenly remember that you must check your e-mail urgently. And so, it becomes increasingly often until your life turns into routine maintenance of your career. Subsequently, this can lead to burnout and stress. You can avoid this if you find the right balance between work and personal life.

What does work-life balance mean?
The modern rhythm of life of many people looks like some interests are superimposed on the framework of other goods. You will not surprise anyone with the phrase “I’ll be late at work,” “let us meet next weekend. Otherwise, I am working this”, etc. There can be several explanations why a person imperceptibly refuses his personal life. Lack of money and career ambitions are one side of the matter, material and therefore more meaningful. But there is another – psychological. A forced workaholic can cause dissatisfaction with personal life. The cause and effect are flipped, but the negative impact on the person remains the same. Balance allows you to equally appreciate both components of life – work and pleasure, which not only do not mutually ban each other but bring additional meaning.

How important is the balance?
The fact is that high professional employment in our time is no longer perceived as a forced sacrifice. Violation of the balance between work and life in favor of the first is becoming increasingly popular, turning into a fashion trend that indicates the demand or success of a person. It has gotten to the fact that many perceive the intervention of work in personal life as the only way to secure a high working status and remain competitive in the eyes of the head. This opinion is erroneous and resembles an attempt to justify the inept distribution of working time or unwillingness to do something else. We do not intend to discredit overtime work as such. You are working above the norm. For example, at the rudimentary stage of a career, the initial stage of a business, or when managing a complex project. But when it becomes an endless series of filling in the gaps, we are talking more about the wrong approach. Your productivity in the workplace is unlikely to improve if you give yourself carte blanche to fix things at home. In addition, by reducing attention to other aspects of life, at some point, you may believe in their lesser significance. If you push into the background, say, the relationship with your girlfriend, then in return, you will receive a corresponding negative response. And this will be another erroneous argument for the importance of work over personal life.

Instead of personal life, we choose work. The catchphrase often justifies excessive devotion to one’s profession: “Choose a job you love, and you won’t have to work a day in your life.” This statement can be accepted as accurate, with the only amendment that the love of one’s work does not exclude the significance of everything else. If your favorite dish is fried chicken, then this does not mean that you should exclude all other foods from the diet.

Other parts of your life require just as much attention. It is great luck to find your favorite thing, for which, moreover, you can get good money. But think about whether you would agree to this if it deprived you of the other pleasures of life.

Why Firms Need a CPA for Success

Posted on April 25, 2022October 30, 2025 by Jennifer Brazer

Why Every Firm Should Consider a CPA for Success

Why firms need a CPA goes far beyond basic tax preparation—a certified public accountant serves as your strategic financial partner who identifies tax savings averaging $12,000 annually, prevents costly compliance failures, and transforms financial chaos into sustainable growth through expert cash flow management and business structuring[8][11]. The difference between businesses that merely survive and those that strategically thrive often comes down to one critical decision: partnering with a CPA who brings specialized expertise in tax optimization, regulatory compliance, and financial strategy.

As the founder of Complete Controller, I’ve witnessed firsthand how businesses transform when they move from reactive financial management to proactive strategic planning. Over 20 years of supporting companies across every industry imaginable, I’ve seen the pattern repeat: businesses struggling with cash flow, missing tax credits worth thousands, or facing surprise audits that could have been prevented. The right CPA partnership changes everything—from uncovering $120,000 in missed tax credits for a restaurant group to saving a food truck owner $1,000 monthly while clearing dangerous compliance issues[10][8]. This article reveals the concrete ways CPAs drive business success, backed by real case studies and the financial data that proves their value.

Why should every firm consider a CPA for success?

Firms need a CPA for strategic tax planning, compliance management, audit defense, and growth-oriented financial guidance
CPAs identify an average of $3,534 in annual tax overpayments that DIY bookkeepers miss[19]
Professional CPAs help businesses capture the 70% of tax credits that go unclaimed each year[11]
Expert financial management prevents joining the 82% of businesses that fail due to cash flow problems[16][17]
CPAs provide audit representation that saves $4,000-$20,000 in defense costs when IRS issues arise[6]

Strategic Tax Planning: The Hidden Profit Center Most Businesses Miss

CPAs transform tax season from a dreaded expense into a strategic profit opportunity through year-round planning that captures every available deduction and credit. Small businesses routinely leave money on the table simply because they lack awareness of available tax benefits or the expertise to claim them properly.

The distinction between deductions and credits illustrates why professional guidance matters. A $5,000 deduction might save $1,000 at a 20% tax rate, while a $5,000 credit saves the full $5,000 in tax liability[11]. Yet approximately 70% of eligible small businesses fail to claim tax credits they qualify for, including the Research and Development Credit, Work Opportunity Tax Credit, Employee Retention Credit, and Disabled Access Credit[11].

Consider these real-world results:

A 3-unit restaurant group recovered $120,000 in federal tax credits through the Work Opportunity Tax Credit program—savings their previous accountant never identified[10]
An Ohio restaurant claimed $20,000 in R&D tax credits for recipe development and POS system modifications[15]
A Jacksonville food truck saved $1,000 monthly ($12,000 annually) after a CPA restructured their tax approach[8]

CPAs also optimize business structure for maximum tax efficiency. Converting from an LLC to an S-Corp can reduce self-employment tax burden by 50% or more for businesses generating substantial profits[1]. For a business owner earning $150,000 annually, this structural change alone could save over $10,000 in self-employment taxes each year.

Building Bulletproof Compliance: Protection Against Costly Penalties

The scale of tax non-compliance reveals why professional guidance proves essential. The federal tax gap reached $688 billion in 2021, with small businesses accounting for $271 billion through underreporting alone[3]. This massive compliance failure stems from three primary causes that CPAs systematically address:

Poor Record-Keeping: Without organized financial records, accurate tax reporting becomes impossible, creating audit risks and potential penalties[3].
Entity Misclassification: Operating under the wrong business structure leads to years of unnecessary tax liability or compliance violations[3].
Regulatory Complexity: Constantly evolving tax obligations exceed what business owners can reasonably track while managing operations[3].

Audit rates vary significantly based on business income:

Under $25,000 gross receipts: 1% audit rate
$100,000-$200,000 gross receipts: 2.4% audit rate
Over $1 million gross receipts: 4% audit rate[6]

When audits occur, costs mount quickly—correspondence audits cost $2,000-$4,000, office audits run $4,000-$10,000, and field audits exceed $10,000-$20,000[6]. CPAs provide audit defense infrastructure that reduces both audit probability and impact, legally representing clients in IRS discussions while maintaining the documentation quality that expedites resolutions.

Cash Flow Mastery: Preventing the #1 Business Killer

Cash flow mismanagement causes 82% of small business failures, making it the single largest threat to business survival[16][17]. The paradox strikes growing businesses hardest—companies can double revenue while simultaneously approaching financial crisis if cash conversion cycles aren’t properly managed.

CPAs prevent these crises through sophisticated forecasting and working capital optimization:

Cash Conversion Analysis: Examining the timeline between spending cash and collecting revenue to identify bottlenecks
Payment Term Negotiation: Structuring supplier and customer terms to maximize cash availability
Inventory Optimization: Reducing cash trapped in excess stock without sacrificing sales capacity
Strategic Debt Structuring: Creating working capital buffers for growth periods or operational slowdowns

Small business owners spend over 20 hours monthly on financial tasks, representing $36,000 in annual opportunity cost at $150/hour[19]. Meanwhile, 40% consider themselves financially illiterate, and 60% lack sufficient accounting knowledge[19]. CPAs eliminate this knowledge gap while freeing owners to focus on revenue-generating activities.

Real-World Transformations: Case Studies That Prove CPA Value

Manufacturing turnaround success

A manufacturing company struggling with inefficiencies partnered with a CPA firm specializing in operational analysis. The CPA team identified $50,000 in annual cost savings through process improvements, renegotiated supplier contracts saving 15% on materials, and implemented inventory management systems reducing carrying costs by 20%[9].

Restaurant group tax recovery

Beyond the $120,000 Work Opportunity Tax Credit recovery mentioned earlier, restaurant CPAs regularly identify industry-specific savings:

Menu engineering analysis improving profit margins by 5-8%
Labor cost optimization through scheduling efficiency
Vendor consolidation reducing food costs by 3-5%
Equipment depreciation strategies maximizing cash flow[10][15]

Selecting Your Strategic Financial Partner

Not all CPAs offer equal value—choosing the right partner requires evaluating specific criteria:

Industry Experience: CPAs familiar with your sector understand unique challenges and opportunities
Proactive Communication: Regular strategic meetings, not just annual tax preparation
Technology Integration: Modern accounting systems providing real-time financial visibility
Advisory Mindset: Focus on business growth, not just compliance
Team Depth: Resources to support your business as it scales

Red flags to avoid include CPAs who only contact you at tax time, lack familiarity with your industry, resist technology adoption, or treat you as just another tax return rather than a strategic partner.

Final Thoughts

After two decades helping businesses navigate financial complexity, I can state definitively that partnering with a qualified CPA represents one of the highest-ROI decisions any business can make. The evidence speaks clearly: from preventing cash flow failures that destroy 82% of small businesses to capturing tens of thousands in missed tax credits, CPAs deliver measurable value that far exceeds their cost.

Your business deserves more than reactive bookkeeping—it needs proactive financial strategy that drives growth while protecting against costly mistakes. The team at Complete Controller combines CPA expertise with modern technology and industry-specific knowledge to transform your financial operations from a source of stress into a competitive advantage. Visit Complete Controller to discover how strategic financial partnership can accelerate your business success.

Frequently Asked Questions About Why Firms Need a CPA

What is the main difference between a CPA and a general accountant?

A CPA (Certified Public Accountant) has passed rigorous licensing exams and completes mandatory continuing education, qualifying them to perform audits, represent clients before the IRS, and provide strategic tax planning—services general accountants cannot legally provide[5][9].

When should a small business hire a CPA?

Hire a CPA when your business reaches $100,000 in revenue, faces complex tax situations, plans major growth initiatives, needs audit representation, or when financial management consumes excessive owner time[5][13][17].

How can a CPA help with business financial planning?

CPAs provide cash flow forecasting, budgeting, scenario analysis, and strategic guidance that enables informed decisions supporting sustainable growth while avoiding common financial pitfalls[1][18].

Are CPA services worth the cost for startups?

Yes—CPAs help startups avoid costly entity selection mistakes, identify startup-specific tax credits and deductions, establish scalable financial systems, and prevent the cash flow failures that kill most new businesses[5][14].

What compliance areas can a CPA help with?

CPAs monitor and maintain compliance with federal and state tax requirements, payroll regulations, industry-specific reporting obligations, sales tax collection, business licensing requirements, and audit preparedness[3][17].

Sources

“Benefits of Hiring a Certified Public Accountant.” Gogerty & Associates PLC.
“How to Reduce Compliance Costs.” Clearline CPA.
“6 Benefits of Hiring a Certified Public Accountant.” Carpenter Evert & Associates.
“How Clear Communication with Your CPA Can Save You Money.” Finney, Neill & Company.
“Do I Need a CPA for My Small Business?” 1-800Accountant.com.
“How a CPA Can Help You Optimize Your Business Tax Strategy for Maximum Savings.” Cartier CPA.
“How CPAs Can Help Restaurants and Retailers Save Thousands.” Prudent Accountants.
“When Should You Hire a CPA?” Business News Daily.
“The Role of a CPA in Business Tax Planning and Compliance.” Accounting Complete.
“How Certified Public Accountants Support Business Growth and Compliance.” The Fino Partners.
“Top Cost Reduction Practices for U.S. CPA & Accounting Firms to Maximize Profit.” The Fino Partners.
“PwC US Careers: Why CPA?” PwC Careers.
“The Role of CPAs in Business Restructuring.” Andrea Ward CPA.
“How Much Will A CPA Cost (And Save) Your Small Business?” 1-800Accountant.com.

Jennifer Brazer Founder/CEO

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

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5 Signs You Should Support in Bookkeeping Services

Posted on April 25, 2022May 27, 2022 by Jennifer Brazer

As an entrepreneur, you do most or even everything yourself, which makes it so nice that you understand your bookkeeping program inside and out. You cannot do bookkeeping easily if you do not understand the parts of the program.

You must be able to understand what you are doing anytime, anywhere. And only a few programs are capable of providing that accessibility.

Below is the only overview you will ever need as it provides the most accessible accounting programs of the moment. These programs are capable of everything you could ever need from an easy program.

Your bookkeeping becomes easier because you can pleasantly manage your books. And that will also make your life as an entrepreneur easier. Read on for the entire top five!

Easiest accounting program: Reeleezee

Reeleezee says it all with the name: Easy bookkeeping. As easy as Reeleezee is as an accounting program, it is not in the top three. And that is because it is a young player who has the right intentions but is not there yet.

Would I recommend Reeleezee right away? No, the other players in my top five are too good for that. No accounting program insists on the most accessible aspect that you would expect the absolute best from Reeleezee. Unfortunately, that is not the case, which causes some disappointment when I dive deeper into the accounting program.

In addition, Reeleezee is pricey compared to some alternatives. If you want to be able to book properly, you will lose at least $25 per month. And that is absurd for what you get.

Easiest accounting program: DigiBTW

DigiBTW manages all this a lot better. Although DigiBTW is not a very extensive accounting program, which you do not expect from this, it is a lot more for your money than Reeleezee.

What DigiBTW does well is that it is just incredibly easy. Super simple and super affordable, according to DigiBTW. And with € 10 per month, you really cannot complain. For this, you get a user-friendly accounting program that has no limitations. So, you get access to all functions of the program. You can count on the support of this company if you are unable to find a solution.

DigiVAT is a great stepping stone for those who want to be able to book easily and quickly. Not the most professional program, but a more than deserved fourth place. Especially for that $10 a month.

Easiest accounting program: Red tape

Rompslomp has scored several times in the top three of my most popular accounting lists this year. In my overview of accounting programs with the best value for money, it even has a top ranking. Not a deficient performance for a program that has only been around for some time. For now, Rompslomp is simply worth a top three listing. However, it would not surprise me if Rompslomp also ranks higher here within a year.

Red tape wants to make bookkeeping as pleasant as possible. It does this for as many branches as possible, whether that is the construction or design sector. Everything is kept simple so that you can easily find your way in the accounting program. This is for a very reasonable price of $10 per month. And if you want to do it entirely cheaply, you can opt for the free package. This package is equipped with a surprising number of functions that you do not have to pay for.

Easiest accounting program: Moneybird

Moneybird is, according to the latest figures, the most popular accounting program among sole traders. Entrepreneurs know where to find Moneybird because Moneybird is recommended first in many large Facebook groups. And Moneybird does not owe that to the fun name.

Everyone can use this accounting program. As a beginner, you can easily explore the accounting program by means of balloons, extensive manuals, and FAQs. An explanation can be read for each function so that you subconsciously learn how parts work. This strengthens your knowledge of the accounting program and accounting in general—quite an achievement from Moneybird.

Easiest Accounting Program: Tellow

Tellow shows that it can be done more beautifully and easier. After using Moneybird for the first time in 2015, I never expected that in 2020 there would be a more straightforward accounting program. Tellow has proven otherwise. Everything you would like to see from a sole proprietorship accounting program can be found in Tellow. Functions are excellently developed and beautifully and user-friendly designed.

If Moneybird is the obvious choice for Windows, surely Tellow must be for Apple. Everything feels intuitive and natural. This allows you to float through the functions, as it were, and your accounting is done in no time!

The main reason Tellow earns the label of easiest accounting program is that it helps you with everything. Every aspect of your accounting is taken care of by Tellow. Without you distancing yourself from your accounting. You take every step yourself. This gives you complete control without investing a lot of time and energy in your accounting.

Five Tips For Investing in Cryptocurrency

Posted on April 24, 2022May 27, 2022 by Jennifer Brazer

True crypto enthusiasts regard Bitcoin as the money of the future, while skeptics predict it will inevitably crash. The debates are quite extensive, and there are conflicts of opinion even on many basic matters. Bitcoin, for example, appears to have been created as a form of payment in the past, but increasingly people today perceive Bitcoin as primarily a new investment category. People also disagree on whether Bitcoin will replace the current system or whether it will just be a new financial product alongside all the others.

For some, cryptocurrencies are an elusive form of payment. However, several currencies, including Bitcoin and Ethereum, have recently seen a surge in popularity. Companies are increasingly investing a portion of their money in cryptocurrencies. Bitcoin and other cryptocurrencies are no more frowned upon; in fact, the first e-sale of a property in the Netherlands was completed using Bitcoin. Is cryptocurrency, then, the currency of the future?

The Price of Cryptocurrency

Cryptocurrencies have been around for around ten years, although it has received greater attention in recent years. This is also because the market price of cryptocurrencies has shifted dramatically in a good direction around 2020. People were seeking new investment methods because of the recession and low-interest rates on savings accounts. Moreover, more prominent organizations’ faith in cryptocurrencies grew, driving the worth of the coins to skyrocket. Since the price of cryptocurrencies is determined by the value given to them. The trust in currencies increased significantly, and Bitcoin, Ethereum, and Ripple reached new highs earlier this year, resembling those seen earlier this year on their way to new highs. This boosted faith in these currencies even further.

Do not want to miss the boat

The concern as to whether cryptocurrencies will eventually replace traditional currencies is a major one. That will be something that lasts a long time. Nonetheless, there have been some exciting advancements in the area, and cryptocurrencies are becoming more widely accepted as legitimate money in the future.

The European Union, for instance, implemented several restrictions for the crypto industry in 2020. These restrictions ensure that future inventions and advances will be more readily adopted. Because of the rising confidence in crypto technology and its improved security, the future of cryptocurrencies appears bright.

Would you like to avoid missing Bitcoin, Ripple, and other crypto coins? After that, you may create a new account with a dealer like Litebit. After that, you can invest a portion of your wealth or savings that you are willing to invest in cryptocurrencies. Remember that these are highly volatile currencies. As quickly as the coins increase, they could also fall precipitously due to negative news.

As a result, ensure that you may lose the wealth you spend in terms of investing and that you are up to date on any crypto-related events.

Can you borrow in Bitcoin?

Bitcoin is difficult to utilize because it has zero-sum game characteristics. You can lend and deposit simultaneously with ordinary money, besides paying. In the case of Bitcoin, the return, whether positive or negative, is ultimately determined by the Bitcoin price. Therefore, the fortune of someone who takes out a Bitcoin loan is, by definition, inverted to that of the investor. People who bought Bitcoin at the start of 2020 and can collect their earnings at a much higher price are receiving a lot of attention. However, someone who would have taken out a home loan in Bitcoin, for example, has seen the value of his debt in ordinary money skyrocket and is very certainly insolvent. I am not aware of how many individuals have taken out a Bitcoin loan.

The underlying issue is that there is no core Bitcoin economy in which all revenue and costs are represented in Bitcoin. Ethereum (or any other crypto, for this kind of matter) can only do a poor job of fulfilling the role of money if people’s daily income and spending are in traditional money.

Extra tip

However, Bitcoin does serve as an asset, although one with a significant level of risk owing to its tremendous volatility. As a result, the most significant probable function for Bitcoin in the upcoming financial system appears to be that of an asset.

5 Tips to Avoid Credit Card Frauds

Posted on April 24, 2022May 27, 2022 by Jennifer Brazer

Criminals will speculate on your feelings, promise mountains of gold, and disguise themselves as bank employees or government organizations to lure money out. Anyone can become a target of criminals, and it does not matter if he uses a bank card or chooses to pay in cash. Fraudsters know how to swindle money online, using calls and SMS, in social networks and offices.

Expert Opinions

Experts also advise – that when paying in cafes, restaurants, and supermarkets, do not give your card to the cashier or waiter but apply it to the payment terminal yourself. If you notice suspicious transactions, immediately block the card through the mobile application or the bank’s call center. Do not turn off SMS notifications about transactions in order not to miss suspicious charges. Card blocking is a reliable guarantee that suspicious transactions will not be repeated. And to understand how the suspicious write-off happened, you must immediately contact the law enforcement agencies and the security service of your bank.

How to avoid fraud on your credit cards?

Before withdrawing money from an ATM, inspect it. There must be no foreign objects on the card capture reader. The keyboard must not wobble. It is enough to use such an ATM once and not cover the keyboard with your hand while entering the PIN code – and your money can be withdrawn, transferred to several accounts, and cashed out. Even in a cafe or shop, your card details can be stolen. An attacker could be a merchant who gets access to your card for at least five seconds. Having photographed your card, he will be able to use it for payments on the Internet.
When typing the PIN code, cover the keypad with your hand. Do this even when paying with a card in a cafe. If you receive a Confirm Purchase notification and a code, and then a call is heard again from an absent-minded person who says that he has entered your phone number by mistake and questions to dictate the code to him, by no means do this. Fraudsters are trying to swindle your code to deduct money from your account or sign you up for an unnecessary paid service.
Connect mobile banking and SMS notifications. Let us say you still withdraw money only at the bank’s money desk and do not pay by card at all. You feel safe. Suddenly, you receive an SMS or a letter from a bank with a link, a request to call back an unknown number, or a notification of an unexpectedly big win. Or they call on behalf of the bank and ask for personal data, a PIN code from a card, or an SMS confirmation number. Or they report on social networks on behalf of relatives or friends who suddenly got into trouble (hit the police, got hit by a car, stole a bag) and ask to share a certain amount of money to an unidentified account. In 99.9% of cases, you are negotiating with scammers.
If you make purchases via the Internet, do not tell anyone the secret code to confirm transactions that come to you via SMS. If you receive an SMS about the crediting of funds (and the message looks like a familiar bank notification) and then a slacker who mistakenly credited you with money and asked for a return call, do not rush to return anything. This situation is more like a dishonest scheme: the money did not come, the SMS was not from your bank, but the attacker called you. Check your account status, order an online bank statement, or contact the bank before transferring money to someone.
Do not give out personal data to anyone, and even more so, passwords and codes. Bank employees do not need them, and fraudsters will be given access to your money. Do not store card data on a computer or smartphone. Check the information. If they suggest that you won something or that money was accidentally debited from your card and you need to give your details to stop the operation, end the conversation and call the bank at the phone number revealed on the back of your card. Try never to lose sight of your card.

Conclusion

Many payment systems have developed contactless payment technologies to speed up and simplify cashless payments for purchases. When paying with such a card, you do not need to enter a PIN code as well as put a signature on the check if the amount does not exceed one thousand dollars. A particular POS terminal reads information from the card at a distance and makes it clear with a sound or visual signal that the required amount has been deducted from it. Often, fraudsters use psychological tricks to control a person’s actions to steal money from a card. They portray buyers of puppies, cars, land, garages, etc., on free classified sites or social networks.

6 Steps to Having a Successful Career in Accounting

Posted on April 24, 2022May 26, 2022 by Jennifer Brazer

He completes assignments on time and within agreed-upon conditions, works consistently to reach the objectives, and seeks to complete work without errors.

It is easy to say that these are the characteristics of a professional accountant. But how do you make them a reality? You should develop these six behaviors to run a successful accounting firm.

Full knowledge of finances

Keeping track of data connected to spending and payments is a habit that enables proper management and planning of your company’s or clients’ next steps.

Knowing your cash flow situation allows you to identify needs and priorities, which leads to making the best decisions possible.

Of course, this is in addition to avoiding mistakes like inputting incorrect numbers or having duplicate data. We are talking about scenarios that can be avoided by following some basic accounting principles.

Check for updates

A successful accountant devotes a portion of his time to staying up to date in his industry. Learning about new regulations and legislation allows you to ensure that your job is efficient and dependable.

Knowing what IFRS is and how they are used in SMEs, for example, allows you to act in line with the law and avoid any complications with the authorities.

Communicates on time

Communication between the accountant and the client is essential. It can determine whether you succeed or fail. When significant financial events in an organization are not reported, there is a risk of making decisions that are not in sequence with what occurs.

Making decisions with only a portion of the information available makes it easier to make errors. Furthermore, in many cases, this might lead to bankruptcy. For example, not disclosing bonus payments can result in gaps, making cost control hard.

Use a schedule

Any field, including accounting, benefits from increased productivity. Doing more in less time -and more efficiently- involves avoiding delays, managing obligations on time, delivering reports on time, etc. A calendar allows you to visualize all your tasks and so employ time management tactics like:

Keep track of your assignments with to-do lists
To define action paths, make thought maps
Divide your time into work blocks using the Pomodoro technique

Back up your information & relies on technology

Many people keep backup copies of their data on external hard drives, but even then, there is no guarantee that it will not be lost, corrupted, or exposed to third parties.

Because all these devices, including your computer, can be damaged, cloud storage is the greatest solution for managing your and your client’s data.

Saving files on external servers increases security because the location from which you wish to access them is irrelevant; all you need is a device and an Internet connection.

We live in the digital age, and the tools available on the market enable us to achieve and optimize various accounting operations. Excel is, of course, still necessary. There are, however, more options.

An ERP system, for example, allows a corporation to oversee numerous areas such as organization, accounting, and inventory. On the other hand, accounting software is good for managing money because it is a cost-effective solution that assists both freelance accountants and small and medium-sized businesses.

An effective accountant adjusts to a market that is always changing and digitizing. True, more training and effort are required. The outcomes, however, are satisfactory.

Apply accounting in your personal life

An accountant cannot be effective if he cannot manage his own finances: how can he manage the resources of a small business if he cannot manage his own? Any result obtained will always be consistent with the person who accomplished it.

Starting with proper personal money management is the greatest method of learning how to control and record business costs.

Practicing these six habits can help you become a competent accountant, allowing you to meet your clients’ needs or the organization you work for.

The market is brimming with opportunities, and only those that dare to be the greatest will be able to establish themselves as industry leaders.

10 Financial Risks You Can Avoid

Posted on April 23, 2022January 2, 2023 by Jennifer Brazer

Investment Risk

Based on the name, investment risks are associated with investments and trading. There are several forms of investment risk, but most of them depend on price fluctuations in the market. We can consider the market, liquidity, and credit risks as separate components from the group of investment risks.

Market Risk

Market risk is the risk associated with fluctuations in asset prices. For example, if Alice buys bitcoin, she will be exposed to market risk as the price of the coin could fall because of volatility.

Market risk management begins by considering how much Alice could lose if the price of bitcoin moves against her position. The next step is to create a plan to determine what actions Alice should take in response to such movements.

As a rule, investors face both direct and indirect market risks. Direct market risk is associated with the loss that a trader may incur due to an unfavorable change in the price of an asset.

Liquidity Risk

Liquidity risk is the possibility that investors and traders will not be able to buy or sell a particular asset without a sharp change in its price.

In a liquid market with high volume, Alice can quickly sell her $10,000 cryptocurrency portfolio; more buyers are willing to pay $10 for each unit. But if the market is illiquid, only a few buyers will be ready to buy assets at the required price. For this reason, Alice will have to sell most of her coins for less than she wants.

Credit Risk

Credit risk is the risk of losing a creditor’s funds due to a default by a debtor. For example, if Bob borrows money from Alice, she is exposed to credit risk. In other words, there is an option that Bob will not repay Alice, and it is this possibility that we call credit risk. If Bob refuses to fulfill his obligations for any reason, Alice will lose her money.

Operational Risk

Operational risk is the probability of monetary loss due to errors in the operation of internal processes, systems or during operations. This type of failure is often the result of a human factor or deliberate fraudulent activity.

To mitigate operational risks, every company should conduct periodic security audits and adopt proper procedures for performing operations and ensuring effective internal management of the enterprise.

Operational disruptions can also be caused by external factors that indirectly affect the company’s operations, such as earthquakes, thunderstorms, and other natural disasters.

Compliance Risk

Compliance risk is the loss that can arise when a company or institution does not comply with the rules and regulations of the same jurisdictions. Many companies employ certain practices such as anti-money laundering (AML) and Know Your Customer (KYC) verification to mitigate these risks.

Suppose a service provider or company does not comply with any internal or external requirements and regulations. In that case, the activities of such a legal entity may be suspended or subject to a large fine. For this reason, many investment firms and banks have faced lawsuits and sanctions due to failure to comply with necessary requirements. Insider trading and corruption are also common examples of compliance risks.

Systemic Risk

Systemic risk refers to the possibility that a particular event may have an adverse effect on the business or the market. For example, the collapse of Lehman Brothers in 2008 set off a budgetary crisis in the US that eventually affected many other countries.

The presence of systemic risks is confirmed by a strong correlation between companies representing the same field of activity. If Lehman Brothers had not been so intricately connected to the entire American financial system, its bankruptcy would have been less significant.

An uncomplicated way to understand and remember the concept of systemic risk is to imagine the effect of falling dominoes, where one piece falls and drags all the others with it.

Systemic and Systemic Risk

Systemic risk should not be confused with systemic risk and cumulative risk. The latter is the most difficult to define, as the terminology refers to a wider range of risks beyond economics and finance.

Systematic risks can be associated with a number of economic and socio-political factors such as inflation, interest rates, wars, natural disasters, and significant changes in public policy.

Exchange Rate Risk

When a business goes beyond the national currency market in trading, investing, lending, etc., it runs the risk of losing money due to changes in exchange rates. Let us say a company took out a loan of $1,000,000 for business development, the annual payment was $100,000, and inflation did not reach a standstill.

Do not take loans in foreign currency if the company’s income is not formed from it to a sufficient extent. You can mitigate the risks of currency fluctuations with the help of financial instruments, such as futures and forward contracts.

Discount Rate Risk

If your company is highly dependent on credit resources, an increase in the loan rate will lead to a rise in debt service costs. A large debt or a sharp fluctuation in the size of the rate can then be the thing that drowns the company. To protect yourself, you need to build a portfolio of short-term and long-term financing instruments, which will allow you to adhere to the payment schedule under any circumstances.

10 Red Flags That Can Lead to an Audit by IRS

Posted on April 23, 2022May 26, 2022 by Jennifer Brazer

The IRS scrutinizes your whole financial life during a tax audit, including your income, assets, and expenses. If you cannot show your statement was true to their satisfaction, you could face penalties, fines, or even jail time.

However, most IRS audits are not conducted at random. They are triggered by computer “red lights” that statistically imply sloppy reporting, a high likelihood of undisclosed revenue, or both. Although there is no alternative for employing a trained tax preparer to guarantee that your declaration is complete and accurate, several of the best online tax preparation services, such as H&R Block and Tax Act, now provide notifications if your return has the red flags listed below.

High earnings

According to the most currently available data, the IRS audited 0.62% of all tax returns or one in every 161. However, the larger the stated income, the more likely an audit is.

Taxpayers with an income of more than ten million dollars had a terrifying 14.52% risk of being audited: more than one in every seven declarations. Why? Because that is where the IRS money gets the most bang. They might raise millions of dollars in unpaid taxes if they uncover a billionaire making $10 million a year cheating on his taxes.

Undeclared income

The IRS is aware of your employment, whether you are a W2 employee or a 1099 contract worker.

Unreported revenue is not reported.

The IRS usually requires the payer to file W2 or 1099 documents. Your stockbroker may also deposit 1099s for dividends received on your stocks.

That is correct.

You should wish to hear from the IRS if you fail to declare income, but the IRS obtains paperwork proving you received it.

Even if you receive cash and your employer does not issue 1099, the IRS employs algorithms to compare your spending patterns to your reported income. You can expect to be audited if they do not match.

High deductions compared to income

If you make $95,000 a year at your employment but claim $90,000 in tax deductions, you can bet the IRS will raise an eyebrow.

Inflated business expenses

Deducting company expenses on Schedule C is a dream come true for self-employed taxpayers. They can still take the standard deduction, but they can also deduct various costs, including travel, a home office, and office supplies. Even better, the business expenses deducted here minimize both their income tax and self-employment tax liability.

Foreign Financial Accounts

If you have more than $10,000 in foreign financial accounts at any point during the year, you must file a FinCEN 114 (FBAR) report. Failure to do so can result in severe consequences.

Cash-intensive companies

For IRS audits, restaurants, bars, hair salons, nail salons, car washes, and other cash-only or cash-intensive enterprises should be prepared. Why is that? Because the IRS is aware that cash-intensive enterprises are more likely to underreport their earnings, the IRS has taken steps to ensure that this does not happen.

Claim the same dependent twice

A child can only be declared dependent by a parent.

If you are married but filing separately or if you are divorced, one parent will be unable to file. Use the IRS Publication 501 tie-breaker rule if necessary.

Claim rental losses

The tax advantages are one of the many advantages of real estate investing. If you are claiming losses from a rental property, be prepared to provide evidence.

Rental losses are not deductible from taxable income.

Report losses for a hobby

Tax deductions for hobby expenses are not available. Period.

The activity must have a realistic expectation of profit and be managed like a business to qualify as a legitimate business with deductible costs.

Not declaring gambling winnings

Many recreational gamblers are unaware that casinos file Form W-2G with the IRS. They know more than you believe, and you can expect an audit if the casino reports a large win from you and you fail to report it.

Final Words

There has been a lot of chatter in recent years about robots and automation replacing all employment. Given the rule-based and logic-based tax preparation, accountants are firmly on the endangered professions list.

Tax laws give so much flexibility for interpretation that it is frequently necessary to decide. An accountant is one of the financial experts you should contact when your tax return grows larger and more involved.

10 Things You Should NEVER Do With Your Money

Posted on April 23, 2022May 26, 2022 by Jennifer Brazer

Have your money in a savings account

The first big mistake that many of us make when we do not have a unique financial education, which is the basics, is to leave our money in a savings account or a checking account.

Never leave your money in a savings account; the reason is inflation.

You do not have to learn economics, you do not have to be an expert, but if there is something you should always be aware of in the country where you live, it is inflation.

Live beyond your means

Living beyond your means is when you spend more money than you earn in the month, or when you live from month to month spending all your money, and be careful with your money is yours, nobody says otherwise, and you can do what you most want with him. However, I assure you that it is bad for your future.

Buy things you do not need

Something that often happens, and in terms of statistics, women suffer more is buying things they do not need; here comes the psychological part again, and that is that many of us buy things on impulse, which is terrible for our money.

Be aware that when you buy something, you are not paying with money; you are paying with time spent in your life.

Since to get that money, you had to invest time of your life.

Loan abuse, lousy debt

Loans are not bad; they are tools; it would be the same if you talked to me about a knife that is a cooking utensil. However, it can be used to kill a person ─ it is an example already very burnt, I know ─ that is how credit works with your finances.

If you ask for a loan for television, let us go wrong; if it is for a game console, the loans should seek to offer you peace of mind or comfort, not a luxury.

But be careful with this; I am not saying that you should not take out a loan for this type of thing personally, I have never done it, nor would I do it; I prefer not to have a television than to be paying a loan to see it in my living room when it will not give me anything more than a luxury, entertainment.

Not saving month to month

Something you should never do, and this is the most dangerous thing of all, is not to save constantly; month after month, allocate at least 5% of your income to savings.

And it is that living the month, spending it all, will only lead to ruin because at some point, you will have a health emergency, or a home emergency, or a study emergency, and if you do not have anything saved, you will have an inconvenient time.

Never buy a new car

The car is less and less necessary, and many of our countries, although with a poor transportation system, also can mobilize us, which is what we are looking for.

However, if you need a car for your job, or just because you want it, never buy a new one.

Gambling, an invisible enemy

It is a tax on the poor because naive are those who think they will win the lottery. The funniest thing is that many see on television or in newspapers when there is a new millionaire for the lottery, but they do not realize the Millions of people who bet every day.

Better go save that money to invest and start a business; it will always be better than giving it away to a group of already millionaires for people who “believe” will be millionaires.

Buy low-quality things

Something in which many of us fail, and in a big way, is to buy useless or poor quality things that to save money; however, what we do is spend more money in the long run; why, when purchasing something of low-quality quality, this one gets damaged quickly and then we have to buy the good one, a quality one, that was what we had to do from the beginning.

The most expensive is not always the best, but if you buy something of inferior quality to save money, then you will have more terrible things than good things because, in the end, you will have to buy the good one.

Lending money to family or friends

This point is risky to deal with, but in my experience, it is that you should not lend to relatives. Unfortunately, that is the case; it has gone well, I mean very well in my case. I am 50/50, I have lent, and they have been bad, and I have lent, and they have been good.

Invest in something you do not know

The most crucial point and it connects with number one, is that leaving money in a savings account is not convenient, but neither is investing in something you do not know about.

There are many fraudulent businesses, but I will give you a trick to identify bad companies.

There will be good businesses, but you should know about them before investing, you should know about the risks, and something that I tell many is that you must take opportunities advantage of, yes, but if you are alive, there will be many opportunities that will not be the only one.