Multinational companies are growing day by day. With the developing economy, the need for foreign investment is necessary. Multinational companies bring the required investment to countries that are in the development process and help them progress. However, multinational companies have become harmful to developing countries.
The reason is we usually don’t look beyond our shores to analyze the greedy human behavior, previously or in the present.
Multinational businesses are large corporations with operations in many countries worldwide. For instance, Ford, Apple, Coca-Cola, Microsoft, and Google all have operations in the U.S. and other lesser developed countries simultaneously. Their turnover and size can be higher than the total GDP of many growing economies. There are some benefits and disadvantages of multinational companies, as discussed below.
Benefits
Employment
Multinational companies help to create employment opportunities and worldwide. Inward investments by MNC build much-needed foreign currencies for growing and developing economies. They also generate employment opportunities and help raise the expectation of what is possible in lesser developed countries.
Ensure minimum standard
The main reason for multinational companies’ success is that customers like to purchase products and services to meet minimum service standards. For example, if you visit any country, you will know the star bucks coffee offers something you already familiar with. It might not be the best coffee in the area, but it won’t be nasty or worst. People like the safety of knowing what to expect.
Foreign investment
Multinational organizations engage in FDI (foreign direct investment) and operate in more than one country. They have better control over market knowledge, research activities, management, and financial resources since they have insights into every economy they are operating in.
For example, Unilever is one MNC that owns over 400 brands whose products are available in more than 190 countries with billions of dollars in annual sales. MNCs have been strengthening global transfers, ensuring global economic development, and deepening globalization on a massive scale.
MNCs have played their part in developing ties and building strong relationships with all the economic stakeholders, government institutions, corporate legal advisors, corporate workforce, customers, etc.
Outsourcing of production
Outsourcing of production via MNC allows lower prices. This lower price point grows disposable income in developed countries and will enable them to purchase more products and services. Building new sources of jobs to offset the lost jobs from outsourcing manufacturing works.
Promotes competition
When various MNC’s are present in one economy, competition is flashed along with more investment keen into developing a firm’s good, regardless of whether it enhances its efficiency or quality of the manufacturing process. Ultimately, the economy will develop.
Competition boosts the international competitiveness and performance of the business area and helps economic growth—generally, MNCs advantage well from decreasing and deregulation tax rates. An increase in regulations stops man business from maximizing their full possible while hindering competitors’ free entrance.
Deregulation helps economic contribution, inciting competition. Companies can only grow their incomes to increase efficiency, cut wages of workers, or increase the price of products. In the U.S, deregulation has lessened the price by 30%-75% in various vital sectors imposing those businesses to reorganize to become more effective. Without competition or rivals, the companies’ status and position won’t be endangered. None will be prepared to risk capital to recover.
Disadvantages
Human rights abuse
One of the most general norms modes regarding companies in economics is that companies purpose to maximize income. In reality, companies do that by cutting production charges, the most direct method to lessen the cost of workers’ wages.
Though in developed countries, they are already set on minimal salaries, and the salaries can difficult to go further down on a specific point, relying on which economy. This phenomenon, called strictly wages, was discovered by John Maynard, one of the most dominant economists ever.
Companies will move their factories to countries that will pay lower wages, such as Pakistan and China. In both countries, the number of workers is more than the demand for work, permitting companies to lessen their wages still attracting the same number of laborers.
The incentive of shoddy labor and better income attracts many foreign companies. One of them being Primark, who has been suspected of paying children some amount for few days. These labor children’s working conditions appeared as poor, where they are forced to work for long hours without having a proper break.
Environmental pollution
MNC frequently contributes to pollution and utilizes non-renewable resources underlaying the environment at risk to search for more revenue. For instance, some multinational companies criticizing or point out outsourcing pollution and environmental degradation to emerging economies where pollution values are low.
Conclusion
Multinational companies are beneficial for the economies of developing countries. On the other hand, it can have some harmful effects on the industry. It is important to understand the benefits and disadvantages of running a multinational company if you consider taking your company internationally.
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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.
Master Your Finances: Tips on How to Manage Debt Effectively
How to manage debt effectively starts with understanding exactly what you owe, developing a realistic repayment strategy, and sticking to a tailored budget—these core pillars help anyone regain financial control. The average American carries $104,755 in total consumer debt as of mid-2025, with credit card interest rates hovering at 21.39%, making strategic debt management more critical than ever.
As founder and CEO of Complete Controller, I’ve spent over 20 years working alongside businesses across every sector imaginable, witnessing firsthand how debt can either fuel growth or destroy dreams. I’ve guided countless entrepreneurs and individuals through the overwhelming stress of mounting obligations, and I know that success is absolutely possible—even when the numbers feel crushing. In this guide, you’ll discover proven repayment strategies like the snowball and avalanche methods, learn how to negotiate better terms with creditors, and build lasting financial habits that prevent future debt accumulation.
What is the best way to manage debt, and how does it work?
The best way to manage debt is to know your total obligations, set a repayment plan, make a realistic budget, and implement targeted strategies like prioritizing high-interest debts or consolidating multiple balances
Start by listing every debt and its terms; this transparency creates the foundation for an effective plan
Adopt a payment strategy (snowball or avalanche method), and tailor your approach based on your financial and emotional needs
Consistently update your budget, cut unnecessary expenses, and avoid incurring new debts to reinforce progress
Consider professional resources—credit counseling, refinancing options, or support systems—if the process feels unmanageable at any point
Assess Where You Stand: The Debt Deep Dive
Getting brutally honest about your full debt picture is the first—and most intimidating—step in learning how to manage debt. Many people avoid this step because facing the total amount feels overwhelming, but transparency is your most powerful tool for change.
Start by gathering every statement, login credential, and piece of paper related to what you owe. Create a master list that includes each creditor’s name, current balance, minimum payment, interest rate, and due date. This comprehensive snapshot becomes your roadmap for strategic decision-making.
Calculate your debt-to-income ratio and identify your financial pressure points
Your debt-to-income ratio (DTI) reveals whether your debt load is manageable or dangerously high. Calculate it by dividing your total monthly debt payments by your gross monthly income. Financial experts recommend maintaining a DTI of 35% or lower—anything above 50% signals immediate action is needed.
Use spreadsheet tools or debt management apps to track this metric monthly. Include all debt types in your calculation:
Credit card minimum payments
Auto loan payments
Student loan payments
Personal loan payments
Mortgage or rent (for total DTI)
Watch for early warning signs like consistently paying only minimums, using credit cards for necessities, or feeling anxious when bills arrive. These patterns indicate your debt management strategy needs adjustment before the situation worsens.
The emotional and mental costs of debt: Why facing your numbers matters
Research shows that 46% of people in problem debt also struggle with mental health conditions, and 72% report their mental health problems worsen their financial situation. This creates a damaging cycle where financial stress impacts decision-making abilities, leading to poor money choices that deepen the debt burden.
The psychological weight of debt affects sleep quality, relationships, and work performance. Many clients tell me they feel paralyzed by shame, avoiding their mailbox and ignoring creditor calls. Breaking through this emotional barrier by facing your numbers head-on is the first victory in your debt management journey. Once you see the full picture, you can create an actionable plan instead of living in fear of the unknown.
How to Manage Debt with a Realistic Budget
A tailored budget forms the foundation for sustainable debt reduction and prevents future financial pitfalls. Without a clear spending plan, even the best debt payoff strategies fail because money leaks through untracked expenses.
Your debt-focused budget must balance aggressive repayment goals with realistic living expenses. Many people create overly restrictive budgets that collapse within weeks. Instead, build a sustainable plan that accounts for both necessities and small pleasures that keep you motivated during the long journey to debt freedom.
Building a debt-focused budget that actually sticks
Start with the 50/30/20 framework, then adjust for your debt situation. Allocate 50% to needs, but temporarily reduce wants from 30% to 10-15%, directing that extra 15-20% toward debt repayment beyond minimums.
Track cash flow religiously for one month before setting budget categories. Use these steps:
Set realistic category limits based on actual data
Draw clear boundaries between needs and wants. Needs include housing, utilities, basic food, transportation, and minimum debt payments. Everything else—dining out, entertainment subscriptions, new clothes—falls into the wants category during debt repayment mode.
Small wins, big results: Redirecting everyday savings toward debt
Micro-savings compound into significant debt reduction over time. Cancel one streaming service ($15/month) and apply that $180 annually to your highest-interest debt. Pack lunch three days per week to save $30, creating an extra $120 monthly for debt payments.
Pick Your Payoff Strategy: Snowball vs. Avalanche vs. Hybrid
Selecting the right repayment method for your personality and situation can mean the difference between success and giving up. Each approach has distinct advantages, and understanding these differences helps you choose the path that keeps you motivated.
The snowball method—Power in momentum
The snowball method prioritizes paying off your smallest debt first while making minimum payments on others. Once that first debt disappears, roll its payment into the next smallest debt, creating growing momentum like a snowball rolling downhill.
Michelle and Michael Whitley used this method to eliminate $113,000 in 28 months. Starting with small credit card balances, they built confidence with each paid-off account. The psychological wins kept them motivated through two years of intense sacrifice. This method works best for people who need regular victories to stay engaged and those feeling overwhelmed by multiple debts.
The avalanche method—Interest savings over everything
The avalanche method attacks your highest-interest debt first, mathematically minimizing total interest paid over time. Create a payment hierarchy based on interest rates, not balances. A $5,000 credit card at 24% APR takes priority over a $15,000 car loan at 4%.
Excel calculators help visualize the long-term savings. Someone with $30,000 in mixed debts might save $3,000-5,000 in interest using avalanche versus snowball. This approach suits analytically-minded planners who find motivation in optimization rather than quick wins.
When hybrid approaches work best
Some situations benefit from combining strategies. Start with one or two small debts for quick motivation, then switch to avalanche for the remaining high-interest accounts. This hybrid captures psychological benefits while still prioritizing interest savings on larger balances.
👉 Strong financial habits start with the right support. Learn how Complete Controller helps build them.
Fast-Track Strategies: Negotiation, Consolidation, and Refinancing
Beyond choosing a payoff method, several tools can accelerate your results and reduce the total cost of becoming debt-free.
Negotiating lower interest rates and payment terms
Credit card companies often reduce interest rates for customers who ask—especially those with good payment histories. Call during business hours, reaching the retention department directly. Use this script framework: “I’ve been a customer for X years and always make payments on time. I’m working to pay down my balance faster. Can you reduce my interest rate to help me remain a loyal customer?”
Success rates increase when you:
Research competitor rates beforehand
Call when your account is current
Remain polite but persistent
Ask for supervisor if initially denied
Even a 5% rate reduction on a $10,000 balance saves $500 annually—money better applied to principal reduction.
Debt consolidation and refinancing—What actually works
Debt consolidation combines multiple debts into one payment, ideally at a lower interest rate. Personal loans, balance transfer cards, and home equity loans serve as common consolidation tools. A balance transfer to a 0% APR card can save thousands in interest if you qualify and pay off the balance during the promotional period.
Key pitfalls to avoid:
Consolidating without addressing spending habits
Paying consolidation loan fees that exceed interest savings
Running up balances on newly cleared credit cards
Choosing terms that lower payments but extend repayment unnecessarily
Avoiding Common Debt Traps Along the Way
Sustained success requires vigilance against setbacks and predatory practices targeting desperate borrowers.
Identifying predatory lending and debt relief scams
Warning signs include:
Upfront fees before any service
Promises to “eliminate” debt instantly
Pressure to act immediately
Requests for power of attorney
Guarantees about credit score improvements
Legitimate resources like nonprofit credit counseling through NFCC provide free consultations and transparent fee structures. These organizations offer debt management plans that negotiate with creditors on your behalf while you make one consolidated payment.
How to avoid re-accumulating debt once you’re making progress
Behavioral changes prevent backsliding. Freeze credit cards in ice blocks, delete saved payment information from online retailers, and institute a 48-hour waiting period for non-essential purchases. Create friction between impulse and action.
Build new habits:
Weekly spending check-ins with accountability partner
Cash-only entertainment budget
Automatic transfers to savings before you see the money
Celebrating milestones without spending (hiking, potlucks, game nights)
Building Lasting Financial Resilience
Debt freedom is only part of the journey—true financial stability requires strong foundations that prevent future crises.
The role of emergency funds in debt management
Starting an emergency fund while paying off debt seems counterintuitive, but 37% of Americans can’t cover a $400 unexpected expense. Without even small savings, one car repair or medical bill sends you back into debt.
Begin with a starter emergency fund of $1,000 while aggressively paying debt. Once high-interest debt is eliminated, build toward 3-6 months of expenses. This prevents the destructive cycle of making progress only to slide backward when life happens.
Debt feels lighter with a clear plan. See how Complete Controller helps you take control.
When and how to seek professional help
Recognize when you need expert guidance:
Missing payments despite budgeting efforts
Debt increasing despite payment attempts
Considering bankruptcy
Feeling suicidal or severely depressed about finances
Working with a qualified accountant provides clarity on tax implications of debt settlement. Credit counselors develop customized debt management plans. Mental health professionals address the emotional components undermining financial progress.
Personal Insights: What I’ve Learned Guiding Clients Through Debt Recovery
After two decades running Complete Controller, I’ve discovered that lasting debt freedom comes from treating the whole person, not just the numbers. My most successful clients share three traits: complete transparency about their situation, patience with the process, and commitment to building new habits alongside debt repayment.
The journey transforms more than bank accounts. Clients report stronger marriages, better sleep, and renewed confidence in their business decisions. Small wins stack into life-changing momentum when you follow proven frameworks consistently. Visit Complete Controller to discover how our team helps individuals and businesses implement these strategies, creating customized plans that address both immediate debt challenges and long-term financial success.
Frequently Asked Questions About How to Manage Debt
What are the best strategies for managing debt?
Effective strategies include creating a detailed budget, prioritizing high-interest debts, choosing between snowball or avalanche repayment methods based on your personality, and considering consolidation options for multiple high-interest debts. Success requires tracking every expense and redirecting all extra funds toward debt repayment.
How can I avoid getting into more debt while paying off current debts?
Track every expense meticulously, cut unnecessary costs like subscriptions and dining out, and avoid new credit applications. Stick to your budget religiously, use cash for discretionary spending, and create barriers between impulses and purchases by instituting waiting periods for non-essential buys.
Are debt consolidation loans a good idea?
Debt consolidation loans can simplify payments and potentially lower interest rates, but only work if you address the spending habits that created the debt. Carefully compare total costs including fees, avoid extending repayment terms unnecessarily, and never consolidate secured debt into unsecured loans without understanding the risks.
When should I seek professional help for my debt?
Seek help immediately if you’re missing payments despite budgeting efforts, your total debt is increasing, or you’re experiencing severe stress or depression about finances. Contact nonprofit credit counseling agencies for free consultations, and consider mental health support if debt is affecting your wellbeing.
What’s the difference between good debt and bad debt?
Good debt like mortgages, student loans, or business loans builds long-term value and typically carries lower interest rates. Bad debt like high-interest credit cards or payday loans drains resources without creating lasting benefits. Focus on eliminating bad debt first while maintaining payments on good debt.
Sources
Amerant Bank. “Debt Management Strategies for Financial Freedom in 2025.” AmerantBank.com, 2025.
Aspire Wealth Group. “How To Manage Debt Effectively.” AspireWealthGrp.com, 2024.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
Real business leaders are not born; real leadership talent comes from experience and commitment to learning. Although some people are God-gifted with some traits that make them good suited to management roles, everybody can become the best leader. If you are unsure how to grow leadership skills, completing an MBA or Master of Business Administration degree proposes a practical solution to increasing the vital qualities for development chances.
Once undertaking a Master of Business Administration degree, you will learn many leadership skills and incorporate and develop them into your future career. Here are eight ways an MBA can enhance your leadership skills.
Challenge your view
You will be provided business information and practices built to challenge your views all over your MBA degree. Various office leaders have difficulties showcasing their views and opinions, resulting in making the worst business decisions because they have not taken all the teams’ thoughts and ideas into account. Challenging your view is considers a good point and helps to improve your leadership skills.
Communication
When learning for an online MBA, you will advance strong communication skills imperative for leadership success. Simultaneously, there are no exact areas of an online MBA that mainly focus on communication. The whole degree’s experience will empower you to connect and communicate with the peers and work on projects and tasks together. You will efficiently communicate solutions between your lecturer ad peers all over your study, serving build on your communication skills. When you have developed these skills, you will be able to maintain them with you in your workplace.
Marketing plans
When you are starting a business, you must have leadership skills. MBA marketing provides you leadership exposure to your business’s market, which helps reach the general audience, and provides success to your business which is the primary leadership factor.
Teamwork
While working as a team can feel primarily daunting, the more projects and tasks you do, the more confident you will feel. Collaborative and teamwork drive you into circumstances that might be out of your comfort zone. However, the more you communicate with your peers, the more comfortable and relaxed you will become. Once you work in a team, listen to all points of view as some are probably to differ from your own. Having everyone’s issues and thoughts into account will put you in better stead and provide you excellent leadership skills.
Problem-solving
Additional significant quality to have as an efficient leader is evaluatinga situation and solving issues under pressure. All over your MBA degree, you will face problems that will involve working under pressure, which will help you become a good leader in the office or workplace. Solving the issue will assist you in making the right decision on a task or project.
Passion for development
When you have completed your MBA degree, your desire for development should not end. Actual leaders are always determining success and thinking of how they can better themselves to improve their market value or professional career. Make sure that you choose an MBA program that fulfills your needs. With a wide variety of MBA benefits, choose the top-rank MBA program to ensure that you are getting the best education level.
Integrity
A real leader must prove integrity, build trust in their workers and establish themselves as expert figures. During your MBA degree, you have learned from experience career coaches and advisors who will work with you on an individual level through one-on-one career and leadership sessions. Those experiences will provide you with feedback and insights that will allow you to develop leadership skills in a way that relates to your future goals.
Focus on organizational change
The business sector is varying rapidly, though there are different ways to avoid being left behind. MBA spots the significance of dealing with change in the office, giving aspiring leaders an understanding of new techniques to financial productivity goals and social effects during the disruption.
McKinsey estimates that 70% of the exchange programs last with the failure to accomplish their worker resistance goals. Through treating the ability to navigate companies’ change as a core leadership skill. An MBA can make you a responsible leader and change management skills. Because of an exchange program’s current failure rate, proposing real change management techniques will help you stand out from the large audience.
Conclusion
An MBA provides different skills like communication skills, time and team management skills, problem-solving, passion for development, and man more. Altogether, it gives a leadership skill, which opens different opportunities for the skill full degree holders.
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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.
Transform Your Business with Cloud Computing Solutions
Cloud computing for business gives organizations the power to streamline operations, reduce costs, enhance security, and scale effortlessly—by moving critical IT infrastructure and data management to the cloud, companies of any size can unlock new efficiency and growth potential instantly. In fact, research shows that small and medium-sized businesses using cloud technology grow 26% faster and generate 21% more profit than companies that don’t use cloud solutions.
As the founder of Complete Controller, I’ve guided thousands of SMBs through their cloud transitions over the past 20 years. I’ve witnessed firsthand how cloud adoption transforms overwhelmed business owners into confident leaders who focus on growth instead of IT headaches. This article shares practical strategies and real-world insights that will help you navigate your cloud journey successfully—from choosing the right model to avoiding common pitfalls that derail ROI.
What is “transform your business with cloud computing solutions” really asking?
Cloud computing for business means using internet-based services to replace or enhance in-house servers, storage, security, and business applications
Businesses adopt the cloud to improve flexibility, reduce costs, simplify IT management, and accelerate growth
Features like instant scalability, robust security, and real-time team collaboration are key draws
Business leaders must choose the right cloud model (public, private, hybrid) and plan implementation steps that ensure compliance and optimal ROI
The future of cloud for business includes advanced automation, data analytics, and ongoing security innovations
How Cloud Computing Transforms Today’s Business Landscape
Cloud computing represents a fundamental shift in how businesses operate, collaborate, and compete across every industry. More than 90% of organizations worldwide now use cloud computing in some form, with 60% of all business data globally stored in the cloud—up from just 25% a decade ago.
The pandemic accelerated this transformation dramatically. Before COVID-19 in early 2020, only about 5% of the U.S. workforce worked from home regularly. Today, researchers project that 20% will continue working remotely permanently, making cloud-based collaboration and data access essential rather than optional. This shift has boosted overall productivity by 4.6%, primarily through eliminated commuting time and enhanced digital workflows.
The evolution: From on-premises to everywhere
Traditional IT infrastructure requires massive capital investments, complex maintenance, and slow scaling processes. Cloud solutions flip this model completely:
24/7 access from anywhere enables true business flexibility
Automatic updates keep systems current without downtime
Key benefits at a glance
The advantages of cloud adoption extend far beyond IT departments:
Instant scalability—Add or remove resources with one click during busy seasons or growth spurts
Cost control—Pay only for resources you actually use, eliminating waste from over-provisioning
Remote collaboration—Teams access shared data and tools in real-time, regardless of location
The Top 7 Benefits of Cloud Computing for Business
Cloud solutions deliver measurable advantages that impact profitability, staff engagement, and customer experience across organizations of all sizes.
Cost savings for small and midsize companies
Moving to the cloud transforms capital expenditures (CapEx) into operational expenses (OpEx), freeing up cash flow for business growth. Since Amazon S3 Intelligent-Tiering launched in 2018, customers have saved more than $4 billion in storage costs through automated optimization that requires zero manual management.
Companies typically see 40% savings on storage costs through intelligent tiering, with some achieving up to 68% reductions for archived data. These savings compound over time, allowing businesses to redirect funds toward revenue-generating activities rather than infrastructure maintenance.
Effortless scalability and agility
Cloud platforms enable businesses to respond instantly to changing demands. During peak sales periods, you can triple server capacity in minutes, then scale back down when traffic normalizes. This business agility via cloud platforms eliminates the traditional choice between over-provisioning (wasting money) or under-provisioning (losing customers).
Netflix exemplifies this benefit perfectly. After a catastrophic database failure in 2008, the company rebuilt entirely on Amazon Web Services. Today, Netflix provisions 10,000+ virtual servers in minutes, serving 230 million subscribers across 190+ countries while reducing infrastructure costs by 50%.
Enhanced security and compliance
Leading cloud providers invest billions in security infrastructure that most companies could never afford independently. This includes real-time threat monitoring, automatic security patches, and built-in compliance in cloud computing controls for regulations like GDPR and HIPAA.
The AWS Shared Responsibility Model clarifies that providers secure the infrastructure while customers manage access controls and data encryption. This partnership approach delivers enterprise-grade security to businesses of all sizes.
Business continuity and disaster recovery
Cloud infrastructure distributes data across multiple geographic locations automatically, drastically reducing risks from natural disasters, power outages, or cyberattacks. Disaster recovery with cloud services happens in minutes rather than days, keeping businesses operational during crises.
Studies show that companies using cloud-based disaster recovery reduce downtime by 75% compared to traditional backup methods. This resilience protects revenue streams and maintains customer trust during unexpected disruptions.
Anytime, anywhere collaboration
Cloud collaboration tools transform how teams work together. Marketing teams in New York can simultaneously edit campaigns with designers in London while sales reps access updated materials from client sites. This real-time coordination accelerates project completion and improves output quality.
According to Forrester, businesses adopting advanced cloud collaboration tools see 30% improvements in teamwork efficiency. The elimination of version control issues and email attachments alone saves hours weekly for each employee.
Innovative speed to market
Cloud platforms enable rapid experimentation with new products and services. Instead of waiting months for server procurement and setup, teams can launch test environments in minutes. This acceleration helps businesses respond to market opportunities before competitors.
Startups particularly benefit from this advantage, competing with established companies by leveraging the same enterprise-grade infrastructure without massive investments. The ability to fail fast and iterate quickly becomes a competitive advantage.
Smarter data and analytics
Data analytics in the cloud unlock insights previously accessible only to large enterprises. Machine learning tools analyze customer behavior, predict trends, and optimize operations automatically. Small businesses can now leverage the same AI capabilities that power Amazon’s recommendations or Google’s search results.
These analytics drive concrete improvements: better inventory management, personalized customer experiences, and data-driven decision making that improves profitability.
A Founder’s Guide: How To Transition Your Business to the Cloud
Many businesses struggle with cloud migration because they lack a clear roadmap. Here’s my proven five-step process for smooth transitions:
Step 1: Audit your IT and process workflows
Start by documenting your current technology stack and workflows:
List all applications, databases, and systems currently in use
Identify dependencies between different systems
Assess which processes would benefit most from cloud migration
Calculate current IT costs for comparison
Step 2: Choose the right cloud model
Public, private, and hybrid clouds each serve different needs:
Public cloud offers maximum scalability and lowest costs for standard applications
Private cloud provides enhanced control and customization for sensitive data
Hybrid cloud combines both approaches for maximum flexibility
Most businesses start with public cloud for non-critical systems, then expand based on results.
Step 3: Plan security, compliance, and backup
Security planning prevents problems before they occur:
Map all regulatory requirements specific to your industry
Implement multi-factor authentication for all users
Establish data encryption standards
Create backup and recovery procedures
Document access control policies
Step 4: Train your team and test the migration
Successful cloud adoption requires buy-in from your entire team:
Provide hands-on training for new systems
Run pilot programs with willing departments first
Document new procedures clearly
Address concerns proactively
Celebrate early wins to build momentum
Step 5: Optimize continuously
Cloud migration isn’t a one-time event—it’s an ongoing process:
Monitor usage patterns to identify cost-saving opportunities
Regularly review security settings and access logs
Gather feedback from users to improve workflows
Stay informed about new features and capabilities
Adjust resources based on actual needs
Hidden Advantages: Going Beyond the Usual Cloud ROI
While most discussions focus on cost savings and scalability, forward-thinking businesses discover additional benefits from cloud adoption.
Unlocking employee productivity and engagement
Cloud tools remove friction from daily work, empowering employees to focus on high-value activities. When staff can access information instantly and collaborate seamlessly, job satisfaction improves alongside productivity. Companies report that cloud-enabled employees feel more autonomous and engaged in their work.
Building resilience against future shocks
The pandemic proved that cloud-enabled businesses adapt faster to disruption. Whether facing natural disasters, economic downturns, or global health crises, companies with cloud infrastructure maintain operations while competitors struggle. This resilience becomes a competitive advantage during uncertain times.
Reducing environmental impact
Cloud computing significantly reduces carbon emissions compared to on-premises servers. Google Cloud’s sustainability initiatives show that businesses can cut energy consumption by up to 64% through cloud migration. This environmental benefit appeals to conscious consumers and helps meet corporate sustainability goals.
Conclusion: Start Your Cloud Transformation Today
After 20 years helping businesses modernize their operations, I’ve learned that successful cloud adoption requires courage to start, patience to learn, and commitment to continuous improvement. The companies thriving today didn’t wait for perfect conditions—they began their cloud journey and refined their approach along the way.
Cloud computing for business levels the playing field, giving small companies access to enterprise-grade tools while helping large organizations move with startup speed. Whether you’re looking to reduce costs, improve collaboration, or scale globally, cloud solutions provide the foundation for sustainable growth.
Take the first step today by auditing your current systems and identifying one area where cloud could make an immediate impact. Visit Complete Controller to connect with our team of experts who can guide you through every phase of your cloud transformation journey.
Frequently Asked Questions About Cloud Computing for Business
What is cloud computing in business?
Cloud computing in business refers to using internet-based services and infrastructure to manage IT operations, data storage, applications, and business processes remotely, replacing traditional on-premises servers and software.
How secure is cloud computing for sensitive business data?
Leading cloud providers offer advanced security features, including encryption, multi-factor authentication, and continuous monitoring. However, businesses remain responsible for managing user access, setting permissions, and following security best practices to protect their data.
What types of cloud deployment models exist?
The three main models are public cloud (shared infrastructure managed by providers), private cloud (dedicated resources for one organization), and hybrid cloud (combination of both). Each offers different benefits for cost, security, and customization based on business needs.
Can cloud solutions really save my company money?
Yes, cloud platforms reduce capital expenses, eliminate hardware maintenance costs, and let you pay only for resources you actually use. Studies show businesses can save 40-68% on storage costs alone, with additional savings from reduced IT staff needs and improved efficiency.
How do I choose the right cloud provider for my business?
Evaluate providers based on security certifications, compliance support for your industry, uptime guarantees, customer reviews, pricing transparency, and technical support quality. Consider starting with a small pilot project to test compatibility with your specific needs.
Sources
“8 Ways Cloud Computing Can Increase Productivity.” Business.com
“Leveraging Cloud Computing for Business Efficiency and Growth.” Park University Blog
“90+ Cloud Computing Statistics: A 2025 Market Snapshot.” CloudZero
“Types of Cloud Computing and Their Benefits.” Microsoft Windows 365
“Cloud Computing Benefits for Business: Driving Growth and Efficiency.” Otava
“What Are the Benefits of Cloud Computing?” IBM
“Top 12 Benefits of Cloud Computing.” Salesforce
“What is cloud computing: Its uses and benefits.” McKinsey
“8 reasons every business needs the cloud in 2025.” Revolgy
“Six Benefits of Business Cloud Computing.” DQE Communications
“Cloud Computing: Benefits, Challenges, and Practical Strategies.” Emma
“Why Cloud Computing Has Big Benefits for Small Business.” Deltek
“55 Cloud Computing Statistics for 2025.” Spacelift
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
Globally, the economy inevitably goes through periods of growth and recession. Various factors can lead to political and economic turmoil, which can result in a market crash, plummeting prices of oil and precious metals, economic data, and slow GDP (Gross Domestic Product) growth. When it comes to the lethargic economy or recessionary periods, people should ideally keep a close eye on lavish spending. Even financially strong people are bound to be impacted by an economic downturn. However, the middle class and lower class should also follow take precautions. In addition to overspending or high expenditure, everyone in an economic slump should avoid taking unnecessary risks that may put their financial obligations in difficult circumstances.
It is recommended that a business owner who cosigns a financial debt fully understand their obligations for the entire proposition. Similarly, this is a prudent exercise during a booming economy. When a person takes a loan with a cosigner and fails to meet the financial obligation or repayments, the burden falls on the cosigner to fulfill the financial debt. This adds further stress to the cosigner’s financial burden. In the event of a recession or economic turmoil, cosigning a financial agreement could even be riskier. The person who took the loan and the consigner could be at risk of paying the entire loan and could be susceptible to losing their job and becoming a part of the unemployed population. This added stress of unemployment and mounting financial obligations can have dire effects on the individual’s mental and physical health and family.
Bearing all aspects and factors mentioned above, there may be some instances when cosigning a loan for a close family member or friend becomes unavoidable, despite the economy’s health. Only when the cosigner has saved up enough reserves in case of non-payment should cosigning the loan take place.
Many people dream of building or owning a home. If the small business owner or investment stockbroker considers purchasinga home, few might prefer to secure a home loan through an ARM (Adjustable-Rate Mortgage). While some situations may seem this as a sensible option, this may have an adverse effect in the long run. The benefit of an ARM is the rock-bottom interest rates often quoted to clients. Subsequently, the EMI (Equal Monthly Installments), which includes interest as a composite to the total payment, is also manageable and a smaller amount. Now assume that the recession or economic turmoil has started to hurt the revenue stream of an organization. The first thing that a business does is pay off its employees, either through downsizing or through rightsizing. In countries where the economy starts to slow down, the federal bank jumps into action and increases interest rates.
When the rates increase, the EMI, or the mortgage payment, also increases. In the previous scenario, where payments appear affordable, they are now eating up a substantial portion of the salary. Slowly and gradually, the person who has taken a mortgage to purchase a house finds it difficult to cope with high monthly installments. Now the individual must carefully adopt an approach to ensure that they have a steady income to pay their monthly mortgage amid layoffs. Secondly, they should reduce any other sources of expenditures. If there is non-payment or late payments, the credit score and history of the obligor will be severely affected and can quickly escalate. At first, it could be late payments or non-payments. Next, defaulting on payments will further harm their credit history. In the end, when the recession is all over, and the individual wants to reapply for a loan, the inability to pay or defaulting on loans will reflect poorly on their credit history. It may prevent financial institutions from extending future credit to the person.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.
Equity is an essential part of a company’s balance sheet. It highly valuable when determining the commitment of the principal shareholder and the reputation of the firm. Equity Financing is the most common option that any company prefers, whether it is for capital expenditure or expanding business operations. When considering capital expenditure, the raising of paid-up capital is through the issuance of shares. It can be through the issuance of Right Shares or Preferred Shares if the paid-up capital is within the scope of authorized or regulated capital. If there is no cushion available in the authorized capital, the company needs to amend its articles of association, write a letter to the company ordinance regulator, request an increase in authorized capital, and pay a marginal fee. This will also justify the purpose and inform the respective stock exchange accordingly.
Right Shares
Issuing shares to existing shareholders of the organization is known as right share issuance. To put it simply, a right share is a form of dividend payout to the existing shareholders. The company offers the subscription rights to purchase more shares to the shareholders within the company. The right shares can be issued to both private and publicly listed companies (quoted and unquoted). In the case of a public company, the market value of the shares is not diluted, and the capital is injected, which, in the eyes of the investor, shows the shareholder’s commitment to the organization. Usually, a prospectus or an add-on supplement, after being funneled through the process of underwriting, accompanies the issuance of the right shares. Under this agreement, the existing shareholders are at liberty to purchase the new shares from the issuing organization within the stipulated period of subscription. If the subscription is undersubscribed, then the public is given the option to purchase the shares, where it then goes through the process of public offering.
Issuance of shareholders can prove to be beneficial for existing shareholders as it might increase their shareholding percentage within the company.
Common Shares
The second mode of equity financing is through the issuance of common shares. This offers the shareholders the opportunity to have some share in the organization’s net profit, either in the shape of dividend payout or capital gain. However, in the general meeting of board members, it is up to the mutual consensus on paying dividends or not. If they agree to pay dividends, they must next determine what the price will be. In some instances, shareholders of common stock are also given the right to vote as per their shareholding.
Preferred Shares
Preferred Shares are the third type of equity finance. While it is deemed to be less erratic than common shares, it has less potency for profit sharing. They do not have the right to vote but have a higher preference for the company’s assets. It means that if the organization goes bankrupt, shareholders having preferred shares will be given the first right of refusal and, if any amount remains, it is handed off to the common shareholders.
Advantages and Disadvantages of Equity Financing
Mentioned below are some of the pros and cons of Equity Financing:
Repayment Obligations
One major benefit of equity financing is that the shareholders have no compulsion to make fixed compensation or dividend payout to investors.
Shared Risks
In equity financing, shareholders are at liberty to disperse risk associated with the company, but you, as an investor, do not bear the burden of financial repayment of borrowings from financial institutions.
Dilution of Shares
The most prominent disadvantage is the dilution of share price value. Without any increase in paid-up capital, the issuance of shares will lead to a decrease in the market value of the share price. However, this can be avoided if the swap ratio is helpful in assuring that it does not go below the book value of the share price.
Loss of Control
The other disadvantage can be losing control over decision-making or a possible hostile takeover should any of the shareholders acquire more than the agreed percentage of shareholding through proxies.
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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.
Leading large-scale manufacturing and service-oriented corporations have been scaling down costs and outsourcing low to no revenue-generating jobs to offshore countries. The outsourcing business strategy is not new but is often the source of controversy as there are plenty of American workers looking for employment at any given time. Outsourcing is seen to get cheap labor and is a widely adopted practice by large companies while not generally utilized by smaller companies. However, some will import products and materials from offshore sources.
Low revenue business units, such as customer service centers, software, design development, and assembling of electronics and consumer appliances, are a few of the commonly outsourced jobs. World-renowned corporations have also adopted outsourcing approaches as a best practice in their business model, including stitching, labeling, packaging, and finish work. Some of the leading and more well-known clothing manufacturers that outsource are Zaraman, Inditex, Ralph Lauren, and other leading stitched apparel.
The question is how outsourcing jobs or outsourcing business processing operational units can generate revenue in offshore countries instead of being an internal division of the company. The answer is simple, ever since Activity-Based Costing (ABC) was introduced, many large-scale and world-renowned corporations started to establish Cost Business Units and Revenue Business Units. These units include financial divisions, production divisions, customer relationship departments, human resource departments, customer service departments, printing departments, in-house software development, and advertising departments.
Since ABC was introduced, these units were established within the corporation, deemed essential to remain stateside. Those jobs or units which were labor-intensive and low in revenue generation were outsourced to countries like India, Pakistan, China, Bangladesh, China, and the Philippines.
For example, Apple has outsourced the assembly, packaging, and printing of its consumer items like iPhone, iPad, and iMac to China. Suppose someone from the Middle East, Far East Asia, South East Asia, and Oceania wants to purchase any of the Apple Products online. In that case, when the package arrives, the backside of the product will clearly state, “Made and Assembled in China.” This is because that the cost of production and labor is substantially lower in China.
In the end, when cost and revenue are collated, and the bottom line is derived. It essentially affects the EPS (Earning per Share) and the stock exchange value on the stock exchange. It is imperative, as these corporations are publicly traded and listed on the stock exchange. If there is any financial misrepresentation or negative trend in the income statement, it is bound to impact the share price, investor’s confidence, and overall share value.
Therefore, if the corporation outsources those units of the operations that are not generating any substantial revenue, it can be profitable. The monetary advantages can be brought to fruition in the least amount of time and provide you the leverage to concentrate more on producing sales and effective customer service, thus being evaluated efficiently.
The scope of outsourcing is wide. Entities provide both inbound and outbound customer services through IP telephones, accounting and bookkeeping services, CAD drafting services, photography, advertisements, marketing services, and other areas to bear in mind when considering how to amplify revenue stream.
In real-life scenarios, we encounter situations where many managers and executives spend a substantial amount of precious time dealing with after-sales service. It is frustrating for any management executive. When the person can finally make a sale or close a deal with the anticipation that the performance appraisal will bear fruits, the same person finds a flood of messages and issues related to after-sales. Therefore, customer service is of paramount importance. But, since they consume a lot of time and don’t generate revenue, these units are often outsourced to professional call centers and customer service organizations to retain the customers. On the other hand, the in-house or internal management executives can focus on bringing in more revenue by acquiring new customers.
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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.
Retained Earnings are an internal source that a company can utilize to fulfill its financial requirements or repayment of any financial obligations. As the name suggests, retained earnings include the company’s old earnings or profits that are retained or saved in the form of the company’s earnings to use in the future. In any organization, retained earnings are important to management since they utilize it brings new technology or acquisition of new machinery to enhance the plant’s production capacity and for purchasing the assets of the company. Furthermore, management has utilized this source when the company is facing financial crises, and the company cannot acquire capital from external sources.
Companies retain earnings because they can easily acquire these funds, and they are not required to pay any cost on it. For Instance, Equity Company is required to pay certain underwriters’ costs to issue shares in the stock market. Furthermore, management does not repay the funds, as they are not acquired but obtained from the company’s internal sources. However, management is required to repay an investment they acquired from the market.
In addition, retained earnings are less costly as compared to other financing sources, including debt and equity, in which returns are paid on the investments acquired from the public. As it is acquired from internal sources, the company pays none of the returns. This aspect, and because of a decreased level of payments for interest expense and dividend payments, can increase the company’s capacity to generate more returns and profit on the investment.
However, an increase in the company’s retained earnings will affect shareholder satisfaction as they are not paid with dividends from the profits, but the company, to fulfill the future financing needs, retains these profits. Because investors want to gain returns on their investment in terms of dividend payout, non-payment will negatively affect their satisfaction.
Retained Earnings play a pivotal role in lowering down the gearing or financial leverage of the company. It becomes an integral part of the equity or, in other words, part of the organization’s capital. A certain portion or a percentage can be transferred to the paid-up capital to show commitment to existing shareholders. In doing so, there can be no withdrawals from the paid-up capital, and simultaneously the transition is communicated to the regulated stock exchange or registrar of companies. If the paid-up capital is equal to the authorized capital, the organization must request the stock exchange commission to increase the authorized capital. When the authorized capital is increased, a cushion is created in the paid-up capital where retained earnings can be transferred.
It is a sign of how deeply the company is committed to continuing the operations and provides a sign of risk-free investment for shareholders considering the increase in paid-up capital. Although retained earnings do have a significant impact on the Return on Equity (ROE), when it comes to domiciling the equity into three different tiers, this move is considered positive. To calculate ROE or any other leverage ratios, the investors rely more on the tier one part of the equity or capital. Tier one capital includes the paid-up capital and subordinated earnings. In tier two and tier three, the capital includes retained earnings, reserves, deferred payments, the surplus on revaluation of fixed assets, and quasi-equity financing.
If you want to gauge the importance of retained earnings and drawings by directors, it will reflect the company’s non-financial performance. It could help determine the contribution and commitment of the directors and shareholders. Moreover, it can help predict the organic growth of the organization and the expansion of the distribution footprint.
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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The cash flow of a firm is comprised of many facets, including cash raised from investors when they inject more capital, loan subordination, or selling of financial assets such as bonds, shares, stocks, and warrants. Cash flow can also refer to investments from tangible assets like operations-generated cash and intangible assets like a brand name or trade name. In essence, the sales are deduced through working capital charges, including how many products were sold, the cost of goods sold, the operating expenses, and operating income. While calculating cash flow, it is important that we include the non-expense amount back into the net profit so we can see how much cash was generated.
Regarding operating needs, it is vital to remember that an increase in accounts receivable and inventory is a decrease in cash and needs to be deducted. To put it simply, this is a cash outflow. Simultaneously, an increase in accounts payable is an increase in cash inflow. This is how the working capital cycle is assessed in a cash-flow statement.
The finance manager must match the cash flows in accordance with repayment of financial obligations, which typically include loan payments along with interest. On the other hand, it is at the discretion of upper management to determine how the investment is paid out, either in terms of dividend payments or capital gains.
Regarding tangible and intangible assets, valuation is ascertained by cash flows since it incorporates both the traits of the time value of money and risk premium. The approach of valuation of assets, usually adopted by finance managers, is by matching principle since Current Assets should always be financed through Current Liabilities. If cash flow is managed effectively by incorporating the elements of time and risk, it is easy to evaluate the price of any type of asset to be traded at the prevalent market price.
In a free market, the valuation of the asset can be ascertained through demand and supply.
Financial Goals of the Firm
All firms strive to increase their profits, lower their expenses, and expand their market share. Let us look at these goals individually:
Maximize Profitability
A firm’s most foremost objective is to be profitable and invest any revenue. Ratios in determining the profit margin are one of the ways to evaluate how much cash an organization can deduct from its gross sales.
On a macro level, there are three primary ratios pertaining to profit margins:
Gross Profit Margin
In a profit and loss statement, the first ratio is the gross profit margin. In essence, the amount of sales incurred against the given expenses of Cost of Goods Sold (COGS) and adding the non-expense item such as depreciation and amortization. It tells us that how efficiently the company has optimized its inventory and raw material levels in the overall production process:
After we have calculated the gross profit, we want to determine the operational efficacy of the company. While calculating the Operating Profit Margin, we consider the operating expenses incurred during the given period. This ratio implies how efficiently the company has been operating. In addition, it also portrays the cost-beneficial steps that that management has taken.
This ratio is also a means of evaluating the Operating Leverage of a company. Higher operating profit margins represent that the organization has taken effective measures to curtail waste and control unnecessary expenses like costs of spare parts and materials, payroll expenses, and administrative costs.
Net Profit Margin
After calculating the operating profit, it filters down to non-operating expenses, where we subtract the financial expense and taxes. Operating Profit can also be termed as Earnings Before Interest and Taxes (EBIT). This is the last profitability margin, illustrating how productively the company is being managed.
Net Profit Margins = Net Profits after Taxes/Sales
Like all ratios, profitability margin ratios never reflect the true financial picture of the organization. They are merely relevant with respect to the appropriateness and precision of the financial numbers. It is meaningless if we do not compare it with the industry trends and the average number per month in the annual cycle of the business financial report.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
The popularity of cloud storage has increased rapidly over the last few years. Almost every business, large or small, uses cloud storage to meet document storage needs. Cloud storage streamlines the storage of documents and saves money in the process.
But with the upcoming technology trends, experts have said that cloud storage has some significant security risks. Many companies face these security issues because they have to entrust their business’s security to third parties that may or may not be in their best interests. Here are six of the risks you should consider before making the final decision on using cloud storage for your business.
Limited control over data
When a business uses cloud storage services, it has to deal with security issues such as loss of control over sensitive data. When using third-party file sharing, the business’s data is being taken away from the business, causing the company to lose control over the security of that data.
Also, if the information is back up in cloud storage in real-time, there is a high possibility that unauthorized access can occur. The best way to avoid this would be to get relevant files/data encrypted before using cloud storage.
Leakage of data
Many businesses do not use cloud storage because they fear that it would risk losing their data or having it leaked. This fear is because cloud storage is a multi-user platform, and most of the resources are shared. Also, it is a third-party service, leaving the data at a significant threat of being used by others or misused by the provider.
Cloud storage also faces external threats because the cloud storage accounts can be compromised and fall prey to hackers or malicious attacks on the internet. The best strategy to tackle this would be to use stronger passwords and encryption methods.
Bring your device
A significant security threat has been increasing in cloud storage as companies have given employees the option to work on a BYOD (Bring your device). This trend increases security concerns even more because the devices can be insecure.
Although they provide a win-win situation for both the employer and the employee, using cloud storage on various devices can result in data loss if the devices get lost, stolen, or misused by a third party. This misuse will result in a loss of essential data of the company to third parties who may have the ability to breach the company’s security and steal information valuable to the company.
Snooping
Without proper security measures, online data stored and maintained on cloud storage is highly vulnerable to being hacked or attacked by malicious viruses or online threats. The transmission of data itself on the internet is a significant threat. Information is not safe from vicious online security threats until encryption for authorized access only occurs. The best way to deal with this is high-security encryption. Third parties or foreign bodies cannot access or view the data of the company or organization.
Key Management
Managing cryptographic keys have been a high-security risk for many businesses. Since the introduction of cloud storage, it has become necessary to perform improvised management processes. These processes can be done by securing the management process from the start and be automated, inconspicuous, and continuously active.
Cloud Credentials
The main attraction and benefit of using the cloud are that it allows and offers almost unlimited amountsof storage. This limitless storage means that all the business information and the customer’s data storage could breach data that third parties run. Even though the credentials protect the data stored on cloud storage, they are at a high risk of getting compromised. Encryption of data is a safe way to protect all data stored on the cloud storage to avoid losing important information like the bookkeeping records of a company.
Conclusion
Using the cloud is not a new concept. However, it is still in development when it comes to a business data storage option. While there are many pros, there are some cons to using cloud services for company data storage. It has many conveniences so the drawbacks should be considered and you should decide whether the advantages outweigh the possible disadvantages.
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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.
