Author: Jennifer Brazer

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

Benefits of Bank Reconciliation: Secure Your Finances Today

Reconciling your bank statements is the essential process that aligns your financial records with bank transactions, creating a protective shield against errors, fraud, and cash flow problems. This verification step confirms that every transaction in your books matches what appears on your bank statement, giving you confidence that your financial data is accurate and complete.

I’ve spent over 20 years as the CEO of Complete Controller working with businesses across virtually every industry, and I can tell you with certainty: the companies that thrive are those that master financial fundamentals like reconciliation. Studies show that 82% of small business failures stem from poor cash flow management, often due to unreconciled accounts. In this article, I’ll show you exactly how proper reconciliation protects your business, streamlines your financial operations, and helps you make better strategic decisions with reliable data.

What are the benefits of bank reconciliation and why is it critical for financial security?

• Bank reconciliation detects fraud, ensures accurate financial reporting, improves cash flow management, and strengthens internal controls.
• Regular reconciliation acts as an early warning system for suspicious activities, potentially saving businesses thousands of dollars in fraud losses.
• The process identifies timing differences between when payments are recorded and when they clear the bank, providing a more accurate picture of available funds.
• Reconciliation supports regulatory compliance by ensuring financial statements reflect true cash positions.
• Modern automated reconciliation tools can reduce processing time by up to 75% while improving accuracy.

How Reconciling Protects Against Financial Threats

Bank reconciliation serves as your first line of defense against various financial vulnerabilities. By systematically comparing internal records against bank transactions, you create a verification system that catches discrepancies before they become major problems.

According to the Association of Certified Fraud Examiners, 41% of companies commit accounting violations annually. Without regular reconciliation, these issues can go undetected for months. For example, one of our manufacturing clients discovered unusual payment patterns during routine reconciliation that revealed an accounts payable clerk had been creating false vendor accounts and diverting funds. This early detection saved them over $45,000 in potential losses.

The reconciliation process identifies several types of threats:

• Unauthorized transactions
• Duplicate payments
• Missing deposits
• Bank errors
• Check alterations
• Digital payment fraud

Many businesses still rely on manual or partial reconciliation methods that miss subtle patterns of fraud. Modern approaches leverage automation to flag unusual activity based on historical patterns, making it much harder for fraudulent transactions to slip through.

Mastering the Reconciliation Process: A Step-by-Step Guide

The foundation of effective reconciliation process lies in establishing a systematic approach that works for your business size and transaction volume. While the core principles remain consistent, your implementation may vary depending on your specific needs.

The basic reconciliation workflow includes:

1. Gather Documentation: Collect your bank statements, accounting records, and transaction logs.
2. Compare Records: Match each transaction in your books with those on your bank statement.
3. Identify Discrepancies: Note any transactions that appear in one place but not the other.
4. Investigate Differences: Determine the cause of each discrepancy.
5. Make Adjustments: Update your accounting records to reflect any necessary changes.

Modern accounting software has transformed this once tedious process. Tools like QuickBooks, Xero, and NetSuite can automate matching transactions, dramatically reducing the time required for steps for effective reconciliation.

From paper to automation: Modernizing your approach

The evolution of reconciliation methods demonstrates how technology has streamlined financial management:

• Paper-Based (1980s-1990s): Manual matching using printed statements and ledgers, taking 8+ hours monthly
• Spreadsheet Era (1990s-2010s): Semi-automated matching using Excel formulas, reducing time to 4-6 hours
• Cloud Software (2010s-Present): Automated matching with rule-based systems, requiring only 1-2 hours
• AI-Assisted (Present-Future): Machine learning algorithms that predict and identify discrepancies in real-time

For most small to medium businesses, cloud-based accounting software provides the optimal balance between cost and functionality. However, high-transaction businesses may benefit from specialized reconciliation tools that offer advanced pattern recognition.

Fraud Prevention: Your First Line of Defense

One of the most compelling reasons to perform regular reconciliations is fraud detection. The median loss per fraud case in government organizations is $150,000 – a substantial sum that could devastate many businesses.

Bank reconciliation helps detect several fraud types:

Fraud Type	How Reconciliation Helps	Warning Signs
Check Fraud	Identifies altered check amounts	Discrepancies between check register and cleared amounts
ACH Fraud	Detects unauthorized withdrawals	Unknown transactions appearing on bank statements
Employee Theft	Reveals missing deposits	Cash receipts not matching bank deposits
Vendor Fraud	Highlights duplicate payments	Multiple payments to the same vendor for identical amounts

When I work with clients who have experienced fraud, we often find that the incidents could have been detected much earlier through consistent reconciling discrepancies. For instance, one retail client discovered a pattern of “missing” cash deposits that traced back to a store manager skimming funds. Regular reconciliation would have flagged this issue within the first month rather than allowing it to continue for nearly a year.

Strengthening internal controls against theft

Effective reconciliation functions as part of a broader internal control system. When implemented properly, it creates separation of duties that makes fraud more difficult to commit undetected:

• The person handling cash should not be reconciling accounts
• The reconciler should not have authority to create or approve transactions
• A supervisor should review reconciliation reports regularly
• Automated alerts should flag unusual patterns or large transactions

These controls create multiple verification layers that significantly reduce fraud risk while providing peace of mind.

Balancing Cash Flows and Regulatory Demands

Accurate cash flow management starts with knowing your true financial position. Reconciliation eliminates the uncertainty caused by timing differences between when transactions are recorded and when they clear the bank.

Without reconciliation, you might make decisions based on inaccurate assumptions about available funds. For example:

• Outstanding checks may make your bank balance appear higher than your actual available funds
• Deposits in transit might not be reflected in your bank balance but represent real funds you can count on
• Automatic payments may have posted to your bank account but not yet been recorded in your books

Regular reconciliation provides clarity about your actual cash position, enabling more informed decisions about:

• Vendor payment timing
• Payroll scheduling
• Investment opportunities
• Debt management
• Growth initiatives

How reconciling supports compliance and financial planning

Beyond operational benefits, reconciliation also addresses regulatory and reporting requirements. Various financial reconciliation methods support compliance with:

• GAAP accounting standards
• Tax reporting requirements
• Audit preparation
• Investor/stakeholder reporting
• Industry-specific regulations

For businesses with lending relationships, accurate financial reporting is essential. Banks frequently require current financial statements, and unreconciled accounts can lead to reporting errors that damage credibility with lenders.

Financial planning also benefits from the improved data quality that reconciliation provides. When forecasting cash flow, having accurate historical data enables more precise projections. This reliability translates into better strategic decisions about resource allocation, expansion timing, and risk management.

How to Reconcile Accounts Quickly and Effectively

Efficiency in reconciliation doesn’t come from cutting corners but from implementing smart processes. Based on my experience with thousands of businesses, here are proven strategies to how to reconcile accounts quickly:

• Establish a Regular Schedule: Daily for high-volume accounts, weekly for moderate volume, and at least monthly for all accounts.
• Categorize by Priority: Focus first on accounts with the highest risk or transaction volume.
• Use Bank Feeds: Connect your accounting software directly to your bank accounts to import transactions automatically.
• Create Transaction Rules: Set up automation rules to categorize and match recurring transactions.
• Document Exceptions: Maintain clear records of any discrepancies and their resolutions.

Small businesses with limited resources should focus on these high-impact practices:

• Reconcile operating accounts at least weekly
• Use cloud accounting software with bank feed capabilities
• Start with the most recent statement and work backward if you have a backlog
• Set aside uninterrupted time specifically for reconciliation

5-step reconciliation guide for busy teams

For teams juggling multiple responsibilities, this streamlined approach maximizes efficiency:

1. Preparation: Download statements and ensure all transactions are entered in your accounting system.
2. Quick Match: Use bank feed matching to automatically reconcile obvious matches.
3. Exception Handling: Focus attention on unmatched items, investigating each systematically.
4. Documentation: Note the cause and resolution of each discrepancy for future reference.
5. Review: Examine the completed reconciliation for patterns that might indicate process improvements.

Capital City Bank provides an excellent case study in reconciliation efficiency. After implementing automated reconciliation software, they reduced processing time from 8 hours to just 2 hours per month while improving accuracy by 62%.

Future-Proofing with Automated Tools

The reconciliation landscape continues to evolve with technological advancements. Modern solutions leverage artificial intelligence and machine learning to detect patterns and anomalies that human reviewers might miss.

These tools offer several advantages:

• Predictive Analysis: Identifying potential issues before they become problems
• Pattern Recognition: Detecting unusual transaction patterns that may indicate fraud
• Continuous Monitoring: Moving from periodic to real-time reconciliation
• Exception-Based Reviews: Focusing human attention only on items that require judgment

However, technology alone isn’t enough. The most effective approach combines automation with human oversight. AI excels at processing large volumes of data and identifying patterns, but human judgment remains essential for interpreting unusual situations and making contextual decisions.

When selecting reconciliation tools, consider these factors:

• Integration capabilities with your existing systems
• Scalability to handle growing transaction volumes
• Security features to protect sensitive financial data
• Reporting capabilities for audit and analysis
• User interface simplicity for team adoption

The right technology investment can transform reconciliation from a tedious chore into a strategic advantage.

Conclusion: Building a Secure Financial Future

Reconciling your accounts regularly is more than an accounting task—it’s a fundamental business practice that protects your financial health and supports strategic decision-making. The benefits extend far beyond simply balancing the books, providing protection against fraud, clarity for cash flow management, and confidence in your financial data.

Throughout my career helping businesses optimize their financial operations, I’ve consistently seen that companies with disciplined reconciliation practices outperform their peers in financial stability and growth potential. They catch problems early, make decisions based on accurate information, and build credibility with stakeholders.

If you’re looking to strengthen your financial foundation, start by assessing your current reconciliation practices and identifying opportunities for improvement. Whether you need to establish a more consistent schedule, implement automation tools, or enhance your internal controls, each step toward better reconciliation brings valuable benefits.

The Complete Controller team specializes in helping businesses implement efficient, effective financial processes tailored to their specific needs. We’d be happy to discuss how our cloud-based bookkeeping services can support your reconciliation goals and broader financial strategy.

FAQ

How often should I reconcile my bank accounts?

Reconcile high-volume accounts weekly, and all accounts at minimum monthly. For businesses with significant daily transactions, daily reconciliation may be appropriate. The frequency should align with your transaction volume and risk tolerance.

What are the consequences of not reconciling regularly?

Without regular reconciliation, you risk undetected fraud, inaccurate financial reporting, cash flow surprises, and potential compliance issues. The Association of Certified Fraud Examiners reports that businesses without reconciliation controls experience fraud losses averaging 60% higher than those with proper controls.

Can I fully automate the reconciliation process?

While modern software can automate up to 90% of the reconciliation process, human oversight remains essential. Automated systems excel at matching routine transactions but may struggle with complex exceptions that require judgment and context.

What are the best practices for account reconciliation?

Best practices include separating duties (the person handling transactions shouldn’t also reconcile them), documenting all adjustments, establishing a consistent schedule, using technology for efficiency, and having supervisor review of completed reconciliations.

How do I handle reconciliation discrepancies?

For each discrepancy, systematically investigate the cause, determine if it’s a timing difference, error, or potential fraud, document your findings, make necessary adjustments to your records, and implement process improvements to prevent similar issues in the future.

Sources

• AccountsIQ. (2023). What Is a Bank Reconciliation and Why Is It Important? https://www.accountsiq.com
• Association of Certified Fraud Examiners (ACFE). (2024). 2024 Report to the Nations. https://www.acfe.com/about-the-acfe/newsroom-for-media/press-releases/press-release-detail?s=2024-Report-to-the-Nations
• Association of Certified Fraud Examiners (ACFE). (2020). 2020 Report to the Nations. https://acfepublic.s3-us-west-2.amazonaws.com/2020-Report-to-the-Nations.pdf
• Complete Controller. Fraud Detection & Prevention. https://www.completecontroller.com/fraud-detection-prevention/
• Complete Controller. Importance of Reconciling Your Accounting Statements Regularly. https://www.completecontroller.com/importance-of-reconciling-your-accounting-statements-regularly/
• Complete Controller. Small Business Bookkeeping: 9 Tips and Tricks. https://www.completecontroller.com/small-business-bookkeeping-9-tips-and-tricks/
• Fiserv. (2025). Capital City Bank Case Study. https://www.fiserv.com/content/dam/fiserv-ent/archive-files/final-files/CapitalCityBank_CaseStudy.pdf
• FreshBooks. (n.d.). Bank Reconciliation: What It Is and How to Do It. https://www.freshbooks.com
• Investopedia. Bank Reconciliation. https://www.investopedia.com/terms/b/bank-reconciliation.asp
• MIT Media Lab. (n.d.). The Importance of Bank Reconciliation for Financial Accuracy and Control. https://www.media.mit.edu
• Purpose CPA. (2023). What Are the Benefits of a Bank Reconciliation? https://www.purposecpa.ca
• Saasant. (2024). Why It’s Essential to Reconcile Your Bank Statements Regularly? https://www.saasant.com
• Trovata.io. (2023). How Bank Reconciliation Accounting Impacts Decision-Making. https://trovata.io
• UNC School of Government. (2024). The Bank Reconciliation: A Key Internal Control in Financial Management. https://canons.sog.unc.edu
• U.S. Chamber of Commerce. (2025). Why Small Businesses Fail. https://www.uschamber.com/co/start/strategy/why-small-businesses-fail
• Versapay. (2024). What Is Bank Reconciliation? Steps and Tips. https://www.versapay.com
• Wikipedia. Bank Reconciliation. https://en.wikipedia.org/wiki/Bank_reconciliation

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.

Starting and operating a business is not an easy task. Statistics show that 50% of businesses fail within the first three years. Those that make it beyond that threshold sometimes still struggle to succeed. To have a successful startup business, you have to examine what can and does go wrong.

Many entrepreneurs have tried and failed or tried and succeeded to start and operate a business. Those that have gone before can give insight into what fails and what succeeds. Knowing the mistakes that entrepreneurs make can help new business owners to succeed.

Best practices have always been a viable way to help others succeed. Here are ten mistakes entrepreneurs make when starting a business and how to avoid them.

1. Start with inadequate financial resources

Entrepreneurs often neglect financial planning and minimize the amount of capital they need to start their business. Result: Inadequate funding for achieving your goals and lack of cash as the company prepares to take off.

To avoid these problems, be sure to prepare financial projections for your new business, especially for the first 12 months. These can also help you obtain financing and investments.

2. Neglecting to write a business plan

Many novice entrepreneurs do not prepare a business plan. The latter does not need to be long and detailed. But you have to take the time to develop a plan that will allow you to be consistent in your efforts, serve as a rallying point for your team, and set deadlines for measuring your progress.

3. Neglecting to track progress and adjust the shot

Do not make the mistake of leaving your business plan on a tablet. Make it a dynamic document by constantly monitoring your progress and keeping it – and your projections – up to date.

4. Buy assets with cash

Operating funds to buy long-term assets is a common mistake that can lead to a lack of liquidity. When evaluating your purchases of equipment, machinery, or computer services, consider using a commercial loan with a repayment period that corresponds to the asset’s life (for example, a seven-year loan for a vehicle you want to use seven years).

5. Avoid asking for outside help

Many new entrepreneurs do not like to admit that they need help. Feel free to look for a mentor, hire an outside consultant, or create an advisory committee to give you support and ideas.

6. Set a bad price

Do not make the mistake of setting your prices only according to those of your competitors. To make an informed decision, it is essential to perform a detailed cost search for each product. Also, monitor your costs so you can make the necessary adjustments.

7. Neglecting technology

Canadian companies are investing less in technology than US companies, and that affects our productivity. Be sure to evaluate how technology could benefit your business’s growth, efficiency, and profitability.

8. Neglecting Online Marketing

Make sure you evaluate how you can take advantage of the marketing potential of the Internet. For example, ads on social media platforms can be cost-effective and effective in targeting specific market segments.

9. Do not learn from your mistakes

When starting your business, learn from your mistakes and use them to guide you to success. Many successful entrepreneurs failed on their first try but came back stronger after understanding and improving what did not work.

10. To choose wrong partners

 As the saying goes, it is better to be alone than badly accompanied. This statement also applies to business and a business creation project. It is true that having a partner to launch this great project can be reassuring. Still, a bad association can ultimately harm the development of the company and its future.

It goes without saying that it is not uncommon to see associates no longer get along at all. And for a good reason, their respective tasks have not been carefully defined, and this, from the beginning of the adventure.

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.

Launching a startup business is a complicated task. Even with a great idea, ​​product, or service and an efficient business model, you will face difficulties in the initial years of operation. These challenges are why many businesses fail within the first few years. However, challenges can be met with solutions if you know what the challenges are and plan to overcome them. Here are the biggest challenges faced when launching a startup business and how to overcome them.

Startup Capital

The biggest challenge is usually to have the capital to start, assemble and develop the business. Banks are hesitant to grant loans to newly formed companies, so the venture seeks to raise money in other ways, usually through private investors.

Seeking private investors is not easy. It is a challenge to find that source or key partner that contributes or helps to have the necessary capital to create and develop the business model that is to be undertaken.

Unpredicted Revenue

The recession or economic crisis has damaged every business. Few expected the sudden change in sales and their business in general during the financial crisis, especially just months after starting. Given this, many businesses immediately began to make numerous changes, such as developing their website, reducing invoices, etc.

These changes are made to balance the cash flow, and without ruling out having to make more changes, they adopted changes. For example, they are starting or continuing the business with an online store, which allows them to add more or new products and services.

Marketing Plan

A good marketing plan can allow a startup to boost itself financially. Many startups fail because of a lack of ineffective marketing plans. It is wise to allocate a budget for marketing in the beginning. It is a kind of investment that pays of after some time.

With technology and social media, digital marketing has revolutionized marketing and made it possible for all business sizes to market. Most social media platforms are free, and if you use them to your advantage, you can let multitudes of people know about your business and what it offers without spending a dime.

Creating a Unique Product

In addition to capital, a startup seeks to reduce production costs, develop processes to organize the business, test new market strategies, etc. One of the best and most significant challenges is creating and market a new and original service or product.

Cash Flow Management

Starting to produce too much or having a lot of inventory usually costs money. It is more appropriate to put or redirect those production resources towards advertising, web development, or any other way that generates sales. The biggest challenge for many startups is cash flow. Having limited capital restricts time, so one must be very selective and careful when determining how resources are spent. The good thing about it is that it forces you to be creative and find ways to get publicity at the lowest possible cost. Fortunately, social media has equaled the playing field for small businesses because it is much cheaper to market a business through them.

Starting Up with Little Capital

When a company is started, funds are usually limited to work and produce as desired to the banks’ reluctance. The difficulties in getting help or subsidy are often added, especially depending on the product or service in question. And to this can be added the need to hire someone, help or fill positions, and rent a workspace. All this adds up to the cost of the business. It should only be appropriately stated before starting a business, and then the businessman should stick to the budget.

Obtaining Licenses, Patents, and Registrations

Another critical challenge for starting a business is establishing or achieving a license agreement with a large manufacturer or distributor, which has the resources and links (also international) to market specific products or services. The same happens when registering a patent or website, identifying and establishing a manufacturing relationship, protecting property rights, or owning inventory. Relationships at the local level can help solve these issues, but establishing retail alliances, license agreements, or permits is challenging, especially in this corporate world. 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.

Back in the day, when networking was not that strong, and there was no concept of recruitment agencies, people used to get a job right after graduating from the university and work there for the rest of their lives. People called it having a secured job and were reluctant to switch their jobs. In modern-day business, people tend to have a vibrant career with multiple work experiences and change their jobs after two to three years.

Today, people frequently switch between jobs because they think that having work experience at multiple places allows them to gain more work exposure. It also helps them develop a vast working experience by learning about different companies’ work environments and ethics.

People also tend to be more focused on their career choices these days, and they have to research a lot before deciding on a career path. No one in modern-day business would want to be forced to choose a career path by someone else. To avoid that from happening, people begin planning their career path at a very early age. Here are six ways to find a good job quickly.

Referrals

Many employers reward their existing employees with attractive benefits and incentives if they refer to a quality resource for their company. Referrals are one of the best sources to provide people with relevant jobs. It is pretty common among organizations that internal employees advise their friends or relatives for a position at their office. However, it only happens when they think the person they are advising can handle that job well.

Many employment vacancies are filled, and employers get talented and competitive employees for their offices because of the referral technique. The incentives from employers are another way of encouraging the referral strategy in the corporate system. Many potential candidates get the best suitable jobs for them according to their profiles via this referral strategy.

Networking

Job networking is still not as strong as it should be, provided market competition has gone to a whole new level. Many people are still getting jobs based on word of mouth, and still, there is no centralized global system as an employment network.

Networking is one way for individuals to know which job sector has the most vacancies available at a particular point in time. Also, via networking, they can easily find out which available job is suitable for them and which opportunity they can apply for.

Individuals must stay updated on their online job searching portals to watch the opportunities that best match their profiles. They must also keep on checking job search websites regularly to stay updated with the market trends.

To get the dream job, one tip about networking is that individuals must not ignore freelancing or contract/project-based opportunities. They often lead to good full-time opportunities.

Job Fairs

Commonly, there are two types of job fairs, one that is focused on a particular industry and is arranged to offer a specific sector employment opportunities. Others are general job fairs that provide a platform for ambitious individuals to look for a job in any industry.

Career Websites

Various career websites advertise attractive job opportunities for the target audience. Career websites are yet another convenient way for candidates to get the job of their dreams. The fact that career websites cater to the needs of a larger audience makes them even more effective.

Cold Calling

Cold calling provides job opportunities to ambitious candidates in which companies find profiles anywhere online and approach them via call or email to refer to them a vacancy. Cold calling is effective when a company finds a competitive profile, but that individual is unaware of that opportunity.

Company Websites

Many candidates find company websites as the best way of finding an employment opportunity and applying for one. Many multinationals have a structured online portal where candidates can apply for a vacant position.

There are many other quicker and more effective ways to search and apply for a job. The catch here is to connect the right person to the right job vacancy to increase their chances of growing in every department.

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

An investor has two things: a critical mind and a wish to multiply their wealth.

If you’re here right now, reading this article, chances are you have both. But taking the plunge the first time can be a little intimidating as one doesn’t know if they are making the right choice or are cooking up a recipe for disaster. Continue reading the article to understand what kind of investments you should have on your radar.

Every avenue for investment has its own sets of advantages and disadvantages. You have to find out which one suits you best. One does not have to be a millionaire to start investing, which is a common misconception. You could start small and eventually climb up the ladder. All you need is the patience and understanding that would allow you to make the right choices and see your riches multiply.

Since you are new to the business, there is one thing you should never forget; do not invest all your money in one area. You should continually strategize and opt for different avenues to minimize the chance of losing a considerable sum to a losing investment.

Yes, investments are not all about gaining money because there is a 50% chance of losing your investment. So, before jumping into the train of investments, make sure you do your homework and make a rational decision.

Why Should You Invest?

Investments serve as future monetary plans that allow you to prepare in advance. Your assets bring in returns that assist you in making bigger and better investments for the future that would inevitably yield even better results.

With inflation on a constant rise, you must start making investments right now to ensure a better future. You can save up the profit yielded from these investments, or you could invest them too to open new pathways for yourself.

Types of Investments

There are different types of investments that are common amongst investors. These modes of investments have brought in exceptional results, which is why they remain fan-favorites.

• Real estate
• Stock
• Insurance policies
• Cryptocurrency
• Mutual funds
• Bonds

Despite being the go-to avenues in the world of investments, all of these may not precisely be beginner-friendly.

Best Investments for Beginners

Following are investment ideas that would be perfect for you if you are not in a position to take giant leaps of faith.

1. Gold and Silver:

The prices of gold and silver fluctuate according to the political scenario. The prices stay relatively the same if they do not get better.

Gold and silver are suitable forms of investment because the investor has the authority to choose how much they want to give in. It is beginner-friendly because one does not need to have billions to invest in gold or silver. You could start with a few hundred bucks and build a way for yourself from there.

Just keep an out for all the environmental changes and the political scenario to realize whether these metals would be a good choice for you. Try buying gold or silver when it is considerably lower in price and then wait for the prices to rise again. That is when you can resell them for a better price and enjoy the profit.

2. Crypto-Currency:

The idea of cryptocurrency is still relatively new to the market. Cryptocurrency is a digital currency that is bought and sold online.

When the price of the cryptocurrency rises, your investment multiplies which means that you would see a profitable increase. Despite being a risky environment, people welcome this currency with open arms because it is a relatively new idea.

3. Mutual Funds:

A mutual fund is a form of investment that a wealth manager does on your behalf.

Mutual funds are very well-liked in the world of investments because of the low chance of risk involved. In such an investment, the wealth manager spreads your money out in several different avenues, who tries his best to get you the best returns.

Make sure that you carry out your research before you invest. Choose what you feel is best for you, calculate your risks, analyze your strengths, and take the leap.

Happy investing!

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.

Different types of businesses, small, new, large, or old companies, face fraud in their companies. Large companies are most likely to face scams as they have many different complicated systems in their business. Stealing tiny amounts or materials could be relatively easy in large companies as large companies usually don’t pay much attention to minor differences in their balances. But at the same time, small and new businesses can also be easy for people to commit frauds as they have not set up proper systems or checks, which gives people a free hand to steal. Businesses that run over the internet face frauds from customers the most. Those frauds are when a customer claims a sale to be unauthorized. A supplier can commit fraud by claiming that the goods they are selling are high quality, hence asking for a suitable price when the products are of inferior quality. They are overcharging their customer (your business). A supplier may also overcharge the carriage on goods expense or overstate the quantity of inventory ordered to create a higher invoice. Employees’ types of fraud include inventory theft, money fraud, cash theft, expense account theft, and commit fraud.

Due to the pandemic caused by the Covid-19 globally, most businesses are struggling due to its severe effect on the global economy and financial market. Reductions in income, a rise in unemployment, and restrictions over the transportation, service, and manufacturing industries are due to the pandemic. These restrictions mean that businesses cannot reach their targeted revenues, which leads companies to have low cash flow, forcing them to make some employee layoffs. A few businesses have reduced their selling prices to gain income, but that revenue generates minimal profits. At this time, losing any other funds is crucial for any business, leading to a failed business. These uncertain times are why companies should be more careful over the frauds happening inside the company and focus more on preventing fraud and keeping an eye on the signs of fraud. Ways you can stay vigilant against fraud at this time are:

Keep a check on the third parties’ involvements. During the pandemic, businesses are trying to keep up with the competitors, which means they are rushing into things. They are not running a background check on the third parties involved, such as suppliers or partners, which gives them a chance to commit fraud by claiming their product to be of higher quality than it is. Don’t forget to ask around about the new stakeholders you are willing to work with to avoid fraud.

Make sure you have honest and loyal employees. Some people could disguise themselves as experienced and talented in the areas or departments you want to hire. Those people will not demand high salaries, making them attractive to you as you cannot afford to pay your worker’s high wages during the pandemic. Accepting lower-than-average pay could mean that those workers will be committing fraud and will steal from you. Make sure you get a solid reason behind the applicants willing to get paid less than usual at this crucial time. The other thing to keep in mind is never to trust any employee blindly, as that will allow them to take advantage of being in control. Have your workers work under your supervision and keep strict rules and management over your business’s operations.

Has your business been audited? Audits are one of the critical and significant practices in a company that are also necessary. So, it is better to schedule or conduct surprise audits which will easily detect frauds and will not even give a chance to the people in the business committing the deception to hide it. If you have a CPA in the company, then ask them to conduct surprise audits. Audit procedures include fraud detection; it is done by performing journal entry testing, inspecting accounting estimates, and checking unusual and suspicious activities or transactions.

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.

People usually look up to financial institutions for loans and other financial aids when they are in a situation. People apply for personal loans in different banks when they need money, but the question here is, is it safe to apply for one? Should people opt for this option in times of need? Well, let’s find out.

When starting a business or any business activity, most entrepreneurs do not have financial resources or have all the money needed to make the initial investment. Doubts begin with how to get or how to get the necessary capital to walk.

There are currently several ways or options to obtain financing or an economic boost that helps any self-employed person. Still, it is necessary to weigh and evaluate the advantages and disadvantages of not borrowing unnecessarily. You must plan your needs and have a previous business plan to have a higher initial guarantee.

The initial phase in picking an individual credit is realizing the amount you need. The littlest individual credit sizes start at around $500; however, most loan specialists offer at least $1,000 to $2,000. On the off chance that you need under $500, it may be simpler to set aside additional money ahead of time or obtain the cash from a companion or relative in case you’re after all other options have been exhausted.

Advantages of asking for a personal loan

Many freelancers choose to apply for a personal loan. In summary, here are some advantages:

• The personal loan allows you to buy goods and develop the project to be able to take off.
• There are possibilities for entrepreneurs where the bank can grant you a loan with low-interest rates. If you need money in a short period, consider this as an advantage.
• You can organize to pay in time and form according to the banking agreement. The seriousness of the professional who attends you at the lender will help you in this regard. However, the final responsibility will be yours.
• In certain entities, financial settlement programs provide entrepreneurs ages 18 to 35 credit grants without an endorsement. In this case, a project must be present and include elements of development and innovation. We can differentiate in two ways:
• Personal loans for self-employment projects for people in a financial exclusion situation need advice for their business idea.

On the other hand, there are financial microcredits of up to 25,000 euros used to finance small businesses. We refer to grants and subsidies through the Official Credit Institute (ICO) to get financing with more advantageous conditions.

Disadvantages of applying for personal loans

We accept a commitment to pay the terms and the stipulated form when requesting a loan because it may not be fulfilling. It is imperative to be informed in detail and weigh if we can face our commitment.

The bureaucratic procedures, as well as the requirements that are requested, can be tedious. They usually check criminal records, tax returns, bank account statements, among others.

In some cases, you may need to request other intervenors or possible guarantors. Also, additional requirements include guaranteeing properties or other passive products.

Other forms of financing

Given these points, we can continue wondering whether we should request a personal loan to start our business. The reality is that beyond the bank, other alternative financing possibilities within reach allow us a much more relaxed commitment:

• If your family members can or are willing to support your initiative, family support can be a great relief in your beginnings. In the case of being overwhelmed, there will always be more flexibility and possibility when returning the borrowed money.
• Although they do not arrive immediately, apply for grants that can help later to alleviate the initial economic burden or continue to project our business more ambitiously.

Considering that many large businesses have had the help of a Business Angel, if you think you have a good idea, do not hesitate to find a person who trusts in this and can invest in your business. Remember that many billionaire entrepreneurs started from scratch, and many investors are looking for good ideas.

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.

As the term implies, transparency in business is the practice of keeping honesty and an open environment as the cornerstone of your business. Whether it is about being honest to partners, investors, or employees, transparency in business can reap many benefits. In today’s world, where information is rapidly available, companies tend to make transparency a policy to ensure employees, partners and investors remain loyal and satisfied without the need to switch to other parties. However, while to a layperson, transparency in business may sound like a goodwill policy, in business terms, it is much more than that. In certain states, transparency is legally binding depending on the type of business we will get into later. For now, let’s establish that the purpose of transparency in any industry is to maintain trust and honor among partners, investors, and employees.

What are the Benefits of Transparency for a Business?

Be it a small or a large-scale business, transparency will always yield loyalty and goodwill from all ends. To bring this into perspective, here are a few benefits your company can reap by maintaining a policy of transparency:

Benefit # 1: Improved Performance with Employee Loyalty

Long gone are the days when employees were considered corporate slaves. Today, employees are well aware of their rights and regularly look for better financial opportunities in the corporate world since they are readily available. Instead, employees want to work in an environment where their skills are valued and nurture valuable relationships. Companies allow employees to become an essential part of the operations with an open environment policy, making them feel part of the family. Such motivated employees will think twice before leaving your organization. They will work harder to produce results as the entire company can enjoy the results when it hits its targets, not just the owner.

Benefit # 2: Brand Image Reflects Better

Unlike in the past, today, a disgruntled employee or partner can damage your reputation instantly without going to the courts through social media and other channels. Building a brand image takes years of hard work, and a simple act of dishonesty can destroy it all. Recently, many cases have damaged companies’ brand image due to their employees or stakeholders publicly questioning their policies. To avoid such situations, organizations should adopt a transparency policy where they can internally and externally talk about their business without hesitation.

Benefit # 3: Boosts Productivity, Reduces the Need for Stringent Hierarchy

With an open environment policy, companies can resolve problems of even the junior employees by creating feedback forms, having weekly meetings, and the like. When you have transparency in your company, it will reduce your need for having layers of management. Since the employees connect directly with the business’s products, services, expenses, and revenue, nothing is hidden, reducing the need for oversight. Instead, you can hire more employees who will directly bring in profitability instead of hiring people to manage other employees.

Benefit # 4: Better Compliance Management

If your company does not have much to hide, it will be easier for you to pass external audits and win the trust of your investors and customers. For most companies that do not follow a transparency policy, sharing information about the finances becomes difficult since there are discrepancies that they do not want their partners or investors to know.

Benefit # 5: Improves Customer Relationships

Customers are the lifeblood of any business. You need to constantly keep your customers updated with your company’s happenings to keep them loyal to your brand. With a transparency policy in place, a business regularly shares its audit report and how they spend money. Companies can maintain a healthy and positive image of themselves in front of their customers, enhancing brand image and customer loyalty.

Today, transparency in business is not optional but mandatory. For any business that wants a good brand reputation, it is crucial to have a transparency policy as part of its bylaws. You can expect a boost in trust and loyalty from your partners, employees, and stakeholders by announcing that your company follows a ‘transparency’ policy and formulating other policies around it.

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 two people come together in the form of Holy matrimony, there is no denying that this merger can be a bit too expensive. Marriage will eliminate the loneliness and some money out of your savings. People have spent a lot of money on their wedding planners. In the United States, the average cost of marriage is $29,858, based on statistics. From food to flowers, planning a wedding is a big bonus to businesses but a massive kick to many couples’ wallets.

Here are some tips and tricks you can use to pull off a fabulous wedding on a tight budget.

Wedding Planning

If you start your wedding planning a year before the marriage day, you have ample time to search for the most reasonable prices.

• Venue

Before deciding the location, you need to have a wedding date. Wedding venues are expensive but select any other day except Saturday if you want an excellent location at minimum cost. You can also find a place out of the city limits at a reasonable price.

• Reception Beverages and Food Menu

It is common to provide desserts, food, and drinks on your own. To save yourself from an overextended complicated fare, make a list of family and friends that will help you out. If you cannot make your own, then replace a sit-down meal into serving a heavy appetizer. The most expensive part of the refreshment is the bar tab; search a venue that allows you to bring your beer, wine, and liquor.

• Photographer and Reception Music 

Capturing every emotion and every moment of your wedding day is a great thing. Hiring a professional photographer or videographer can get pricey. Instead of professionals, hire someone new to their career or who shoots weddings part-time. They will do an excellent job at a lower cost. The same goes with musicians, and if you hire a professional, it will be expensive. Hiring a student musician or making a short performance by your family or friends can be more entertaining with a limited budget.

• Decorations 

Wasting thousands of dollars on decoration is not a good idea at all. Be smart while decorating, don’t waste hundreds of dollars on flowers that will die after the reception. Keep it looking simple and elegant. Choose decorations that will be reusable throughout the wedding. These things will help your marriage venue expenses.

• Invitation Cards

Make your wedding invitation card on your own. All you need is some time and a good quality printer. Use classic fonts and creative content, which looks elegant at a lower cost.

• Avoid too many guests

Only invite those who take joy in your happiness. Invite your nearest relatives and friends and add other individuals that won’t also enhance your budget. You are not obligated to invite people you don’t know to your wedding.

• Wedding attire 

Both the bride and groom need to be flexible while choosing their attire. If you have a tight budget, then shop wisely. An excellent way to save money is to stay away from high-rated stores. Borrow pieces of jewelry you need from family and friends.

The main things typically settled on before the wedding scene are where to get hitched and the date. The wedding setting can be extravagant. However, you can set aside a great deal of cash by getting married on a day other than Saturday and by finding a cheap location.

The ideal approach to save money on food, drink, and treats for your wedding is to prepare your own. Ask your loved ones to help to ensure that you don’t overextend yourself with entangled admission. If you prefer not to make your own, consider serving overwhelming starters rather than a formal dinner, and discover a scene that permits you to bring your alcohol, lager, and wine. The bar tab is commonly the most expensive part of a wedding.

Through all these tips, you can plan an enjoyable wedding with a tight budget.

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.

One of the most often posed inquiries via proprietors is leasing or renting their investment property to occupants. Albeit a part of mortgage holders have clearness on contrasts between the two sorts of understandings (rental and rent), a more significant part of proprietors is uninformed, with less information on the understanding’s nitty-gritty. Let us dive into understanding the contrasts between the two sorts with upsides and downsides every one of them has for a landowner.

Then again, leasing is a type of understanding among landowners and the occupant, where the tenure of the property is for a more drawn-out timeframe, generally from a half year to 3 years. In this sort of tenure, the occupant pays the rent sum with no choice for the landowner to settle on changes to the understanding terms of the tenure during the rent time frame. The exception to this is when concurred by the two players. While tenant contracts occasionally restore, for example, month-month, a rent understanding endless supply of the rent time frame.

Each proprietor has its conditions to manage when searching for tenure for its property. Thus, they should see how leasing and renting are unique and measure the upsides and downsides of these understanding choices before gathering on one.

Sometimes unforeseen family finances arise as the need to make a small reform at home. You may not have all the money you need to deal with this unexpected situation, so it is a time of emotional stress in which many doubts arise. One of the first things you’ll wonder is if re-leasing a home is a good solution.

How much is it going to cost me? Is it an excellent option to expand and get that extra capital that I need? Is it worth it, or is it better to ask for a new loan? Typically, doubts and worries take your sleep away. Do not worry; we will accompany you and share with you the answers you need.

Lumpsum rent follows accomplishing tenure over the property.

Re-lending a regular home is an excellent solution to get additional capital in better conditions than through a personal loan. The interest rates for these types of loans are usually higher than those of a mortgage. That is why it is an exciting option if you have encountered a financial unforeseen.

 

What does re-mortgage a home consist of?

Re-lending a flat or house consists of canceling the mortgage you have and hiring a completely new one. The loan amount will be the sum of the money you have left to pay from the old mortgage plus the extra amount you want the bank to grant you for that unexpected need.

The way to achieve this is quite simple: for the bank to analyze your financial situation and your ability to respond to the new mortgage.

To fully understand what a home re-mortgage is, you must keep in mind that it has a series of associated expenses. The operation has two steps: cancel your old loan and hire a new one. You will have to pay the cost of both actions.

First, if your mortgage has a cancellation fee, you will have to pay it even after hiring an additional one. Remember that it is usually a percentage of the amount of money you have left to pay. In addition, you must sign the public deed of cancellation, which implies notary, management, and registration expenses.

Secondly, you will face the expenses of constituting a new loan. Although it depends on the entity, the most common is a new appraisal of the property, the costs of agency, notary, and registration, in addition to opening and study fees.

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.