Author: Complete Controller

Did you know that almost 38% of co-signed loans turn out badly for the cosigner? This high percentage shows why being careful is crucial. Co-signing certain loans is riskier than others. Knowing which loans to avoid can save you from financial trouble.

If you co-sign, you’re not just helping someone; you’re tying your finances to theirs. Many cosigners learn this the hard way. But with the right information, you can avoid such traps. We’ll tell you about loans that often spell trouble for cosigners.

Key Takeaways

Which Loans to Avoid: Some loans are riskier compared to others. Avoid co-signing private student loans, retail credit cards, payday loans, car loans, and credit card debt, as this kind of debt tends to be the easiest to bring upon yourself.

• You’re on the hook, too: If you co-sign a loan and the main borrower can’t pay, you have to repay it. This could hurt your credit score and get you into legal trouble.
• Check borrower’s finances first: Before you co-sign, use tools to check if the borrower is dependable with money. This helps avoid ugly situations in which you may end up being the one who owes money.
• Long-term effects on your money: Remember that co-signing will affect your ability to borrow money in the future. It can reduce your credit score, and lenders will consider it as though you already owe them money.
• Look for warning signs: Be on the lookout for signs such as the interest rate being high, the terms being unclear, or the borrower has a bad track record of dealing with money. These are all reasons to think twice before co-signing.

 

Understanding the Perils of Co-signing a Loan

Co-signing a loan comes with financial risks and legal implications. Helping a friend or family member might feel good, but it’s crucial to understand the risks for you as a co-signer. Learn the legal terms and read the fine print to see the dangers.

The Legal and Financial Implications of Being a Co-Signer

Co-signing affects more than your credit score. It means you promise to pay if the primary borrower doesn’t, and you’re legally tied to the loan’s outcome. If things go wrong, be ready for debt collectors or legal trouble.

The Immediate and Long-Term Impact on Your Credit Score

Your credit score won’t drop right away, but it can suffer over time if the borrower misses payments. These missed payments show up on your record. They make getting future loans harder, and fixing your score takes time. It’s a hidden danger that comes from signing.

Factor	Immediate Effect	Long-Term Consequences
Credit Score	Minor fluctuation due to hard inquiry	Potentially severe long-term damage due to payment defaults
Debt-to-Income Ratio	Immediate increase	Remains elevated, affecting future credit applications
Payment History	It’s unaffected if payments are timely	Missed payments by the primary borrower will be reflected negatively
Legal Standing	No immediate effect unless default occurs	Legal entanglement occurs  if the borrower defaults and you’re unable to pay

Know the risks before you co-sign a loan. Be smart and protect your finances.

5 Loans You Must Never Co-sign

When deciding to co-sign, being informed is key. There are loans out there that can put your money at risk. We will focus on loans that could trap cosigners in tough spots financially.

Someone with unreliable income and employment history.

1. Private student loans

Private student loans usually require a cosigner because of the borrower’s short credit history. These loans can be a burden for many years. There are fewer ways to pay them back and no forgiveness. By co-signing, you take on the responsibility for a potentially large debt for a long time.

2. Retail credit cards

Retail cards offer initial discounts but come with high interest rates. If the main user makes a mistake, co-signing for these can lead to big debt.

3. Payday loans

Payday loans have very high rates, making them very risky. They seem good for quick cash but often lead to debt cycles. It’s best to avoid co-signing for these loans.

4. Car loans

Car loans are common, but cars lose value fast. Co-signing could mean paying off a loan on a car that’s no longer worth it. You might owe more than the car’s value, putting you in a tricky situation.

5. Credit card debt

Credit cards can tempt with high limits and rates, and co-signing can risk your financial health if the debt grows too big.

Each loan type mentioned has its own risks, and they can all threaten your financial security. To protect your finances, avoid co-signing for private student loans, retail cards, payday loans, car loans, or credit card debt.

Evaluating a Borrower’s Qualifications Before Co-Signing

Knowing the borrower’s qualifications is key when considering becoming a co-signer. It’s essential for protecting your financial health. Being a cosigner is a big deal. It comes with cosigner responsibilities that could affect your credit for years. So, it’s vital to use risk assessment tools. You should also understand credit reports and a borrower’s credit history before making any decisions.

Risk Assessment Tools and Techniques for Potential Co-Signers

Risk assessment tools are a great starting point. They help check if a borrower can handle the loan. By looking at credit scores, debt-to-income ratios, and other data, these tools assess financial health. They predict how likely someone is to pay back the loan.

These tools help you make choices that fit your financial plans and how much risk you’re okay with.

Understanding and Interpreting Credit Reports and Credit History

Reviewing credit reports is another critical step. These reports give a deep look into a borrower’s financial past, like debt, and how they handle credit. Knowing what to look for in these reports, from payment history to how often they’ve sought credit, helps you see their financial habits.

Credit Report Section	What It Tells You	Why It Matters
Payment History	Tracks the borrower’s payments on loans and credit cards, including any delinquencies or defaults.	This shows if the borrower pays on time, indicating if they’re reliable or not.
Credit Utilization	Shows how much of the available credit the borrower is using.	High credit use may show financial stress or poor handling of credit.
Inquiries	Lists all recent checks on the borrower’s credit, hinting at seeking new credit.	Many inquiries may suggest financial troubles or a high debt incoming.
Public Records	Incorporates legal matters related to finance, like bankruptcies or foreclosures.	These are clues to financial issues that could affect repayment.

Knowing these details helps you make a smart choice. Before co-signing, do your homework. Look into the borrower’s qualifications, use reliable risk assessment tools, and thoroughly go through the borrower’s credit reports and credit history. This reduces the risks to your own financial health.

The Domino Effect: How One Missed Payment Can Affect Your Finances

Picture a stone falling into a pond and creating ripples that keep growing. This is like what happens when you miss a loan payment, starting a dangerous chain reaction. The fallout can quickly damage your credit health, leaving a lasting mark on your payment history. It can also make your interest rates go up a lot.

Interest Rates, Payment History, and Their Role in Credit Health

Keeping up with your payments is key to maintaining good credit. Just one missed payment can trigger higher interest rates. These rates can become a heavy load over time. And any slip-ups can stain your payment history, making it hard to get loans later.

Secured Loans, Personal Loans, and the Path to Debt Management

In borrowing, secured loans and personal loans offer different ways to help you manage debt. It’s important to know the differences; secured loans require collateral, while personal loans do not. Choosing wisely based on your financial situation can help you build a solid debt management plan. This plan can get you back on track financially.

Financial Counseling and Education as Tools for Empowerment

Financial counseling can be a beacon during tough financial times. It gives you essential advice for getting back to financial freedom. By learning more about finance, you can better handle and escape debt. These strategies boost your ability to recover, helping you build a debt-free future.

Here’s a table that shows different loan options and how they fit into managing debt. It points out important things to think about when planning your financial moves:

Loan Type	Interest Rate (Approx)	Collateral Required?	Suitable for Debt Consolidation
Secured Loan	3-6%	Yes	Yes, for substantial debts with assets as a guarantee
Personal Loan	5-10%	No	Yes, when seeking an unsecured plan with fixed rates
Credit Card Balance Transfer	0-5% (introductory period)	No	Preferable for moderate debts with the prospect of quick repayment
Payday Loan	Up to 400%	No	Generally not advisable due to exorbitant rates
Home Equity Loan	2-7%	Yes, against home equity	Optimal for large debts, leveraging home equity for lower rates

By being proactive with financial counseling and education, you can protect yourself from money troubles. Use these resources to pave a path to a sound financial future. They can keep you far from falling into financial disaster.

The Dark Side of Loan Agreements: Hidden Clauses and Unseen Consequences

When looking at loan agreements, you must be careful. Often, the trouble lies in hidden clauses and sneaky details that catch people off guard. These elements can make you face financial burdens or even cause bankruptcy implications, hurting your finances.

Collateral Requirement and Its Potential to Create a Financial Burden

One big pitfall in loan agreements is the collateral requirement. It’s hidden in complex wording, making you miss the risks involved. If the borrower can’t pay, collateral like your property could lead to a huge financial burden for you. Let’s explore how this can affect you:

Loan Agreement Feature	Potential Risk to Cosigner	Preventative Measures
Collateral Clause	Risk of Asset Seizure	Request a cap on collateral value
Variable Interest Rates	Unexpected Payment Increases	Negotiate fixed rates when possible
Prepayment Penalties	Financial Penalties for Early Repayment	Seek agreements without prepayment clauses
Automatic Renewal Clauses	Unwittingly Extending Loan Terms	Opt for definite-term loans

Look closely at collateral terms so you don’t risk too much. Getting advice from a financial advisor can help you avoid these traps.

Bankruptcy Implications: A Shadow Over Your Financial Stability

If you co-sign a loan, you might face bankruptcy implications. You’re in trouble if the main borrower fails to pay, passing the debt to you. This can damage your credit and might lead to bankruptcy if you can’t pay. Here are the risks:

• Lower credit score, limiting your loan options
• Higher debt-to-income ratio, affecting future finances
• Possible loss of personal assets due to legal issues

Knowing the risks of co-signing is key. Hidden clauses can cause long-term damage. Be sure to carefully check everything and do your homework before agreeing.

5 Red Flags That Should Stop You from Co-Signing

When you think about co-signingng a loan, being careful is key. It’s crucial to see the warning signs that could cause trouble later. Spotting red flags for co-signing before signing can protect you from financial strain and keep your relationships safe. Let’s look at the major signs that should make you pause.

Deciphering Risky Lending Practices and Loan Terms

Complicated loan terms could mean risky lending practices. If the loan’s terms seem hard to get or look too tough, that’s a warning sign. Watch out for high interest rates, big fees for leaving early, or unusual terms. Talking to a financial advisor can help. They make sure the terms are fair, and you’re not falling into a trap.

Financial Strain and Relationship Tensions Involved Co-Signing

Co-signing might strain your finances or hurt your relationship; these are red flags. An unstable income or bad financial past in the primary borrower can put you at risk of paying and might also strain your relationship, especially if paying back the loan becomes an issue. Think about the money side and how it might affect your personal life.

• Incomplete or inconsistent information: Missing or mismatched details in a borrower’s history could indicate that they are not financially stable.
• Lack of collateral: If the borrower can’t back up the loan with assets, repaying it might be hard.
• Coercive or hasty decisions: Feeling rushed to sign is a bad sign. Take your time with such a big decision.
• Poor credit score of the borrower: A low credit score suggests that the borrower might not pay back the loan, which could leave you in trouble.
• Overextension of your financial commitments: Realizing co-signing might stretch your finances too thin, which is a big warning. Don’t jeopardize your financial well-being for someone else’s loan.

Watching for these red flags can help you protect your finances. Remember, co-signing a loan is kind, but it shouldn’t harm your financial health.

Credit Policy and Lender’s Risk: How They Influence Co-Signing Consequences

Thinking about co-signing a loan? Understand this: lender’s credit policy and risk are big deals. They define what could go wrong for you.

The policy sets the rules for who gets a loan and on what terms. As a cosigner, your risk increases if the policy is loose. A strict policy might lower this risk. But you could still end up paying if the main borrower can’t.

A lender’s risk is like a dark shadow over loan decisions. It’s based on the borrower’s financial past and stability. Adding you as a cosigner might make the loan look safer to lenders. This could mean better loan terms. Yet, if the loan isn’t paid, you’ll face bad marks on your credit, possible legal issues, and relationship troubles.

Remember, being a cosigner is safe only if the borrower and lender are solid. Be very careful. The impact of credit policy and lender’s risk on you can be huge.

Before you co-sign, really think about the risk. Can you cover the loan if needed? Is the credit policy clear and fair? Knowing these answers helps you decide.

Taking proactive steps is smart. Ask for the loan agreement to be reviewed. Maybe get financial advice. Stay informed and cautious to protect your money and peace of mind.

So, protect your financial future. Look closely at the credit policy and think about the consequences of signing a loan. Making an informed choice is key.

Conclusion

Making the decision to co-sign a loan is a big deal. It’s all about protecting your financial stability. You need to be careful to avoid risks and make wise choices. Co-signing means you’re responsible if the other person doesn’t pay. This links your credit score to their financial actions, highlighting why it’s crucial to avoid risky loans.

Helping someone financially by co-signing may seem kind, but it’s essential to do so cautiously. The key to a smart co-signing conclusion lies in checking if the borrower is reliable. It’s critical to look into their financial behavior and history before you agree. Think about the loan types that are risky and might put you in danger. Sometimes, it’s better to say no to protect yourself.

Your alertness helps keep you safe from financial troubles. Know about the dangers and learn to spot the red flags in ico-signing. Being careful and avoiding loan risks protects not just your credit but also your quality of life and peace of mind. Move forward wisely. Let your confidence in your financial choices lead you through the loan landscape.

 

FAQ

What are the risks of co-signing a loan?

Co-signing a loan makes you legally responsible if the borrower can’t pay. It can hurt your credit score and financial security.

What loans should I never co-sign?

Never co-sign on these five loans: private student loans, retail credit cards, payday loans, car loans, and credit card debt. Cosigning them can lead to big financial problems.

How can I evaluate a borrower’s qualifications before co-signing?

First, check the borrower’s financial health and credit. Use risk assessment tools and look at their credit reports to make a wise decision.

What are the consequences of a missed payment on a co-signed loan?

A missed payment can increase rates and hurt your credit. To stay stable, know how to manage debt and consider secure loans.

What pitfalls should I be aware of in loan agreements?

Loan deals might have hidden traps. One big issue is the requirement for collateral, which adds to your financial burden. Co-signing could also lead to bankruptcy.

What are the warning signs that I shouldn’t cosign a loan?

Watch for five warning signs: risky lending and complex terms. Co-signing might strain your finances and personal relationships. Be careful.

How do credit policy and the lender’s risk assessment affect the consequences?

The lender’s credit policy and risk assessment are crucial. Knowing these helps you make smart choices and protect your finances.

How can I protect my financial stability when co-signing?

Stay safe when co-signing by understanding the risks, evaluating the borrower, and knowing loan dangers. Focus on your finances and explore alternatives to lend wisely.

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

A Forex trader’s primary purpose is to order on behalf of a financial institution in the financial market. An independent trader will buy and sell orders on behalf of the trader or broker they work for. It means that forex traders are paid as traders and do not make any profit or loss in any trading process. Clients or financial institutions that utilize them take sole responsibility for all risks in the market. These clients hire these traders because they have a trading room and their clients don’t, and they hire them to use their trading rooms.

After some study, we found no single approach to trading in the financial markets. You can be a short-term auto trader, speculate in the medium term, or invest for years. You can make decisions based only on chart data or never take advantage of technical analysis, basing your choices only on fundamental analysis. After all, you can trade in the foreign exchange market or futures and binary options. The market possibilities are so great that everyone can choose the ideal trading method that suits their requirements. That’s what this book describes. All the traders in this book have different approaches to trading, but they share the same values – money and risk management, discipline, commitment to the system, and hard work.

1. Trading Tips from Top Forex Traders

Don’t let expectations cloud your reasoning. As a newbie, you can get overly excited about making a profit on every sale you make, which gets you in trouble at some point. The enthusiasm associated with pursuing profitability can hide your understanding of trading and lead to mistakes and losses. First, it is suggestible to get rid of any get-rich-quick syndrome from your worldview. Define your profile; before you make a trade, you need to know all the market basics. Read the research success stories of other market traders and currency pairs you would like to trade, and if we get all this information, you will not feel comfortable, then do not dare to invest in them.

2. Focus on Medium-Term Forex Trading

Medium-term trading allows traders to typically hold a position for more than one day after exploiting opportunities presented by technical situations. It takes little capital to increase big profits compared to short-term and long-term trading, which requires reliable fundamentals and significant wealth.

3. Understanding the Basic Trading Principles of The Best Forex Traders

The framework of the best forex merchant is worth it. Knowing that this is not an automatic or mechanical system but a technical and decision-making system. For example, suppose you are choleric with an explosive temperament and a penchant for travel. In that case, it will be challenging for you to force yourself to sit at a computer all day, monotonously tracking charts. So, make a list of your criteria for the activities you plan to spend most of your time on. Check to trade against these criteria and decide if it suits you or not. The key is to find the point where all technical signals in the same direction are usually profitable. The trading results of the best forex traders are high probability trades which in turn will be beneficial.

4. Choosing A Trading Program – Creating and Marking a Forex Chart

Suppose you use Meta Trader to illustrate this trading strategy, although other similar programs may get the same result. If you choose a schedule, you need to learn how to set a strategy. Choosing better indicators will help you create a robust system that generates multiple trading opportunities with little or no risk and vice versa.

5. What Qualifications Do You Need to Become a Forex Trader?

As a forex trader, you do not need to earn an MBA or Ph.D. Or, to any extent, to succeed. What permits you as a forex trader is patience, willingness to learn, and calculating and monitoring the market pattern before placing a trade order. Forex trading is not as challenging as it seems, although it has specific conditions, behaviors, and risks. You should know all this before taking risks. Although it may seem difficult at first, you will be able to trade without problems once you learn.

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

By: Jennifer Brazer

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

Fact Checked By: Brittany McMillen

5 Ways You Can Reengineer Your Business Processes Effectively

Let’s be honest—clinging to outdated business processes is costing you more than money. I’ve seen it firsthand: companies burning time, draining teams, and strangling growth with inefficient workflows. Recent data shows that 21% of companies save 10% or more through business process optimization strategies. Reengineering isn’t just a buzzword—it’s a survival strategy for your bottom line. I’ll walk you through five proven strategies to cut inefficiencies, boost performance, and reclaim your competitive edge.

Key Takeaways

• Map existing workflows using visual tools to spot redundancy and streamline bottlenecks
• Implement AI-driven automation for repetitive tasks to increase productivity by 20-35%
• Design processes around customer needs to drive retention and satisfaction
• Use predictive analytics for supply chain management to prevent inventory chaos
• Build agile, cross-functional teams with collaboration tools to sustain improvements

Map and Analyze Existing Workflows for Hidden Inefficiencies

You can’t fix what you can’t see. After 20 years helping businesses transform their operations, I can tell you that mapping your current processes is non-negotiable. Use tools like Lucidchart or Miro to visualize each workflow—from sales to inventory to customer service.

Follow established business process mapping standards to ensure you’re capturing everything that matters:

• Look for loops where work cycles back unnecessarily
• Identify delays where handoffs stall between departments
• Spot duplicated roles where multiple people do the same task
• Perform time-motion studies to see where minutes leak away

In my work with manufacturing clients, we’ve found that cross-department process optimization often reveals surprising inefficiencies. One client discovered that their approval process required six signatures when only two were truly needed—cutting their purchase order cycle time by 75%.

Remember Honeywell? They discovered their high defect rates stemmed from human error and undefined accountability. After mapping and overhauling their workflows, they slashed rejections by 57%—but that was just the beginning of their transformation.

Automate Repetitive Tasks with AI-Driven Tools

If your team is still manually entering data, you’re leaving money on the table. Studies show that AI-based business process reengineering tools can lead to a 20-35% productivity boost. Automating isn’t about replacing people—it’s about freeing them for higher-value work.

Here’s what you can automate right now:

• Accounts payable/receivable: Tools like Bill.com or QuickBooks can reduce processing time by 80%
• Inventory management: Platforms like NetSuite or Zoho can track stock levels without manual counts
• Employee onboarding: Systems like BambooHR can standardize the experience for every new hire

One retail client I worked with implemented workflow automation best practices and cut their invoicing process from three days to three hours. This aligns with broader workflow automation and productivity gains documented across industries.

From My Experience: “After automating our accounts payable process, our month-end close time went from 10 days to just 48 hours. The team now spends their time analyzing data instead of inputting it—a much better use of their talents and training.”

Redesign Processes Around Customer Outcomes

Your business exists to serve customers—not internal red tape. I’ve helped dozens of companies rebuild their processes with clients at the core, and the results speak for themselves.

Start by creating a continuous feedback loop:

• Set up Voice of Customer (VoC) surveys after key touchpoints
• Analyze CRM data to spot service gaps and friction points
• Map the buyer’s journey from first contact to repeat purchase

IBM transformed their approach with customer-first process redesign and saw improved retention, simplified workflows, and better sales conversion. You don’t need IBM’s resources to follow their lead.

A small e-commerce client of mine redesigned their return process based on customer feedback. Instead of requiring customers to call for return authorization, they created a self-service portal. Returns actually decreased by 12% because the transparency built customer confidence, and their satisfaction scores jumped 28%.

Optimize Supply Chains with Predictive Analytics

Too much inventory ties up cash. Too little means missed sales. The solution? Inject predictability into your supply chain with analytics.

Tools like Kinaxis and SAP IBP help you:

• Forecast customer demand based on historical patterns and market trends
• Optimize shipment timing and inventory levels to reduce carrying costs
• Identify weak links in your vendor network before they cause disruptions

I’ve seen the power of operational efficiency in manufacturing workflows transform businesses. One distribution client reduced their inventory by 31% while improving order fulfillment by using predictive analytics to fine-tune their stocking levels.

Consider Procter & Gamble’s approach—they saved over $2 billion by reengineering their logistics with real-time analytics and demand forecasting. Your savings might not reach billions, but the percentage impact on your bottom line could be just as significant.

Foster Agile Teams Through Cross-Functional Tools

Even the best process redesign will fail without the right team culture to support it. You need agile, empowered teams that can adapt quickly as conditions change.

To build this culture:

• Use collaborative tools like Trello, Asana, or Airtable to keep projects in sync
• Train key staff in Lean Six Sigma methods for continuous improvement
• Empower teams to suggest and implement process refinements

Research shows that agile team structures improve operational efficiency and innovation when properly implemented. Honeywell’s TotalPlant program trained hundreds of employees on real-time performance monitoring and saw productivity surge dramatically.

In my own company, we hold weekly “process improvement power hours” where team members can suggest workflow refinements. This practice has generated some of our most valuable operational improvements and helps everyone feel invested in our efficiency journey.

Overcome Resistance: A Change Management Playbook

Let’s talk about the elephant in the boardroom—resistance to change. Many guides skip this, but after two decades helping companies transform, I know this is where many improvement efforts die.

Here’s what consistently works:

• Schedule “listening tours” before any changes—it’s about co-creation, not top-down mandates
• Turn learning into a game—Honeywell linked pay to performance metrics and saw morale skyrocket
• Host “innovation hours” after implementation where teams can suggest improvements to the new system

People don’t resist change—they resist being changed. Bring them into the process early, listen genuinely to their concerns, and they’ll often become your strongest advocates for improvement.

Conclusion

Improving business processes isn’t optional in today’s competitive landscape—it’s how you stay viable and grow. Whether you’re mapping workflows, automating routine tasks, or redesigning around customer needs, each step brings you closer to a leaner, smarter operation.

The companies I’ve seen thrive don’t treat process improvement as a one-time project but as an ongoing commitment to excellence. They build the tools, teams, and mindset needed for continuous evolution.

Ready to transform your operations? Visit Complete Controller to learn how our team can help you design and implement streamlined, scalable business processes that drive growth and profitability.

FAQ

How long does business process reengineering typically take to implement?

Expect 3-12 months for full implementation. Small businesses can see results from targeted improvements in as little as 6-8 weeks, while enterprise-wide changes often take 9-12 months. Honeywell’s employee retraining alone ran six weeks, but they saw initial benefits within the first month.

What’s the biggest mistake companies make when reengineering business processes?

Skipping stakeholder buy-in is the #1 killer of process improvement initiatives. Ford Motor Company avoided this pitfall by involving employees at all levels in their accounts payable redesign. This approach allowed them to reduce staff by 75% through natural attrition and reassignment rather than layoffs.

Is business process reengineering only for large companies?

Absolutely not. Small businesses and solopreneurs often see the fastest results because they can implement changes quickly. Start with high-impact areas like automating your invoicing, streamlining your CRM workflows, or optimizing your customer onboarding process.

How do you measure the success of business process reengineering?

Track specific metrics before and after implementation. Key indicators include cycle time (how long processes take), error/rejection rates, customer satisfaction scores, employee productivity, and cost per transaction. Set clear baselines and goals for each metric.

What are the best tools for small businesses starting process improvement?

Start with accessible tools that offer quick wins. Zapier connects your existing apps for simple automation. Miro or Lucidchart work well for visual process mapping. Trello helps organize workflow steps. QuickBooks or Xero automate financial processes. Choose tools that integrate with your existing systems.

Sources

• ActivTrak. (2024, August 5). 8 Workflow Optimization Strategies. https://www.activtrak.com/workflow-optimization-strategies
• Cflow. (2025, April 2). Business Process Management Statistics 2025. https://www.cflowapps.com/business-process-management-statistics/
• Cflow. (2025, April 2). Honeywell – Business Process Reengineering Examples. https://www.cflowapps.com/business-process-re-engineering-examples/
• Cognitive Market Research. (2025). Global Business Process Re Engineering Market Report 2025. https://www.cognitivemarketresearch.com/business-process-re-engineering-market-report
• IBM. (2024, April 25). Business Process Reengineering Examples. https://www.ibm.com/topics/business-process-re-engineering
• Insights.co. (2025, February 23). Business Process Re-engineering Implementation Guide 2025. https://insightss.co/blogs/how-business-process-re-engineering-is-implemented/
• McKinsey & Company. (n.d.). Harnessing Automation for a Future that Works. https://www.mckinsey.com/featured-insights/digital-disruption/harnessing-automation-for-a-future-that-works
• MIT Sloan. (n.d.). The Challenges of Sustaining Innovation Through Agile. https://sloanreview.mit.edu/article/the-challenges-of-sustaining-innovation-through-agile/
• Proven Consult. (2024, April 18). 20 Insightful Business Process Reengineering Examples. https://www.provenconsult.com/business-process-re-engineering-examples
• RubinBrown. (2025, February 22). Rethinking Business Process Improvement in 2025. https://kpcteam.com/kpposts/rethinking-business-process-improvement-in-2025
• SixSigma Institute. (2025). Business Process Reengineering with Examples. https://www.sixsigma-institute.org/business-process-reengineering
• Wikipedia. (n.d.). Business Process Mapping. https://en.wikipedia.org/wiki/Businessprocessmapping

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

By: Jennifer Brazer

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

Fact Checked By: Brittany McMillen

Blockchain Technology: Transforming Business Across Industries in 2024

Blockchain technology isn’t just about Bitcoin anymore — it’s quietly rewriting how the world does business. I’ve seen firsthand how companies in finance, healthcare, and logistics are using it to solve real-world problems — and if you think it’s all hype, you’re already behind. With over 83 million blockchain wallet users worldwide, this technology has moved far beyond theory into practical application. In this guide, I’ll walk you through how blockchain is changing major industries in 2024 and where it’s heading. Whether you’re a curious beginner or a tech-savvy professional, there’s something here you can use.

Key Takeaways

• Blockchain technology offers secure, transparent, tamper-resistant solutions across industries like finance, healthcare, and logistics.
• Smart contracts automate agreements, reducing fraud and manual errors.
• Blockchain applications in supply chain management allow real-time tracking and authentication of goods.
• Healthcare organizations use blockchain to securely store and share patient data, ensuring privacy and data accuracy.
• Governments and real estate sectors are adopting blockchain to cut fraud, reduce paperwork, and improve public trust.

What is Blockchain Technology?

At its core, blockchain technology is a decentralized digital ledger. Transactions are recorded in blocks, timestamped, and linked in a chain — think of it like an open notebook that gets more secure the more people write in it.

Here’s what makes it different:

• 🔐 It uses how blockchain works and cryptographic algorithms to protect each transaction.
• 🧩 It lives across multiple computers — no single point of failure.
• ✅ Once recorded, information can’t be altered without consensus.

But let me be clear — blockchain is not just about crypto coins. The real power lies in its ability to create trust in untrusting environments — and that opens up doors in nearly every industry. With over 83 million blockchain wallet users worldwide as of 2022, the technology is gaining significant traction across sectors.

Blockchain in Finance: Speed, Security, and Inclusion

I’ve worked with fintech teams who used to spend hours clearing transactions — until they brought in blockchain.

Here’s how it’s transforming money:

• 💸 Instant settlements: No more waiting days for international payments.
• 🧾 Smart contracts in insurance: Claims are processed and verified automatically, without human bias or delay.
• 🌍 Financial access: Peer-to-peer networks allow the unbanked to transact securely using only a smartphone.

The impact is huge — in March 2023 alone, there were 336,600 Bitcoin transactions conducted each day, with 85 million Bitcoin block explorer users. These aren’t just numbers; they represent real people using blockchain applications in finance for faster, cheaper, and more secure transactions.

Blockchain’s potential to reduce banks’ infrastructure costs by 30% (over $10 billion annually) is driving major financial institutions to adopt this technology. Even the FBI owns 1.5% of the world’s total bitcoins, showing how mainstream institutions are engaging with cryptographic algorithms and blockchain-based assets.

Digital currencies like stablecoins and Central Bank Digital Currencies (CBDCs) are also gaining traction, proving that blockchain isn’t a fringe experiment — it’s the new foundation for global finance.

Blockchain in Supply Chain Management: Track Everything, Trust Everyone

Imagine being able to trace your coffee from the farm to your cup. That’s not wishful thinking — companies like IBM and Maersk have already made it a reality using blockchain.

🔍 With blockchain technology in supply chain management, you get:

• Real-time tracking of products at every step
• Verification of authenticity (no more counterfeit goods)
• Instant detection of disruptions or delays
• An immutable record of supplier performance

For example, a shipment of mangoes that once took 7 days to trace through the supply chain can now be tracked in 2.2 seconds with blockchain. This level of transparency doesn’t just save time—it builds consumer trust, reduces waste, and cuts costs throughout the entire supply network.

If transparency is power — blockchain gives it back to consumers and businesses alike.

Blockchain in Healthcare: Data Security You Can Trust

Healthcare and privacy don’t always go hand-in-hand. But they should.

Blockchain is helping hospitals and clinics:

• 🧬 Securely store and share patient records without risking leaks
• 💊 Prevent prescription fraud through tamper-proof tracking
• 🌐 Coordinate patient care across providers without needing paper trails

By 2025, 55% of healthcare applications are expected to adopt blockchain for commercial deployment. This isn’t just a technical upgrade—it’s a fundamental shift in how sensitive medical data is handled. With healthcare data breaches costing an average of $9.23 million per incident, blockchain’s immutable and encrypted nature provides a compelling solution.

The investment is significant—blockchain in healthcare may cost $5.61 billion by 2025—but the returns in patient safety, operational efficiency, and data security make it worthwhile. When every second counts, blockchain ensures the data is accurate, private, and available when needed.

Blockchain in Real Estate: No More Middlemen

Transferring property can feel like a bureaucratic maze. But what if I told you blockchain could turn that months-long mess into a simple, verified process?

🏡 Here’s what it improves:

• Cuts out costly intermediaries like brokers and title agents
• Digitally verifies ownership records
• Reduces fraud with tamper-proof contract execution

In Sweden, the government is piloting a blockchain-based land registry that could save over $100 million per year. That’s not theory — that’s happening now. This system is streamlining property transactions so they can close in days instead of months, while dramatically reducing the risk of title fraud.

For buyers and sellers, this means lower costs, faster closings, and greater confidence in property rights—real benefits that improve one of life’s most significant financial transactions.

Blockchain in Government Services: Trust in Transparency

We don’t often associate tech innovation with government efficiency. But blockchain is flipping that script.

Governments are exploring blockchain for things like:

• 🗳️ Voting systems — secure, auditable, and tamper-resistant
• 🆔 Identity verification — fast and fraud-proof
• 📁 Managing public records — from licenses to tax receipts

India has already begun large-scale blockchain deployments for identity verification and public record management, enhancing public trust and efficiency in government services. Estonia’s e-government system uses blockchain to secure 99% of its public services, allowing citizens to vote, pay taxes, and access healthcare information online with confidence.

When citizens can verify, audit, and trust processes — public confidence goes up, corruption goes down, and government services become more efficient for everyone.

Real-World Case Study: Sweden’s Blockchain Land Registry

Let’s look at Sweden — a country pushing the boundaries of governance technology. Its Land Registry is using blockchain to speed up property transactions. Instead of months, deals could close in days. And the government projects saving $106 million per year doing it.

The system works by creating an immutable chain of title transfers, each verified by multiple parties and permanently recorded. This eliminates the need for paper documents that can be lost or forged, reduces title insurance costs, and creates absolute certainty about who owns what property.

It’s not just innovation for innovation’s sake — it’s solving long-standing public inefficiencies, with real dollars (and trust) on the line.

Future of Blockchain Technology: What’s Next?

We’re just getting started. The global blockchain market is expected to reach $1,431.54 billion by 2030, growing at a CAGR of 85.9% from 2022 to 2030. This explosive growth reflects how blockchain is moving from experimental technology to essential business infrastructure.

In 2024 and beyond, expect deeper integration with:

• 🤖 Artificial Intelligence for predictive automation
• 📡 Internet of Things (IoT) devices for secure, hands-free communication
• 🌐 Web3 platforms that move power from corporations to individuals

Worldwide spending on blockchain solutions is expected to reach $19 billion by 2024, showing strong commercial confidence in this technology. The future of blockchain technology will likely see it become invisible but essential—integrated into everyday business operations without users even realizing it’s there.

If blockchain was the backbone, these technologies are the nervous system. The future of blockchain technology is interactive, intelligent, and more human-centered than ever before.

Conclusion: You Can’t Afford to Ignore Blockchain Anymore

Blockchain technology isn’t a buzzword — it’s a business tool. From cutting fraud in finance to creating traceable supply chains to ensuring privacy in healthcare — the benefits of blockchain technology are becoming too big to ignore.

If you’re thinking, “How can I apply this?” — that’s exactly where you should be. Whether you’re managing logistics, patient records, or municipal data — opportunities to implement blockchain are closer than you think.

Don’t wait until your competitor gets there first.

Ready to future-proof your business? Explore more insights and expert strategies with us at Complete Controller — let’s innovate where it matters.

FAQ

What exactly is blockchain technology, and how does it work?

Blockchain is a digital system that records information in a way that makes it nearly impossible to change or hack. It works by storing data in “blocks” that are linked together and copied across a network of computers. When new information is added, it’s verified by multiple computers before becoming permanent. Think of it like a digital ledger that everyone can see but nobody can alter without agreement from the network.

How is blockchain different from traditional databases?

Unlike traditional databases controlled by one organization, blockchain is decentralized—meaning it’s stored across many computers with no single point of control. Once information is added, it can’t be changed or deleted without consensus from the network. Traditional databases can be modified by whoever controls them, making blockchain more secure for situations where trust and transparency are crucial.

What industries benefit most from blockchain technology?

Finance sees immediate benefits through faster payments and reduced fraud. Supply chain management uses blockchain to track products from source to consumer. Healthcare organizations secure patient data while allowing appropriate sharing. Real estate reduces paperwork and speeds up property transfers. Government services increase transparency and reduce corruption through blockchain adoption.

Is blockchain only useful for cryptocurrency?

No. While blockchain first gained attention through Bitcoin, its applications go far beyond cryptocurrency. Any industry that needs secure record-keeping, transparency, or trust between parties can benefit—from tracking medicine authenticity to verifying academic credentials to managing digital identities.

How can small businesses start using blockchain technology?

Start small with specific problems blockchain can solve, like supply chain verification or secure customer records. Consider blockchain-based payment systems to reduce transaction fees. Look into industry-specific blockchain platforms rather than building your own. Partner with blockchain service providers who offer ready-to-use solutions. Focus on tangible business benefits rather than adopting blockchain just for its novelty.

Sources

• Acropolium. (2023). “8 Blockchain Use Cases in Key Industries | 2025 Guide”
  • https://acropolium.com/blog/blockchain-use-cases/
• Chainalysis. (2023). “The 2023 Global Crypto Adoption Index”
  • https://www.chainalysis.com/reports/global-crypto-adoption-index-2023/
• Deloitte. “Future of Blockchain Technology”
  • https://www2.deloitte.com/us/en/pages/consulting/articles/future-of-blockchain.html
• Dig.watch. (2023). “Blockchain in 2024 | Main Developments and Trends”
  • https://dig.watch/trends/blockchain
• E3S Web of Conferences. “Blockchain Technology: Applications and Challenges in Computer Science“
  • https://www.e3s-conferences.org/
• Emeritus. (2023). “Top Blockchain Trends 2023 That Will Dominate the Tech Industry”
  • https://emeritus.org/blog/technology-blockchain-trends/
• IBM. “Blockchain in Supply Chain”
  • https://www.ibm.com/blockchain/industries/supply-chain/
• Market.us Scoop. (2023). “Blockchain Statistics and Facts (2025)”
  • https://market.us/statistics/blockchain/
• NIST. “Cryptography”
  • https://www.nist.gov/topics/cryptography
• Oxford Corp. (2023). “Blockchain Technology Is Stepping Up in 2023”
• Rapid Innovation. (2023). “Blockchain Technology: Applications, Challenges, and Future Insights 2023”
• SoftLedger. (2023). “Blockchain Applications in Business for 2023”
  • https://www.softledger.com/blog/blockchain-applications
• Statista. (2023). “Blockchain technology market size worldwide 2032”
  • https://www.statista.com/statistics/blockchain-market-size/
• Sweden.se. “Blockchain Land Registry”
  • https://www.sweden.se/life/society/blockchain-land-registry
• U.S. Department of Health & Human Services. “Blockchain”
  • https://www.healthit.gov/topic/scientific-initiatives/blockchain
• Wikipedia. “Blockchain”
  • https://en.wikipedia.org/wiki/Blockchain

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

In the ordinary world, we are used to keeping money in a wallet, and if we draw an analogy between paper money and cryptocurrencies, they will have a lot in common. It means that you must also store bitcoins in the wallet. However, if a regular wallet can have only a few parameters and is intended only for storing money, then in bitcoin wallets, everything is somewhat more complicated. There are several brands of hardware wallets on the market, and the list is constantly growing. You may ask why we consider the options above the best hardware wallets. First, these are some of the oldest hardware wallets on the market. They are also the most used wallets around the world. In short, these are brands and models that have proven themselves in the market. We analyzed certain aspects of these hardware wallets, including cost, user experience, supported cryptocurrencies, security, and others. According to the type of storage of bitcoins, they can be divided into hot and cold, by the kind of storage of private keys – custodial and non-custodial, and by the type of installation – into local, mobile, hardware, browser, and paper. In this writing, we will attempt to understand all aspects of bitcoin wallets so that you can create a secure place to store your digital assets.

What Is a Bitcoin Wallet?

In essence, a bitcoin wallet is an application with which you can store bitcoin. Although, to be honest and accurate, it is not physically held anywhere – users are given data that provides access to their account. Depending on the type of wallet, this data can be a standard email + password pair, a private key, or a seed phrase; we have already talked about it here. The primary purpose of a wallet is to store and be able to send and receive bitcoins from other people. In principle, everyone who is somehow connected with cryptocurrencies receives payment in bitcoins, trades on cryptocurrency exchanges, etc., must have such a wallet. Before creating a bitcoin wallet, let’s study each type of wallet in more detail.

Hot Wallet vs. Cold Wallet

The contrast between a hot wallet & a cold wallet is that a hot wallet works when linked to the Internet, while a cold wallet can work without it. Hot e-wallets are less secure, as there is a risk of your data being stolen over the Internet. However, they are more in demand among users. Cold e-wallets are used for cold storage of cryptocurrencies, so they are more secure. Which bitcoin wallet you use is up to you – if you often make small transactions, then a hot wallet is suitable for you, and if you need to store large amounts for an extended period, then it is better to use a cold wallet.

Custodial Wallet VS Non-Custodial Wallet

The essence of custodial wallets is that they do NOT give you access to their private key but store it on their centralized server. Often, such a solution is provided by cryptocurrency exchanges, but there are also several cryptocurrency wallets – Crypto Pay and Blockchain.info. This explanation benefits you can restore access to your account via mail if the password has been lost. Minus – your account may be frozen. In case of intervention to unfreeze, you may be asked to undergo KYC. Also, you can lose money during hacker attacks, which have been a very popular event lately.

Non-custodial e-wallets work the other way around – they give you complete control over your private keys without using a server. Of these wallets, the Trustee Wallet has gained popularity among users, but others are also. A huge plus of this explanation is that the funds belong only to you. No one else can get hold of them without your seed phrase. However, this is also a minus of such a wallet because if you lose your key, then you can no longer return access to it. For example, if you crashed your computer or lost your smartphone, you can only restore access using the seed phrase given to you when you open an account. Therefore, we recommend storing your seed phrase NOT on your mobile device but separately in a safe place.

Local Wallet

A local (desktop) wallet is an application installed on a desktop computer or laptop. This kind of wallet is one of the most difficult for users, but at the same time, it has the best indicators for security and anonymity. You should note that they are often used by actual crypts or companies that produce developments on the blockchain. Desktop e-wallets can be divided into thin and thick. The bitcoin hardware wallet is a separate device that looks like a flash drive. Such a blockchain wallet is used for “cold” storage of bitcoins and connects to the Internet only when a transaction requires to be made. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

There are both positive aspects – for example, the Rural Mortgage state support program, which allows you to purchase a house in the village at 3% per annum, and difficulties: it is necessary to confirm the status of a residential facility, land ownership. Mortgage banking programs allow the purchase of housing in the secondary market. It is an affordable and common way to purchase your own home. Mortgage means issuing a loan secured by the acquired apartment. For the bank to approve a mortgage for secondary housing, you need to responsibly approach the choice of an object and the preparation of documents. Buying an apartment on the secondary market is different from a deal on the primary one.

Features Of a Mortgage for The Purchase

When applying for a mortgage on a private house, difficulties often arise, especially if the object was built more than 20 years ago and is in a rural area. During the past years, there has been a lot of unauthorized construction. The order of land use has changed. Not all owners had documents drawn up correctly: if, at the time of the conclusion of the contract, the land on which the house is found does not belong to the category of land of settlements, it is impossible to issue a mortgage on such real estate with homes built on the grounds of categories: Specially protected area, Special purpose, Defense or military purpose, purchase and sale operations are prohibited by law if the ownership of land or a house is not registered, it is registered for different people, or some of the documents are lost, you can obtain a mortgage after the documents are brought into line.

What Is Secondary Housing?

The secondary market includes all apartments that have an owner. It does not matter if he lives in this apartment or not. As soon as the house is put into operation and the owner has registered the right of ownership, the housing is automatically transferred to the second fund. No need to wait for the fulfillment of construction; you can move immediately after the execution of the contract of sale. You can also register right away: you can enroll in a polyclinic, register your children in a kindergarten or school at the place of registration, can receive social benefits without waiting. housing on the secondary market is in areas with developed infrastructure

Stages Of Obtaining a Mortgage for Secondary Housing

Bank Selection

Explore available mortgage programs: for military, large and young families, with the participation of maternity capital, with state support. Use the mortgage calculator and calculate its total cost.

Submission Of a Preliminary Application

When evaluating a potential borrower, banks consider credit history, solvency, age, and existing credit burdens. To get pre-approved for a mortgage, fill out an application on the bank’s website. The bank will consider the application within three days and make a preliminary decision.

Search For Housing and Collection of Documents

When an apartment is found, it is necessary to submit information about it to the bank and confirm the mortgage. You will need personal documents of the borrower, the seller, and documents for the apartment, including a contract of sale. At this stage, a property appraisal is carried out. For this, an independent expert is involved. The bank’s final decision will depend on the correctness of filling out the documents, the completeness of the package, and the reliability of the assessment of the property.

Risks When Buying a Second Home

State support programs for purchasing an apartment in a new building from 2021 to 2022 include the requirement to buy real estate from sure developers. The chances of making a deal with an evil company are minimized. But when purchasing an apartment in the secondary market, most of the responsibility lies with the borrower. He must carefully check the seller and the legal purity of the object. You can order a cleanliness check of the thing at the bank or insure the title – this will help avoid trouble if the seller is dishonest. If the selling agent becomes a scammer, the borrower will be left homeless, while you will need to continue to make payments on the loan.

Conclusion

When buying real estate in a mortgage on the secondary market, the technical characteristics of the object and the legal purity of the documents play an essential role. The higher the liquidity of real estate, the greater the chance of obtaining a mortgage loan. When dealing with houses, they also check the absence of encumbrances on housing and land. Like the land plot, the house should not be pledged or under court. Another factor is the recognition of the object as a safe residential building. The assessment considers the age of the house, wear and tear, the date of the last overhaul, and the condition of engineering networks and heating systems.

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.

When you’re close to retiring or have already retired, you want to protect everything you’ve worked so hard for. While some factors, including market fluctuations, are beyond your control, some actions can cause your nest egg to dwindle.

Here are a few ways to get into retirement trouble:

1. Ignoring Your Long-Term Strategy

It’s easy to get seduced by the allure of active markets and high returns. However, a long-term approach is considerably more appropriate for someone planning for retirement. Every day, the needs vary, and attempting to time them may cost you additional stress and possibly harm your finances. To avoid this trap, develop an investment philosophy based on your goals, personality, and risk tolerance. Then stick to it, regardless of what happens in the markets or the headlines.

According to a Dalbar study from 2015, when playing the market results in underperformance. In a panic, buying high and selling cheap diminishes your overall return and jeopardizes your retirement. Instead, what should you be concentrating on, refusing to ride the market roller coaster, and maintaining a long-term view and disciplined approach?

2. Borrowing from Your Retirement Savings

It happens more frequently than you may believe. According to the Transamerica Center for Retirement Studies, 23% of those questioned used their retirement savings to cover an unexpected bill.

In two ways, this conduct can lead to a reduction in retirement savings.

If you take out a 401(k) loan, the interest is taxed twice. While any money borrowed is tax-free, the interest on the loan is paid with after-tax dollars.

You are taxed again when you withdraw funds in retirement. You must also repay the loan within 60 days if you leave your employment or are dismissed, regardless of the borrowed amount. If you don’t, you’ll be subject to income tax and a 10% penalty if your income is less than $5,912. Except for specified conditions, early withdrawals from a traditional IRA are subject to a 10% penalty and taxes. Roth IRAs provide additional flexibility and allow you to withdraw contributions tax-free, but they come with long-term costs.

Second, and most significantly, when you take money out of your retirement account to pay off a debt or cover an obligation, you forfeit the opportunity for growth and compound interest.

Depending on your age, you may never be able to replenish your funds. Create an emergency savings account instead and tell yourself that your retirement funds are off-limits. While it may appear easy to use your retirement money in this manner, you are robbing your future retirement.

3. Failing to Take Required Minimum Distributions

If you reach the age of 7012, you must begin taking RMDs from your traditional IRA and employer-sponsored retirement accounts. You must follow the RMD guidelines regardless of whether you need the money when you reach this age. What happens if you don’t stick to your word? The IRS will charge you a 50% penalty for excess accumulation! It might drastically reduce your retirement funds. If you are obligated to withdraw $5,000 and do not, you will be responsible for $2,500. That was an unnecessary loss. To make matters worse, if you don’t have enough money in an emergency fund to cover the penalty, you may be forced to utilize your retirement funds to protect it, severely jeopardizing your financial future.

4. All your eggs in one basket

For this reason, diversification is one of the most widely discussed financial strategies. It safeguards your money from market fluctuations. While you can’t eliminate risk from your portfolio, you can mitigate the impact if things go wrong. You risk losing your retirement savings if you invest too much of your money in one stock or one sector of the economy. Combine that with global exposure, alternative assets, and a stock-light portfolio. Examine the overall picture of all your accounts, including those sponsored by your employer, and make sure you’re well-diversified.

5. Working Alone

If you don’t work with a reputable financial advisor, you could jeopardize your money. An adviser can assist you in sticking to a long-term goal, managing emotions, and providing invaluable assistance and advice. Our number one mission as independent financial advisors specializes in guiding people through their Second Growth phase of life, a time of protecting, building, and transferring money. It is to provide you peace of mind and the guarantee that you will meet your retirement needs. Contact one of our locations now for a friendly consultation to take the first step in preserving your hard-earned retirement resources.

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.

That is why it is essential to comprehend the benefits and drawbacks of debt financing. It is said that it “needs money to make money,” but it is also required to be able to “borrow inexpensively” to be successful.

The question then becomes which source of funding to seek to establish and expand its business: while there are many alternatives, we will focus on the bank loan here.

Debt financing is borrowing money from a moneylender or a bank to raise capital. Creditors must pay interest on borrowed funds in exchange for a loan.

Debt can be paid off, allowing small firms to stockpile merchandise, hire more employees, and buy real estate or equipment.

Benefits

One of the most practical benefits of debt financing is that you retain control of your company. When you accept a loan from a financial institution or an alternative lender, you must make timely payments throughout the loan.

On the other hand, suppose you give up ownership in the form of shares in exchange for funding. In that case, you are giving up a portion of your restaurant or business to an outside entity, who can then influence the future of your business based on their investment. It isn’t the best option if you want to be the sole master on board.

You benefit from tax deductions

Deductions from taxes are a significant advantage of debt financing. You can deduct this debt’s principal and interest payments from your business income taxes because it is classified as a business cost.

Low-interest rates are available

Credit cards, peer-to-peer loans, short-term loans, and other debt financing options may not be beneficial if interest rates are incredibly high. You can, for example, use bank rate comparators to compare the various interest rates offered by different banks.

You develop your credit history

Lack of financing or insufficient operational capital is one of the leading causes of business and restaurant failure.

If you want to get long-term, low-cost debt financing, you’ll need a good credit history. As a result, the chance to improve your business credit history is a significant benefit of taking out a loan.

Long-term debt can eradicate reliance on expensive debt

Specific lenders employ high-pressure sales tactics to get firms to take up short-term loan advances. It’s not unusual for firms in desperate need of cash to take out five or six cash advances in a run.

This method can trap a borrower in a never-ending debt cycle. To prevent becoming trapped in a cycle of constant borrowing, search for a loan with low-interest rates, long periods, and affordable monthly payments.

Disadvantages

You must reimburse the lender (even if your business goes bankrupt)

The guidelines for operating with a lending institution are relatively straightforward. You must refund the loan according to the terms agreed upon, and it means you must make payments even if your company goes bankrupt. Because most lenders require collateral, you may liquidate your assets to repay your obligation.

High rates

Predatory lenders exist, and their methods for luring naïve small company owners are becoming more sophisticated.

Some unethical lenders utilize measures other than the APR (annual percentage rate) to hide the exact cost of a loan. Although this tendency is not specific to debt finance, it is worth noting. Work with a lender who is evident and provides you with accurate information. Know your loan’s APR and payment and compare them to the original sum.

You will need a guarantee

Collateral is one of the “5 Cs” of lending, described as a secondary source of loan repayment that you can utilize to ensure the lender.

If a bank may sell an asset for cash, it is considered collateral. Equipment, structures, and (in some situations) goods may be deemed enough collateral.

Collateral helps lenders mitigate risk and is required for many types of loans. The quantity of collateral a borrower must furnish is usually proportional to the loan amount. Some borrowers consider this to be a disadvantage.

If you’ve concluded that more money will help you grow your company, you should think about the advantages of debt financing.

All debt is the same. So, work to keep your credit score high to acquire the best interest rate and more extended payback periods, which will boost your chances of staying in business.

If debt financing is one of your options for expanding your company, you’ll need a versatile and adaptive checkout solution to handle your point of sale and save money over time. Contact our experts right away to learn how Lightspeed can assist you.

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

By: Jennifer Brazer

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

Fact Checked By: Brittany McMillen

Key Factors That Determine Business Price: An SMB Guide

The key factors that affect business pricing include your costs of goods sold, what your competition is doing, customer demand, how much customers think your product is worth (value perception), your brand’s image, the economy, rules and laws, and smart ways to use psychology in pricing. For small and medium business (SMB) owners, understanding these parts helps you set prices that make you money while keeping customers happy. It’s a big decision! Price too high, and customers might walk away. Price too low, and you won’t make enough profit to help your business grow. Many entrepreneurs struggle with this. They either don’t charge enough or price themselves right out of business. This guide will help you figure out the best price for what you offer.

So, what influences your prices and how does it affect you as an SMB owner?

• Your costs tell you the lowest price you can charge and still make money.
• What your competitors charge gives you an idea of what customers expect.
• How much customers value what you offer shows how much more than your basic costs they might pay.
• Things like the economy or new laws can force you to change your prices, no matter what you planned.

Understanding Your Cost Structure

Knowing your costs is the first step in any smart pricing plan. Before you decide on a price, you need to know exactly what it costs to make your product or offer your service.

Direct costs are things like:

• Materials needed to make your product.
• Wages for workers who directly make the product or do the service.
• Shipping and packaging.
• Fees for processing payments (don’t forget these!).

Indirect costs are just as important:

• Overhead like rent, electricity, and insurance.
• Marketing and ads.
• Salaries for office staff.
• Software and tech costs.

Businesses can actually lose money on some items because they didn’t add up all these costs. For example, a business might find out they were paying almost 4% in credit card fees on items with small profits, which wiped out their earnings on those sales! After a full cost-plus pricing methodology check, they could fix their prices.

Your price also needs to include the profit you want. Most businesses that last aim for at least a 10-15% profit. Without that extra, it’s hard to handle surprises or grow your business.

Analyzing the Competitive Landscape

Your business isn’t alone. You have to look at what your competitors charge for similar things.

You can generally choose one of three spots with your prices:

• Premium pricing: Charge more than others by showing your product is better or has special features.
• Competitive pricing: Charge about the same as others, but compete with great service or by making things easy for customers.
• Economy pricing: Charge less than others but still offer good quality.

Which way to go depends on what makes your business special and who you’re trying to sell to. If you charge more, you need to clearly show why you’re worth it. If you charge less, you need to be sure you can still make a profit. Many small businesses try to beat competitors by just charging less. But price isn’t always why people buy. Sometimes, good quality or service matters more. Using essential marketing strategies to help grow your business can show customers what makes you great, besides your price.

Measuring Customer Value Perception

What customers think your product or service is worth can be more important than your actual costs. This “perceived value” comes from:

• The problems you solve for them.
• The time or money they save.
• Good feelings or making them feel special.
• Less risk or more peace of mind.

Value-based pricing strategies use this idea. You connect your price to the benefit the customer gets, not just your costs. For example, accounting software might not cost much to run, but if it saves a business owner 10 hours of work each month, that’s huge value and means it can have a higher price. Talking to customers about the benefits they get and putting a number on the time or money they save can help show this value.

Responding to Market Demand Dynamics

The old rule of supply and demand is still key for pricing. If lots of people want something and there isn’t much of it, prices go up. If there’s plenty of something but not many people want it, prices go down.

For SMB owners, this means your prices should change with:

• Busy and slow seasons.
• Whether your industry is growing or shrinking.
• Changes in how customers shop.
• Problems getting supplies.

A smart move can be dynamic pricing. For example, a garden store might slightly raise prices on lawn care items right after a rainstorm because that’s when customers are most ready to buy. Even small businesses can use this idea by planning for seasonal changes or offering special deals during slow times.

Aligning Pricing with Brand Positioning

Your price should match your brand. If you’re a luxury brand, low prices can make you look cheap. If you’re a budget brand, high prices won’t work.

Think about it:

• Premium brands: Higher prices match the idea of top quality.
• Value brands: Medium prices show a good mix of quality and cost.
• Budget brands: Low prices get customers who mostly care about saving money.

How you show your prices also matters. Premium brands often have simple, clean pricing. Budget brands might show lots of discounts. Sometimes, changing how a business is seen (its brand positioning) and adjusting prices to match can actually improve customer loyalty if the price better reflects the true value provided.

Navigating Economic and Regulatory Pressures

Some things that affect your prices are outside your control. These include:

• The economy (is it good or bad? Are prices going up everywhere?).
• Industry rules and the costs to follow them.
• Tax laws.
• Problems getting materials or goods.
• Changes in the job market.

If your costs go up because of inflation, you have to decide: do you pay those higher costs yourself, or do you raise your prices? If the economy is slow, selling more might be more important than making a big profit on each item. New rules can also add costs. For example, new data privacy rules might mean you need expensive new software, and that cost has to be part of your pricing. Knowing how to handle things like sales tax and maximizing home business tax benefits is super important. It can stop you from making pricing mistakes that hurt your profits or get you into trouble.

Leveraging Psychological Pricing Strategies

It’s interesting how our brains look at prices! Understanding psychological pricing and consumer behavior can make a real difference.

Here are a few common tricks:

• Charm pricing: Ending prices in 9 or 7 (like $19.99 instead of $20). People often round down!
• Prestige pricing: Using round numbers for fancy items ($500 instead of $499).
• Anchoring: Showing a high-priced item first makes others look cheaper.
• Bundle pricing: Selling a few products together for a slight discount makes it feel like a good deal.

Studies show that using .99 at the end of a price can boost sales. Also, how you show the price matters. Smaller writing for the price, or even taking away the dollar sign, can sometimes make people less focused on the cost. Testing different ways to show prices can reveal that small changes can really add up.

Creating Effective Price Segmentation

Not all customers see value the same way, and not everyone can pay the same price. Price segmentation means you offer different prices to different groups. This helps you sell to more people.

You can group customers by:

• Their size (like a person vs. a big company).
• How much they use your product (light, medium, or heavy users).
• When they buy (early birds vs. last-minute).
• Where they are located.

A good tiered pricing system, like offering Basic, Pro, and Premium plans, lets you get the most from each group. Each level should offer fair value for its price, and it should be easy for customers to see which one is right for them.
Pro Tip: One accounting service increased revenue by 40% by introducing industry-specific pricing tiers, charging higher rates for clients in complex regulatory environments while maintaining competitive rates for simpler businesses. Make sure your higher tiers include everything from the lower ones!

Avoiding Common Pricing Mistakes

Business owners sometimes make the same pricing oopsies over and over:

• Pricing too low because you’re not sure: New owners often don’t feel confident, so they charge too little.
• Forgetting some costs: If you miss indirect costs, you might think you’re making money when you’re not.
• Copying competitor prices without thinking: Your costs and value are unique. Just matching others can be a disaster.
• Not changing prices for too long: If you’re scared to raise prices, rising costs will slowly eat up your profits.
• Too many discounts: If you always have sales, customers will just wait for them, and your regular price won’t seem real.

The biggest mistake? Thinking of pricing as just numbers, not marketing. Your price says a lot about your brand and quality. I once worked with a consultant who tripled her rates and found that not only did she attract better clients, but they actually implemented her recommendations more consistently – the higher price created greater commitment to the process.

Your Pricing Journey: An Ongoing Process

Great pricing isn’t something you do once and forget. It’s a journey that needs regular check-ups. Look at your costs, competitor prices, and what customers are saying at least every three months. This doesn’t mean you change prices that often, but you should always be checking if you need to.

Remember to tell your customers clearly why prices are changing, especially if they’re going up. If they understand it’s because of better value or rising costs, they’re usually okay with it.

Setting the right prices can feel tricky, but by understanding these factors and regularly reviewing your strategy, you can find that sweet spot. Mastering your pricing is a powerful step in your journey as a small or medium-sized business owner, helping you build a strong, profitable business that your customers love and that truly supports your dreams. If you’re looking for more expert advice like this to guide you, visit the team at Complete Controller. You’ve got this!

FAQ 

What are the most important factors when deciding a price?

The most important factors usually include your total costs to make and sell the product (so you make a profit), what your competitors are charging, how much customers are willing to pay based on the value they feel they get, and current market demand.

How do my business costs affect my pricing?

Your costs set the lowest price you can charge without losing money. You need to cover all direct costs (like materials and labor) and indirect costs (like rent and marketing) and then add a profit margin on top to get your final price. If your costs go up, you may need to raise your prices.

Why should I care about my competitors’ prices?

Competitors’ prices give you a benchmark. Customers will often compare your prices to theirs. You don’t always have to match them, but you need to understand how your price and product value compare, so you can explain why your price is fair.

How often should I review my prices?

It’s a good idea to formally review your pricing at least once a quarter. You should especially check them if your costs change a lot, if competitors make big price changes, or if you notice big shifts in customer demand. You might not change them every quarter, but regular reviews help you stay profitable.

How do I set a price for a brand new product?

For a new product, first calculate all your costs. Then, research what similar products sell for. Think about the special value your new product offers – does it solve a problem better or offer unique features? You might start with a special introductory price to get early customers or price it based on the high value it offers from the start. Getting feedback from potential customers can also help.

Sources

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• Earnest & Associates. (2025). Manufacturing Tomorrow:Value-Based Pricing Study.
• Expensify. (2023). 10 Pricing Strategies for SmallBusinesses.
• Harvard Business Review. (2024). Value-Based Pricing ImpactAnalysis.
• International Data Corporation. (2025). Smartphone MarketAnalysis Report.
• Investopedia. (2024). Psychological Pricing Guide.https://www.investopedia.com/terms/p/psychological-pricing.asp
• Journal of Small Business Management. (2023). DynamicPricing During Economic Crisis.
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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 can utilize the balance sheet to understand this financial structure’s uses and financing methods.

Financial structure: a significant indicator

The financial structure allows the proportion of financial debt and equity to be calculated. In other words, the debt-to-equity ratio.

This structure can change. It is determined by the financial limits imposed by the nature of the companies’ activities and the investment decisions made by their management.

The financial structure analysis allows you to do things like:

• Evaluate the danger of failure
• Examine the job and resource stability

There are two types of jobs: temporary jobs related to the company’s activity, such as acquiring intangible, material, or financial resources, and permanent jobs related to the company’s activity, such as operating expenses, financial expenses, etc. Financial resources include shareholders’ equity and net debt.

Because it shows the accounting balance of resources and their utilization, a company’s balance sheet is the most excellent representation of its financial structure.

The balance sheets

It is shown as a two-part table, with the correct part titled “liabilities or resources” and the left section titled “assets or jobs.”

The assets represent the company’s capital (liabilities) and its intended use (destination).

The obligation represents the source of the funds needed to fund the assets.

• Debt/equity and financial structure

Choosing a financial structure for a business boils down to choosing between debt and equity.

• Debt

Debt has two functions:

• Debt provides for the compensation of the difference between income and disbursements and the financing of working capital requirements
• In the case of long-term debt, fund an investment that will be repaid by future income

• Equity

These are the financial resources available to a business (excluding debt). These capitals include:

• Social capital
• Legal and statutory concerns
• Yet another postponement

• Negative equity

A company’s value is negative when its equity (or equity) falls below half of its share capital. The company’s legal representative must then call a meeting within four months of the annual general meeting to endorse the accounts for the fiscal year in deficit and decide the company’s fate.

Own funds: calculation methods

Equity includes:

• Social capital
• Accumulated reserves
• Carryovers (credits or debts)
• Paid issue premiums
• Exercise outcome

Consequences of negative equity

When equity falls below half of the share capital, the corporation (theoretically) loses the ability to fund its investments and operations.

The following are two options:

• Dissolve the corporation
• Continue the business for another two years to re-establish the regulatory quantity of equity

This judgment must be published in a medium that is permitted to receive legal announcements (press publishing or online press service) and registered in the Kbis in both situations (official document attesting to the legal fact of a commercial enterprise in America).

Financial structure: choice

A company’s financial structure refers to the proportion of bank loans and equity it uses to fund its operations.

You can utilize the balance sheet to understand this financial structure’s uses and financing methods.

The cost of financing is meant to purchase an asset whose profitability must exceed the profitability of this resource for the business to be profitable.

Several factors will influence the decision between debt and equity. Among the most important are:

• The rate of interest (low rates encourage debt)

The situation of shareholders can choose between using stock to protect the company’s independence or using debt. On the other hand, select borrowing to prevent capital growth that they could not sustain, and so on.

Stout frequently assists customers in obtaining the capital they require to pursue expansion prospects, make acquisitions, or manage shareholder cash targets and recapitalizations.

Acquisition financing

Obtaining the necessary financing to execute an acquisition can be a complex undertaking. Stout balances the market across the entire equity structure using the most competitive terms. We also ensure that the financial structure is flexible enough to satisfy the company’s future goals following the transaction.

Capital increase in cash

Entrepreneurs frequently require assistance in determining the feasibility of acquiring partial funding for their company while actively involved in management. We routinely work with instances where one shareholder wants to sell their stock while the others want to keep theirs. To complete these types of transactions, Stout assists companies with arranging debt and junior financing.

Growth opportunity funding

Many businesses require capital to take advantage of lucrative expansion prospects. Stout can uncover sources of money for various situations, including extending a product line/location or operating capital to scale a growing business.

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.