It is easy and clear that most people spend more of their days on social media.
Social media has become an essential aspect of people’s everyday lives. Some people are so hooked that they first want to update their social media feeds when they wake up.
In the expectation of engaging with their clients, advertisers, and companies flock to social networks because of the role of social media in consumer lives. However, the content on social media is overloaded, and there is extreme competition. If you do not have a robust social media marketing plan, this will be difficult for you even if you have a strong marketing plan in social media. Keeping up with current social media developments will boost your project and distinguish you from the crowd.
Here are many effects of social media that you must know for 2022 and beyond.
Ephemeral Content Will Keep Gaining Popularity
Ephemeral material only comes for a brief period and subsequently fades. Stories such as those on Instagram and Snapchat are prime examples of such material.
Today, people are low on attention, and their way of consuming news has also shifted. For this reason, content formats such as stories are standard. They are simple, entertaining, and addictive so that people can click from an account by level for hours.
Sellers have seen and will continue to take advantage of this trend. According to this new Hootsuite survey, 64% of marketers already have Instagram Stories in their campaigns or plans.
The Traditional Social Platforms will Continue to Perform Well
Facebook and Instagram are the biggest and most successful social media sites. In recent years, many other niche social media sites have increased considerably in fame.
The Newcomers Found Their Expansion Challenging
For instance, TikTok began in 2016 and became famous among youth immediately. It became one of the most successful applications in both Apple and Android app stores. TikTok has, however, to some degree, suffered its own popularity. The world regulators have focused on its success with world youth and its Chinese ownership. TikTok was banned in June 2020 by India’s large industry.
Facebook and Instagram have their problems in 2020 and face many courts worldwide. The Australian government tries to charge all news shared by Australian news companies on the platforms.
However, in 2020, Facebook and Instagram remained popular with their users. Hootsuite examined companies in 2021 to increase their social budgets. 60% said they intended to increase their budget on Instagram in 2021, and 46% to increase their budget on Facebook. Also famous are YouTube (45%) and LinkedIn. Just 14 percent of the companies surveyed expect to increase promotions for TikTok.
The same survey asked participants which channels were best suited to their objectives. Once again, conventional social networking was widespread, with Facebook’s 78%, Instagram’s 70%, and LinkedIn’s 42%, whereas Twitter’s 33%.
Social Commerce will Continue to Expand
Brands such as Instagram, Pinterest, and Facebook have used social media for many years to advertise their brands. Colonial trade has developed into a significant shopping route for brands, and this movement can only be strengthened.
Social trade is developing into a significant retail outlet comparable to other media, such as blogs and offline shops. This movement will further strengthen with more social networks adding pre-sales features like shopping posts.
Social networks are continually developing to become retail sites, from shopping posts to Instagram Storefronts. These can be exploited by brands and markets and incorporated into their distribution campaigns by social businesses.
Recently, Hootsuite asked its customers about their efforts in social media. The most popular explanation for companies using social media was to improve new customer acquisition (73%). Increased brand recognition has ensued (64%). The 3rd place was for conversions of the drivers (leads, sales, and product requests).
Live Streaming will Remain Popular
Many companies were digitalized by the global health crisis of 2020 but were able to retain social distance and avoid COVID-19 from spreading. Face-to-face gatherings were Zoom and live gigs and became live broadcasts of artists from their homes.
So, of course, live streaming functions on social media are increasing. In COVID-19 hotspots like Italy, Facebook has considerably increased texting and live streaming. For example, the number of views on Instagram and Facebook Live doubled in just one week.
As the scenario evolves by 2021, people have become accustomed to living interactions with brands without ever leaving their homes. However, live streaming is becoming more common and should be part of the social media marketing approach.
Bottom Line
Using the updated social media trends today can assist you in building a solid presence for the future. For now, you will know what to watch out for to amend your social strategy according to the latest social trends.
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 idea of remote working has significantly grown throughout the last few years, and the COVID-19 pandemic has fueled this prospect. There is a strong case of companies willing to undertake all aspects of remote working. It is a trend that has snowballed and has become a must-have option for employers. ‘
However, the benefits and challenges of remote working are not far behind and are limited to working hours’ flexibility. Let us look at some of the benefits of remote working.
Benefits
Attracting top talent
The most beneficial aspect of remote work is attracting top talent. Offering remote work dramatically enhances an organization’s talent pool and brings new talent that supports the structure. The employees do not need to limit themselves to a specific geographical location and work virtually anywhere. This same principle applies to employers who can easily approach anyone with the right skills. This benefit is helpful for companies that struggle to find the skills needed for competitive advantage.
Recruiting from a larger pool of talent enables an employer to increase diversity. When hiring from many regions or countries, you can use various ideas and perspectives.
Reducing costs
Another benefit of remote work is saving costs while allowing workers to operate from home. Remote working saves you money on renting office space and other operative expenses like utilities or air conditioning.
Productivity
The past year has proved that remote work is a prospect to consider as it allows for a productivity boost. Employees find the idea of working comfortably from home and saving the energy of traveling enhances their working potential. Employees are free to work when they feel most energetic, drastically increasing productivity.
Challenges of Remote Working
Maintaining communication
Maintaining solid and open communication is a significant challenge for remote workers and employers alike. While working from home seems attractive, it becomes useless if no clear communication channel is established. Coordinating all the teams and bringing them on the same page is challenging. Employers who master this art of communication are the ones who reap the benefits of remote working. A communication gap can result in indefinite downtimes and wastage of resources.
Creation of a remote working culture
Creating a culture that motivates employees to work from home is a challenge. This is because employees have a habit of coming to the office and working in a suitable environment. Changing the culture immediately is complicated as many employees exploit the opportunity and take advantage of the situation. In this sense, employees must consider whether to allow workers the edge or limit them to office premises only.
Tracking employee performance
The greatest challenge faced by employers is tracking employee performance. It can be hard to take notice of the commission if there is no physical presence. The commission is especially hard for offices that require specific hours of work. This is also a challenge as you do not want to be a micromanager. Finding the right balance between tracking employee performance without becoming resented is an ability only a few master. Another drawback is that workers start overcompensating to fulfill their work hours, leading to burnout.
Maintaining data security
Maintaining data security during remote working is also a challenge. Employers can actively monitor sensitive data when in the office but cannot actively stop any misuse in remote working. They must establish data security programs that need training to ensure that the data remains secure and accessible to only a few who can handle it and that the data remains in safe hands.
Final Word
Working has its challenges and benefits that employers can use to their advantage. Although the idea of working from home is productive, yet employers and employees must ensure that they reap the most out of it. Strikinga balance between these two factors is the point that generates the most productivity without overexploiting the idea of remote working for employers.
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.
Businesses need to use cloud services that potentially encrypt data. One of the most convenient ways of safeguarding sensitive data is using reliable cloud services.
Brands and organizations nowadays have a more significant role in people’s lives. Therefore, they can no longer afford to be stagnant when making their business processes more efficient. With time, organizations’ budgets are getting leaner, demand from people for streamlined services is also increasing with significant emphasis on the use of better technology, and employees are asking for new ways to empower themselves. These are just a few challenges brands cannot address using old-school methods.
In the first and second quarters of 2019, more than 4.1 billion records of data breaches were exposed. These numbers show how alarming the situation is related to data security. According to Central, one of the most common ways data is compromised weak credentials, malware, too many permissions, backdoors, social engineering, or improper network configuration. Some practices must erase any vulnerabilities and protect sensitive information to avoid data breaches and increase data security.
Moving to cloud technology is perhaps the best path for individuals, brands, and government agencies to become more novel and sophisticated. Cloud technology is beneficial because it creates efficiencies and reduces costs. We embrace the unlimited potential of cloud-based technologies to simplify our everyday processes and protect our data, giving future generations a better world than what we have today.
When organizations migrate their communication infrastructure to the cloud-based system, they gain several benefits, such as staying in constant connection with the employees regardless of whether they are teleworking or in-house. Meetings can also be made productive through workspace sharing, accelerating work speed.
Cloud-Based Technology – Time for Modernization
Cloud technology has already entered the private sector and is used regularly in many companies. These organizations have streamlined their services and increased the expectations of individuals from other sectors, especially the government sector. There is no denying that the public sector cannot live up to people’s expectations if it continues to use traditional methods of communication. Customer experience is everything; therefore, the government sector must take notes on how to use this technology.
Despite cloud technology being an inevitable part of progress in IT, you need good partners to implement it, as getting this technology to work at its full potential is difficult. Studies also show that some organizations struggle to modernize themselves with the cloud. Most of them (25%) complained about the lack of budget required to reach the expected level of modernization. 19% said they lack the talent and the resources to make it happen.
Overcoming these two obstacles is fundamental for organizations hoping to reap the benefits of cloud modernization. Forty-three percent said improving efficiency and increasing profitability are the main benefits of modernizing their offices. Thirteen percent said enhancing the coordinated effort between partners in your organization would bring the most incredible value.
As organizations across the country reflect, for example, on concerns, former President Trump has made IT modernization a central focus. For instance, the President’s Management Program (PAM), approved in 2018, sees IT modernization as a “key driver of change” for the central government. The three PMA modernization needs to incorporate strategic improvements, reducing cybersecurity dangers for the crucial government structure, and leading IT staff.
Despite rumors about the cloud and its benefits, only 14% said moving their tasks to the cloud was a great need, and the truth is that 33% said it was anything but a necessity. Today, like never, organizations should plan how to receive the cloud without changing their missions. It is not because it is an organizational focal point but because it is what customers expect and need today.
Like all other technologies, the cloud is imperfect; therefore, it needs some human consideration. For instance, the whole point of cloud technology is creating a central space where you can easily extract data. We cannot upload information that is in the wrong hands and can cause severe damage.
Summing Up
The best thing brands and individuals can do today to secure their data is to encrypt all the information that can deter hackers from accessing any information in the cloud. Encryption can turn data into ciphertext, which is significantly more difficult for hackers to decode and takes more time to extract information.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
You may not know what the future holds, and you may not know anything about unforeseen circumstances, which makes it essential for us to stay prepared for anything and everything. Here are some simple tips that can help a person save more money.
Do Not Waste Extra Income
If a person receives extra pay or a bonus and ends up wasting it right away, they will never be able to save. Unless it is because of some need, try to save any extra income that comes to them. Even if a person is in debt, try to keep a small part of saving money for any unforeseen circumstances.
Search Offers and Compares Prices
From one supermarket to another, there can be many differences in the price of the same product, so try to compare to see which one works best for you. Also, look for stores that have the best deals.
Do Not Buy on Impulse
If someone buys something for an occasion while shielding themselves in the phrase “I’m working for something,” they will probably not need it. If it is not something they need immediately to wait a few days before buying it, they will surely see more clearly if they need it or if it is an unnecessary expense.
Purchase Online
Online shopping is excellent since customers can find outstanding offers. But remember the previous point and buy what they need.
Reduce Expenses at Home
When buying electrical appliances, try to be efficient and ecological. You will notice it in the bills. Just like you will see, the control of the heating or the air conditioning if you keep the windows and doors closed to keep both the cold and the heat. Turn off the lights when you are not in a room.
Avoid Getting into Debt
I know that some types of debts are difficult to avoid. For example, if someone wants to buy a house, it is not straightforward to have all the money to pay for it (unless they are lucky enough to be rich, but they would not read as saving money). It would be best if you asked for a mortgage. But another type of debt that is easy to avoid. If someone cannot go to New York on their own expenses, do not take out a loan to pay for a vacation. They go to Menorca and can go to New York when they save. Loans accompanied by interest will pay much more than the initial amount, so it is better to avoid them.
Eliminate Unnecessary Luxuries
If a person does not get to the end of the month or they cannot save, the first thing they must cut are the luxuries. They can do their manicure at home instead of going to the beauty salon every week or going to work by subway instead of by taxi. They will see everything they save by cutting here.
Reduce Expenses on Food
If they are foodies and love good food, they can leave a lot of money around here. A fad occasionally is not bad, but you cannot buy caviar, foie gras, and oysters every week. That does not mean that you do not believe in quality products. But as we discussed in the previous point, some foods belong to the luxury category. Another issue here is eating in restaurants or ordering food at home. Adjust themselves depending on their budget. If your financial situation is dire, do not waste free resources. There are food banks where they can help a person; they must get in touch with the social services of their city.
Have Fun for Free
Doing fun things does not have to involve a significant expenditure of money. Find the balance between fun and savings. For example, in most cities, there is a day when the entrance to museums is free or ridiculously cheap. Please take advantage of it! Read more. Compared to movies or video games, you can get books from the library. Go hiking, and play board games. Go to an old cinema that is much cheaper. Visit some parts of the city where you have never been. There are many options for fun without spending a lot of money.
All in All
Be prepared for the worst by following these tips, and you will never find yourself struggling financially.
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.
Proven Strategies for Funding Your New Business Success
How to fund a new business starts with choosing from options like bootstrapping, loans, grants, investor funding, crowdfunding, and innovative cash flow solutions—each tailored to fit your goals, industry, and growth stage. The most effective approach combines multiple funding sources strategically, with 59% of firms seeking financing in the past year, yet only 41% receiving all the funding they applied for.
As a founder who has bootstrapped, raised capital, and advised hundreds of entrepreneurs over my 20 years as CEO of Complete Controller, I’ve witnessed firsthand how the right funding mix can transform a struggling startup into a thriving enterprise. The data shows that 58% of small businesses start with less than $25,000, yet the average business spends $40,000 in their first year—creating a critical funding gap that smart founders bridge through creative financing strategies. In this guide, you’ll discover proven methods to secure capital, avoid common pitfalls, and build the financial foundation your business needs to thrive.
How to fund a new business: What works best?
Choose from options like bootstrapping, borrowing, investors, grants, crowdfunding, and revenue financing
Bootstrapping keeps you in control; loans require repayment; equity means sharing ownership; grants offer free money but fierce competition
Each strategy has trade-offs in terms of risk, cost, speed, and control—understand these before you act
Start with internal sources (like personal savings) before approaching outside investors or banks
The best funding is “fit-for-purpose”: choose methods that match your industry, business stage, and ambitions
Bootstrapping: The Power—and Limits—of Self-Funding
Bootstrapping remains the most popular funding method, with 80% of startups choosing this path. The data reveals a compelling advantage: bootstrapped startups are three times more likely to become profitable within three years compared to venture-backed companies, while growing just as fast but spending only one-quarter as much on customer acquisition.
The success stories speak volumes. Mailchimp founders Ben Chestnut and Dan Kurzius built their email marketing platform without taking a penny of outside investment, reinvesting profits for 21 years until Intuit acquired them for $12 billion in 2021. Sara Blakely started Spanx with just $5,000 from her savings, facing countless rejections before building a company that Blackstone valued at $1.2 billion.
Benefits and pitfalls of bootstrapping for new businesses
The advantages of bootstrapping extend beyond maintaining control. You’ll develop crucial financial discipline, stay laser-focused on customer needs rather than investor demands, and prove business viability before taking on debt or equity partners. This approach forces creativity and efficiency from day one.
However, personal financial risk is real. You might face slower initial growth, limited resources for marketing or hiring, and the stress of mixing personal and business finances. Without external validation from investors, some founders also struggle with confidence during tough periods.
Industry examples: When bootstrapping works best
Service businesses, consultancies, and lean tech startups make ideal candidates for bootstrapping. These businesses typically have:
Low initial capital requirements
Quick path to revenue
Minimal inventory or equipment needs
Ability to scale gradually with customer growth
Software-as-a-Service (SaaS) companies with recurring revenue models particularly thrive with bootstrapping, as demonstrated by Mailchimp’s success. Consumer products can work too—Spanx proved that solving a real customer problem matters more than having deep pockets.
Small Business Loans and Alternative Borrowing Options
Traditional lending remains a cornerstone of small business funding, though the landscape has evolved dramatically. Banks, online lenders, and government programs each serve different needs, with interest rates and requirements varying widely based on your business profile and creditworthiness.
The Small Business Administration backs several loan programs designed to reduce lender risk and improve access to capital. These government-supported options often feature lower interest rates and longer repayment terms than conventional business loans, making them attractive for qualified borrowers.
SBA loans, bank loans, and online lenders—What’s the difference?
SBA loans offer the best rates, typically ranging from 10-15%, with government backing that reduces lender risk. The downside: extensive documentation requirements, longer approval times, and strict eligibility criteria that exclude many new businesses.
Traditional bank loans require robust business plans, strong credit scores, and often collateral. Banks prefer established businesses with proven track records, making these loans challenging for startups. Interest rates average 6.7% to 11.5% for qualified borrowers.
Online lenders provide faster approvals and more flexible requirements but charge higher rates—sometimes 20-40% annually. They fill a crucial gap for businesses needing quick capital or those who don’t qualify for traditional financing.
How to secure a loan—Documentation and common mistakes
Success starts with preparation. Lenders want to see:
Common mistakes that sink loan applications include underestimating startup costs, providing inconsistent financial information, and applying without understanding lender requirements. Alternative financing options like equipment leasing, merchant cash advances, or invoice factoring can bridge gaps when traditional loans aren’t feasible.
Crowdfunding: Harnessing the Wisdom (and Wallets) of the Crowd
The crowdfunding industry has exploded from a niche funding source to a $2.14 billion global market in 2024, projected to reach $5.53 billion by 2030. This 17.6% annual growth creates unprecedented opportunities for founders willing to master the art of public fundraising.
Success rates tell a sobering story: only 23% of crowdfunding campaigns meet their goals. The difference between success and failure often comes down to preparation, storytelling, and consistent engagement with backers throughout the campaign.
Types of crowdfunding—Rewards, equity, and debt
Rewards-based crowdfunding on platforms like Kickstarter and Indiegogo works best for consumer products. Backers pre-purchase products or receive perks, creating both funding and market validation. This model built successes like Pebble smartwatch, which raised over $10 million.
Equity crowdfunding through SeedInvest or Crowdcube lets backers become actual shareholders. This democratizes investment opportunities previously reserved for accredited investors, though it requires securities compliance and dilutes ownership.
Debt-based crowdfunding functions like peer-to-peer lending, with backers earning interest on their loans. This model suits businesses with predictable cash flow that can handle regular repayment obligations.
Keys to a successful campaign
Data shows campaigns with videos raise 105% more than those without, while campaigns with daily updates see 126% higher funding. Your success hinges on:
Compelling storytelling that connects emotionally
Professional video showcasing your product and team
Realistic funding targets based on your network size
Real-world case study: Pebble watch’s crowdfunding triumph
Pebble Technology transformed from a struggling startup to crowdfunding legend in 2012. Their Kickstarter campaign sought $100,000 but raised $10.3 million from 68,929 backers. The secret: they didn’t just sell a smartwatch—they sold a vision of customizable, accessible wearable technology. Their clear prototype demonstrations, responsive founder communication, and tech media coverage created unstoppable momentum.
Angel Investors and Venture Capital: Is Your Startup Ready?
External equity funding opens doors to rapid scaling but demands careful consideration. Angel investors, typically successful entrepreneurs investing personal funds, focus on early-stage companies. Venture capitalists manage institutional money and seek later-stage investments with massive growth potential.
The landscape shows renewed optimism, with 40% of surveyed angel investors planning to increase their startup investments compared to last year. Global startup funding reached $91 billion in Q2 2025, with North America capturing 70% of investments.
What investors look for—Team, traction, and “scalability”
Investors bet on people first, markets second, and products third. They seek:
Experienced teams with complementary skills
Proven traction through customers, revenue, or user growth
Scalable business models addressing large markets
Clear competitive advantages or proprietary technology
Realistic financial projections with paths to profitability
Angels often provide mentorship alongside capital, making them valuable for first-time founders. VCs demand rapid growth and clear exit strategies, typically through acquisition or IPO within 5-7 years.
Pitching like a pro—Lessons from the trenches
Your pitch must tell a compelling story in under 10 minutes. Focus on the problem you solve, your unique solution, market size, business model, traction to date, team credentials, and funding needs with specific use plans.
Founder perspective: What I learned raising a seed round
During my own fundraising journey, one investor’s feedback changed everything: “Show us you understand the business side, not just the product.” We rebuilt our pitch around unit economics, customer acquisition costs, and lifetime value. That shift—from feature focus to financial fundamentals—made all the difference. Investors want founders who think like CEOs, not just innovators.
Grants, Competitions, and “Free Money”—Myth vs. Reality
Grant funding offers the holy grail of startup capital: money you never repay and equity you never surrender. The Small Business Innovation Research (SBIR) program alone awarded 3,859 Phase I grants from 21,911 applications in FY22, with 39% going to first-time winners.
Yet “free money” comes with hidden costs. Application processes demand significant time investment, reporting requirements can be burdensome, and competition is fierce. Grants work best as supplementary funding rather than primary capital sources.
Navigating the maze—Where to find grants and how to qualify
Federal grant programs through the SBA, USDA, and specialized agencies offer the largest awards. State economic development offices provide regional opportunities, while private foundations and corporations fund specific industries or demographics.
Successful applications require:
Perfect alignment with grant objectives
Detailed project proposals with measurable outcomes
Strong financial documentation
Evidence of capability to execute
Patience for lengthy approval processes
Should you rely on grants? The hard truth
Grants make excellent supplements to other funding but terrible primary strategies. Application success rates often fall below 20%, approval takes months, and funds come with restrictions. Smart founders pursue grants opportunistically while building sustainable funding through other sources.
Conclusion: Your Funding Roadmap—Founder’s Perspective
Every business journey follows its own path, but after guiding hundreds of founders through funding challenges, I’ve learned this: successful funding strategies evolve with your business. Start lean with bootstrapping, validate your model, then strategically add funding sources that align with your growth stage and goals.
The data confirms what experience teaches—diversification beats dependence. Mix personal resources with strategic debt, consider crowdfunding for market validation, and approach investors when you’re ready to scale rapidly. Most importantly, maintain financial discipline regardless of funding source.
Your vision deserves the fuel to flourish. Whether you’re bootstrapping like Mailchimp or seeking investors for rapid growth, solid financial management and expert bookkeeping support provide the foundation for sustainable success. Take action today—your future business will thank you. For personalized guidance on building your funding strategy and managing finances for growth, visit Complete Controller.
Frequently Asked Questions About How to Fund a New Business
What is the best way to fund a startup with no money?
Start with bootstrapping through personal savings and credit, pursue grants for your industry or demographic, launch crowdfunding campaigns for market validation, and explore microloans designed for minimal capital requirements. Many successful companies like Mailchimp started with virtually no external funding.
Can I get a business loan with bad credit?
Yes, online lenders and microloan programs cater to borrowers with credit scores below 650, though expect interest rates 10-20% higher than traditional loans. Alternative options include revenue-based financing, invoice factoring, or bringing on a creditworthy business partner.
What documents do I need to secure business funding?
Essential documents include a comprehensive business plan, three-year financial projections, personal and business tax returns, bank statements showing cash flow, legal business formation documents, and collateral documentation if applicable. SBA loans require additional forms specific to each program.
How do I choose between debt and equity financing?
Choose debt if you want to maintain full ownership and have predictable revenue for repayments. Select equity if you need large capital injections, want strategic guidance from investors, and can accept diluted ownership. Many businesses use both strategically at different growth stages.
Are there grants for women-, minority-, or veteran-owned businesses?
Yes, numerous federal, state, and private programs specifically support underrepresented founders. The SBA’s 8(a) Business Development program, Women’s Business Centers, SCORE mentorship, and organizations like the National Veteran-Owned Business Association offer both funding and support services.
Grand View Research. “Crowdfunding Market Size And Share | Industry Report, 2030.” 2024.
sellerscommerce.com. “United States Small Business Statistics (2025 Data).” 2025.
MicroConf US. “How Ben Chestnut Bootstrapped Mailchimp to a $12 Billion Exit.” 2024.
tinyseed.com. “Behind the Monkey: The Story of Mailchimp’s Rise to Email Marketing.” 2024.
Umbrex. “The Spanx Startup Success Story.” 2022.
Fortune. “Spanx founder Sara Blakely’s $1 billion idea started with $5,000 in savings.” 2021.
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.
An accountant’s role is one of the most essential jobs in a business organization because they must look after all the accounting and finances. Accounting is the most critical principle of running a successful business because it helps you track all the income your business is earning, the expenses it must pay, what rules to follow, and how to improve the financial systems. Having an accounting system for your business will help investors better understand the situation of your business and give insight into your liquidity position.
The roles and responsibilities of an accountant include accurate bookkeeping is accurate, offering guidance and tips for improvement, preparing and maintaining critical financial reports, preparing tax returns, conducting forecasting and risk analysis assessments, evaluating financial operations to recommend best practices, identifying issues, strategizing solutions, and helping organizations run efficiently. While a business is working with an accountant, the owner should ask essential questions, including:
How and when to contact the accountants? A key to running a successful business is good communication. Until your communication with your stakeholders is clear and understood, you cannot send or receive the message properly, leading to significant errors and financial loss. You should determine a schedule and the preferred method of contact with your accountants beforehand to prevent confusion during emergencies or when urgent decisions must be made.
How do you prepare for taxes and prevent penalties?
Tax preparation is by far the most challenging task for a business. An accounting professional is trained to guide you through tax preparation to save you from extra stress or prepare your taxes for you. The accountants can determine what tax credits and deductions your business can claim, and they will inform you about new rules and laws the Internal Revenue Service (IRS) releases each year. The accountant gathers all the necessary data regarding taxes for you to save you from tax-season stress.
How can my business grow? An accountant’s job is to help a small business grow successfully and survive all the stages of a business cycle. An accountant should analyze and help create business plans and budgets that effectively and efficiently grow it. The accountant should also help develop strategies to ensure the business is on the right track for growth and financial health.
How do I improve my cash flows? A qualified accountant can suggest ways to make your cash flows positive and increase your inflows. They will also recommend how to decrease payments or expenses to reduce outflows. A cash flow statement is essential for an accountant as they will need it to make further predictions and plans accordingly.
How can improvements be made and errors be prevented? The right accountant for you will quickly identify your business’s mistakes and what is draining your funds that can lead to potential failure.
It is important to communicate honestly with your accountant; you should not hide any failures or misfortunes from them, as this information is vital to measuring business performance.
How do I identify the break-even point of my business? Determining the break-even point of your business can be difficult as the calculations are complicated and confusing. That is why you should take your accountant’s help in calculating the break-even point of your business. Getting to know the break-even point is also crucial because it sorts out a lot of business situations. You can learn how much funds your business needs to cover the total costs of your business expenditures.
If you have enough resources, you should invest in hiring an accountant. The biggest key to a successful business is the right person to handle finances. You should have an excellent professional relationship with your accountant and communicate well with them to prevent any misunderstanding in the decision-making process. Ensure that you have hired the correct type of accountant for your business who is familiar with your accounting systems and can easily handle the problems.
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 COVID-19 pandemic resulted in governments worldwide telling their people to stay indoors and not participate in any social gatherings. Depending on your location, this order is termed as a lockdown. Part of this order may have required individuals to self-isolate if that person has coronavirus or were exposed to someone with the disease. While social distancing has become a new social norm, businesses suffered due to pandemic restrictions.
The shutdown and corresponding restrictions have significantly impacted service-based businesses, and automotive services are no exception. Due to their services, automotive services were deemed essential companies, allowing them to remain open during lockdowns.
Below are key points to consider before bringing your vehicle for repairs and maintenance.
Essential Auto Repair
Most states in the United States issued an order for quarantine or encouraged following specific procedures during the pandemic. Many people must leave home to buy groceries, medications, food, and other necessities. Some people still go to the office, while others have a work-from-home policy from their employers. Whether going to the grocery or to work, most people need their vehicle to operate in optimal condition.
During the pandemic, the auto repair business has become a necessity. Auto repair and maintenance facilities, including dealerships and tire shops, have remained essential for our daily lives. Keeping the orders in mind, these services have adopted different methods to meet your repair needs.
Call Ahead
Even though many services remain operational at this point, auto servicers have likely adjusted their policies according to orders. Many of them have changed their day and work schedules due to smaller staff availability. Some auto shops can close temporarily or at odd times, so call and ensure they are operational before making an appointment. Similarly, dealerships may open their service departments for operation but not sales. Calling the business prior to service appointments will help you maintain your schedule while receiving the service at the right time.
Leave the Vehicle for Repairs
Consider the urgency of your maintenance needs and the ability to continue your daily routine without your vehicle. For example, routine maintenance like an oil change or an engine tune-up is minor maintenance that can subside for some time. On the other hand, significant repairs or replacements are a matter of safety and need prompt action. No matter the level of repair or replacement you need during the order, call your mechanic to see if they can provide you with at-home service. Similarly, leaving your vehicle longer than usual can ensure your repairs are completed within operational hours.
Remember that auto repair and maintenance shops have become essential today, so many service providers remain open. These days, they aim to cater to the needs of the public and justify their importance.
Options Catering to Client Needs
Car repair and maintenance experts determine their importance by offering various service options to clients. These include:
Vehicle drop off and pick up facility in designated time slots and days
Securing key drop-off at your doorstep to reduce footwork and maximize crowd control
You can schedule your appointment and let them pick up your vehicle from your home and deliver it when finished
In many states, car repair facilities have either closed or reduced sales. However, vehicle owners do not need to worry about neglecting car maintenance and repairs. Those who remain operational strive to provide the best quality service to stay in business.
Federal and local governments have defined the essential services of the auto repair industry as a means for emergency needs and orders. They have orders to ensure maximum safety precautions for the staff or any visiting client.
Conclusion
Automotive repair and maintenance facilities have become essential today due to their customized services and client dependence on services. As such, federal and local governments have established their importance and have urged them to provide their services in accordance with regulations.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
There is a misconception about history, in which it is thought that if your data is registered, it is a sign of something negative, but it is not always the case. This institution has the function of reflecting the management of people’s finances. It reflects whether users are responsible for their finances or the opposite. You can know everything in detail in your report if you have debts.
Your data in the clearing is straightforward, and it can be by requesting a loan or loan. All these financial movements are reflected in the history. Your data record is not bad if you take care of your history.
The Importance of a Good Track Record
Creating a good track record involves paying your debts on time and not using your card indiscriminately. When settling on time without generating interest, you make a positive history. The opposite happens when you do not. It may not be relevant now unless obtaining a mortgage or a loan is necessary.
Financial Mistakes
There is a possibility that your data is not registered in the clearing. It may be because you do not have a formal job. But it is essential to appear on this list since when requesting a loan, it is a record that the record will inevitably verify if your document is good or bad.
Below, we list a series of errors you may have in the clearing, but they will not cause you any problems.
Misspelled Data
Some financial institutions do not have a way to verify the actual data, so they make mistakes. The most common error occurs with names since they usually use abbreviations or nicknames. It should not worry, but it is better to do so if you have the time to correct it.
Not have Your History Active
Forget the fear that your name is in Clearing and start creating a history. You can do it using a credit card or when applying for a loan.
Remember that you should always have a history free of financial problems.
Your Address is Wrong
This notification must be submitted to the Federal Public Revenue Administration or AFIP. The problem is not so serious. Only those reports about their history will never reach their destination since they do not have the correct address.
The clearing is an ally in your finances when you know how to use it and especially how to take advantage of your finances. Always check your data when filling out a record and look at how it is registered, not only in the documents that have to do with the clearing but generally with all its stationery.
Standard Errors for Financial Reporting
Various companies make mistakes regarding financial and informative reporting functions. Many different experts advise people on how to avoid all of them by giving solutions. First and foremost, errors are fundamental. That is why companies will have to double-check their financial management progress, whether they are performing well or not.
Various companies have a single-column report. As a result, they will have only minor information, as other multinational companies have a more extensive report record of their financial activities. Small corporations have multi-column words, which is why there is a lack of comparative economic data. Carefully incorporate the financial information and statements in your record reports.
Add all your financial management information in detail by creating reports with multiple columns. Do not squeeze elongated details in a single account with narrow columns. There is a lack of calculated differences in the corporate financial statements. Finance officers must calculate all the forces in their mental notebooks or with a calculator’s help. It takes lots of hours, and there is a maximum chance of errors in calculation. That is why, as a company owner, you must provide a separate column where they get the tracked and calculated value so that they only note down their official records or reports. The data must be comparable with the present and previous data records and the business finance department’s performance report.
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.
Smart Investment Strategies for Your Child’s Future Growth
An investment portfolio for children is a diversified collection of financial assets, including custodial brokerage accounts, 529 education plans, and Roth IRAs—established in a minor’s name and managed by parents to harness decades of compound growth for future education, financial independence, or retirement. These tax-advantaged accounts allow families to invest in stocks, ETFs, index funds, and other growth vehicles starting from birth, transforming modest monthly contributions into substantial wealth by adulthood.
Over my 20 years as CEO of Complete Controller, I’ve watched families transform their children’s financial futures through strategic early investing—seeing firsthand how $100 monthly contributions grow into six-figure portfolios by college age. The World Bank’s dramatic increase in early childhood investments from $2.9 billion to $18.7 billion over the past decade signals what savvy parents already know: investing in children early yields extraordinary returns. This article reveals the exact accounts, investment strategies, and teaching methods that build generational wealth, including how custodial Roth IRAs can accumulate hundreds of thousands in tax-free growth and why 93% of parents are already teaching their kids about money management.
What are smart investment strategies for your child’s future growth?
Investment portfolios for children use tax-advantaged accounts (custodial brokerages, 529s, Roth IRAs) to grow wealth through stocks, ETFs, and index funds for education, retirement, or general financial goals
Start investing at birth to maximize compound interest—the S&P 500’s historical 10.31% 30-year average return can transform $100 monthly into over $200,000 by age 18
Diversify holdings with 70-90% in low-cost index funds and 10-20% in recognizable individual stocks to balance stability with engagement
Involve children through spending/saving/investing splits of allowances, stock market simulators, and monthly portfolio reviews to build lifelong financial habits
Monitor progress quarterly while maintaining long-term perspective, adjusting asset allocation as children approach college age or other financial milestones
Why Start an Investment Portfolio for Children Now?
Time amplifies wealth creation for children’s portfolios through compound growth that turns small contributions into life-changing sums. The S&P 500 has delivered an average annual return of 8.55% since 1928, with recent decades showing even stronger performance—12.57% over the past 10 years and 10.31% over 30 years. Starting a custodial account at birth with just $100 monthly at these historical returns could accumulate over $26,000 by age 18, then compound to exceed $200,000 by retirement without additional contributions.
Global institutions recognize this opportunity—the World Bank increased early childhood development investments from $2.9 billion to $18.7 billion between 2014 and 2024, resulting in 31 million children enrolled in quality programs worldwide. Morocco’s national preschool enrollment jumped from 45% to 76% in just five years, demonstrating how strategic early investments create exponential outcomes.
Power of compound growth in kids’ portfolios
Mathematical certainty favors early starters over late savers. A child receiving $10,000 at birth invested in index funds averaging 10% annually becomes $76,000 by college without adding another penny. Compare this to a parent saving $300 monthly starting when their child turns 15—they’d need to contribute $10,800 total to reach a similar amount by age 18.
At Complete Controller, we’ve documented client portfolios doubling every 10 years through consistent index fund investing. One family’s $50 weekly investments starting at their daughter’s birth grew to $142,000 by her 18th birthday, funding her entire undergraduate education debt-free.
Top Account Types for Building an Investment Portfolio for Children
Strategic account selection determines tax efficiency, flexibility, and growth potential for decades. Each account type serves specific goals while offering unique advantages for building children’s wealth.
Custodial brokerage accounts (UGMA/UTMA)
Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts provide maximum investment flexibility without contribution limits. Parents maintain control until the child reaches majority age (18-21 depending on state), investing in any combination of stocks, bonds, mutual funds, or ETFs. The first $1,250 of unearned income remains tax-free, the next $1,250 gets taxed at the child’s rate, and amounts above $2,500 face the parents’ tax rate under kiddie tax rules.
These accounts transfer irrevocably to the child at majority, making them ideal for families comfortable with eventual loss of control. Assets can fund any purpose—college, starting a business, or buying a first home.
529 education savings plans
State-sponsored 529 plans offer triple tax advantages: deductible contributions in many states, tax-free growth, and tax-free withdrawals for qualified education expenses. Recent legislation expanded qualifying expenses beyond college to include K-12 tuition, apprenticeships, and student loan repayments. Age-based investment options automatically shift from aggressive growth to conservative allocations as college approaches.
Contribution limits reach $18,000 annually per beneficiary without triggering gift taxes, with special five-year election rules allowing $90,000 lump sum contributions. Unused 529 funds can transfer between family members or roll into Roth IRAs after 15 years, adding flexibility.
Custodial Roth IRAs
Children with earned income from jobs, self-employment, or even household chores (if properly documented) qualify for Roth IRA contributions up to their annual earnings or $6,500, whichever is less. Contributions grow tax-free forever, with principal withdrawable anytime and earnings accessible tax-free after age 59½.
A Searcey Financial client opened custodial Roth IRAs for their 16-year-old son when he began summer work. Through consistent maximum contributions as his income allowed, he and his wife accumulated several hundred thousand dollars in tax-free Roth assets by age 35—proving how teenage earnings can create retirement security decades early.
How to Build and Diversify Your Child’s Investment Portfolio
Portfolio construction balances growth potential with risk management through strategic diversification. Allocate 70-90% to broad market index funds or ETFs tracking the S&P 500, total stock market, or international indices. These core holdings provide instant diversification across hundreds or thousands of companies while keeping fees below 0.1% annually.
Reserve 10-20% for individual stocks children recognize—Disney, Nike, McDonald’s, or technology companies they use daily. This smaller allocation adds excitement and teaching opportunities without jeopardizing long-term growth. Avoid concentration risk by limiting any single stock to 5% of the portfolio.
Best investments: Index funds and ETFs first
Exchange-traded funds (ETFs) tracking major indices form the portfolio foundation. Popular choices include:
VOO or SPY – S&P 500 index tracking America’s 500 largest companies
VTI – Total stock market exposure to over 4,000 U.S. stocks
VXUS – International stock diversification across developed and emerging markets
VT – Single fund global equity exposure combining U.S. and international stocks
Target-date funds offer complete portfolios in one investment, automatically rebalancing and reducing risk as the target year approaches—ideal for 529 plans or hands-off management.
Adding real estate and alternative assets
Real Estate Investment Trusts (REITs) add property exposure without direct ownership complexity. REIT ETFs like VNQ provide diversified real estate holdings yielding 3-4% annually plus appreciation potential. Limit alternatives to 10% of the portfolio to maintain focus on core equity growth.
Complete Controller clients use our portfolio management tools to track allocations across multiple children’s accounts, rebalancing quarterly to maintain target percentages.
Teaching Kids to Manage Their Investment Portfolio for Children
Financial education transforms abstract concepts into tangible life skills through hands-on participation. According to NerdWallet’s 2025 survey, 93% of parents already teach children about saving money, with 41% opening savings accounts and 31% requiring kids to save portions of money received.
Implement the “four bucket” allowance system: 30% spending, 20% short-term saving, 20% charity, and 30% investing. This structure teaches balanced money management while funding their investment account regularly. Use online calculators to show how their $10 weekly investment could become $100,000 by retirement.
Hands-on tools: Stock market games and simulators
Risk-free simulation platforms build investing confidence before risking real money:
Investopedia Stock Simulator – Trade virtual $100,000 portfolios with real market data
MarketWatch Virtual Stock Exchange – Compete in investing games with leaderboards
The Stock Market Game – Educational program used in schools nationwide
Schedule monthly family investment meetings to review portfolio performance, discuss market news affecting their stocks, and make new investment decisions together. Children who pick stocks often become more engaged in business news and company performance.
Family check-ins and boundary setting
Establish clear investment rules: no day trading, maximum 5% in speculative investments, and focus on companies they understand. Use market downturns as teaching moments about long-term thinking—showing how previous crashes recovered and rewarded patient investors.
Champlain College research found students receiving financial education improved credit scores by 25 points and were 40% less likely to miss credit payments as young adults. These benefits lasted 12 years post-graduation, with an unexpected “ripple effect” improving parents’ financial behaviors too—including 26% fewer loan defaults and 5% higher credit scores.
Risks, Taxes, and Long-Term Management of Kids’ Portfolios
Investment risks diminish over long time horizons, but tax planning requires ongoing attention. The kiddie tax applies to unearned income exceeding $2,500 annually, taxing excess at parents’ rates. Minimize this through growth stocks paying minimal dividends, tax-efficient index funds, and timing realized gains for low-income years.
Annual rebalancing maintains target allocations while teaching disciplined investing. As college approaches, shift 529 plans toward conservative allocations—moving from 90% stocks at age 5 to 50% stocks by age 15. Document investment decisions in a simple spreadsheet tracking contributions, growth, and allocation changes over time.
529 withdrawals – Match distributions to qualified expenses in the same tax year
UTMA/UGMA – Time capital gains realizations for years with lower income
Roth IRAs – Withdraw contributions anytime tax-free for emergencies
Complete Controller’s tax planning services help families coordinate investment accounts with overall tax strategy, maximizing education credits and minimizing unnecessary taxes.
Final Thoughts
Building an investment portfolio for children transforms parental foresight into generational wealth through compound growth, tax-advantaged accounts, and hands-on financial education. Starting with just $100 monthly in diversified index funds can accumulate over $200,000 by adulthood, while teaching invaluable money management skills that last a lifetime.
The combination of 529 plans for education, custodial accounts for flexibility, and Roth IRAs for tax-free retirement savings creates a robust financial foundation. More importantly, involving children in investment decisions develops financial literacy that research proves lasts decades and even improves parents’ money habits.
Take action today: open your child’s first investment account and start their journey toward financial independence. Visit Complete Controller to discover how our expert bookkeeping and financial planning services can track your family’s investment progress and maximize tax advantages. Your child’s million-dollar retirement could start with today’s hundred-dollar decision.
Frequently Asked Questions About Investment Portfolio for Children
What is the best investment account for a child with no income?
For children without earned income, custodial UGMA/UTMA accounts offer maximum flexibility for any investment type, while 529 education savings plans provide superior tax benefits if college funding is the primary goal. Both allow parents to invest on the child’s behalf starting from birth.
Can I open a Roth IRA for my child?
Yes, children with documented earned income from jobs, self-employment, or even paid household chores can contribute to Roth IRAs up to their annual earnings or $6,500 (2024 limit), whichever is less. Parents often match their child’s contributions to maximize tax-free retirement growth.
Are 529 plans only for college expenses?
No, recent legislation expanded 529 qualified expenses to include K-12 tuition (up to $10,000 annually), trade school, apprenticeships, and student loan repayments. After 15 years, unused funds can roll to Roth IRAs, though non-qualified withdrawals trigger 10% penalties plus taxes on earnings.
How much should I invest monthly in my child’s portfolio?
Even $50 monthly harnesses significant compound growth over 18 years. Aiming for 15-20% of gifts, allowances, or child-related windfalls creates substantial portfolios—$100 monthly at 10% average returns could exceed $200,000 by age 65.
What are the risks of a kids’ investment portfolio?
Short-term market volatility poses minimal risk for 18+ year time horizons, as historical data shows stocks consistently outperform cash and bonds over decades. The greater risk is not investing early and missing decades of compound growth that no amount of later saving can replicate.
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.
Bankruptcy is a collective proceeding that occurs when a corporation is in a situation of insolvency, and its recovery appears impossible. It results in the dissolution of the company and the sale of its property.
When a business is declared to be liquidated, all its debts become due even if the due date has not been reached.
The primary purpose of judicial liquidation is to end the company’s activity by managing to pay the various creditors and selling the liquidated company’s assets.
The Consequences of Judicial Liquidation
The liquidation of a company immediately entails several consequences presented here:
The first immediate consequence of a company being placed in liquidation is the company’s immediate cessation of activity.
The other notable effect is the divestment of the debtor. In concrete terms, this means that the manager is no longer authorized to manage his company as he sees fit; the management is the liquidator (which we will discuss below).
From the moment the company is declared in liquidation, the creditors no longer have the authorization to launch individual proceedings against the debtor.
The employment contracts of the company employees are broken within 15 days.
The Judicial Liquidation Procedure
Declaration of cessation of payment and opening of the procedure
When the company finds itself without the possibility of paying its debts on time, it is said that it is in a situation of cessation of payment. If necessary, the manager must file a declaration of termination of charge no later than 45 days after declaring that his company is in this situation.
The initiation of such a procedure is not necessarily the manager’s will: in some cases, one or more creditors may decide to start the process. A court may also choose to start the proceedings.
Only the district court (or the commercial court in the case of commercial activity) can validate the opening of the procedure.
He studies the declaration of cessation of payment and can then make two types of judgments:
A judgment of receivership. In this case, the company may continue to operate for a period of up to 18 months. The company may either continue its activity or be placed in liquidation.
A judgment of liquidation without going through the recovery.
Appointment of the commissioner judge and the liquidator
Once the judgment has been rendered and the procedure opened, the judge in charge of the case appoints a judge-commissioner whose mission will ensure that the whole process is conducted according to the rules. A liquidator is also established. He will take over the company’s management until the liquidation procedure ends.
The liquidation of the company
Once at the controls, the judicial liquidator will have to complete several missions:
Take stock of the debts the company was supposed to pay and classify them.
Please list all the company’s assets and put them up for sale to repay the creditors, mostly in the form of auctions.
If the company in liquidation had claims, the burden falls on the liquidator to recover them.
Then comes the time to pay off the creditors of the liquidated company. The liquidator is responsible for giving each rank: they will be reimbursed (or not) according to their position, knowing that it is relatively rare that a company’s liquidation allows them to repay all debts.
Finally, the judicial liquidator must pay the necessary dismissal of its personnel (while ensuring that the last salary is paid).
To Sum it Up
At the end of these operations, if everything goes according to the rules, the company is declared liquidated and no longer exists legally. All unsecured creditors get payment from the Pari Passu Foundation. Companies offer funds to unsafe creditors but always get their dividends pro-rata at the liquidation end.
They will have to pence in the pound, and there is nothing at all. There is a security benefit as sales proceeds, and owners of secured properties and professionals subjected to certain exceptions pay the creditor as an outstanding entitlement. Corporations will offer the liquidator the details of their claim as debt evidence.
The court makes the final decision, which hands over the company to the liquidator. Remember that there is no time limit on how long it will take. However, it means the company will be liquidated more straightforwardly and then dissolved.
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.
