Enhancing Banking Customer Experience for Greater Satisfaction

Banking customer experience encompasses every interaction a customer has with their financial institution, from digital touchpoints to in-person services, directly impacting satisfaction, loyalty, and business growth. Modern banks prioritizing customer experience see 3.2x faster revenue growth and significantly higher retention rates compared to competitors.

Over two decades as CEO of Complete Controller, I’ve witnessed firsthand how financial institutions struggle to meet evolving customer expectations. Today’s banking customers demand Netflix-like personalization and Amazon-level convenience, yet many banks still operate with outdated systems and fragmented experiences. This guide reveals proven strategies that transform banking services into seamless, customer-centric experiences that drive measurable satisfaction improvements and long-term loyalty.

What is banking customer experience, and why does it matter?

• Banking customer experience is the complete journey encompassing all interactions between customers and their financial institution across every touchpoint and channel
• Customer retention plummets when experiences disappoint, with 13% of bank customers likely to switch institutions within 12 months
• Superior customer experience drives 3.2x faster revenue growth compared to competitors with poor CX
• Modern customers compare banking experiences to leading digital brands like Netflix and Spotify, not just other banks
• Effective CX strategies increase customer lifetime value while reducing acquisition costs by up to 40%

Understanding Modern Banking Customer Expectations

Banking customer experience represents the comprehensive journey customers take with their financial institution, spanning digital platforms, mobile apps, branch visits, and customer service interactions. Research reveals that 72% of customers expect immediate service, while 70% demand that any bank representative they interact with has full context about their relationship.

The financial impact proves substantial. Banks with optimized customer experiences grow 3.2x faster than competitors, while institutions with poor CX face significant churn. Customer switching has increased from 5% in 2018 to 8% in 2024, with excessive fees (29%) and poor service experiences (26%) cited as primary reasons for leaving.

The experience economy transformation

Modern banking customers operate with dramatically different expectations shaped by technology leaders. Simon Nilsson, Chief Commercial Officer at Northmill Bank, captures this shift: “We take more of our cues from companies like Netflix and Spotify than we do from the big Swedish banks.”

Contemporary customers expect personalized experiences, anticipating their needs, seamless channel transitions, and instant problem resolution. They demand transparency in fees, proactive communication, and educational resources supporting better financial decisions.

Business benefits of enhanced customer experience

Investment in customer experience delivers measurable returns beyond satisfaction scores. Customer satisfaction levels for US banks reached 87% in 2024, up from 84% in 2023, with regional banks outperforming national institutions through personalized services.

Banks offering free financial wellness programs experienced 25% higher loyalty rates. Additionally, 76% of customers report strong trust in their primary bank when that institution demonstrates consistent communication and transparency. This trust translates directly into business results, with 81% of loyal customers citing transparency as decisive in their continued engagement.

Digital Transformation and Technology Integration

Digital transformation requires fundamentally reimagining how financial institutions interact with customers across all touchpoints. Successful banks view themselves as technology companies providing financial services, enabling cutting-edge technologies that create intuitive, efficient, personalized experiences.

Digital banking adoption accelerated rapidly, with 66% of the US population using online banking in 2023, projected to exceed 79% by 2029. Additionally, 84% of customers use online banking while 72% use mobile apps to reach their primary bank. This reality demands comprehensive digital ecosystems meeting customers throughout their financial journey.

Mobile-first banking strategies

Mobile banking evolved from convenient add-on to primary customer interaction method. However, 64% of customers report their mobile banking app fails to solve customer support inquiries quickly, if at all.

Leading mobile-first banks address these challenges through comprehensive in-app support systems. Starling Bank provides 24/7 customer service including live chat directly within their application. Patrick Vardhan, Head of Customer Service, emphasizes: “It is vital that our customers can reach us at any time, day or night.”

Brazilian fintech Nubank demonstrates effective mobile-first scaling, growing from 10,000 to over 10 million users while maintaining Net Promoter Scores above 85. Dennis Wang, Vice President of Operations, attributes success to their “focus on human interaction and customer support.”

Artificial intelligence and personalization technologies

AI transforms banking customer experience through hyper-personalized services at scale. According to MMA Global, personalization represents the predominant AI use case, with 44% of organizations scaling it to tailor experiences and anticipate needs.

Bank of America’s virtual assistant Erica exemplifies AI-driven personalization potential. Analyzing spending patterns and financial goals, Erica provides relevant advice and resources improving financial health. The system handles common queries, provides proactive alerts, and offers personalized insights helping customers make better decisions.

Starling Bank’s AI implementation demonstrates measurable improvements: 8,000 hours saved monthly through AI call summarization, 60% reduction in average call answer times, and 50% reduction in chats referred to specialist teams. These improvements allow human agents to focus on complex needs while maintaining high satisfaction.

Real-time analytics and decision making

Real-time analytics capability enables immediate response to customer needs and market conditions. Latinia’s Real-Time Analysis and Decision Engine analyzes transaction data as it occurs, sending relevant alerts enhancing trust and security.

ING Belgium achieved remarkable results through customer intelligence platform implementation, delivering 111% return on investment with 2-year payback. The bank experienced 700% increase in campaign execution capacity, reduced failure rates under 1%, and achieved 5.28% click-through rates with one in five sales directly attributed to campaign actions.

Advanced analytics predict customer needs with unprecedented accuracy. Machine learning algorithms and predictive modeling anticipate when customers need specific products, identify churn risks, and personalize communication timing for maximum effectiveness.

Omnichannel Customer Experience Design

Omnichannel banking creates integrated experiences seamlessly connecting all customer touchpoints. McKinsey research indicates successful omnichannel implementations realize 20% increases in customer satisfaction, while omnichannel customers prove 30% more likely to remain with their institution.

Effective omnichannel design creates central systems where all interactions are stored and accessible across touchpoints. This ensures conversations and transactions flow seamlessly between channels without requiring customers to repeat information or restart processes.

Seamless channel integration strategies

Creating seamless integration requires sophisticated backend systems that synchronize customer data across all touchpoints in real time. Successful implementations eliminate friction points during channel transitions.

Consider when customers engage chatbots about suspicious transactions needing human escalation. Well-designed omnichannel environments enable seamless transfers within the same interface, preserving full context for immediate resolution.

Effective integration requires a consistent user interface design across platforms. Customers encounter familiar navigation, similar visual elements, and comparable features whether using mobile apps, online banking, or branch services. This consistency builds confidence and reduces cognitive load.

Personalized communication across touchpoints

Personalized communication forms the cornerstone of omnichannel experiences. Leading banks leverage comprehensive data delivering contextually relevant messages at optimal times. Accenture found 91% of consumers more likely to engage with brands offering relevant recommendations, while McKinsey reports personalization increases marketing ROI five to eight times.

Effective strategies incorporate behavioral triggers, transaction patterns, and life stage indicators. Banks noticing frequent international travel might proactively offer travel insurance through preferred channels, demonstrating genuine understanding while providing tangible value.

Successful personalization requires sophisticated preference management, allowing customers control over communication methods, timing, and channels. Banks providing granular control while respecting choices consistently report higher engagement and satisfaction.

Digital-physical integration

Digital-physical integration represents complex yet rewarding omnichannel aspects. Despite digital growth, 45% of customers value face-to-face interactions for complex decisions, while 82% prefer digital channels for routine transactions.

Modern branch transformation creates spaces complementing digital channels. Interactive kiosks, self-service tablets, and branch chatbots handle routine transactions quickly while freeing staff for personalized advisory services.

Bank branch closures slowed significantly from COVID-19 peaks. The trailing 12-month average dropped from 172 monthly closures in 2022 to 117 by late 2023, indicating industry equilibrium between digital transformation and physical presence.

Customer Onboarding Excellence

Customer onboarding represents the most critical banking relationship phase, establishing long-term satisfaction foundations. Nearly half of banks report digital account opening inefficiencies leading to 50% abandonment rates when processes exceed several minutes.

Modern onboarding must balance regulatory compliance with convenience expectations. Successful banks reimagine processes from customer perspectives, identifying unnecessary friction and streamlining workflows without compromising security.

Streamlined digital account opening

Creating streamlined processes requires analyzing each journey step for simplification opportunities. Banks optimizing digital account opening typically see 40-60% completion rate increases compared to traditional methods.

Key improvements include pre-populated forms using existing information, intelligent validation catching real-time errors, and seamless identity verification integration. Clear progress indicators and completion estimates help manage expectations and reduce abandonment.

Successful implementations incorporate contingency planning for automated process limitations. Systems seamlessly transition customers to human assistance when needed while preserving collected information, ensuring complex situations don’t result in complete failures.

Digital identity verification best practices

Digital identity verification evolved beyond document-based approaches using biometric technologies, machine learning, and AI. Platforms like Jumio, Onfido, iProove, and FaceTec enable remote confirmation that’s both more secure and convenient than traditional methods.

Effective implementations balance security with user experience. While robust verification remains essential for compliance and fraud prevention, overly complex processes frustrate legitimate customers. Leading banks implement risk-based approaches adjusting verification levels based on account type, deposit amount, and risk profile.

Best practices include clear communication about verification necessity, information collection, and protection methods. Customers understanding verification purpose and benefits complete processes more successfully. Multiple verification options and immediate status feedback maintain confidence throughout.

Building Long-Term Customer Loyalty

Building lasting loyalty requires consistent value delivery across all relationship stages. My experience helping financial institutions modernize operations reveals that loyalty stems from trust, transparency, and genuine partnership in customers’ financial success.

Banks must move beyond transactional relationships toward becoming trusted financial advisors. This shift requires investing in financial education programs, proactive guidance, and personalized recommendations supporting individual goals.

The most successful institutions recognize that exceptional customer experience isn’t just about technology—it’s about creating meaningful connections that improve customers’ financial lives. Whether through AI-powered insights, seamless omnichannel experiences, or personalized human interactions, every touchpoint should reinforce your commitment to customer success.

Ready to transform your financial services customer experience? Contact the experts at Complete Controller for strategic guidance on implementing these proven approaches in your organization.

Frequently Asked Questions About Banking Customer Experience

What specific metrics should banks track to measure customer experience improvements?

Banks should monitor Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Customer Effort Score (CES), digital adoption rates, channel migration patterns, and customer lifetime value. Additionally, track operational metrics like first-contact resolution rates, average handling times, and abandonment rates across all channels.

How can smaller community banks compete with larger institutions’ customer experience investments?

Community banks can leverage their personal relationships and local knowledge as competitive advantages. Focus on niche personalization, partner with fintech providers for cost-effective digital solutions, and emphasize human connections where larger banks rely solely on automation. Strategic partnerships can provide advanced capabilities without massive infrastructure investments.

What role does employee training play in improving banking customer experience?

Employee training proves crucial for CX success. Staff must understand new technologies, possess strong communication skills, and demonstrate empathy. Regular training on digital tools, customer psychology, and problem-solving techniques ensures consistent service quality. Empowered employees who understand the full customer journey deliver significantly better experiences.

How can banks balance security requirements with seamless customer experiences?

Implement risk-based authentication adjusting security levels to transaction types. Use biometric technologies for frictionless yet secure verification. Communicate security benefits clearly to customers and provide multiple authentication options. Background security measures like behavioral analytics can protect without adding customer friction.

What emerging technologies will most impact banking customer experience in the next five years?

Generative AI will revolutionize personalization and customer service automation. Open banking APIs will enable unprecedented service integration. Voice banking and conversational AI will become primary interfaces. Blockchain technology will streamline cross-border transactions, while augmented reality may transform remote banking consultations and financial education.

Sources

• Accenture. (2024). “Banking Customer Experience Report 2024.” https://www.accenture.com/banking-cx-report-2024
• Bank of America. (2024). “Erica Virtual Assistant Impact Report.” https://www.bankofamerica.com/erica-report-2024
• Capgemini. (2024). “World Retail Banking Report 2024.” https://www.capgemini.com/world-retail-banking-report-2024
• The Financial Brand. (2024). “Trends 2024: Is Record-Breaking Pace of Branch Closures Easing.” January 2, 2024. https://thefinancialbrand.com/news/banking-branch-transformation/trends-2024
• ING Belgium. (2025). “Digital Banking Transformation Case Study.” https://www.ing.be/digital-transformation-2025
• J.D. Power. (2024). “2024 U.S. Retail Banking Satisfaction Study.” March 28, 2024. https://www.jdpower.com/business/press-releases/2024-us-retail-banking-satisfaction-study
• Jumio. (2024). “Digital Identity Verification in Banking Report.” https://www.jumio.com/banking-identity-verification-2024
• Latinia. (2024). “Real-Time Banking Analytics Report.” https://www.latinia.com/analytics-report-2024
• McKinsey & Company. (2024). “The Future of Banking Customer Experience.” https://www.mckinsey.com/industries/financial-services/our-insights
• MMA Global. (2024). “AI in Banking Report.” https://www.mmaglobal.com/banking-ai-report-2024
• Nucleus Research. (2025). “ROI Case Study: SAS at ING Belgium.” https://www.sas.com/content/dam/sasdam/documents/20250124/nucleusstudysasatingbelgium.pdf
• Nubank. (2024). “Customer Experience Success Story.” https://www.nubank.com/customer-experience-2024
• Starling Bank. (2025). “Annual Report 2025: Our year at a glance.” March 31, 2025. https://www.starlingbank.com/investors/2025/annual-report-2025
• Statista. (2025). “Online banking penetration in the U.S. 2019-2029.” August 11, 2025. https://www.statista.com/forecasts/1285979/digital-banking-penetration-rate-usa

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. Reviewed By: Brittany McMillen

Brittany McMillen

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.

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Many people come to a point in their life where they decide they would like to start their own business. Maybe you are feeling underappreciated or that your talents are being wasted working for someone else. There could be many reasons you have decided to strike out on your own, and you need a business idea.

Before you start the process of choosing a business idea, make sure you are well-rested and ready to open your mind to the possibilities. Here are five steps to finding a winning business idea.

You Don’t Have to be Original

Don’t apply too much pressure on yourself to come up with the next new thing. Search business ideas others have already successfully launched and maintained. There are so many business types, from the smallest home-based businesses to owning and operating a franchise business with major corporations’ branding.

Look for those businesses that tap into some level of desire or passion and explore them to narrow down the type of business you want to start. Once you have narrowed down the business type, look at ways to be unique or tap into a niche market. You don’t have to deviate much from the original business idea to add your brand.

Brainstorm with Someone

There is nothing that says you have to do this alone. Though the contemplation is for you to have sole ownership of the business, getting another person or, better yet, a team of people to help you brainstorm ideas can be productive.

If possible, Gather has a whiteboard or drawing pad and expresses that no idea is bad. If you are having difficulty connecting with someone to brainstorm, there are many online sources of articles or forums with multitudes of ideas you could add to your possibilities.

Turn Your Talent into an Idea

Everyone has gifts and talents often paired with untapped potential. Now is the best time to identify your talents and skills to their fullest extent and look for business ideas that use those talents and skills. This time is also where you can discover your passion.

So many times we get into long-term jobs or careers, we started of necessity and suppressed our passion and leave our talents to gather dust. Now that you decided to start your own business, it’s time to dust off your talent, gear up your skills, and ignite your passion.

Solve a Problem

Many businesses that exist today that have great success are those that solve a problem. Please make a list of problems that people face. Make sure it is a problem that most people or at least a group of people face. If you choose to solve a problem only a few have, you will not sustain a business.

Even if there are already solutions out there for a problem you would like to solve, you can own a business in the market and still succeed.

Look Around for Inspiration

Open yourself up to look for inspiration everywhere. You can look at businesses that exist in your community or look online. Also, look for Inspiration that has nothing to do with the business. Inspiration and ideas can come from anywhere, and seeking Inspiration will guarantee you find it.

Artists have muses or use nature or their surroundings. Those same sparks can inspire business ideas. You have to be open to the possibilities.

Conclusion

The ideas don’t have to come out of your mind, fully formed and perfect. Keep the thought that no idea is a bad idea and throw them out and narrow down to the ones that you feel a pull towards. Once you have narrowed it to one idea you have a passion for, it will be time to start planning.

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.

Asset management is the organization, maintenance, and regulation of various assets to increase a client’s wealth and develop a profitable portfolio. Here are some tips and tricks for efficient management of assets:

Management of Intangible Assets

Have a Clear Vision

Before doing anything to the assets, understand the ultimate goal. Is it investing in assets with lower risks or experimenting with different long-term and short-term investments? What are the expectations for the assets? Understanding different investments and the goals you have for them will be important when determining how to manage assets.

Prefer Long-Term Investments

Who doesn’t love quick returns? However, one needs to remain calm and invest in long-term assets to remain safe and avoid risks. Do not look for immediate results but calculate the return on investment, profitability, and risks, and take time to make the decision. There is no hurry!

Take the Management Onboard

Asset management means a lot of money and resources are at stake; therefore, the management and all stakeholders must be on board. The decision of where to invest, how much to invest, who to work with, and so, must be collectively taken by the entire team. This helps avoid the blame-game, in case of any failure or losses.

Avoid Fads

Often people follow fads and invest their assets based on recent trends. Instead, conduct thorough research and evaluate the potential, returns, risks, and other aspects of the investment. Do not blindly follow because investments should be with the idea of growing your assets for the long-term.

Seek Professional Help

Various asset management companies help corporations and individuals to maintain a profitable portfolio. It is always better to ask around and work with a financial advisor who can provide complete guidance and advice to better manage the assets.

Diversify the portfolio

It is better to invest in more than one type of asset and investment. Do not allocate the entire asset bank to one investment, as the risks are higher. If that particular asset is in the loss, the entire asset bank drowns in losses. Instead, keep a diversified portfolio of assets.

Management of Tangible Assets

Track the Assets

When the company purchases an asset, it must be added to the records. If the asset is later shifted to another branch or location, the data must be added. This helps in tracking the assets and selling them off at the right price.

Be Generous in Maintenance

All tangible assets require periodic maintenance, and the company must not be reluctant to generously maintaining the assets. All machines undergo wear and tear, so do buildings and other assets. If avoided, the assets will later demand costly maintenance, laying undue financial pressure on the company.

Calculate Depreciation on the Asset

If the depreciation on the assets is not calculated properly, the insurance, maintenance, and taxes cannot be accurately handled, and the company is likely to be paying more than it should. Several asset management software automatically calculates the depreciation of different assets and keep the management informed. This helps sell and dispose of the asset before it stops functioning or affects the quality of work.

Avoid Keeping Extra Assets

A company often has various assets that are no longer in use or are too costly to maintain in the portfolio! Think of the machine the company got but later moved to a better one? The company must let go of all such assets as they add to the expenses and do not contribute to the company’s growth. Nobody wants to pay for the maintenance and storage of assets that are of no use to the company!

Keep the Asset Lifecycle in Mind

Before buying or building an asset, know its lifecycle. If an asset is expensive to purchase and is required for a short period, the company may consider having it on rent. However, an asset required for a longer period is most likely to be purchased if acquiring and maintenance costs are lower than monthly costs added for the required period.

All companies hold different types of assets, and each requires a different management approach. An efficient asset manager knows how to deal with different assets efficiently!

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.

Though every financially responsible adult has the knowledge that they need to budget and save, many don’t know there are some financial strategies to add to their financial plans. These plans could make a huge difference in financial freedom, the ability to make large purchases like buying a home, and having an amazing retirement instead of one full of financial struggles like so many who count on social security.

Whether you have a financial planner or don’t have a penny saved, there are financial strategies you can start implementing today that will give you the boost you need in your savings and on your path to financial freedom. Here are five strategies that will lead you to financial freedom.

Vehicle Purchase Strategy

While a vehicle can say a lot about us, the truth is that if you are looking for financial freedom, your vehicle purchase can make a significant difference in obtaining it or not if you are anyone other than a person who can own a car to match any outfit. Realistically, your vehicle purchase should be well within your means, as doing anything outside of that can be disastrous on your financial health and credit.

Never buy payments. You need to know the price they are charging you, final and total. A common sales strategy of recent years is to find out what payment amount you can afford and sell you a car with those payments over a period that, when added up, will, in some cases, be up to three times the value of the car. Also, know the interest rate you are being charged.

Pay as large of a down payment as you can handle. If you are in a dire situation that you need to immediately purchase the car, then it is understandable that you don’t have a large down payment at the ready. However, if you have time, take that time to save to pay as much down as possible.

Do your research on the vehicle you intend to purchase and know the value. Figure the basic payments, know your credit, run your own numbers, and be armed with them before you ever walk onto the lot.

Insurance Strategy

Insurance is an unfortunate necessity in every person’s life, and in some cases having insurance is the law. However, just because it is a must does not mean you have to accept what you get. It would be best if you exhausted every money-saving strategy at your disposal.

Shop, shop, and then shop some more. With healthcare, vehicle, homeowners, and other insurances that you may need, there is a lot of competition. Therefore if you are a savvy buyer, you can save hundreds a year in insurance. And don’t use those sites that say they will impartially compare. You do the research. You make the comparisons. This strategy will save you so much money.

Also, take healthy preventative precautions or driver’s education classes to lower your health and car insurance rates. Insurance doesn’t have to break your bank to be good and affordable.

10/10/80 Strategy

There are a few percentage financial strategies out there, but the 10/10/80 is among the most popular and easy to apply. This strategy says to give 10%, save 10%, and spend 80% of your income. This strategy is excellent and simple, but at some point, you will need to readjust those percentages if you want to make a more significant impact on your financial future.

50/30/20 Strategy

50/30/20 is another money allocation type of strategy with a similar formula to 10/10/80. The significant difference is that this strategy has savings built-in, but only after debt is paid. This strategy wants you to be at zero when it comes to debt before even thinking about saving. It breaks down as follows 50% goes to bills and necessities. There is no exception to this allocation. 30% towards paying down debt, and once your debt is zero. This percentage would go to savings. 20% goes to wants. This would be anything you pay for outside of bills and necessities or debt relief and savings. This is the lowest percentage on purpose. It would be best if you never were spending on wants and missing bills or leaving debt hanging over your head.

Down Payment Strategy

The down payment strategy was already touched on a bit when discussing vehicle purchases. It doesn’t take a mathematician to understand that your payments and interest rates will be lower if you put more money down on large purchases. It is suggested that you put down at least a 20% down payment, which is a great suggestion. When implementing the down payment strategy, the most important thing is that you put something down. This strategy can pay off big in the end.

 

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 Money: Tips to Improve Personal Finances

Improve personal finances by creating systematic approaches to income management, expense control, debt elimination, and wealth building through proven budgeting strategies and automated savings systems. Nearly two-thirds of Americans report finances as their most stressful life aspect, with 51% unable to survive more than one month without income, making personal financial management critical for stability and long-term prosperity.

I’ve spent over 20 years as CEO of Complete Controller, watching entrepreneurs and professionals struggle with the same financial challenges—living paycheck to paycheck despite strong incomes, drowning in credit card debt, or simply feeling overwhelmed by money management. The good news is that transforming your financial life doesn’t require complex strategies or a finance degree. Through working with thousands of business owners, I’ve discovered that the most successful people use simple, repeatable systems that automate good financial habits. This article shares the exact frameworks that have helped my clients build emergency funds, eliminate debt averaging $26,000, and create sustainable wealth-building systems that work on autopilot.

How do you improve your personal finances and take control of your money?

• Improving personal finances means creating systematic approaches to income management, expense control, debt elimination, and wealth building
• Start by tracking your current financial position through budgeting and cash flow analysis
• Eliminate high-interest debt while simultaneously building an emergency fund for financial security
• Implement automated savings and investment strategies to build long-term wealth
• Develop financial literacy through education and professional guidance when needed

Build a Foundation with Smart Budgeting and Cash Flow Management

Creating a sustainable budget forms the cornerstone of personal financial improvement. Most people view budgeting as restrictive, but the right approach actually creates freedom by giving every dollar a purpose and eliminating financial stress.

The 50/30/20 budgeting rule provides an excellent starting framework: allocate 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment. This balance maintains quality of life while building financial security. For those with high debt loads, temporarily adjusting to 50/20/30 (reducing wants to 20% and increasing debt payments to 30%) accelerates progress.

Zero-based budgeting takes control one step further by assigning every dollar before you earn it. Unlike traditional budgeting that tracks spending after the fact, this proactive approach eliminates wasteful spending and maximizes financial efficiency. Start by listing all income sources, then allocate funds to categories until you reach zero unassigned dollars.

Modern technology transforms budgeting from tedious paperwork into automated insight. Apps like Mint, YNAB, and Personal Capital connect directly to bank accounts, categorize spending automatically, and provide real-time alerts when you approach budget limits. These tools reveal spending patterns most people never notice—like that daily coffee habit costing $150 monthly.

Eliminate Debt Strategically While Building Financial Security

Americans currently owe $17.57 trillion in consumer debt, with average balances reaching $105,056 per person. Credit card debt alone averages $6,730 per person, creating a massive drag on wealth building through high interest payments.

The debt avalanche method mathematically optimizes debt elimination by focusing extra payments on the highest-interest debt first while maintaining minimums on all accounts. This approach saves thousands in interest compared to paying debts randomly. List all debts by interest rate, pay minimums on everything, then attack the highest rate aggressively.

Building emergency savings while paying debt seems counterintuitive, but prevents future debt accumulation. Start with a $1,000 starter emergency fund before aggressive debt payoff. This cushion handles unexpected expenses without derailing progress. Once high-interest debt disappears, expand to three to six months of expenses.

Tana Williams and her husband proved these strategies work by eliminating $26,619 in debt within 18 months. They created a strict budget, eliminated cable, switched to prepaid phones, and took side jobs for extra income. Strategic use of 0% intro APR credit cards bought time for payoff without interest charges. Their success came from consistency after multiple failed attempts—proving commitment matters more than perfection.

Communication with creditors often yields surprising results. Many will lower interest rates, waive fees, or create payment plans when customers proactively reach out. Debt consolidation through personal loans can reduce rates from 20%+ credit cards to single-digit loans, accelerating payoff timelines significantly.

Create Automated Wealth-Building Systems

Only 46% of Americans maintain three months of emergency savings, while 24% have zero savings. Current personal savings rates sit at 4.5%, far below the historical average of 8.39% since 1959. Automation reverses these trends by removing willpower from the equation.

Employer 401(k) matching represents guaranteed 100% returns on investment—yet millions leave this free money unclaimed. Contributing enough to capture full matching should be everyone’s first investment priority. Set contributions to increase automatically by 1% annually or with each raise, painlessly boosting retirement savings over time.

Multiple savings goals require multiple accounts with automatic transfers. Open separate high-yield savings accounts for emergencies, vacations, home down payments, and car replacements. Schedule transfers for payday, treating savings like mandatory bills. Starting with just $25 per goal still builds momentum.

Dollar-cost averaging through automatic investing reduces market timing risks while building wealth systematically. Monthly investments in low-cost index funds capture market growth without requiring expertise. A $200 monthly investment earning 7% annually grows to $103,000 over 20 years—demonstrating compound interest’s power.

Optimize Credit and Build Financial Opportunities

Credit scores impact interest rates on mortgages, car loans, credit cards, and even insurance premiums. A 100-point score improvement can save $100,000+ over a mortgage lifetime through lower rates. Understanding credit mechanics transforms scores from mysterious numbers into manageable metrics.

The five credit score factors include payment history (35%), credit utilization (30%), account age (15%), credit mix (10%), and new credit (10%). Payment history dominates scoring, making on-time payments non-negotiable. Set up autopay for at least minimum payments to protect this crucial factor.

Credit utilization—the percentage of available credit used—offers quick score improvements. Keeping individual cards below 30% utilization and total utilization below 10% optimizes scoring. Pay balances before statement closing dates to control reported utilization without carrying debt.

• Request credit limit increases to improve utilization ratios without spending more
• Keep old accounts open to maintain average account age
• Become an authorized user on family accounts with perfect payment history
• Dispute any errors on credit reports through MyMoney.gov resources

Develop Advanced Money Management Strategies

Tax-advantaged accounts multiply wealth-building power through reduced tax burdens. Traditional IRAs and 401(k)s provide immediate tax deductions, while Roth versions offer tax-free growth and withdrawals. Health Savings Accounts (HSAs) provide triple tax benefits when used for medical expenses—deductible contributions, tax-free growth, and tax-free qualified withdrawals.

Real estate investment trusts (REITs) provide property investment exposure without landlord responsibilities. These publicly traded investments offer diversification beyond stocks and bonds while generating regular dividend income. Start with REIT index funds for broad exposure before considering individual REIT selection.

Life insurance needs vary by situation, but term life typically provides better value than whole life policies. A healthy 35-year-old can secure $500,000 in 20-year term coverage for under $30 monthly—protecting family financial security affordably. Disability insurance protects income streams that are often overlooked until it’s too late.

Final Thoughts

Improving personal finances starts with understanding where you stand today and implementing systems that work automatically tomorrow. The strategies I’ve shared—from the 50/30/20 budget framework and debt avalanche method to automated investing and credit optimization—have helped countless Complete Controller clients transform their financial lives.

Success comes from consistent small actions compounding over time, not dramatic overnight changes. Pick one area to focus on first, implement the systems, then expand to other areas as habits solidify. Your future financial security depends on decisions made today.

For personalized guidance on implementing these financial strategies or streamlining your bookkeeping systems, visit Complete Controller, where our team helps entrepreneurs and professionals organize their financial lives for lasting success.

Frequently Asked Questions About Improving Personal Finances

What is the fastest way to improve personal finances?

Start by tracking all income and expenses for one month to understand your current financial position, then create a realistic budget that allocates money toward debt elimination and emergency savings while controlling discretionary spending.

How much should I save each month to improve my finances?

Aim to save at least 20% of your income, with 10% going toward retirement and 10% toward emergency funds and other goals. If 20% isn’t feasible initially, start with any amount and gradually increase your savings rate over time.

Should I pay off debt or save money first when improving finances?

Build a small emergency fund ($1,000) first, then focus on high-interest debt elimination while maintaining minimum payments on all accounts. Once debt is eliminated, expand your emergency fund to 3-6 months of expenses.

What are the biggest mistakes people make when trying to improve their finances?

Common mistakes include creating unrealistic budgets, trying to change everything at once, not tracking expenses consistently, ignoring high-interest debt, and failing to automate savings and investments.

How long does it take to see real improvements in personal finances?

Most people notice positive changes within 2-3 months of implementing consistent budgeting and saving habits. Significant improvements like debt elimination or substantial emergency fund building typically take 12-24 months depending on starting position and income level.

Sources

• Annuity.org. “Financial Literacy: The Guide to Managing Your Money.” Apr 16, 2025. https://www.annuity.org/financial-literacy/
• Bankrate. “Bankrate’s 2025 Annual Emergency Savings Report.” June 26, 2025. https://www.bankrate.com/banking/savings/emergency-report/
• Bankrate. “How This Couple Paid Off $27K in Credit Card Debt.” February 20, 2025. https://www.bankrate.com/credit-cards/news/how-to-get-out-of-credit-card-debt/
• Champlain College. “Financial Rules of Thumb: Your Money Management Cheat Sheet.” Apr 9, 2025. https://www.champlain.edu/2025/04/09/money-management-cheatsheet/
• Clever Real Estate. “99 Personal Finance Statistics to Know in 2024.” December 18, 2023. https://listwithclever.com/research/personal-finance-statistics/
• Corporate Finance Institute. “Personal Finance – Defined, Guide, Example, Template.” Nov 14, 2024. https://corporatefinanceinstitute.com/resources/wealth-management/personal-finance/
• Experian. “Experian Study: Average U.S. Consumer Debt and Statistics.” January 29, 2025. https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/
• Investopedia. “The 50/30/20 Budgeting Rule.” https://www.investopedia.com/terms/0/503020rule.asp
• MyMoney.gov. “Financial Literacy Resources.” https://www.mymoney.gov/
• NerdWallet. “Financial Planning Basics: How to Make a Plan.” Mar 7, 2025. https://www.nerdwallet.com/article/investing/what-is-a-financial-plan
• NerdWallet. “How to Budget Money: A Step-By-Step Guide.” Jul 1, 2025. https://www.nerdwallet.com/article/finance/how-to-budget
• The Conover Company. “Tips for Good Financial Habits in 2025.” Jan 27, 2025. https://www.conovercompany.com/tips-for-good-financial-habits-in-2025/
• Trading Economics. “United States Personal Savings Rate.” May 28, 2015. https://tradingeconomics.com/united-states/personal-savings
• Wikipedia. “Dollar-Cost Averaging.” https://en.wikipedia.org/wiki/Dollar-cost_averaging

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. Reviewed By: Brittany McMillen

Brittany McMillen

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.

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Between your monthly debt repayments, grocery bills, and amusement expenses, it can be hard to find even a few dollars to set aside toward a savings goal. While cash advances from debit/credit cards make it easier to access money immediately, this option often results in heavy fees. Taking out loans also results in interest rates that can bury you.

Based on all these factors, it can often be challenging to navigate and adjust your spending habits. Here are ten objectives that may motivate you to save money:

To Become Rich

Most people dream of becoming wealthy one day. They dream of living a life free from the burden of tight budgets and debt. However, the path to wealth involves hard work, attainable goals, and diligent financial management.

Many rich people started at the bottom of the ladder, and through sustained effort and saving every penny they could, they can now live the comfortable life most of us dream about. Remember that you must spend money to make money, so start by saving a small amount every month. Make sure a portion of your check goes toward your savings account. This way, you will be prepared to take the plunge when an investment opportunity arises.  

Pay Less Interest

In times of financial distress, some people are forced to put every purchase on their credit card. Even if they diligently meet their minimum monthly payments, they could end up paying 50%  more than the retail price of each purchase. With a healthy savings account, a person may not have to resort to spending so much of their credit, burying themselves in interest rates.

To Buy a House

Buying a house is a costly investment. Before locking yourself into a mortgage, monthly payments, accounts, taxes, and unexpected operating expenses are all factors to consider. Additionally, in order to qualify for a home loan, it is often required that you have saved a down payment of around five percent of the value of the home you are trying to buy. No one can predict the future. So, it is important to have more funds saved when buying a home than it may seem necessary. This way, you have savings to rely on if you are forced to face unexpected expenses, such as an emergency repair or essential maintenance. Saving enough money for a down payment can take several years, not to mention all the other expenses that are mentioned above, so it is good practice to start saving sooner rather than later!

To Buy a Car

Just like buying a house, financing a car is a significant investment for which you may need a down payment. Furthermore, the new vehicle will have a monthly payment itinerary and insurance payments that will be easier to maintain if you have substantial savings.

Be Debt Free

If you are in debt, whether it is a school loan, a credit card, a private loan, or even a mortgage, you must prioritize saving. The debt will not go away on its own. It is far too easy to make the minimum payments without realizing that the interest rates on certain debts are becoming insurmountable financial burdens. Start saving today, stop using cards to make unnecessary purchases, and diligently work to repay your debts as quickly as possible.

Be Prepared for Everyday Expenses

Life comes with thousands of small expenses that can seem to be never-ending. These small expenses build up quickly and can become exceedingly difficult to manage. Avoid being caught in the vicious cycle of debt by ensuring that you live within your means.

Be Prepared for Unexpected Expenses

Unexpected expenditures are often very costly and always seem to come at the worst moments. A major vehicle or home repair can be determinantal to your finances if you do not have a savings fund to allocate to these emergencies. It may be impossible to cover these expenses without accruing more debt in this situation. This situation illustrates exactly how important it is to have a padded savings account to ensure that your finances are healthy and moving in a positive direction.

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 starting a new small business, there are several areas of the startup process that an entrepreneur must execute to ensure the business launch’s success. Starting a new business can be a challenge. In light of this challenge, here are eight steps entrepreneurs can take that will help avoid making mistakes that will hurt a new small business.

Create a Business Plan

A well-written business plan with all the components needed for potential lenders, partners, and investors is essential for every small business to have. These components include an executive summary, company brief, organizational structure, market analysis, marketing plan, sales strategy, and financial plan. Your business plan will be upgraded and changed as your business develops and grows. However, the initial business plan should be focused purely on the needs of the startup.

Do Market Research

Though market research is included in the business plan, it cannot be stressed enough how important it is that a new business owner is aware of its market. Knowing your ideal demographic, the geographic advantages, competitor best practices and weaknesses, and other information that market research reveals will be essential at startup and beyond.

Build the Right Team

While a successful small business needs to have a strong and knowledgeable owner, it is equally important to have the right staff. When hiring for your new small business, you must consider skills and experience, but you also need to consider how your staff will function as a team. As opposed to a larger corporation, a small business is dependent on the team getting along well, so aspects of potential employees beyond skills and experience will also need to be factored into the hiring process.

Create an Optimized Website

When the Internet first started, having a company website seemed like an expensive and complicated dream. In today’s digital world, it is an assumption that any business has a website. A small business must have an informative website and lets potential customers know what your business offers. It also has to be optimized with keywords and other data so your business will show up in search engines. Many sites offer free website templates, or you can hire a professional to build and host a website for you.

Obtain Solid Financing

Financing your new small business will be essential. It may be impossible to even launch without it. There are many types of financing to consider if you are unable to finance your startup yourself. Some of the financing types include investors, friends or family loans, bank loans, and grants. The most crucial aspect of the financing is that you have plenty of capital to operate while working to profit. Most businesses that fail do so due to poor finances.

Pricing Your Products and Services

Pricing your products and services may seem like a difficulty. If you price too high, people may not even give you a chance, but if you price too low, you may risk not covering costs and not making a profit. Pricing is another area where research is key, and knowing the market you are in and what others in similar businesses in your area are charging will be vital to setting your prices correctly from the start.

Invest in Marketing

Many small business owners believe they can’t afford marketing. The idea that you have to run ads or slap your product or service on a billboard may seem overwhelming or expensive. In the digital world, when it comes to marketing, you can spend little to no money and drive a lot of business your way if you know what to do. Using social media and some low-cost advertising strategies will make marketing not only inexpensive but easy to accomplish.

Focus on Accounting and Bookkeeping

Since the entire purpose of having a business is to make a profit, every company’s main focus is financial. From the beginning of your small business, you should have an accounting and bookkeeping plan in place. Whether it is employing an accountant or bookkeeper or using accounting software, do not start your business without this in place from day one.

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.

Managing Business Finances

Business finance is a crucial term in corporate finance and accounting that encompasses a wide range of disciplines and business activities related to the management of money and other valuable financial assets. It teaches us about effective management and utilization of financial resources, investing strategies, accounting methodologies, and effective debt management. In short, it defines the fate of the business and the long-term growth and profitability of any company.

Significance

To survive in an extremely competitive environment, businesses need to effectively manage their financial resources or else pack their bags and go home. In the demanding era we live in, business finances work just like oxygen for survival, stability, strength, consistency, and growth. In short, money keeps your business running and your employees working to attain business goals and objectives.

However, the influx of money needs to be assured at the hour of need, or your business may face a financial crisis, which may eventually lead to overall business failure. Some of the most common ways in which a business can be financed or money raised include business loans, private loans (family or friends), mortgage loans, crowdfunding, etc.

Critical To Business Success

Entrepreneurs or business adventurists around the globe face many difficulties in generating business finances for their unique business ideas. But even those who manage to generate desired finances often strive to maintain or manage their money—perhaps due to the lack of financial knowledge or management of money-related skills. They may have scarce resources, but hiring a professional accountant or bookkeeper seems to be an intelligent choice. This allows them to concentrate on the core affairs of the business while their bookkeepers take care of the rest (money-related matters). Looking at the sensitivity of the matter, it is indispensable in managing business finances effectively to maintain a sustainable competitive advantage.

5 Crucial Tips to Keep Your Business Finances in Order

Get yourself ready for the tough job ahead

To survive in a volatile economy, you must develop new and effective ways to get things right—the first time. No one is a born genius; your motivation, inspiration, and result-oriented approach encourage you to learn the art of the game before taking on challenges head-on. To manage the finances of a business, you need to educate yourself and prepare for the tough accounting job ahead, as the financial recording is no easy feat. A company’s entire fate depends on financial recording and analysis—the better they are, the higher the results. This makes it clear that the management and bookkeeping of business finances require accounting knowledge, skills, and, hence, complete accounting know-how for keeping finances in order and perfectly streamlined.

Keep your personal and private finances separate

To develop more command and control over your personal and business finances, you must deal with them separately to avoid confusion. The outflow of cash must be managed well to keep proper track of your business transactions. This will not only help where your money is going but also help when submitting tax returns at the end of the term. Small businesses often struggle to sort between business and private finances as they lack awareness, accounting knowledge, experience, and expertise in dealing with money-related issues. By sorting this out, you will have the exact status of your money.

Choose a suitable accounting software

Salutations to superior accounting tools and techniques have made things much more manageable than traditional and manual ways of recording business transactions. If you have not yet moved to cloud technology for maintaining a real-time track of your money and resources, we suggest you do it right away. Today, you have a myriad of options to choose from; however, integrating the right accounting software or technology is crucial.

Hire a professional bookkeeper

You may have basic accounting knowledge and experience in keeping transaction records, which may not be enough for your business. To effectively manage everything related to your business finances, you must consider hiring a qualified and reputable bookkeeper. This will not only help you solve financial discrepancies but will also help you save a lot of money in the end.

Make a budgeting plan

By creating a budgeting plan, you will get things aligned and more organized than ever. Business budgeting is a necessary evil, which means that no matter how far you run away from it, you still must create it. This lets you know the business expenses and see whether they need to be cut if they exceed the limit or need to be financed with more money.

Conclusion

Indeed, many business owners do not keep records of their business finances; even if they do, they are most often disorganized or cluttered. To establish 100% command and control over your business, you need to manage your finances and cash flow carefully. It is better to hire a qualified bookkeeper to achieve the intended outcomes and pave your way to business success.

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

The inflation rate is defined as a measure or proportion of how quickly money loses its value in the market. This measure defines how fast costs for merchandise and enterprises ascend after some time. In other words, the inflation rate tells us how one unit of currency changes its value when contrasted with the time in the past.

There are many reasons by which the increase and decrease in the inflation rate may occur. One reason it may increase is the printing of money on a massive level. When currency is printed on a massive level, it expands supply in the economy and lessens its demand. Similarly, the inflation rate may increase due to some specific product shortage. When those specific yet imperative products become rare in the market, it becomes more valuable and thus more costly.

Ways to Invest as Inflation Rates Change

For many investors, inflation can create some major difficulties. If the investor is new in business, and their investments are developing, the inflation rate change can decrease these investments’ value. The best way to manage inflation effectively is to make sure money is invested wisely. Investments during inflation can seem like a difficult thing to navigate. However, some investments can be made that will protect or, in some cases, even increase the investment despite inflation. Here are four ways to protect investments during inflation.

Investing in Money Market Funds

Money market funds can be the perfect option for an investor at a time of rising inflation. These funds are also a haven for investments during a recession. Money market funds are a type of open-ended mutual fund that invests in short-term debt securities, such as U.S. Treasurys and commercial paper. While the facts demonstrate that money market funds earn little by way of interest, they still bear interest during inflation. This makes money market funds a great way to park investments during inflation or recession.

Avoid Long-term Fixed Income Investments

Regarding inflation, long-term and fixed-rate income revenue are considered the worst choice for any investor. Because long-term and fixed income investments can be adversely affected by inflation due to high-interest rates, it is best to invest in short-term investments with lower risk. When inflation drops, long-term and fixed income-related ventures become a great choice. However, if the investor is trying to invest during inflation, the ideal choice is to invest in shorter-term income return ventures, such as money market funds.

Progressive Projects Instead of Equity Investments

Many investors prefer putting their resources into high yield stocks or high paying income funds to offset their portfolios during inflation. This sort of investment works best when there is price stability in the market. Because inflation can make these types of investments unstable, it is suggested that high risk, high reward investments be limited.

Instead of putting resources in a risky high-paying venture, the investor’s better option is to invest in developing capital such as gold or commodities. These kinds of investments perform better during inflation and beyond.

Lastly, Transform Flexible-Rate Debt to Fixed-Rate

Transforming a flexible-rate debt into a fixed-rate debt is not considered an investment but is more like a beneficial practice an investor can use during inflation. For example, when you borrow money from someone during low or declining inflation, fixed rates are favored over flexible rates because you agreed on a certain amount, which was fixed. On the other hand, the change in rates rises when inflation rises, which implies that the rate will keep on rising if you have agreed on the adjustable-rate commitment.

It is a smart move for an investor to transform any flexible rate debt into a fixed rate debt. This kind of obligation includes a home loan, credit card, bank loan, or other credit lines. When these kinds of debts are at a fixed rate, the chances of loss are far lessened during inflation.

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.

Any increase in transportation costs can significantly degrade a company’s budget in a major way. The negative impact generated by this added expense can be felt immediately. Do you know where your transportation costs go?

Just for perspective, transportation costs can composite anywhere between 4% and 10% of a corporation’s overall expenditures. That can consume a large amount of your captial.

If you are looking to cut down your business costs, consider beginning with your transportation practices.

Check out these five tips that will help reduce your business’ transportation costs:

1. Reevaluate your delivery procedures

The standard rate of satisfaction for trucks on U.S. roads is 67%. The pressure put on trucking companies to improve their transportation and satisfaction rates is forcing corporations to move towards more aggressive methods of cost-cutting. Sometimes to cut back on expenses, you need to get creative with your cost-cutting techniques. Consolidating vehicles is an example of one of the many solutions available to trucking companies that effectively cut costs while improving their ratings.

With the current financial state of the COVID-era, companies have had to become creative to meet the demands of their clients. While the number of orders may be less, many businesses still find the regularity to be the same. 

Here are a few steps that can help reduce transportation expenses:

• Wisely manage the fluctuating rate of delivery transports.

• Minimize travel costs by seeking better and shorter routes.

• Ship in smaller amounts at low prices.

• Pay close attention to the peaks and hollows of activity, and plan accordingly.

These steps will allow companies to execute better management over their transportation, increase their inventory of new and seasonal products, and boost their promotions.

Many transportation companies are integrating their systems to save money. If your transportation company is not participating in this practice, the recommendation is to switch to one that offers this solution. This procedure often saves businesses a lot of time and money. All it requires is their willingness to work with their competitors.

2. Optimization of transportation equipment

When it comes to buying a vehicle, self-financing is one of the worst options available to you. According to experts, it is better to take out a loan, as the cost of financing proves to be the cheapest option in the long term. Long-term leasing allows you to have better tax-related benefits. 

Another advantage to leasing is that after you decide to lease the vehicle, property, equipment, etc., you can either repay the loan, expand the lease, or obtain the property (depending on the buying rates defined in the lease agreement).

Regarding the lasting lease method, this does not always mean you can end up owning the property or asset at the end of the lease. Some leases require that the asset be returned or that you renew the lease. This type of lease is a good option when you only need something for a period of time.

For insurance: It is important to note that everything is negotiable. Often, insurance companies have wiggle room ranging from 10 to 20%. 

If transportation costs are an issue for your business, it may be best that employees use their own vehicles while getting paid moderately for their miles. This will also save on insurance and maintenance costs and the tax on company vehicles. 

3. Inflate tires and shut off the air conditioning

While traveling at an average rate of 65 mph, air conditioning can shave off 3 miles per gallon of fuel. Recklessly blasting the A.C. could cost your company a small fortune in fuel over-consumption.

Overall, you can see there are many ways you can save your business on transportation costs. It all comes down to what works for you and your business’ specific needs. 

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.