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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Business creation steps are the systematic actions required to transform an entrepreneurial idea into a legally established, operationally sound, and financially viable enterprise through strategic planning, proper registration, and infrastructure development. This comprehensive guide reveals the essential phases every aspiring entrepreneur must navigate to build a successful business from conception to launch, drawing from real-world experience and proven methodologies that separate thriving ventures from failed startups.
Having founded Complete Controller and guided countless entrepreneurs through their business creation journey over two decades, I’ve witnessed both spectacular successes and preventable failures. The difference often lies not in the brilliance of the initial idea, but in the methodical execution of fundamental business creation steps that establish a solid foundation for growth and sustainability. This article provides the roadmap you need to join the 5.5 million new business applications filed in 2023—a 56.7% increase from pre-pandemic levels—while avoiding the pitfalls that cause 21.5% of businesses to fail in their first year.
What are the essential business creation steps?
Business creation steps include: market validation, business planning, legal formation, financial setup, insurance protection, marketing strategy, and operational implementation
Market validation confirms customer demand and competitive positioning before major investment
Legal formation establishes your business structure and obtains necessary licenses and permits
Financial infrastructure separates business and personal finances while establishing accounting systems
Strategic planning creates roadmaps for growth, funding, and sustainable operations
Market Research and Business Validation
The entrepreneurship journey begins with thorough market research that validates your business concept before investing significant time and capital. Market research involves analyzing potential customers, understanding their needs and pain points, and determining whether your proposed solution addresses genuine market demand. This critical phase requires examining industry trends, market size, and growth potential to confirm your business idea has sustainable commercial viability.
Competitive analysis forms another cornerstone of effective market validation, requiring deep examination of direct and indirect competitors to identify market gaps and differentiation opportunities. Understanding what existing businesses do well and where they fall short provides invaluable insights for positioning your venture strategically within the marketplace. This analysis should encompass competitor pricing strategies, service offerings, marketing approaches, and customer feedback to inform your own business strategy development.
Customer discovery process
Customer discovery goes beyond basic demographic research to understand the psychographic characteristics, buying behaviors, and decision-making processes of your ideal clients. This process involves conducting surveys, interviews, and focus groups to gather qualitative data about customer preferences and willingness to pay for your proposed solution.
Warby Parker’s founders exemplify this approach perfectly. When Neil Blumenthal lost his expensive prescription glasses in 2008, he and his co-founders identified a market gap for affordable eyewear. They conducted extensive research, developed their unique home try-on model, and strategically launched with a GQ magazine feature that helped them hit their first-year sales target in just three weeks.
Comprehensive Business Planning Steps
Business plan development transforms your validated concept into a structured roadmap that guides decision-making and attracts potential investors or lenders. A comprehensive business plan includes executive summary, company description, market analysis, organizational structure, product descriptions, marketing strategies, funding requirements, and detailed financial projections. This document serves as both an internal planning tool and external communication vehicle for stakeholders.
The executive summary, while written last, appears first and must capture your venture’s essence in compelling narrative that hooks readers immediately. This section should clearly articulate your business concept, target market, competitive advantage, financial highlights, and funding requirements in language that both financial professionals and potential customers understand.
Financial projections and capital planning
Financial planning requires developing realistic revenue projections, expense budgets, and cash flow forecasts that demonstrate your business’s profit potential and capital requirements. Your projections should include startup costs, operating expenses, revenue forecasts, and break-even analysis based on market research data and industry benchmarks.
The average startup launches with just $3,000, with 64% of small businesses starting with less than $10,000. However, costs vary significantly by industry—27% of businesses require between $50,000-$175,000 to start, while another 27% need $250,000-$500,000, depending on the business model and sector.
Legal Business Formation Guide
Selecting the appropriate legal structure represents one of the most consequential decisions in the business startup process, impacting taxation, personal liability, operational flexibility, and growth options. The primary options include sole proprietorship, partnership, limited liability company (LLC), S corporation, and C corporation, each offering distinct advantages depending on your business type and goals.
Limited liability companies have become the dominant choice for new businesses, with 69% of all new businesses formed in 2017 choosing the LLC structure. Currently, 80% of small businesses operate as LLCs, citing flexibility and liability protection as primary benefits. LLCs protect personal assets from business liabilities while allowing profits and losses to pass through to owners’ personal tax returns, avoiding corporate double taxation.
Registration and compliance requirements
Business registration involves filing necessary paperwork with state and local authorities to legally establish your entity and obtain required licenses. The registration process varies by state but typically includes choosing and reserving your business name, filing formation documents, obtaining an Employer Identification Number from the IRS, and registering for applicable taxes.
Industry-specific licensing requirements demand thorough research, as missing permits can result in fines or business closure. Professional service businesses often require specialized licenses or certifications, while retail operations may need sales tax permits, health department approvals, or zoning compliance certifications.
Financial Infrastructure Setup
Establishing proper financial infrastructure from day one prevents costly mistakes and provides the data foundation necessary for informed decision-making. This infrastructure includes opening dedicated business bank accounts, implementing accounting systems, establishing credit facilities, and creating financial controls that maintain clear separation between business and personal finances.
Professional bookkeeping systems should be implemented immediately, even for single-person operations. Cloud-based accounting platforms provide robust functionality for small businesses while enabling real-time financial monitoring and simplified tax preparation. Regular financial review helps identify trends, control costs, and make data-driven decisions supporting sustainable growth.
Cash flow management systems
Cash flow management often determines business survival, particularly during critical early stages when revenue may be unpredictable and expenses substantial. Developing detailed cash flow projections helps anticipate funding needs, identify potential shortfalls, and plan for seasonal fluctuations or market changes impacting operations.
Creating operational budgets aligned with business goals requires careful analysis of fixed costs, variable expenses, and revenue targets supporting profitability objectives. Budget development should include contingency planning for unexpected expenses or revenue shortfalls, protecting your business from temporary setbacks.
Risk Management and Insurance Protection
Business insurance protects against various risks that could devastate a new venture, making insurance evaluation and selection crucial components of business creation. General liability insurance covers claims related to bodily injury, property damage, or advertising injuries, while professional liability insurance protects against errors and omissions claims particularly relevant for service businesses.
Workers’ compensation insurance becomes mandatory once you hire employees, and commercial auto insurance is required for business vehicle use. Property insurance protects physical assets like equipment and inventory, while cyber liability insurance has become increasingly important as businesses collect and store customer data.
Operational risk assessment
Conducting thorough operational risk assessment identifies potential threats to business continuity and develops mitigation strategies before problems occur. Common startup risks include over-dependence on single customers, inadequate cash reserves, insufficient market research, poor pricing strategies, and lack of proper legal protections.
Developing contingency plans for identified risks enables quick, effective responses to challenges while maintaining operations and service quality. These plans should address scenarios including key personnel loss, major customer departures, supply chain disruptions, and economic downturns.
Final Thoughts
The essential business creation steps form an interconnected framework transforming entrepreneurial vision into operational reality through systematic planning and execution. From initial market research through operational setup and growth planning, each phase builds upon previous foundations to create businesses capable of sustainable success.
Throughout my experience building Complete Controller and advising entrepreneurs, I’ve observed that successful business creation requires both strategic thinking and meticulous attention to executing fundamental building blocks. The entrepreneurs who thrive recognize that proper preparation and systematic implementation create competitive advantages that compound over time. For expert guidance navigating these complex business creation challenges while building strong foundations for long-term success, visit Complete Controller to learn how our comprehensive business services can support your entrepreneurial journey.
Frequently Asked Questions About Business Creation Steps
What are the most critical first steps when creating a business?
The most critical first steps include conducting thorough market research to validate your business idea, developing a comprehensive business plan, and selecting the appropriate legal structure for your venture. These foundational elements determine your business’s viability, strategic direction, and operational framework.
How long does the business creation process typically take?
The business creation timeline varies depending on complexity and legal requirements, but most businesses can complete basic formation within 2-4 weeks. However, comprehensive planning, system setup, and operational preparation often require 3-6 months for thorough execution.
What legal structure should I choose for my new business?
Legal structure selection depends on liability protection needs, tax considerations, ownership structure, and growth plans. Most small businesses benefit from LLC formation due to liability protection and tax flexibility, while businesses seeking investor funding may prefer corporation structures.
How much money do I need to start a business?
Startup capital requirements vary significantly by industry and business model, ranging from a few thousand dollars for service-based businesses to hundreds of thousands for manufacturing or retail operations. Conducting detailed financial planning helps determine specific funding needs for your venture.
Do I need business insurance from day one?
Business insurance becomes essential once you begin operations, have employees, or face potential liability exposure. General liability insurance provides basic protection, while specific coverage needs depend on your industry, business model, and risk factors.
Sources
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Commerce Institute. (2025). “How Many New Businesses Start Each Year? (2025 Data).” CommerceInstitute.com
Entrepreneur. (2024). “70 Small Business Ideas to Start in 2025.” Entrepreneur.com
Grasshopper. (2025). “Comparing Business Legal Structures.” Grasshopper.com
Harvard Business School Online. (2025). “4 Entrepreneur Success Stories to Learn From.” HBS Online
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LendingTree. (2024). “Percentage of Businesses That Fail.” LendingTree.com
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Shopify. (2024). “40 Home Business Ideas for 2025 (+ How To Get Started).” Shopify Blog
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U.S. Small Business Administration. (2024). “10 Steps to Start Your Business.” SBA.gov
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
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.
Do not trade stocks at random, but try to follow a strategy. If you have a plan, you have something to follow that signals buying, selling, or sitting still in the boat. Of course, you should edit or change your strategy over time if you notice that it does not work.
Below, we list five common strategies for beginners in stocks. Of course, there are more strategies simultaneously as many experienced stock traders mix different approaches. But these are excellent bases to start.
Strategy 1: Invest in Companies You Believe in
It may sound simple, but it is not a completely stupid strategy: buying shares in companies you believe in and know about. Are you interested in, e.g., cars and the automotive industry – why not buy shares in that sector? Ask yourself a few questions, in this case for companies in the automotive industry:
How do I think the automotive industry will develop soon?
Is the company prepared for changes in the automotive industry?
What are the company’s strategy, goals, and results?
Are the company’s services or goods popular?
An important reason this is a good strategy is that you will be more easily interested in news in something you are interested in. It will be more accessible but also more fun to keep up with.
Strategy 2: Copy a Pro
Pros that you can copy. Another common strategy is trading the stocks simultaneously and at the same price as a professional. As a beginner, why should you analyze and study stocks when some are already professionals?
By making the same buy and sell at the same time, you achieve, in theory, the same results as the pros. Several platforms, such as eToro, let you automatically copy a professional for a low platform fee. Buy and sell are done automatically and simultaneously as you follow the professional set.
Strategy 3: Buy Shares with a High Dividend
Use a strategy to buy shares in companies with a high dividend, preferably in companies with a history of raising their dividends to shareholders yearly.
It is easy to check before buying shares in a company. Go to the company’s website to know how often and how much the dividend is usually.
Compare with other companies to get an idea of whether the company has a high and frequent share dividend compared to similar companies.
Strategy 4: Own Shares in Investment Companies
Investment companies have a history of doing well on the Stockholm Stock Exchange. Therefore, it is an excellent strategy to buy shares in these companies. An investment company’s business concept is to own shares in other companies. It works much like a fund but with ownership in a slightly smaller number of companies.
Investing in investment companies is an excellent way to spread your risks. Perfect for you who have just started stock trading. Some examples (but there are many more) of investment companies on the Stockholm Stock Exchange:
Investor – holds shares in companies in telecom, electronics, and industry
Industries – owns the most prominent Swedish companies within, among others. Finance, telecom, and industry
Ratos – has shares in medium-sized unlisted companies in the Nordic region
Strategy 5: Invest in Small Companies
Another good strategy for beginners is to invest in smaller companies. Why? Well, because small companies usually grow faster than larger companies, which can lead to the share rising in value more quickly.
Many experts do not analyze smaller companies either, which may mean you can find undervalued companies here.
Go too slowly than the opposite. When you start trading stocks for beginners, avoiding big mistakes that can cost money while the motivation may run out is more important.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer 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.
Planning Your Social Media Marketing Strategy: 5 Key Tips
A social media marketing strategy is your roadmap for using platforms like Facebook, Instagram, and LinkedIn to achieve specific business goals through targeted content, engagement tactics, and performance tracking. This comprehensive plan combines audience research, platform selection, content creation, and analytics to build brand awareness, generate leads, and drive conversions.
Social media users have exploded from 970 million in 2010 to 5.24 billion in 2025—a 5.4x increase that transforms how businesses connect with customers. As CEO of Complete Controller for over 20 years, I’ve watched countless businesses struggle with scattered posting and vanity metrics, only to discover that strategic planning transforms their social presence from a time drain into a revenue engine. This guide reveals the five essential elements that separate successful social strategies from digital noise, giving you the framework to build authentic connections, measure real ROI, and create content that converts followers into customers.
What is a social media marketing strategy, and how do you build it?
A social media marketing strategy is a documented plan that outlines how your business will use social platforms to achieve measurable goals
Define clear objectives aligned with business KPIs like lead generation, brand awareness, or customer retention
Research and map your target audience’s demographics, behaviors, and platform preferences
Select the right mix of platforms based on where your audience spends time and engages most
Create a content calendar that balances educational, promotional, and engagement-focused posts
Audit and Define Your Audience
Your social media marketing strategy starts with knowing exactly who you’re talking to—not just basic demographics but the deeper motivations that drive their decisions. Generic audience definitions like “millennials interested in business” waste your time and budget.
At Complete Controller, we discovered our most engaged followers weren’t just looking for bookkeeping services—they craved financial education that empowered them to make better business decisions. This insight shifted our entire content approach from service-focused posts to educational content that positions us as trusted advisors. The result? A 300% increase in qualified leads within six months.
Deep audience research tactics
Use social listening tools to track what your target market discusses, complains about, and celebrates online
Analyze competitor audiences through Facebook Ads Manager’s Audience Insights to identify gaps in the market
Conduct quarterly surveys asking pointed questions like “What’s your biggest financial challenge this month?”
Track engagement patterns to identify which content formats (video, infographics, text posts) resonate most
Monitor comments and DMs for recurring questions that reveal unmet needs
FreshBooks exemplifies the power of knowing your audience intimately. They grew from 300,000 to 750,000 users in one year by using Twitter not just for promotion but for genuine relationship building—sending charity donations, gifts for new parents, and personalized responses that made customers feel valued.
Align Content with Business Goals
Your best practices for social media marketing must connect directly to measurable business outcomes. Every post, story, and campaign should serve a strategic purpose beyond likes and shares.
Higher education brands on Instagram achieve a 2.1% engagement rate—6x higher than the platform’s 0.36% average. Why? They create content that serves their audience’s specific goals: campus life glimpses for prospective students, achievement celebrations for alumni donors, and career resources for current students. Each piece of content maps to a distinct objective.
Goal-Aligned Content Framework:
Business Objective
Content Types That Convert
Measurement Metrics
Brand Awareness
Behind-the-scenes videos, employee spotlights, industry insights
Test different content formats weekly and double down on top performers
Master Platform-Specific Execution
Each social platform operates like a distinct country with its own culture, language, and customs. Your social media marketing strategy must adapt to these unique environments while maintaining brand consistency.
Data reveals that 28% of global marketers cite Facebook as the platform delivering the highest ROI, followed by Instagram at 22% and YouTube at 12%. But these averages mean nothing if your audience lives elsewhere. A B2B software company might find LinkedIn delivers 10x the ROI of Facebook, while a fashion brand sees TikTok outperform all other platforms combined.
Platform strategy breakdown
LinkedIn – The Professional Powerhouse
Post frequency: 1-2 times per weekday
Optimal content: Case studies, industry insights, company milestones
Engagement tactics: Comment on industry leader posts, share employee achievements
Unique feature: LinkedIn Articles for long-form thought leadership
Unique feature: Twitter Spaces for audio conversations
Starbucks mastered platform-specific execution through their TikTok Spark Ads campaign. They promoted user-inspired drinks like the Churro Frappuccino, turning customer creativity into viral menu items. This social media engagement techniques approach generated millions of views while making customers feel like co-creators of the brand.
Integrate AI Strategically
Artificial intelligence transforms your social media marketing strategy from guesswork into precision targeting. But success requires balancing automation with authentic human connection.
AI tools now handle tasks that once consumed hours of manual work. Content creation platforms generate caption variations in seconds. Predictive analytics forecast which posts will perform best before you hit publish. Chatbots handle initial customer inquiries 24/7. Yet the brands winning with AI understand it amplifies human creativity rather than replacing it.
AI integration framework
Content Creation Enhancement
Use AI to generate 10 headline variations, then apply human judgment to select the winner
Create initial drafts with AI, but inject brand personality through manual editing
Generate hashtag suggestions based on trending topics in your industry
Develop content calendars using AI-predicted optimal posting times
Advanced Analytics Applications
Track sentiment analysis across all brand mentions to spot reputation issues early
Identify micro-influencers whose audiences match your ideal customer profile
Predict viral potential of content before posting using engagement pattern analysis
Monitor competitor strategies and identify content gaps to exploit
Smart Automation Rules
Set up chatbots for FAQ responses but transfer complex issues to humans within 5 minutes
Automate posting schedules while manually crafting timely responses to trending topics
Use AI for initial audience segmentation but validate with human insight
While AI handles data processing and pattern recognition, human creativity drives emotional connection. Your team should focus on:
Crafting stories that resonate with audience values
Responding to comments with empathy and personality
Making strategic decisions based on AI insights
Building genuine relationships that automation cannot replicate
Measure, Iterate, Optimize
Your social media marketing strategy lives and breathes through constant refinement. Static plans fail because platforms evolve, audiences shift, and what worked yesterday might flop tomorrow.
The most successful brands treat their strategy as a hypothesis to test rather than a rulebook to follow. They measure obsessively, adapt quickly, and view failures as data points rather than disasters. This approach to effective social media campaigns separates thriving social presences from abandoned accounts.
Performance tracking system
Daily Metrics (5-minute check)
Engagement rate fluctuations
Follower growth/loss
Top-performing content
Customer service response time
Weekly Analysis (30-minute review)
Content theme performance comparison
Hashtag effectiveness
Audience demographic shifts
Competitor activity changes
Monthly Deep Dive (2-hour session)
ROI calculation by platform
Customer journey mapping from social to sale
Content audit identifying patterns
Strategy pivot recommendations
Optimization framework
A/B Testing Priority List
Caption Length: Test short vs. long-form captions monthly
Posting Times: Experiment with off-peak hours for less competition
Content Formats: Compare carousel posts, single images, and videos
Call-to-Action Placement: Test CTAs at beginning, middle, and end
Hashtag Strategies: Mix branded, niche, and trending tags
Rapid Iteration Process
Launch micro-campaigns lasting 1-2 weeks
Measure results against specific KPIs
Scale successful elements immediately
Document learnings in a shared knowledge base
Apply insights across all platforms
Performance Benchmarks by Platform
Platform
Good Engagement Rate
Excellent Engagement Rate
Red Flag Rate
Instagram
1-3%
3-6%
Below 0.5%
Facebook
0.5-1%
1-2%
Below 0.1%
LinkedIn
1-2%
2-5%
Below 0.5%
TikTok
3-9%
9-17%
Below 1%
Human-Centric Strategy in an AI-Driven World
Technology scales your reach, but human connection drives conversion. The most sophisticated AI cannot replicate genuine empathy, creative storytelling, or the spark of authentic personality that makes brands memorable.
Successful social media advertising strategies balance efficiency with authenticity. They use automation for repetitive tasks while reserving human energy for meaningful interactions. This approach creates sustainable growth without sacrificing the relationships that fuel long-term success.
Building authentic connections
Emotional Resonance Tactics
Share failure stories alongside success to build trust
Celebrate customer wins as enthusiastically as your own
Address criticism with grace and genuine concern
Create content that acknowledges real struggles your audience faces
Use humor appropriately to show brand personality
Community Building Essentials
Host monthly live Q&A sessions with leadership
Feature customer stories in your main content calendar
Create exclusive groups for your most engaged followers
Respond to every comment within 24 hours
Remember returning commenters and reference previous conversations
Authenticity Markers
Behind-the-scenes content showing real work moments
Employee takeovers revealing different perspectives
Unfiltered responses to industry events
Admission of mistakes with lessons learned
User-generated content featured prominently
Small Business Implementation Roadmap
Limited resources demand strategic focus. Small businesses cannot compete with enterprise budgets, but they can outmaneuver larger competitors through agility, authenticity, and targeted execution.
Your social media marketing for small businesses should maximize impact while minimizing overwhelm. This roadmap provides a structured approach to building your presence without burning out.
Phase 1: Foundation (Days 1-30)
Week 1-2: Audit and Setup
Document current social media assets and passwords
Analyze competitor presence on top 3 platforms
Define 3 SMART goals for the next quarter
Choose 2 primary platforms based on audience research
Week 3-4: Content Planning
Create brand voice guidelines with example posts
Develop 30 days of content using the 70-20-10 rule
Design 5 template graphics for consistent branding
Set up basic analytics tracking systems
Phase 2: Launch and learn (Days 31-90)
Month 2: Controlled Experimentation
Post consistently according to platform best practices
Test 3 different content themes each week
Engage with 10 relevant accounts daily
Track performance metrics weekly
Month 3: Optimization
Double down on top-performing content types
Eliminate lowest-performing posting times
Refine hashtag strategy based on reach data
Build relationships with 5 micro-influencers
Phase 3: Scale and systematize (Days 91+)
Sustainable Growth Tactics
Batch content creation in monthly sessions
Implement scheduling tools for consistency
Create standard operating procedures for common tasks
Test paid advertising with $100 monthly budget
Develop partnerships with complementary brands
Resource Allocation Guide
Business Size
Time Investment
Budget Range
Platform Focus
Solopreneur
5 hours/week
$0-100/month
1-2 platforms
Small Team
10 hours/week
$100-500/month
2-3 platforms
Growing Business
20 hours/week
$500-2000/month
3-4 platforms
Conclusion
Building a winning social media marketing strategy requires more than posting regularly and hoping for engagement. Success comes from understanding your audience deeply, aligning content with business goals, mastering platform nuances, leveraging AI wisely, and constantly refining your approach based on data.
The social media landscape will continue evolving, but these five foundational tips remain constant. Start with one platform, perfect your approach, then expand strategically. Your audience craves authentic connection and valuable content—deliver both consistently, and growth follows naturally.
Ready to transform your social media presence into a powerful business asset? The experts at Complete Controller combine financial expertise with digital marketing insights to help you build strategies that drive real ROI. Visit Complete Controller to discover how our comprehensive business solutions can amplify your social media success and overall business growth.
FAQ
How do I create a social media marketing strategy from scratch?
Start by defining clear business goals, then research where your target audience spends time online. Choose 1-2 platforms to focus on initially, develop a content calendar mixing educational and promotional posts, and establish metrics to track success. Begin posting consistently while analyzing performance weekly to refine your approach.
What are the best tools for monitoring social media analytics?
Native platform insights (Facebook Insights, Instagram Analytics) provide free basic data. For comprehensive tracking, Sprout Social and Hootsuite offer unified dashboards, competitor analysis, and team collaboration features. Google Analytics helps track social traffic to your website, while tools like Canva maintain visual consistency across platforms.
Which social media platforms work best for B2B marketing?
LinkedIn dominates B2B with 80% of social media leads coming from the platform. Twitter/X works well for real-time industry discussions and thought leadership. YouTube excels for product demonstrations and educational content. Even platforms like Instagram can work for B2B when showcasing company culture and behind-the-scenes content.
How can I integrate AI into my social media strategy?
Start with AI-powered scheduling tools that predict optimal posting times. Use ChatGPT or similar tools to generate caption variations and hashtag suggestions. Implement chatbots for initial customer service inquiries. Deploy AI analytics to identify trending topics and predict content performance, but always maintain human oversight for brand voice and sensitive interactions.
What’s the difference between a social media plan and a strategy?
A social media strategy defines your “why” and “what”—your goals, target audience, platform selection, and success metrics. A social media plan outlines the “how” and “when”—your content calendar, posting schedule, and specific campaign details. Strategy provides direction while plans detail execution. You need both for success.
BU PRLab. “5 Tips to Successful Social Media Marketing.” March 2022. www.bu.edu
Hootsuite. “Social Media Trends 2025.” May 2025. www.hootsuite.com
MarketingProfs. “How a Company’s Word-of-Mouth Strategies Grew Its User Base 150%.” 2009. www.marketingprofs.com/casestudy/2009/9371
National Institute of Standards and Technology. “Artificial Intelligence.” www.nist.gov/topics/artificial-intelligence
Pew Research Center. “Social Media Fact Sheet.” www.pewresearch.org/internet/fact-sheet/social-media
Sprout Social. “80+ Must-Know Social Media Marketing Statistics for 2025.” February 2025. www.sproutsocial.com
Sprout Social. “Social Media Marketing: What It Is and How to Build Your Strategy.” February 2025. www.sproutsocial.com
Statista. “Instagram Brand Post Engagement 2024, by Vertical.” April 2025. www.statista.com/statistics/795367/most-popular-verticals-instagram
Statista. “Socials with Highest ROI for Global Marketers 2024.” March 2025. www.statista.com/statistics/1284484/social-media-platforms-highest-return-on-investment
TikTok for Business. “Starbucks Case Study.” 2023. ads.tiktok.com/business/en/inspiration/starbucks-1090
Triangle Direct Media. “5 Key Elements of An Effective Social Media Marketing Strategy.” www.triangledirectmedia.com
Web.com. “Top 8 Social Media Marketing Trends in 2025.” January 2025. www.web.com
Wikipedia. “Social Media Marketing.” en.wikipedia.org/wiki/Socialmediamarketing
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.
New buying behaviors and marketing trends have developed during COVID-19 and the various events in 2023. The year changed a lot, and more brands focused on online strategies. At the same time, more consumers are using the Internet to shop for products. Brands, therefore, need to know the new marketing trends for the coming years, so what are these recent trends?
In 2023, the labor market changed radically, and many companies had to start rethinking and thinking new. In addition, it has become increasingly common to work from home. With that, everyone has been forced to become more digital, both in their marketing and communication, internally and externally. Some of the trends that became more prominent in 2021 were that companies live-streamed more, companies have more online customer meetings and conferences, social media has become hotter, and selling online via various platforms. This article addresses a few trends that have changed marketing in 2021 and beyond.
Live Streams
The most significant trend in social media was live streams. Many influencers started streaming live, while their views increased when most were at home. For example, thoughts on Facebook and Instagram doubled in one week in Italy during COVID-19.
Then, most of the events were live-streamed. For example, famous artists turned live concepts into live streams last year. These factors contributed to a massive increase in live videos, and users became more accustomed to these features on social media platforms.
User-Generated Content (UGC)
The content created by users is called user-generated content (UGC). Brands get this content, publish it on different platforms, and usually mention the creator. While user-generated content is not new, more brands will use it in 2021 to improve engagement and build trust with the target audience.
User-generated content includes reviews, video reviews, blog posts, and photos. In some cases, brands find content from users on social media to share or publish on their profiles.
Easy-to-Consume Content
Many brands have gone online in recent months due to COVID-19 and have concluded that their followers want easy-to-consume content. Unfortunately, easy-to-consume content is passive, short, and to the point.
For example, 55% of Americans listen to podcasts, and it mentioned newsletters 14% more during COVID-19. Podcasts and newsletters are two types of content that are easy to consume and help brands reach their target audience.
More Brands Use Stories
Stories are an engaging type of content that includes both images and videos. More than 500 million users a day watch stories on Instagram. Facebook has also developed a similar feature to motivate its users.
The trend is that stories will continue to dominate social media for several years. Regarding marketing, 96% of marketers will continue using accounts over the next six months, and 36% of brands already use stories to market their products.
Social Trade will Continue to Grow
Many brands have used social media to market their products for several years. However, many platforms have created new or improved previous features that help us sell products directly on social media.
Instagram allows us to tag and buy products directly in the app without leaving the platform. It makes the process much easier and improves the user experience. Facebook also has a feature that allows you to set up a store.
TikTok Continues to Attract Influencers
TikTok has over 800 million users, 600 million of whom are active. It means that almost 75% of all users are happening every day. So, it’s perfect for influencers who want committed followers who help them get bigger sponsorship deals.
TikTok also has a Creator Fund for users in the US and Europe. It rewards the best creators and motivates them to continue producing good content for their followers.
Video is the Key for Influencers
Many influencers focus on videos in 2021, and all trends indicate that video will be the key in the future. For example, TikTok uses short videos, while Instagram and YouTube have introduced features with both short and long videos.
A video is a great tool to market offers from their sponsors and explain their products. The live-streamed video also provides many views and shows the way for more engagement. We expect to see more creative videos with even more commitment.
Conversation Marketing
You can use chatbots to automate conversation marketing and make it more personal. Chatbots can, for example, answer more straightforward questions about products on social media and thank customers.
According to a study, 35% of consumers want to see more chatbots from brands. The main reason is that they need help finding what they need, and they have no problem getting help from a cure instead of an actual person.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
An income statement shows you a company’s profit and loss over time. These were again commonly known as profit and loss statements.
An income statement usually shows:
Income
Cost of Goods Sold
Total profit
Expense
Profit for tax
Tax
Net earnings
Income is the money a company takes out; subtract the cost of goods sold to find the total profit. Subtract the expenses from the total gain and arrive at the result before tax (EBT). Payments may include marketing, advertising, promotion, general and administrative costs, interest charges, depreciation, and amortization, spreading the cost of assets over time. The tax amount is subtracted from EBT to calculate a company’s net income or loss.
You can use these numbers differently to understand a company’s financial health.
What Can You Do With It?
Your profit and loss statement is an annual dipstick in the engine of your company. Is the net profit on par or below it? You want to maintain or even increase a positive result. You will have to adjust and act if there is a shortage. It is essential to talk to your financial advisor about, for example, cost aspects, price calculations, and purchasing benefits. You can also compare your data with that of entrepreneurs in your industry. Collect them from your trade association or bank.
Financing
Financiers like banks can extract valuable information from the profit and loss account and balance sheet. They do this with calculation formulas (key numbers). A financier needs these key figures to know whether your business is healthy. To assess this, a financier looks at your turnover and purchase data. He compares your figures with those of other companies in your industry.
Are you looking for financing? Then, make sure you have a realistic profit and loss account. Also, create a ‘B scenario’ with 15% less turnover. Purchasing and variable costs are adapting. The fixed expenses, such as rent and personnel, remain the same. Then, ask yourself whether you still have enough profit left below the line. Also, keep your budget in mind.
Financial insight
With your profit and loss account, you get financial insight. Use several calculation exercises from the Annual Accounts Manual, section ‘information about key figures.’ Or enlist the help of an expert such as a bookkeeper or accountant. With knowledge about your figures, you are a good discussion partner for them and, for example, financiers.
Evidence for the tax authorities
You pay tax on your company’s earnings. How much depends, among other things, on the profit and the type of tax, income or corporate tax, and the tax regulations. You also have an administrative obligation. After checking your administration by the tax authorities, they determine the assessment. Do you have a correct profit and loss account? Then, you pay the correctly owed tax rate via an appraisal. An incorrect presentation of your profits will lead to a profit estimate by the tax authorities. In practice, this turns out to be unfavorable for you.
Profit statement inquiry
Investors can use income statement inquiry to calculate financial ratios that can compare the same or one company to another each year.
To illustrate, you can compare a company’s profits to its competitors by looking at total, operating, and net profit margins. Alternatively, you can compare one company’s earnings per share to another to show whether shareholders could earn EPS if each company shared net income. As part of the top line of revenue, each line of the up and down analysis report is called a vertical analysis. For example, you can use it to represent the relative size of various fees. Horizontal analysis helps you compare the same numbers in more than two periods and identify trends. Use horizontal analysis to show a profit before tax over the past three years.
Income statement conditions
The income statement has some limitations. Capital structure and cash flow are factors that make a company thrive or disrupt the use of quotes, which is the income statement’s limitation.
To illustrate, a company needs to estimate the depreciation of an asset. You can’t know the lifespan of a computer, copier, or business jet in advance. Or, if they face lawsuits, they must assess how they should be prepared to carry out their duties. By their very nature, estimates are interpretable.
Secondly, the limitation of the income statement is the deliberate over-or underestimation of numbers. Estimates are essential and may occur by accident, but they can also be made deliberately to increase or decrease metrics such as revenue or profit fraudulently.
Accounting rules can also be restrictive. It affects the number used in the comparison. When comparing income statements, consider that many companies may use the first-in, first-out (FIFO) principle to value inventory, while others may use the last-in, first-out principle.
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.
Fintech is an emerging industry that is challenging traditional financial services through innovation. Fintech is challenging big banks with innovations like mobile telephony and big data. With hundreds of millions of investments, year-round mega-tech events, and business accelerators designed to launch start-ups on the global stage, Dubai has established itself as the leading Fintech hub in the region. The UAE accounted for 46.8% of fintech investments in the area in 2020. During this period, the Emirates raised a whopping 67.9% of funding.
To attract start-ups, especially in technology, you must create an attractive ecosystem allowing them to access this sector. It has access to regulation and financing, and Dubai, an international financial center, has created a $250 million FinTech investment fund. It is where our business accelerator program begins, where we enable start-ups to pitch their solutions to more than 30 financial institutions.
The Main Goal of Financial Technologies:
To increase the availability, quality, and range of financial services.
Reduce risks and costs in the financial sector and the cost of services for consumers.
Support the development of competition in the financial market.
Ensure the security and stability of banking processes.
An Overview
The total number of investments in Fintech in the world lags far behind the number of investments in 2019, which was at 168.5 billion US dollars. As of mid-year, the total investment in Fintech worldwide was around $30 billion.
The largest share of total investments in Fintech as of the middle of the year is in the Americas, where assets amounted to $14 billion. Total fintech investment in the Asia Pacific was $9 billion in H1 2018, and fintech investment in the EMEA region was $4.2 billion.
The Americas and countries in Europe, the Middle East, and Africa are currently on track for a new record annual growth in fintech investment. At the end of the first half of 2019, North and South America attracted $9.3 billion in US investments in VC, Asia – $6.6 billion, and Europe – $5 billion.
Corporate investment in VC remained strong, accounting for $15.1 billion in fintech investment globally. In the first quarter of 2019, the United States recorded a record value of transactions involving venture capital companies, which exceeded $3.2 billion; the value of transactions in the subsequent quarter amounted to almost the same amount.
M&A activity has declined across all world regions, with a particularly sharp decline seen against the backdrop of the mega M&A activity in 2019 and 2020. In the first half of 2021, the volume of M&A transactions amounted to USD 5.2 billion; in the second half of 2022, it was $8.9 billion.
Global investment in cybersecurity surpassed the 2019 record of around $600 million to reach $900 million.
Big Data
During quarantine restrictions, the development of the regulatory framework and government fintech acceleration programs accelerated. It was reflected in the growing attention to digital platforms, neo-banking, contactless payments, and Wealthtech class solutions. In Europe, there was a good dynamic in the Regtech solutions market, and in Southeast Asia, there was a good dynamic in cryptocurrencies and blockchain. In all regions, there is a trend of increasing attention to solutions for digital identification, security, and fraud prevention in financial transactions; there has been another growing attention to cloud platforms.
The Central Asian market is similar in the increased attention of regulators and government agencies to the development of Fintech. It contributes to the growth of interest, attraction, and the emergence of new solutions. However, investments are relatively modest, venture approaches are still not used so often, and the market continues to complain about conflicts between the requirements of various legislators and regulators, hindering its development. However, we can expect the emergence of new players, at least in the banking market, as early as next year.
Robotization
It is the automation of financial processes using robots and computer programs. For example, using robotization in banks has reduced the time for receiving applications from customers, simplified and accelerated customer risk assessment procedures, reduced the number of bank branches, and so on. In the future, banks will strive to ensure that office people solve only non-standard client tasks beyond machine algorithms and receive the top products and services online.
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.
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.
