Author: Jennifer Brazer

No matter the size, businesses have to take out loans at one time or another or use other business credit types to operate their business. This is especially true for small businesses. Small businesses often have struggled financially, which causes them to use tools to provide capital until the business can pay down debts and profit. If you are a small business owner, it is essential to consider the types of business credit you can get and how they work to make sound financial decisions that will make funding stress-free. Here are four of the most common types of business credit and how they work.

Business Charge Cards

Business charge cards a great way to get a quick line of credit and are similar to credit cards with some differences. Though you can charge the same things on a charge card as a credit card, charge cards are expected to be paid in full each month. They also rarely have a spending limit nor interest since they do not have a revolving payment over time. A business would use a charge card to make a significant purchase that needs to be made quickly that would take the rest of the month to save for so you can pay the balance in full as expected. Charge cards are good to have on hand for emergencies and large purchases, but it is recommended that you use them as little as possible, as paying it in full can be difficult.

Installment Accounts

Installment accounts are generally loans at a fixed amount with installment payments. These accounts will have an interest, but it will be figured into the overall cost, and the loan payments will be a fixed amount the lender agrees to upon approving the loan. The entire amount is determined over a specific timeframe then a fixed amount is pulled from that total. These loans are generally obtained from a banking institution or friends and family members that don’t charge interest but work with you to pay the loan back in manageable payments.

Revolving Credit Accounts

Revolving credit in the simplest terms is credit that has limits, but as long as you make payments on time and keep your charges under the limits, you can charge as often as you want or need to charge. This type of credit can be useful, but it can be expensive and is not recommended to be a primary business credit source with interest. Business debt is generally already problematic for the small business owner, so taking on an extra debt can quickly overwhelm a business owner and cause debt that threatens the business.

Vendor Accounts

Vendor accounts can be a lifesaver for small business owners. Just as the name implies, these accounts are established with vendors that the business uses for materials, products, services, and other business needs that the business cannot fulfill. Generally, business account balances will have anywhere from thirty to ninety days to pay the balance. The other advantage of a vendor account is that it carries no interest. Also, because vendors and the businesses they serve usually have a positive relationship, if something happens and you can’t make the payment, vendors will generally work with you on a payment plan until you get on your feet without withholding what the vendor offers.

Conclusion

When you are the owner of a small business, it is better not to use personal money to fund the business unless you act as though it is an investment and are a stakeholder paid from profits. Business credit is a reliable way to take care of the business’s needs until it is self-sustained. You should carefully consider all the options and use what makes sense for you and your company. You can use more than one type of business credit; be sure you keep in good standing, or your business could suffer financially.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-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.

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

Pros and Cons of Student Loan: A Balanced Review

Student loans serve as financial bridges that connect ambitious students to educational opportunities they couldn’t otherwise afford, offering both life-changing benefits and potential long-term burdens that require careful consideration. The average federal student loan debt per borrower in 2025 stands at $38,375, with significant state-level variations ranging from $54,150 in Washington, D.C. to $29,647 in North Dakota, making the decision to borrow a deeply personal calculation based on geography, career goals, and financial circumstances.

I’ve spent over two decades as CEO of Complete Controller, working alongside businesses across every imaginable sector, and I’ve witnessed firsthand how student loan decisions made at 18 can ripple through entire careers. The stories I’ve heard from business owners—some who leveraged their education debt into million-dollar enterprises, others who struggled under crushing monthly payments—have taught me that understanding both sides of the student loan equation isn’t just smart financial planning, it’s essential career strategy. This article will equip you with concrete insights on federal versus private loan options, proven repayment strategies that actually work, and real-world case studies that illuminate both the opportunities and pitfalls of educational borrowing.

What are the pros and cons of student loans?

• Answer: Student loans provide access to higher education through borrowed funds, offering benefits like income-driven repayment plans and potential loan forgiveness, while creating risks including long-term debt obligations, default possibilities, and limited financial flexibility after graduation

• Access Benefits: Federal loans require no credit checks for most programs, making college accessible to students regardless of financial background

• Financial Protections: Government-backed loans include safety nets like deferment, forbearance, and multiple repayment plan options

• Career Investment: Strategic borrowing enables degrees that significantly increase lifetime earning potential, particularly in high-demand fields

• Debt Burden Reality: Graduates face average monthly payments of $200-$400, potentially limiting major life decisions like homeownership or starting a business

Understanding the Basics of Student Loans

Student loans fall into two primary categories: federal loans backed by the U.S. government and private loans issued by banks, credit unions, and online lenders. Federal loans currently carry fixed interest rates between 5.37% and 7.54% for the 2024-2025 academic year, while private loan rates vary dramatically based on creditworthiness, ranging from competitive rates below 4% for excellent credit to over 16% for borrowers with limited credit history.

The fundamental mechanics of student loans involve borrowing money to pay for education expenses, then repaying that amount plus interest over a predetermined period. Federal loans typically default to a 10-year standard repayment plan, though borrowers can choose from eight different repayment options including income-driven plans that adjust monthly payments based on earnings. Private loans offer less standardization but sometimes provide more flexibility in loan terms, ranging from 5 to 20 years, allowing borrowers to customize their repayment timeline based on their financial situation.

Key differences between loan types

Federal loans come with built-in borrower protections that private loans simply don’t match. These protections include automatic eligibility for income-driven repayment plans, potential loan forgiveness through programs like Public Service Loan Forgiveness (PSLF), and the ability to pause payments through deferment or forbearance without damaging your credit score. Private loans, conversely, operate more like traditional bank loans—they’re based on creditworthiness, often require cosigners for young borrowers, and rarely offer the safety nets that make federal loans attractive to students facing uncertain post-graduation employment prospects.

The application process also differs significantly between loan types. Federal loans require completing the Free Application for Federal Student Aid (FAFSA), which determines eligibility based on financial need rather than credit scores. Private loan applications resemble traditional loan processes, evaluating credit history, income, debt-to-income ratios, and often requiring proof of enrollment and satisfactory academic progress.

Pros of Student Loans

Federal student loans unlock educational opportunities for millions of Americans who lack the immediate funds for college expenses. The most compelling advantage lies in their accessibility—most federal loans require no credit check, no cosigner, and no employment history, making them available to 18-year-olds with zero financial track record. This democratization of education financing has enabled first-generation college students, low-income families, and career-changers to pursue degrees that would otherwise remain out of reach.

Income-driven repayment plans represent another major federal loan advantage, capping monthly payments at 10-20% of discretionary income and offering loan forgiveness after 20-25 years of qualifying payments. These plans provide crucial breathing room for graduates entering lower-paying public service careers or facing unexpected financial hardships. Take Esmeralda Lopez, a California public servant who earned $62,500 in Public Service Loan Forgiveness after 10 years of payments while working for a nonprofit organization—her story exemplifies how federal loan programs can make public service careers financially viable despite lower salaries.

When private loans make strategic sense

Private student loans shine for borrowers with established credit or strong cosigners. Graduate students and parents with excellent credit profiles often secure private loan rates significantly below federal rates, potentially saving thousands in interest over the loan’s lifetime. Private loans also fill gaps when federal loan limits fall short—undergraduate federal loans cap at $31,000 for dependent students, while private lenders often approve amounts covering full attendance costs including room, board, and living expenses.

The application and disbursement speed of private loans provides another advantage. While federal loans follow strict academic calendar timelines, private lenders can often approve and disburse funds within days, helping students facing unexpected expenses or last-minute enrollment decisions. Some private lenders also offer perks like interest rate reductions for automatic payments, loyalty discounts for existing customers, and even cash back rewards for good grades.

Hidden benefits many borrowers overlook

Student loan interest provides a valuable tax deduction, allowing borrowers to deduct up to $2,500 in interest payments from their taxable income, regardless of whether they itemize deductions. This benefit phases out at higher income levels but provides meaningful tax relief for recent graduates in their early career years.

Federal loans also offer unique advantages for borrowers pursuing specific careers. The Teacher Loan Forgiveness program erases up to $17,500 in federal loans for educators working five consecutive years in low-income schools. Similarly, the National Health Service Corps provides loan repayment assistance up to $50,000 for healthcare professionals serving in underserved communities. These targeted programs transform student loans from burdens into investments that support critical public service careers.

Cons of Student Loans

The dark side of student loans emerges most clearly in the sobering default statistics: private for-profit colleges show a 2.9% default rate in 2025, nearly double the 1.7% rate at public colleges, highlighting how institutional quality directly impacts borrowing outcomes. Default consequences extend far beyond missed payments—they include wage garnishment, tax refund seizure, damaged credit scores lasting seven years, and ineligibility for future federal financial aid.

Average student debt nearly doubled between 1993 and 2004, rising 107% from $9,272 to $19,210, a trend that has continued with current graduates facing unprecedented debt loads. This historical comparison reveals how education costs have dramatically outpaced inflation and wage growth, fundamentally altering the return on investment calculation for college degrees. The psychological burden of carrying five or six figures of debt impacts major life decisions, with surveys showing student loan borrowers delay homeownership by an average of seven years compared to debt-free peers.

The private loan trap

Private student loans lack virtually every protection that makes federal loans manageable during financial hardship. No income-driven repayment options means your $800 monthly payment remains $800 whether you’re earning $80,000 or unemployed. No loan forgiveness programs mean that debt follows you regardless of career choice or public service contributions. Tanya Burnett’s story serves as a cautionary tale—she refinanced her federal loans privately in 2016 to secure a lower interest rate, only to miss out on Biden’s 2022 debt cancellation program that would have erased $20,000 of her balance.

Variable interest rates on private loans create another risk factor. While starting rates might seem attractive, they’re tied to market indices that can spike dramatically. Borrowers who took private loans in the early 2000s watched their rates climb from 3% to over 9% as markets shifted, turning manageable payments into crushing monthly obligations. Unlike federal loans with fixed rates, private loan borrowers remain vulnerable to economic conditions entirely outside their control.

Long-term financial implications

Student loan payments consume an average of 10-15% of borrowers’ monthly income, money that could otherwise fund retirement savings, emergency funds, or investment opportunities. The compound effect over decades is staggering—a borrower paying $400 monthly for 20 years sacrifices not just the $96,000 in payments but also the potential investment returns that money could have generated.

Career flexibility suffers under heavy debt loads. Graduates often feel forced to prioritize salary over passion, taking corporate jobs instead of pursuing entrepreneurship, nonprofit work, or additional education. This “golden handcuffs” effect particularly impacts fields like social work, teaching, and public health, where starting salaries rarely justify six-figure debt loads despite these careers’ crucial societal value.

Federal vs. Private Student Loans: A Comprehensive Comparison

The choice between federal and private student loans often determines a borrower’s financial trajectory for decades. Federal loans operate under standardized terms set by Congress, while private loans function as customized financial products with terms varying dramatically between lenders and borrowers. Understanding these differences requires examining multiple factors beyond simple interest rate comparisons.

Federal loan interest rates for 2024-2025 stand at 6.53% for undergraduate Direct Loans, 8.08% for graduate Direct Unsubsidized Loans, and 9.08% for Direct PLUS Loans. These rates apply universally regardless of credit score or financial history. Private loan rates swing wildly based on creditworthiness—from as low as 3.99% for borrowers with excellent credit and stable income to over 16% for those with limited credit history or requiring cosigners.

Repayment flexibility: The critical differentiator

Federal loans offer eight distinct repayment plans, including four income-driven options that adjust payments based on family size and income. The Saving on a Valuable Education (SAVE) plan, introduced in 2023, calculates payments at just 5% of discretionary income for undergraduate loans. Private loans typically offer only three to four repayment options, usually limited to different term lengths rather than income-based adjustments.

Borrower protections create the starkest contrast between loan types. Federal loans include:

• Deferment rights for returning to school, unemployment, or economic hardship
• Forbearance options for temporary financial difficulties
• Closed school discharge if your institution closes while enrolled
• Total and permanent disability discharge
• Death discharge that forgives loans upon borrower death

Private loans rarely offer comparable protections, treating student debt like any other consumer loan with standard collection practices for delinquency.

Strategic considerations for different borrower profiles

Undergraduate students typically benefit most from maximizing federal loans before considering private options. The lack of credit requirements, fixed rates, and extensive protections outweigh potentially lower private rates they’re unlikely to qualify for without established credit. Federal loan limits—$5,500 to $7,500 annually for dependent undergraduates—often cover tuition at public institutions though may fall short for private colleges.

Graduate students face more complex decisions. Higher federal loan limits ($20,500 annually for most programs) reduce private loan needs, but federal graduate rates approaching 8-9% make private loans more competitive for well-qualified borrowers. Medical and law students borrowing six figures must weigh federal protections against potentially significant interest savings through private refinancing.

Parents considering PLUS loans versus private parent loans should evaluate their retirement timeline and financial stability. Federal Parent PLUS loans offer similar protections to student loans but at the highest federal rate (9.08%). Private parent loans might offer better rates but lack income-driven repayment options crucial if financial circumstances change.

Navigating Political and Legal Changes Affecting Student Loans

The student loan landscape shifts dramatically with each administration and congressional session, making policy awareness crucial for strategic borrowing decisions. Project 2025’s proposed elimination of income-driven repayment plans and Public Service Loan Forgiveness would fundamentally alter the federal loan value proposition, potentially forcing borrowers to prioritize private loans despite their limited protections. These proposals would particularly impact public service workers who currently structure their careers around PSLF eligibility.

Recent Supreme Court decisions have already reshaped loan forgiveness possibilities. The 2023 striking down of broad loan cancellation forced the Biden administration to pursue narrower forgiveness through existing programs like borrower defense and closed school discharges. This legal precedent suggests future forgiveness efforts will face similar judicial scrutiny, making borrowers less able to count on political solutions to debt burdens.

State-level innovations and risks

Individual states increasingly create their own student loan programs and protections, adding another layer of complexity. California’s state loan forgiveness programs for healthcare workers, New York’s Get on Your Feet loan forgiveness for recent graduates, and Maine’s expansive tax credits for loan payments demonstrate state-level innovation. However, state programs often carry residency requirements and career restrictions that limit their accessibility.

Some states have also strengthened borrower protections beyond federal requirements. Connecticut, Illinois, and Washington have passed student loan bill of rights legislation, requiring loan servicers to provide clearer information and prohibiting deceptive practices. These protections primarily benefit private loan borrowers who lack federal safeguards but create a patchwork of rights depending on where borrowers live.

Preparing for an uncertain future

Smart borrowers build flexibility into their loan strategy rather than betting on specific policy outcomes. This means:

• Maximizing federal loans before taking private loans, preserving optionality
• Maintaining detailed payment records to qualify for any future forgiveness programs
• Building emergency funds to handle payment increases if income-driven plans disappear
• Considering career paths that offer employer loan repayment assistance

The most resilient approach treats loan forgiveness as a potential bonus rather than a planning assumption, focusing instead on choosing loans you can realistically repay under current terms while positioning yourself to benefit from any future relief programs.

Proven Strategies for Managing and Eliminating Student Debt

Successful student loan management requires proactive strategy from day one, not crisis management after graduation. The most effective approach combines smart borrowing decisions, strategic repayment planning, and opportunistic refinancing based on changing life circumstances. Starting with a clear repayment strategy prevents the common trap of making minimum payments for decades while interest compounds.

Accelerated repayment through biweekly payments instead of monthly creates an extra full payment annually without feeling the pinch. A borrower with $35,000 in loans at 6% interest saves over $6,000 and eliminates debt nearly three years early using this simple strategy. Automated payments ensure consistency while often qualifying for 0.25% rate reductions from both federal and private lenders.

Maximizing forgiveness opportunities

Public Service Loan Forgiveness requires strategic planning from graduation day. Key steps include:

1. Immediately consolidate all federal loans into Direct Loans (only type eligible for PSLF)
2. Choose income-driven repayment to minimize payments while maximizing forgiveness
3. Submit annual employment certification to track qualifying payments
4. Document everything including payment confirmations and employer certifications
5. Work full-time for qualifying employers (government, 501(c)(3) nonprofits)

The Teacher Loan Forgiveness program offers faster relief—$17,500 after just five years—but requires teaching in low-income schools. Smart teachers maximize this benefit by teaching high-need subjects (math, science, special education) that qualify for the full amount rather than the $5,000 standard forgiveness.

Strategic refinancing decisions

Refinancing makes sense only under specific circumstances:

• Strong credit improvement since original borrowing (typically 700+ score)
• Stable employment with emergency fund covering 6+ months of expenses
• No intention of using federal forgiveness programs
• Interest rate reduction of at least 2% to justify losing federal protections

The math matters: refinancing $50,000 from 7% to 4% saves roughly $5,000 over 10 years. But losing income-driven repayment options could cost far more if job loss or income reduction occurs. Private refinancing works best for high earners with stable careers who’ve already built financial cushions.

Alternative acceleration strategies

Employer loan repayment assistance programs have exploded in popularity, with major companies offering $1,000-$10,000 annually toward employee student loans. These benefits provide tax-free assistance up to $5,250 annually through 2025, making them more valuable than equivalent salary increases. Job seekers should prioritize employers offering these benefits, potentially earning an extra $50,000+ in loan payments over a career.

Side hustles dedicated entirely to loan repayment create psychological momentum while preserving primary income for living expenses. Freelancing, consulting, or gig economy work that generates even $500 monthly eliminates $30,000 in loans five years faster. The key is automating these payments directly to loans, preventing lifestyle inflation from consuming extra earnings.

Final Thoughts: Making Student Loans Work for Your Future

Student loans represent tools, not verdicts—their impact depends entirely on how strategically you wield them. The entrepreneurs and executives I’ve guided through Complete Controller have taught me that successful student loan management shares DNA with successful business management: know your numbers, understand your options, and never let emotion override mathematics when making financial decisions.

The landscape ahead promises continued evolution in student debt management tips, policy changes, and forgiveness opportunities. Smart borrowers stay informed through authoritative resources like federal student loans information while building careers that justify their educational investments. Whether you’re choosing between federal and private loans, navigating repayment options, or considering refinancing, the key lies in aligning your loan strategy with your life goals rather than letting loans dictate your choices.

My two decades of watching businesses and individuals navigate financial challenges has reinforced one truth: those who take control of their student loans early, armed with knowledge and strategy, transform potential burdens into launching pads for success. The path forward requires careful planning, disciplined execution, and sometimes professional guidance to navigate complex decisions. Your education debt doesn’t define your financial future—your response to it does.

Take action today by reviewing your current loan situation, exploring repayment options you might have overlooked, and creating a strategic plan that aligns with your career trajectory. For personalized guidance on integrating student loan strategy with broader financial planning, money management tips for avoiding a deficit, and building long-term wealth despite educational debt, connect with our team at Complete Controller. We’ve helped thousands of entrepreneurs and professionals transform their financial foundations, and we’re ready to help you write your own success story. Visit Complete Controller to discover how expert financial guidance can accelerate your journey from student loan borrower to financial freedom.

FAQ

Should I take federal or private student loans first?

Always maximize federal student loans before considering private options. Federal loans offer fixed interest rates, income-driven repayment plans, and potential forgiveness programs that private loans lack. Only pursue private loans after exhausting federal options, including Direct Subsidized, Direct Unsubsidized, and Parent PLUS loans if applicable. The protections and flexibility of federal loans far outweigh potentially lower private rates for most borrowers.

How do income-driven repayment plans actually work?

Income-driven repayment (IDR) plans calculate your monthly payment based on your discretionary income and family size, not your loan balance. The newest SAVE plan sets payments at 5% of discretionary income for undergraduate loans and 10% for graduate loans. After 20-25 years of qualifying payments (depending on the plan), remaining balances are forgiven, though you may owe taxes on the forgiven amount. IDR plans require annual recertification of income and family size to maintain appropriate payment levels.

Can I qualify for Public Service Loan Forgiveness with private loans?

No, PSLF only applies to federal Direct Loans. If you have private loans or older federal loans (FFEL or Perkins), you cannot receive PSLF credit for those payments. However, you can consolidate eligible federal loans into a Direct Consolidation Loan to qualify going forward. This resets your PSLF payment count to zero, so consolidate before beginning qualifying employment. Private loans have no equivalent forgiveness program.

What happens to student loans if I become disabled or die?

Federal student loans discharge completely upon death or total permanent disability of the borrower. Parent PLUS loans discharge if either the parent or the student dies. Private loan policies vary dramatically—some discharge upon death while others become obligations of the estate or cosigner. This represents a crucial difference between loan types, especially for borrowers with dependents or those in high-risk professions. Always review private loan terms regarding death and disability discharge before borrowing.

When should I consider refinancing my student loans?

Consider refinancing only when you meet all these criteria: stable employment with reliable income, emergency fund covering 6+ months expenses, credit score above 700, no intention of using federal forgiveness programs, and potential rate reduction of at least 2%. The loss of federal protections like income-driven repayment and forgiveness options often outweighs interest savings unless your financial situation is rock-solid. Never refinance federal loans if you work in public service or face any income uncertainty.

Sources

• American Progress. (2024, June 24). “Project 2025 Would Increase Costs, Block Debt Cancellation for Student Loan Borrowers.” www.americanprogress.org
• Bankrate. (2025, May 12). “Private Vs. Federal Student Loans: Which Is Better in 2025.” www.bankrate.com
• Best Colleges. (2025). “Student Loan Default Rate: Facts and Statistics.” www.bestcolleges.com/research/student-loan-default-rate-facts-statistics/
• Business Insider. (2022, September). “Student-Loan Borrower Privately Refinanced, Misses Out on Debt Relief.” Ayelet Sheffey. www.businessinsider.com
• Consumer Financial Protection Bureau. “Student Loans.” www.consumerfinance.gov/consumer-tools/student-loans/
• Edvisors. “Pros and Cons of Private Student Loans.” www.edvisors.com
• Experian. (2022, September 28). “Understanding the Pros and Cons of Student Loans.” www.experian.com
• Federal Student Aid. “Federal Student Loans Information.” studentaid.gov
• NerdWallet. (2025, January 2). “14 Student Loan Forgiveness Programs for 2025.” www.nerdwallet.com
• PIRG. (2004). “Student Debt and Consumer Costs.” pirg.org/sites/pirg/files/reports/StudentDebtMN.pdf
• Student Loan Professor. (2025). “Student Loan Debt Statistics in 2025: Average Debt & Trends.” www.studentloanprofessor.com/student-loan-debt-statistics/
• UnidosUS. (2024). “Public Service Loan Forgiveness Works for Thousands.” unidosus.org/progress-report/public-service-loan-forgiveness-works-for-thousands-hear-from-unidosus-staffers/
• Wikipedia. “Student Loans.” en.wikipedia.org/wiki/Student_loans

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

A card service provider interested in lurking in more users must be able to provide its customer with options, rewards, and a feeling that their privacy is in safe hands.

Many consumers usually carry more than one card in their wallets. Usually, every individual carries one or two debit or credit cards at least. It is important to know that the card with the largest number of purchases is called the “top of the wallet” card, and every bank must ensure that their card is an individual’s top priority.

Making an individual choose a specific bank’s card among the others can get tough for credit unions and retail banks, but in today’s digital world, the competition is severe. With mobile wallets like PayPal, Apple Pay, and Samsung Pay, the card payment system becomes inconvenient for the customers and financial institutes as well.

TSYS’ researchers studied 1,000 consumers in the US to observe the users’ preferences and priorities about payments. The main aim was to find out the payment method they would prefer and their thoughts about credit and debit cards. The research led to the conclusion that there are three crucial ways to keep a bank’s card at the “top of the wallet,” in addition to cross-selling additional products to consumers and developing trust in customers’ eyes.

What customers really love?

Every customer loves the feeling of additional rewards each year. Rewards are always at the top when it comes to counting the benefits of a card, leaving other features far behind like the brand of the issuer, interest rate, design/style of card, and adjustable payment methods. If the payment service provider puts a good reward on payment through the card, the issuer will get the benefit of charging any amount of fee and interest on the payment due to the huge flow of transactions.

The most favorite reward of consumers is cashback. That is right! Customers love it when they get a specific percentage back of the money they spent. Other highly wanted features are more close to cash rebates, including saving money on both local merchants and brand names.

Customers love it when they are being provided with special offers and coupons based on their purchases. It is crucial for a bank to know their consumers individually based on several factors like:

• What type of spending they usually make?
• From which brand or merchandiser they buy the most?
• Are they interested in technical or non-technical stuff?

Providing a consumer with discounts and offers according to their need and taste is something important and necessary to be noted by every bank.

What consumers are concerned about?

Nearly half of the customers state that getting the financial tools and products from the same institution they have an account with is important to them. However, it is a great thing for institutes providing cross-sales to their current customers; nearly below one-third of customers stated the matter to be not necessary or not significant at all.

What the consumers freak out about?

Although every institute is bound to keep its card security standards at their peak, customers don’t get how card payment service providers make payment methods secure. As soon as an individual hears news about the latest leakages in the system, they freak out.

Research about customers’ fear towards payment methods showed the results in which nearly 74% of the customers were more concerned about their security compared to the profits that came with their card payment service.

In the end, it all comes down to this that no matter what benefits are being given to any customer, they are more concerned about the security benefits that come with any card payment system. So it could be understood by any business that the more security benefits a bank provides to its customer, the more chances are for that card to stay at the top of the wallet. The more transactions a card makes, the more benefit there is for the business.

What is important for any bank to understand is that consumers are more concerned about their security instead of their benefits; therefore, the more secure they feel, the more transactions they make.

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.

When working in a business, regardless of the size, most employees look for the opportunity to grow. If a company is larger, the opportunities for growth and raise in income can be almost limitless. However, there may be a ceiling to the amount you can earn in smaller businesses depending on the business’s success. In either case, there may come a time you will need to ask for a raise. Here are five tips to help you guarantee you get a raise.

Timing

Presuming the right time to ask is similar to protocol recognition. In some businesses, they only consider raises in salary during yearly evaluations. This is common in corporate jobs that the entire company assesses employees during the year, and at that time, a raise will be given if the employee is performing. However, other companies allow each manager to make those decisions on an individual basis. If your company does not have an evaluation period, it will be up to you to ask for a raise. If you ask at the beginning of the fiscal year rather than at the end of it, you have a much better chance of receiving a raise.

Preparation

Asking for a raise in smaller businesses may be as easy as walking up to your boss and asking, requiring no planning. However, when asking for a raise, you have to be ready to make a presentation about why you are worthy of the raise in most businesses. It would be best to show your value, what you bring to the table, and why this value deserves a raise. If you are a hard-working employee, often the decision-maker knows your worth. However, your hard work is taken for granted, so if you are ready with well-thought-out reasons why you should get the raise, your odds of securing a raise are increased.

Reality

While you should be aware of your value and how that translates into what you earn, you also have to realize that asking for a raise is a business transaction. If you ask for too much of an increase that the company can’t afford or is out of sync with your development, it will be difficult to negotiate. In that case, they may deny your raise altogether. It is not impractical to ask for a little more than you want to give some negotiation space, but you need to keep it reasonable.

Protocol

You should always be aware of company protocol on asking for a raise. Some businesses may not have a specific protocol, while others may have salary increase processes to adhere to when asking for a raise. It used to be that employees would set a meeting with the boss, ask for a raise, and layout the justifications if needed. In today’s business world, some offices have channels that are gone through to gain approval for a raise.

Amount

It could be argued that you should ask for the exact amount you would like to make when asking for a salary raise. In many cases, this direct and specific approach will be successful. However, it is recommended that you give the decision maker a range. This could lead to the company offering the lowest amount of salary in your range. This idea of giving them a range can still be an advantage if this is the case if you make the lower amount, which you are willing to accept. You should never be afraid to ask for what you truly want or are willing to accept. There can be room for negotiation.

Conclusion

Though many find asking for a raise stressful, these tips should help you ask for that raise with ease. The worst they can say is no, but if you don’t try for it, the answer will never be yes. In business, to get what we want, we have to be bold. These tips will help you be bold and get the raise you deserve.

 

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 dynamic between the people in the middle of a project and the people who are investing in that project is fragile. The people working on the project are represented by a project manager, who, in turn, has the unenviable task of keeping strict control of the project’s overall goals so that they do not change over time.

What do shareholders expect from management?

What does a shareholder want from management? Here are some shareholder expectations.

• Stakeholders must receive updates of the project’s progress on a scheduled basis. This increases the likelihood that they will be supportive and the project goals will be achieved.
• All interactions between the project manager and stakeholders should be formally recorded, and a record of the project’s current results should be kept. This is designed to secure stakeholder acceptance.
• S/he should log issues and changes in separate logs and communicate these to the stakeholders. Issue logs have a formal structure and have categories (issue groups) into which the issues are deposited. Change logs record all the changes that have taken place and the implication of those changes on the project’s goals and timeline. It can also include risks, costs, and budgets.
• It is the project manager’s responsibility to keep negotiating with stakeholders and influencing their decisions so that the project goals are strictly adhered to. The project manager should ensure that each stakeholder understands all the issues in the issue log. S/he should keep interactions constructive between the stakeholders themselves and also between the project team members.
• The project manager should address stakeholder concerns in conjunction with the conflict manager. S/he should determine risks and threats to prevent conflicts and issues. The project manager can also find solutions by looking at change requests.
• If changes are called for by the shareholders, then the project’s deliverables may change. In this case, you must include the necessary remedial measures and action plans in the change log.
• Involve other shareholders in the decision-making process. You may have already identified the best course of action; however, present your findings in such a way that you leave room for the shareholders to feel as if they have been involved in the process.

Some suggestions to satisfy shareholder expectations are:

1. Ensure that project success is defined clearly, well before the project begins.
2. Hold meetings with stakeholders in short intervals so that they are kept interested and see the value.
3. Keep the project’s objective in mind when executing it.
4. Be concise and brief at stakeholders’ meetings.
5. Be transparent, such that nothing is kept hidden from the shareholders.

Conversely, management also has expectations of the shareholders, such as their playing the role of an oversight committee, such as giving guidance on how to run the company itself. Scandals, such as the Satyam Scandal, happen when the board of directors does not play the part of an oversight committee.

Management cannot eschew its responsibility. So, apart from its shareholders’ expectations, they are expected to behave in a manner that inspires confidence from the employees and other stakeholders.

6. In recent years, there has been great dissatisfaction among investors and stakeholders in how the boards of several companies act as rubber stamps for management. This trend should be avoided. The board must act independently and as a guardian of shareholder and stakeholder interests.
7. Finally, management’s expectations must be re-evaluated and changed periodically so that management and shareholders are on the same page. For effective corporate governance, there should be a healthy balance between the expectations from management and that of the shareholders.

Summary

Managing shareholders is what project management partly deals with. The project manager is responsible for managing shareholders’ expectations and resolving conflicts that arise, and finding and settling any and all issues that come up during the course of the project. A shareholder is always a stakeholder; however, a stakeholder may not necessarily be a shareholder.

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.

Last year, the question was no longer: “Should we build a digital strategy for your business or not?” This fourth industrial revolution of digitalization has become essential for the development and success of your business daily.

Today’s customer is technophile, demanding, and constantly on the go. According to studies, 89% of Swiss people use smartphones, and 21% a tablet computer to access the Internet. In fact, in 2022, the number of monthly active Internet users will reach 6.92 million people in Switzerland.

What is a digital strategy?

In short, digital strategy offers many channels that you can use to market the services or products of your business, SME or multinational.

But without direction, all effort is in vain. To succeed in this constantly changing digital world, you need an action plan. This plan is an effective digital strategy to ensure that your efforts have the maximum impact, i.e., a maximum return on investment (ROI). Designing a digital business strategy is easier than you think. The secret is to divide it into small, realistic steps. Here are eight steps to build an effective digital strategy for your business.

1. Analyze your position on the market

Before you start your digital strategy, consider three points: 

1. Your company 
2. Your industry 
3. Your position in the market

Define the strengths and weaknesses of your business concerning the market. Consider the business opportunities available in your market and external threats.

This methodology is known as SWOT analysis. This English acronym can be translated into French by SWOT: Strengths, Weaknesses, Opportunities, Threats.

It gives your business an overview of internal and external business factors and identifies key issues.

2. Define the goals and objectives of your digital strategy

To ensure the success of your digital strategy, set realistic goals. Digital enables many goals to be achieved, such as:

• Conversion of Internet users into customers
• Lead generation
• Increased visibility
• Traffic generation
• Customer loyalty
• Improving Customer Experience

The best practice for defining your digital strategy’s objectives is based on SMART indicators – Specific, Measurable, Acceptable, Realistic, Temporarily defined.

3. Analyze your competitors’ strategy

You are trying to establish a dominant position for your company in your digital market. Your competitors do too.  Plus, they could have the same goals as you. It is, therefore, interesting and useful to analyze their practices followed to build your digital strategy.

Here are the key points to take into account when analyzing your competitors:

• Who are their clients?
• What are the strengths and weaknesses of their strategy?
• What communication strategies do they use?
• How do they connect with their target customers?
• What social media are they active on?

By comparing your objectives to your competition analysis, you assess their relevance.

4. Identify your target customers

If you want to tell a story that connects with your audience, you have to understand who your audience is. Identifying your target customers is, therefore, one of the important steps in implementing your digital strategy. If you don’t know your target, chances are you are shooting nearby.

By creating personas specific to your products or solutions, you will adapt better your marketing efforts to your target customers’ needs. 

It has been shown that the use of persona increases between two to five times the traffic of targeted Internet users on the website.

5. Define your communication strategy 

Once you have identified your SWOT, your objectives, competition level, and persona, identify the communication channels to spread your marketing message.

The channels to consider for your digital strategy are

• Web ecosystem (main website – microsites, applications)
• Email and customer relationship management (CRM)
• Intranet
• Social media for internal and external users such as WhatsApp, Instagram, Facebook Workplace, Twitter, LinkedIn
• Email marketing
•  Pay per click
• Search engine optimization
• SMS/text messaging
• Video Marketing
• Integrations/Systems that will help reduce administration

6. Create an effective editorial strategy

A strategy within a strategy? 

Yes, by creating content that engages your potential customers, you attract Internet users looking for solutions. The content marketing leaders (editorial or content strategy) collect 7.8 times more traffic on their site than the others. 

To promote your engaging content through the most effective digital communication channels. This will make it easier for you to get the results you want. Inbound marketing is a strategy that focuses on creating high-quality content for Internet users who, in turn, will promote your product/service and your commercial messages. Many marketers, often inexperienced, think that content marketing is too expensive. Reality shows the opposite. Although content marketing takes longer to be profitable than outbound marketing, it costs 62% less and generates more than three times more leads in the medium term.

7. Manage your resources and budget 

To optimize the functioning of your digital strategy, consider these two important points:

First, identify resources internally and externally. Hire the people in your organization who can best manage the actions that add value to your strategy – and contract out accordingly. By analyzing your available resources and deciding where to place the talents concerning your goals and milestones, you guarantee greater success for your strategy, and therefore for your business.

The second point is to set a web marketing budget. This budget determines, at least in part, the resources you will use to achieve your goals. Certain digital tactics require greater financial investments. Simultaneously, other solutions require more patience and internal efforts (e.g., inbound marketing).

8. Measure the performance of your strategic actions 

Don’t think that once you’ve implemented your digital strategy, your work is done. Measuring the performance of your strategic actions is an ongoing task.

Collect all digital data from resources such as Google Analytics, Google Search Console. Regularly request reports from key departments and your suppliers to distinguish between actions that work and those that don’t.

KPIs (key performance indicators) that can help you effectively measure the performance of your strategy are

• Traffic on your website 
• Average time spent on your website 
• The position of keywords on Google (natural referencing) 
• Click-through rate 
• Conversion rates
• ROI of each campaign (return on investment)

There is a free tool that allows you to generate free dashboards with all these indicators: Google DataStudio.

By regularly monitoring your KPIs, you will discover which content or campaigns generate traffic, clicks, engagement, and ultimately sales. Learn from your mistakes to correct your digital strategy. It will become smarter, stronger, and more efficient.

 

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.

When you start a business, it requires your time, hard work, and patience. The food business is not an exception. It requires a lot of hard work and is not a passing trend business; it has turned into a complete industry. The online business has flourished during the last ten years. The online food business is the best business to operate if someone loves cooking. The online food business needs consistency to maintain food quality so that orders keep coming. Here is the ultimate guide on how to start an online food business.

Start sending food samples

People are demanding when it comes to food. They will only pay for something that they love to eat. It is smart to send some food samples to people to taste it and pass their verdict of whether they like it. It is a marketing tactic to send food samples to bloggers and influencers who have many followers. If they like the food and share good reviews regarding the food, they start getting more orders.

Write about the food

Writing and letting people know that food is important for the business owner makes people trust the food quality and taste. Start a food blog before starting the business. Share some of your favorite recipes and review food. It works as an advertisement for the business. Write about catering for a small party and how well it was managed. Once the blog gains a good number of followers and readers, then publish about the business.

SEO

If the business is to be operated through a platform such as a blog or a website, then the smartest move will be to get it to search engine optimized. Get a good ranking on search engines like google, yahoo, bing, etc., to get more orders.

Food Photography

Everybody with a DSLR is a photographer. The idea is not bad! If someone is good with photography skills, then it should be used to showcase the food. Appetite accelerates with the sight of food. Capture best shots of the food with perfect lighting. It attracts clients and will give the business an edge over other competitors.

Stick to the recipe

If there is a precise recipe, then stick to it. Never change the ingredients and technique of cooking. Once people start liking the food, they will want to have it for the same taste again. If the taste keeps changing, they will not trust the cook’s cooking skill and will stop ordering.

Deliver what is promised

Never leave any stone unturned to gain customer’s trust. If the business claims to offer dietary food, then it should serve 100% dietary food. It is business ethics that should not be ignored.

Aim to target customers

It is highly profitable to plan who you want to serve the food to. Ideal clients for an online food business are office-based workers. They keep looking for an affordable home-based daily meal. Market the business at an office’s oriented building. If the food is tasty and appealing, one might get multiple orders from the same location, making delivery easier.

Delivery timing

Unlike any other online business, the food business revolves around the perfect timing of food delivery. If a customer has ordered food to be delivered at 1 pm, that customer will expect the piping hot food to arrive at or before 1 pm. The logistics and delivery of the food should be precise.

Packaging

Invest in some attractive and relevant packaging. If it is a soup that has to be delivered, make sure the bowl is split-free. Nobody likes to split and half a bowl of soup. If it is some ice cream-based dessert in the order, make sure it does not melt away. For multiple orders, tag each container properly.

Invest in ingredients

Always invest in the raw material. Choosing the perfect ingredient is the key to consistency. Always choose wisely and then stick to it. Changing one ingredient with another will make a huge difference in the taste.

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.

Whether your business is a restaurant or any other business, operations can be a challenge. Running a business is not for everyone, especially when owning and operating a restaurant. When running a restaurant, there are essential tasks such as hiring the right team, hiring and training good managers, providing the best quality food, training the staff, and running a profitable business.

These aspects of operations are time-consuming, and as a business owner, the temptation will be to do it all yourself. One important aspect of running a restaurant is accounting. It is as important as staffing and having great food. Because of the many moving parts of running a restaurant, hiring a professional accountant is in the company’s best interest. An accountant’s job is to keep track of finances and provide manageable plans for the future by creating and implementing a budget.

An accountant’s job is stressful and can be made even more stressful if a business is booming. Depending on its size and success, an owner will hire an individual accountant or an accounting firm. Apart from that, some restaurants use software that helps their accountant keep the business’s finances under control. Choosing an accounting software should be decided between the owner and the accountant using the software. Here are important things to consider when choosing the best accounting software for your restaurant.

Accounts Receivable and Accounts Payable

Every restaurant has incoming and outgoing payments that need to be paid and recorded. Accounts receivable and payable is why it is important to look for full-featured accounting software that fulfills and manages both sides of accounting needs.

The accountant needs to handle the daily accounts receivable and payable and track expenses, inventory, operating costs, and create and keep a budget. Therefore, choosing the right accounting software is essential to ensure the business is covered when it comes to finances. Having accounting software should enhance the business and make accounting and bookkeeping easier for whoever is handling the accounting for your restaurant.

Another important thing to look for in accounting software is that it has an efficient payroll system. Having a payroll system in a professional accountant’s hands removes responsibility from the owner and puts this important system in a financial expert’s hands. Adding a payroll system through software is easy, and it saves a lot of time and virtually eliminates errors. Because once the details have been added, there is nothing else to do after that except for ensuring payroll is funded and that the system works. Having software with a payroll system also becomes easier for the accountant to analyze labor and staff costs.

Connect Accounting Software to Bank Accounts

Linking bank accounts to your business accounting software is a necessity. Connecting the business bank accounts to the software helps to keep the budget accurate because the company bank balances will be in real-time. This linking of the accounts is also essential so that if there is a discrepancy, the accountant can quickly look through the details and data of the software and the bank account. The restaurant owner should let an accountant connect the business bank account with the software to ease both.

Besides being an advantage to the accountant, having the bank accounts linked to the software will make it simple for the owner to log into the software or bank accounts and know what is going on with the business’s finances. This access will ensure that the owner is always aware of the financial health of the business.

Conclusion

Whether you have a restaurant or any other business, you must have a strong accounting and payroll system in place. Regardless of the business’s size, if you don’t have a handle on the business’s financial aspects, it can be disastrous. Finding the right accountant and accounting software should be the priority of every business owner.  

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.

When an asset generates some income or revenue, it is considered a Performing Asset (PA). When that asset stops generating income, it is considered a Non- Performing Assets (NPA).

A Non-Performing Asset is a loan asset that stops generating any income, either in fee commission, interest, or other costs. There is always a debate amongst economists that an ideally working financial process allows smooth regulation of investments and savings, leading to economic growth.  

What is a balanced financial system?

A well-maintained financial system helps to accomplish a well-organized distribution of resources over time by eliminating the inadequacies taking place due to other market resistances and socio-economic factors. In a well-operating financial system, managing Non-Performing Assets is a crucial part. Non-Performing Assets, after a certain point, are a cause of concern for every firm, as they affect the smooth flow of credit. Credit is the most important aspect for any business as it helps in the growth of the company.  

In the highly competitive banking world, daily customer service progress is the most helpful instrument for better growth.

Categories of Non-Performing Assets

On knowing which assets are Non-Performing Assets, the banks should divide them into three categories depending on the period they stayed non-performing:

1. Substandard Asset
2. Doubtful Asset
3. Loss Assets

Substandard Assets

A substandard asset is the one that has stayed Non-Performing Asset from less than or equal to 12 months. In this case, the security charge’s present value is not enough to guarantee full due recovery to the bank. In simple words, this type of asset will include the asset’s highly defined weaknesses, which threatens the debt’s liquidity. Furthermore, such assets are ranked according to the loss they will incur to the bank if the insufficiencies aren’t corrected.

Doubtful asset

Doubtful assets are the ones that have been in the substandard category for full 12 months. A loan becomes doubtful when it inherits all the qualities defined in substandard assets along with traits of lacking liquidity. Based on present known conditions, facts, and values, such assets get highly questionable.

Loss asset

Loss assets are the ones where internal or external auditors or banks notice a loss, but that amount is not stated completely. In simple words, an asset is thought unredeemable and of such little importance that it is not included as a bank’s asset. In such assets, the guarantee of getting back the value is so little that even with having a bit of hope of recovery, the banks don’t consider paying attention to them.

Why do Non-Performing Assets occur?

The reason behind the occurrence of Non-Performing Assets is bad loans. Generally, it is the failure to complete the financial commitments, state it as a non-ability to pay the loan. Such loans can come due to the given reasons:

• General banking procedures, including bad lending systems
• Overhang components usually occur due to natural disasters, environmental issues, diseases, business cycles, etc.
• A banking crisis that recently occurred in Japan, South Asia, and the USA
• Incremental components caused due to internal bank management, including terms of credit, credit policy, etc.

Non-Performing Assets are not restricted to bad impressions on account books only, but they have a massive effect on the national economy. Here are some of the impacts of Non-Performing Assets:

• For the compensation of the Non-Performing Assets losses, banks increase interest rates on some of their products and services
• Loss of uninsured deposits happen, thus the depositors don’t enjoy the complete returns
• Bank shareholders get affected badly
• Funds are redirected from good to bad projects that result in bad investments, which adversely impact the economy
• No or low repayment of loan and interest lead to liquidity problems

 

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-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.

Before the COVID-19 crisis began, the United States enjoyed the longest period of economic growth in its history, with an annual growth rate of 2.3% in 2019. This growth was reflected in low unemployment and inflation rates and the solidity of trust. 

The arrival of COVID-19 has had a strong impact on the nation, although it has not affected businesses for every city or state. New York, New Jersey, and Connecticut account for almost half of the nation’s deaths. In general, the number of infections and hospitalizations is decreasing, but new hotspots are emerging daily or weekly.

Most states have already defined guidelines to follow for the reopening of the economy. The guidelines vary from a careful de-escalation in phases to a total return to normal. It is important to note that the United States is highly decentralized and has four government levels: federal, state, county, and city council. Because of this government breakdown, it is not surprising to see that two neighboring cities have different rules.

New York and New Jersey have been hit hard with the effects of COVID-19, and there are significant delays for all transportation. In other areas, such as the city of Houston (the largest port in the US), it seems that all transportation is operating as normally as possible. These variants are directly due to how the government in those cities and states are handling the issues created by COVID-19.

Government aid

The government has taken measures at three levels: for individuals, SMEs, and large companies. Government aid has been coming from the federal level when it has come. Further aid is expected going forward. However, this aid’s amount and availability are hotly debated by the federal government and slow to roll out to those who need it.

For individuals

The federal government has already distributed financial aid to each person making under a certain amount; for example, $3,400 for a family with two children. It also has extended unemployment benefits for an additional 13 weeks and adds another $600 per week to state benefits, which in many cases are scarce. The second wave of checks has gone out along with an extension of unemployment benefits. There are more funds expected within a few months.

For SMEs

Businesses with fewer than 500 employees are eligible for the Paycheck Protection Program (PPP), a loan designed to pay wages for two months. If the money received is used for that purpose, the loan is forgiven, and it will not need to be repaid. This program has generated a lot of controversies because it has become known that large companies have applied for loans and have been granted them even though many large companies have easily survived.

For large companies

The federal government grants billions of dollars of bailouts to selected industries to keep jobs and avoid bankruptcies: airlines, hospitals (which are private in the US), the automotive and aerospace sectors, tourism, etc.

All of these grants are for US companies, regardless of whether they are part of a foreign entity or not. Also, there are additional local measures and aid for all American companies in each state and even in large cities.

Economic forecasts

It is still early to understand all the implications of COVID-19 at the macroeconomic level. GDP will decline, the record economic growth the United States has enjoyed in recent years is over, and unemployment has exploded. Before the virus, the United States’ unemployment rate was 3.5%, the lowest in 50 years. 

However, it is important to note that most of the lost jobs are in the service industries such as restaurants, hotels, shops, etc. As the economy slowly reopens, these jobs are expected to return. When? No one knows, but the US has often shown its ability to bounce back quickly.

Business Opportunities in the United States

The United States will continue to be a very large and stable market for companies around the world. We do not expect this to change. As we adapt to the challenges posed by COVID-19, new ideas and new solutions are needed in the way we interact, shop, eat and travel, so business opportunities in the United States are in these sectors. The medical/health sector must also adapt, and new technologies in telemedicine, for example, are very interesting.

We will likely see the effects of Covid-19 for years to come in the way we work and go to school. Will people who can work from home prefer to continue like this instead of going to a crowded office and wasting time in traffic? Will children continue to go to traditional schools, or will we see the emergence of a new system that is more flexible? It will be interesting to follow these trends in the coming months and years to identify business opportunities.

Doing Business

The way we are doing business has already changed completely. Since we cannot meet in person, businesses have successfully used technology to continue to conduct business remotely. This will continue for the foreseeable future. Of course, this is not possible in all situations, so travel and personal meetings will eventually resume. We are used to working remotely in the US and will likely carry this way of doing business for years to come.

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.