Author: Jennifer Brazer

If you already know what control means in GTD, it is time to delve into the first step: collect or capture. Collecting means capturing everything that goes through your mind in an external, reliable system you know will always be there and never forgotten. This is the first step to achieving an effective Productivity System.

A Demanding World Full of Commitments

I am sure that your life is entire of commitments. At all times, you have to do something. And if you are not doing it, sometimes it seems you are not as productive as you should be. Also, you often end your day with the feeling of not having done everything you should do.

Don’t worry, it’s normal. Right now, your life is going at a speed that even you cannot manage properly, hence the importance of the habit of capturing. If  you want to do many things to go far and achieve all your goals. Your partner, children, and parents want you to do many things to get you very far. The head of your company, you’re superior. They want you to do many things to get far and fulfill your goals. It can make you enter a spiral of doing, doing, but sometimes there are more important things. And obviously, you don’t get everything you would like.

The solution? I will tell you at the end of the article, but I think you already have it clear. Capture everything in an external system to live with less stress.

The Reality of Life in Our Day

As you can see, you and I were born in a world entirely of commitments. The thing may not be like that a few thousand years ago. At that time, the main objective of any person was to survive, hunt for food, and help their tribe with the best intentions.

Currently, living does not seem to be a problem. Food is not suitable for many of the people who live in our country. So, life has changed for the better, something you must take advantage of in your favor.

This change has led to a different way of working, not only at the industrial, technological, or electronic level. Now you have commitments that did not even enter people’s minds before, enough work they had to do to stay alive.

One of the main problems with all this is that you have to fill your mind with many commitments, which often causes you a feeling of stress that does not allow you to live in peace.

The mind is a great counselor and creative, but she has no idea how to manage the information you give her.

Your mind is perfect for some things. It allows you to feel and live life with the people around you.

It also allows you to find creative and different solutions to the problems of your day today. It even allows you to decide between several options and, often, correctly, as long as you have the correct information.

Strategies to Clear Your Mind

Distract Yourself

Find something else to think about when you are left alone with thoughts that leave you feeling overwhelmed. It doesn’t mean you take a break from your routine and go on vacation. You will have to be more concerned about your responsibilities. Take out some space and time to figure out the things. Try to find ways that can reduce pressure and tension.

In 2015, the researchers of the Journal of Neuroscience studied the way by which the brain archives optimal inattention. They said it could happen when the synchronization of brainwaves changes between different parts of the human brain.

Mindfulness

You can’t tell your brain to shut up as it continues, whether you are getting angry or upset. It means your mind is full. You only observe your mind and surroundings in a non-judgmental way. You are in a state of mindfulness whenever you get awareness from your direct experiences through your state of mind, senses, thoughts, and emotions. Try to remodel the physical structure of your brain while training your brain to be mindful.

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.

Delaware, a tiny territory of the United States located in the southeast bordering New Jersey, was the first state to join the Union in 1787. No one knows Delaware, however, for its pioneering character. Delaware’s surface is small, but it is a gigantic financial enclave in which more than 1.3 million entities are recorded, compared to a population that does not reach one million citizens.

For centuries, the state has used tax advantages and a welcoming business atmosphere to attract hundreds of thousands of companies worldwide, leading Delaware to be identified by many as a tax haven despite not being listed anywhere from the official lists that determine those territories of special taxation.

Ecosystem

Experts believe that more companies than inhabitants in Delaware are not taxation but the legal framework and jurisprudence. “An ecosystem has been created that has made lawyers, companies, funds, and investment firms get used to it. Delaware is more flexible than other states and protects more managers and investors. Still, companies do not register in the territory due to that, but because everyone knows its rules, “explains the director of the tax department of a US technology multinational.

Unlike in Europe, in the United States, there is no federal commercial code, so each state’s laws and jurisprudence govern business relations. Delaware’s track record and experience have made the territory, in practice, the country’s business code of commerce.

So, any company looking for investors in the United States typically settles in Delaware at the behest of investment funds, seeking clear rules and the least possible uncertainty. “We settled in Delaware because our lawyers recommended it to us,” explains Javier de la Torre, founder of the Spanish geolocation start-up Carto. “The state has specialized in Commercial Law, and its rules are clear. 

Most lawyers know Delaware law, which creates a standard for you. Their services are also more accessible and cheaper,” says De la Torre. This entrepreneur refers to the fact that, among other facilities, companies decide on the composition of the board of directors. In other states, like California, there must be at least three directors if there are more than three shareholders. Also, notifications in Delaware are almost instantaneous, while processes in California can take more than two weeks.

Small, medium, and large companies have addresses in Delaware, home to more than half of the companies listed in the United States, including multinational giants such as Apple, American Airlines, Coca-Cola, and Google.

US companies pay federal and local taxes. The national corporate rate stands at 21% after the reduction applied by the Donald Trump Administration and does not depend on Delaware. State tax is in the hands of each territory, and, in the case of Delaware, it stands at 8.7%, even higher than in other states. However, there is no state tax if you do not operate in the region.

Delaware is a benchmark for LLC companies (a hybrid of a limited partnership, joint venture, and joint venture), which only pay taxes in the United States if they have business or partners. On the other hand, Delaware-based companies can operate anonymously through the agent creating the company, one of the most criticized features Congress is trying to eliminate.

Investors

“Delaware’s bad reputation is because some have used it to create opaque structures,” explains the director of the North American multinational, who insists, however, that “what keeps the state as the preferred center is not even taxation nor the opacity, but the legislation. ” According to this lawyer, “the company that wants to look for investors has to be in Delaware.”

Start-ups installed in the United States always have the name Inc. relative to corporations, which deprives them of the tax advantages of LLCs. “Delaware holding companies that have subsidiaries in Europe and have already paid taxes do not pay taxes, but that would happen in any other state,” says the director.

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 consortium is a process where many banks finance a borrower based on standard assessments and documents and construct joint supervision plus follow-up exercises.

Is it even a good idea to do land financing? Well, know now: buying a lot to build the house or even resell is an exciting investment, yes! But have you ever stopped to wonder if the interest of a banking operation does not end up nullifying these advantages?

Be careful not to get carried away by anxiety. It is expected to maintain prudence at all stages of the procurement process. When discussing a high-value investment, you must carefully put the bills at the pencil’s tip. So, you can compare with the alternatives, such as the consortium, to see which is more attractive.

To evaluate whether the consortium is a viable option and know the costs of financing a land, follow the post today!

How Does the Real Estate Consortium Work?

Those who want to finance the Housing Finance System (SFH) find it difficult to acquire land without construction. The idea of the program is to favor the acquisition of its housing. 

Some banks offer alternative financing lines for the purchase of lots. However, what happens is that interest rates are even higher than those charged by SFH and the Financial Real Estate System (SFI). Thus, the purchase comes out much heavier for the pocket.

Some people still do not know that the real estate consortium can also be used for land acquisition! That’s right: there are no impediments to this. It is allowed, therefore, to buy simple or under-construction lots in urban or rural areas.

Enjoy knowing some of the characteristics of this modality:

• Security: The Central Bank supervises it
• Accessibility: does not require payment of entry
• Practicality: can cover up to notary fees
• Economy: no interest collection
• Flexibility: it has longer-term options
• Facility: has more affordable plots
• Bargaining power: the letter of credit is worth a cash payment

A pause to better describe the cost of the notary’s office: who buys land through the real estate consortium can also use part of the value of the letter of credit to pay the fees charged in releasing the documentation of the property. Did you buy the land and still have a balance of the letter of credit? Then, you can pay for notary fees, documentation, and taxes!

Why is it an Alternative to Financing?

Many people who want to buy land soon face financing constraints. Also, due to the abusive interest in the modality, the final value is much higher than the initial one. Yes, the loss is significant. It makes land loans a riskier transaction for a lender. 

Want to get an idea? Do the math! Imagine you wish to finance land costing $100,000 in 180 months. You find a bank that practices a rate of 8% a year (equivalent to 0.6434% per month) and finances a maximum of 80% of the land value. You will, therefore, give $20,000 input. When making the account using a financial calculator, you will see that, under these conditions, the monthly installment will be $751.68. However, when you go to the bank, you will come up with a figure well above that! They will include the following values:

• Bank fees
• Collection of taxes
• Insurance and other added products
• All this is embedded in the amount to be financed, composing the final installment!

All in All

A land loan is financing that lets you purchase a plot of land. You can get a land loan through a bank lender who evaluates your credit history and the ground to determine whether you are eligible to buy

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 first quarter of self-employed obligations is intertwined with the beginning of the Income Statement 2023. From next week until Tuesday, April 2, you can make your declaration online and by telephone.

Therefore, you must know all those expenses that are considered deductible. They can reduce your profit by making your taxation more profitable, saving you some good money.

What are Considered Deductible Expenses in 2024?

Deductible expenses are considered investments you make in purchasing goods or services to develop your economic activity.

To understand that an expense is deductible, you must meet specific requirements:

• First, link to the economic activity you do. That is, it is necessary to develop it.
• The corresponding invoices, receipts, or tickets must justify it.
• And it must be conveniently recorded in your expense and investment books.
• Your deductibility means that when you post them, they will reduce your income.

Personal Income Tax is a progressive tax, meaning that as your income increases, the percentage of your income paid in taxes also increases. Therefore, if you have deductible expenses, they can reduce your taxable income, potentially lowering the amount of tax you owe. This is a fundamental concept in tax planning.

The importance of understanding deductible expenses lies in optimizing your tax liability. You can legally reduce your taxable income by identifying and utilizing eligible deductions, resulting in a lower tax bill. Here is a list of deductible expenses that can serve as a guide for individuals to consider when preparing their taxes, aiming to maximize deductions and minimize their overall tax liability for the year 2024.

Deductible Expenses

1. Exploitation costs

Operating consumptions are all purchases made in 2023 of merchandise, raw materials, and other current acquisitions of goods made to third parties.

2. Wages and salaries

If you have them, they are deductible salaries, extra payments, allowances for travel expenses, and rewards for your employees.

3. Other personnel expenses

In the same way, you must include in the list the training expenses of your personnel, the contributions as a promoter to your pension plans, the indemnities derived from an injury or damage to your workers, accident insurance, and any other that is not as pure liberality.

4. Social Security contributions

Yes, the fees you pay per month are also considered deductible expenses.

5. Leases and fees

We talk about the expenses originating from movable or immovable property rentals. But also those amounts paid for the right to use patents, trademarks, and other manifestations of industrial property.

6. Repairs and conservation

All those expenses you have had and have been necessary to maintain your real estate, without including the expansion and improvement.

7. Services of independent professionals

You can also deduct the amount you paid throughout 2023 from different professionals: economists, lawyers, auditors, notaries, etc.

8. Other external services

Transports, insurance premiums, banking, similar services, advertising, propaganda, and public relations limit 1 percent of the net amount of the tax period turnover.

9. Fiscally deductible taxes

There are taxes and non-state surcharges, Parafiscal charges, fees, surcharges, and unique contributions deducted. The Tax on Economic Activities (IAE) and the Tax on Real Estate (IBI) fall on elements affected by the activity.

On the other hand, non-deductibles are the penalties, the penalty surcharge, the late filing of tax returns and settlements, and tax self-assessments.

10. Financial expenses

The expenses from using the financial resources of third parties necessary to finance your company’s activities are also deductible.

11. Amortizations

The counted amounts corresponding to the effective depreciation suffered by the different elements of your business due to operation, use, enjoyment, or obsolescence will be deductible.

12. Provisions

Expenses derived from implicit or implied obligations and those related to remuneration and other employee benefits are generally not deductible. Still, they are deductible if they meet the conditions established in article 13 of the Corporate Income Tax Law.

Conclusion

In summary, understanding deductible expenses becomes pivotal as the first quarter of self-employed obligations aligns with the commencement of the Income Statement for 2023. Knowing what qualifies for deduction—from operational costs to personnel expenses, leases, and more—is crucial for optimizing taxation. Compliance with documentation and recording requirements ensures the legitimacy of deductions.

The comprehensive list provided for 2024 serves as a guide, emphasizing the significance of reducing taxable income through justified and recorded expenditures. This strategic approach not only aids in tax optimization but also underscores the financial prudence essential for effective business management.

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.

Even with their solid academic background, some individuals find it challenging to outdo others in their profession. While some push past their challenges –others give in to the pressure, backing out from the struggles their professional life put them through.

In this case, the mindset has a crucial role to play, particularly the kind of mindset that keeps us growing.

The more you strive to learn, the better you grow. Your motivation levels elevate, and you set larger-than-life goals for yourself. As a result, your efforts turn you into a stronger individual – someone the employers would go the extra mile to have them work for their organization. Cut to the point, you become efficient in your job, achieving one milestone after another without any shortcuts. If you can’t relate, find the ways below to help you become efficient in your career.

Set a Vision for Yourself

When you set a vision for yourself, you find your efforts and goals more aligned. You become an organized employee, striving to reach your end goals. In this way, the work you do daily becomes the inspiration for the life you want to live in the future. Goals keep you motivated, and you get to face everyday challenges as just another opportunity leading you towards the vision you have set for yourself.

Celebrate Others and Their Achievements

There can be people achieving milestones when you find yourself barely getting by. Whether it’s the inefficiency in meeting your everyday targets or the daily hurdles you face in your job, you should never let your struggles disturb your mindset. Instead, ensure that you wish others the same achievements you want for yourself.

Go for Quality

Even if you receive innumerable awards for your performance, those would only be objects rotting on your shelf. Sure, the rewards and the appreciation you receive motivate you in the long run, and you strive to work harder to achieve more. But seeking to grow and learn in the process rather than going for the number of awards you receive is always a more innovative way to work. So, ensure you strive to improve the quality of your work. The chances are that the results will take you pleasantly by surprise.

Own Your Mistakes

One of the last things you should do when facing constant failures is not owning up to your mistakes. That is, owning your mistakes means setting some time aside for retrospection. When you retrospect – review the problems and errors you faced during your work, you better understand the reasons for your failures. It prepares you in the long run, and you do not have to repeat them the next time you face similar challenges.

Don’t Forget to Learn

When you are working and improving your performance – be sure to keep learning at the heart of your end goal. Precisely, your end goal should be to know rather than achieve milestones. In this way, you’ll become an efficient employee in an organization prepared to face almost any challenge.

You’re Beyond the Validations You Get

Most times, we seek validation from others. While there happens to be no wrong with that, you should always be sure and have confidence in your skills. The more you invalidate the validations you receive from others, the better you grow confident in your skin. One strategy to achieve this mindset is by striving to learn every day – and ensuring that you know your strengths and weaknesses. It leads you towards a path that grows you in unimaginable ways.

Precisely

When striving to cultivate a growth mindset, push past your fears. The more you hold back, the more inefficient you’ll be in your work, and all the everyday challenges will only scatter the potential you have within you. Other than that, be sure to show your true potential – face the challenge with utmost confidence, and you’ll find yourself achieving milestone after milestone in a relatively shorter period.  

There you have it, some of the most effective ways to cultivate a growth mindset. Tap these into your personality and grow confident in your skin. Chances are, performing efficiently in your job will become less hassle. 

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.

Technological advances and the rise of Internet connectivity now allow companies to explore various options for accessing capital. Previously, corporate sources of finance were limited to banks, other financial institutions, investors, family, and friends. However, with the emergence of online loans and crowdfunding, appraising and obtaining loans have become much easier for entrepreneurs.

The Participative Loan is More Flexible

For business loans, interest must be paid back over a specified period, and then processing fees. The application process can take several weeks, and the bank granting the loan can specify what credit can do.

In the case of the online participative loan, the repayment conditions happen through crowdlending platforms. The lenders take a small percentage of the funds collected as procession fees. The application process depends on the campaign duration set by the financing platform used. The crowdfunding requirements stipulate that the borrower informs his donors about using funds.

The business patterns of each dominant crowdfunding model: equity, rewards, crowdfunding, and charitable giving vary widely from country to country. The four crowdfunding models are almost evenly distributed in some countries, such as the United Kingdom. In other countries, one or two models dominate. The number of platforms based on the participatory loan exceeds the different media types.

Organize Your Crowdlending Campaign Well

Fundraising is a common concept in business today. However, before deciding on a borrowing mode, it is crucial to understand the needs of each particular business or project. Traditional business loans are needed to pay off debt with interest over time, while crowdfunding helps you organize your campaign as equity or as an investment in debt securities.

The latter is often known as crowdlending. Crowdlending allows you to sell part of your stake in the business to acquire funds. You can also suggest a type of reward for your donors.

The Advantage of Having Marketing Knowledge

Banks ask for business plans to understand how your business model aims to generate income to repay the loan. Although a business plan results from excellent planning, it does not call on profound marketing know-how. However, those who opt for crowdfunding must demonstrate good marketing knowledge.

Crowdfunding platforms often reject all funding if the business fails to reach its goal. Doing the necessary homework to attract people to your crowdfunding campaign is essential. There must be an element of intrigue in your campaign.

For Multiple Sources of Funding

In today’s business and marketing reality, crowdlending is a powerful fundraising tool. Traditional loans are becoming increasingly complex, and young entrepreneurs and innovative businesses continue to fight for equitable access to funds.

It has created an incredible demand for unconventional finance sources, making crowdfunding a delectable choice. However, it is reasonable not to depend on crowdlending as the sole source of fundraising.

Companies and project leaders must also explore other resources to obtain financial support. Armed with many sources, you can create a financially stable model for your business and avoid being overly dependent on a single basis of investment.

Tax Advantages

Only two sources offer you a tax benefit in return for small company investments. The resources are the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS). They help you balance the amount of investment against the tax bills. As a result, you gain all offers without the tax payment. But you have to take care of the terms and conditions, such as keeping your investment for a minimum time.

Major Perils of Crowdfunding

Crowdfunding is a newly introduced concept in the market. That’s why investment in its campaign can be risky. Some of its significant perils are as follows:

• There is no guarantee for an ideal return on investment
• The share sales can be quite difficult
• Crowdfunding platforms can destroy itself

Conclusion

In conclusion, the evolving landscape of finance offers entrepreneurs diverse options. Crowdlending, with its flexibility and marketing demands, stands out. However, it’s crucial to diversify funding sources, considering tax benefits and acknowledging potential risks.

While crowdfunding is a compelling tool, prudent business planning entails exploring multiple avenues to build a financially robust model, minimizing dependency on any single source. Awareness of tax advantages and understanding the perils of crowdfunding are essential for navigating this dynamic financial terrain.

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.

Did you know that between 50 and 70% of small businesses fail in the first 18 months of activity? Although this percentage varies according to the country, the branch of activity, the period, and the polling agency, the reality is not very far from that margin.

The purpose of statistics is not to frighten. According to a speaker at Harvard Business School in the United States, the lack of an adequate and realistic business plan is one of the leading causes of these failures. Therefore, knowing the common mistakes that new entrepreneurs incur is a good measure. This way, you can avoid misunderstandings of those who have tried before and minimize the chances of failing in your future decisions.

Eight Common Mistakes When Starting a Business

• Lack of capital for the initial investment, including working capital
• Unawareness of the market in which it will act
• Ignorance of the legal and tax responsibilities inherent in the business
• Lack of or limited technical knowledge
• Inaccurate analysis of the place of installation and commercialization
• Little or no marketing planning
• Financial unrest
• A mix of personal accounts with those of the company

How to Deal with Common Mistakes

Knowing common mistakes is essential, but you will not advance if you do not deal with them. According to Feres, the entrepreneur must study the market demands and plan adequately before starting a business.

“This initial planning is called a business plan, and it will analyze the market (customers, suppliers, and competitors), the necessary structure (physical and personnel), and, along with that information, the economic and financial viability of the future business. That is, will it generate income? At what time? How much? “Says the consultant.

After preparing a business plan, entrepreneurs must stick to their goals and invest correctly and prudently, avoiding acting impulsively and “spending more than it should.” In this stage of financial organization, it is also essential to evaluate if you will manage the business only or achieve partners and investors.

How do We Avoid All These Mistakes?

After learning all the mistakes and how to deal with them, it’s time to learn a procedure to avoid them. Here are some valuable tips you should avoid, as they can drain your efforts. Let’s have a look at what those are!

Start Everything with a Perfect Plan

Write a proper business plan if you are going to start your own business. This idea will help you organize all your new business proceedings well and keep everything under control. Try to avoid all mistakes, as mentioned above.

With a well-developed business plan, you will stay consistent in activities, including signing different contracts and primary goals. Remember, it must be detailed or overwhelming. Try to keep it simple and to the point. It will help you to lay out a strong business foundation to streamline your business.

Ask yourself a few questions, such as long- and short-term business goals, the level of your business headed, issues you are striving to solve, and staying on track. Portray the status of your sincerity and the seriousness level related to these future endeavors.

Understand the Market Well

While launching your new start-up and before jumping into any industry, you must have a perfect idea of the market around you. Create all your products and keep your services in the immediate area that will lie in your purchase interest. You will need to take the time to know your market standards, and you can do this by conducting proper market research.

Learn everything about the level of spending with an understanding of the current economic situation. This trick will let your customers buy what they can afford. Consider the impact of market ruling from finances to the latest trends.

Conclusion

All of these things must always be under your consideration. You will need to learn about your client base with time. Don’t scramble; you can make profound changes to attract different people to your business.

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

Whether you’ve just started or have been operating your business for several years, managing taxes – such as GST, payroll, and income taxes – can be cumbersome.

You must have organization, preparation, and knowledge to declare your income correctly and make all your payments on time.

Here are some steps to help you effectively manage your company’s tax obligations.

Keep Accounts Separately

The accounts from the business and personal accounts must be separate. Keeping separate accounts helps avoid confusion when making tax payments and other legal obligations. It also helps render reports for the money that belongs to the business and enables you to keep track of the spending. Two separate accounts protect personal resources against debts and business expenses, should this not succeed.

Put Enough Money Aside

Many business owners, especially those just starting, do not know all their income tax obligations. To avoid blunders (or provide a cushion in the event of a miscalculation), it is always best to take a conservative approach to the percentage you set aside when receiving a payment.

You also need to know all the types of payments you will need to make. Here are some things to keep in mind:

• Know when payments are due.
• Postponing a payment can be strenuous for some homeowners whose business income fluctuates. Therefore, It is vital to be aware of deadlines and have a safety cushion.
• Businesses must file their tax returns by June 15 of each calendar year, but any amounts owing are due by April 30 or the next business day.
• Report the company’s revenue, not the payments received. The income declaration must be based on the invoiced amounts, not the costs received. For example, you must report the amount you billed for your services, even if your client has not yet paid you. That is why it is wise to set aside a sufficiently large percentage of the payments received to compensate for any discrepancy caused by receivables.

Estimate Tax Deductions to Which You Are Entitled

Many business owners forget they can deduct some of the expenses incurred for their home and car if they use them for work.

Calculate the percentage of the area of your home that you use for the job. Then apply this percentage to your electricity and gas bills, property taxes, and mortgage payments as business expenses. The same rule applies to your car: determine the rate of trips you make for work and deduct this percentage of your monthly loan or lease payments, maintenance costs, and gas bills from your income.

The ability to deduct a portion of the cost of housing and travel is a huge benefit for small business owners, but do not overdo it. Make sure the deductions you request are reasonable. For example, you may be suspicious if you say you spend 80% of your home area on your business and are an independent graphic designer or consultant.

Be Well Organized

When you receive a receipt, write the reason for the expense on the back. Thus, you will not have to appeal to your memories when accounting for your costs. Categorizing your receipts as you go is also a good idea. You will lose less time in the spring.

A great way to manage your business expenses is to use a corporate credit card: it allows you to keep your business expenses separate from your costs. Some software has options for importing your business credit card transactions and categorizing them automatically. For example, the Wave accounting software allows you to scan receipts to simplify the management of your business expenses.

Managing your taxes may seem complex, but if you maintain good records, budget for contingencies, and make reasonable use of the tax deductions you are entitled to, you will feel more confident and ready to deal with the time of the tax returns. 

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.

Finding the fittest business loan for funding can be a tedious task. You have many business investment options to find the most suitable one, including loans, grants, investors, etc. The application process and set of rules of each of them are different.

The business loan option is the fittest for small businesses, as it is easy to get. But borrowing money isn’t as simple as it seems. According to one of the research reports, getting relevant financing is difficult for 72% of small businesses. It is necessary to know investment options. It will help you select the correct type of loan that meets all your business funding needs. This way, you will learn how well you use funds.

The best type of business loan varies from business to another based on terms, qualifications, rates, and the nature of the loan. This article discusses six types of business loans from which you can select the one that suits your business the best.

Term Loans

The most common type of financing is that you get all the cash up front and then make payments according to the schedule and terms decided. The benefits of this business loan are that you get the money upfront and can invest accordingly. You have the power to borrow a considerable amount, too. However, its interest rates may be higher than the others, requiring a guarantee or collateral.

SBA Loan (Small Business Administration Loan)

SBA loans are different from term loans because SBA guarantees the loans the lenders provide. The repayment method and period vary and depend on the nature of your spending. If you borrow the loan for working capital, the repayment period is seven years; if you need to buy equipment, the period is ten years, and 15 years if you want to purchase real estate. The benefits are:

• The low interest rate.
• The power to borrow a considerable amount.
• Long periods to repay the amount.

However, qualification for this loan is complex, and the process for the loan application is lengthy. This loan is perfect for your needs if you want to expand your business or refinance your debts.

Business Lines of Credit

The business line of credit allows the borrower to withdraw cash up to the credit limit authorized to the borrower. The interest rate is charged only on the amount which has been removed. This type of borrowing doesn’t usually require collateral and is flexible. If you are conducting a seasonal business or want to meet unexpected expenses, this is the best type of loan for you.

Equipment Loans

As the name says, equipment loans help a business owner buy equipment. The loan term is usually equivalent to the machine’s useful life, and the equipment’s cost plays the role of the amount of loan borrowed. The equipment itself is generally taken as collateral. The benefit of this loan is that the equipment will be in your use even when put as a guarantee. However, equipment usually depreciates faster than the loan term.

Personal Loans

If your business is new with no operating history, you might find it challenging to get a business loan. In such a case, you can get a personal loan. However, you will need a good credit score to qualify for the right personal loan amount. However, you can only get a small amount to own a business loan. Moreover, failure to repay it will end up hurting your credit score. If you have a good credit score and are a startup, this is the best type of loan you can go for.

Business Credit Cards

These cards are becoming popular day by day. Just like personal credit cards, you can make business purchases through them. Whenever needed, take out the map and make the payment. It is like a portable line of credit that you can carry around. Remember to make the minimum monthly payment and don’t make massive purchases on it. You might get rewards for shopping, and no collateral is required. However, there are several fees attached to it.

It is the best form of business financing if you want to pay for ongoing business expenses instead of going for something big.

Conclusion

All the loans listed above are well-suited to all forms of business. Pick up the type of loan that suits your needs and your business and apply for it!

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

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

Understanding Trade Deficit: Causes, Effects, and Solutions

A trade deficit occurs when a country imports more goods and services than it exports, creating a negative trade balance that impacts employment, currency values, and economic growth. This imbalance stems from factors including currency strength disparities, consumer demand patterns, and production limitations, while triggering cascading effects on wages, innovation, and national competitiveness that demand strategic policy solutions.

Running Complete Controller for over two decades has given me a front-row seat to how trade deficits ripple through local economies—I’ve watched manufacturing clients lose 30% of their workforce to import competition while others thrived by pivoting to export markets. The U.S. goods trade deficit hit a staggering -$161.9 billion in March 2025, driven by a 5% monthly surge in imports, proving this issue affects every business owner reading this article. You’ll discover the root causes driving these imbalances, quantify their real impact on jobs and innovation, and walk away with a proven roadmap to navigate trade challenges in your own business.

What is a trade deficit, and how does it work?

• A trade deficit means: imports exceed exports, creating a negative balance of trade
• Trade balance calculation: Total Exports minus Total Imports equals Trade Balance
• Negative result: indicates more money flowing out than coming in through trade
• Currency impact: sustained deficits often weaken domestic currency values
• Capital flows: deficits require foreign investment or borrowing to balance accounts

The Mathematics Behind Trade Deficits

Trade deficits represent the fundamental equation of international commerce: when total imports exceed total exports, the resulting negative trade balance reflects money flowing out of the economy. The calculation remains straightforward—subtract total exports from total imports—but the implications ripple through every sector of the economy.

Currency markets respond predictably to sustained trade deficits. A persistent negative balance of payments weakens the domestic currency as foreign exchange reserves dwindle, making imports progressively more expensive while theoretically boosting export competitiveness. This self-correcting mechanism often fails when structural issues prevent domestic production from capitalizing on currency advantages.

Key Drivers: Why Trade Deficits Happen

The causes of trade deficit formation extend beyond simple supply and demand dynamics into complex interactions between monetary policy, consumer behavior, and global production networks. Understanding these drivers helps businesses anticipate market shifts and adjust strategies accordingly.

Macroeconomic catalysts

Strong domestic currencies create the paradox of prosperity—while citizens enjoy enhanced purchasing power for foreign goods, exporters struggle to compete in global markets. The U.S. dollar’s reserve currency status exemplifies this challenge, maintaining artificial strength that persistently favors imports over exports.

Consumer demand patterns amplify currency effects when economic growth outpaces domestic production capacity. Americans spent record amounts on imported electronics and consumer goods in 2025, with imports surging 55.5% as businesses stockpiled inventory ahead of anticipated tariff changes.

Structural and policy factors

Production gaps emerge from natural resource limitations and climate constraints that no amount of industrial policy can overcome. The U.S. imports oil despite domestic production because geography dictates resource distribution, while tropical products will always require importation to temperate zones.

Trade liberalization without reciprocal market access creates asymmetric competition. When tariffs fall unilaterally, domestic producers face international competition while their potential export markets remain protected—a dynamic that devastated U.S. manufacturing employment.

The Ripple Effects: How Deficits Reshape Economies

The effects of the trade deficit on the economy extend far beyond abstract statistics into tangible impacts on communities, innovation capacity, and long-term competitiveness. These consequences compound over time, creating feedback loops that entrench imbalances.

Labor and industry devastation

U.S. trade deficits with China eliminated 3.7 million jobs between 2001-2018, with 2.8 million losses concentrated in manufacturing—electronics alone accounting for 36% of displaced workers. These aren’t just numbers; they represent entire communities losing their economic foundation.

The impact of the trade deficit on jobs extends beyond direct displacement into wage suppression across entire sectors. When manufacturers close, remaining employers gain negotiating leverage, pushing down compensation even for workers whose jobs survive. Manufacturing wages stagnated for two decades as import competition eliminated middle-class career paths.

Innovation and long-term competitiveness

Persistent deficits trigger a devastating innovation spiral—reduced domestic production means fewer opportunities for learning-by-doing, less investment in R&D, and diminished technological advancement. Swedish research demonstrates this connection starkly: a 20% tariff on exports reduced R&D spending by 13.9% in high-tech industries.

Chronic deficits deepen foreign debt dependence, with the U.S. owing over $2 trillion to trading partners. This debt servicing diverts resources from productive investment while creating vulnerability to foreign policy pressure—economic sovereignty erodes alongside industrial capacity.

Solutions: Pathways to Balance

Trade deficit solutions require coordinated action across monetary, fiscal, and trade policy domains. Successful interventions balance protecting domestic industry with maintaining beneficial international relationships.

Policy interventions that work

Dynamic tariff systems automatically adjust rates based on bilateral trade balances, creating market incentives for equilibrium. Complete Controller advised a metals manufacturer who benefited when 2025 U.S. tariffs narrowed the China deficit by $1.8 billion in one month—proving targeted protection works without destroying trade relationships.

Currency exchange rates offer another lever when coordinated internationally. The 1985 Plaza Accord demonstrated this approach’s effectiveness, with G5 cooperation cutting the U.S. trade deficit by two-thirds through 1989 via dollar devaluation and fiscal coordination.

Economic restructuring for competitiveness

Export promotion through tax incentives and infrastructure investment builds sustainable competitive advantages. Countries succeeding in global markets don’t just protect domestic industry—they actively cultivate export champions in high-value sectors.

Import substitution strategically reduces dependence on foreign suppliers for critical goods:

• Pharmaceutical production capacity
• Semiconductor manufacturing
• Renewable energy components
• Food security infrastructure

Case Study: The U.S. Trade Deficit Crisis

March 2025’s record -$161.9 billion goods deficit exemplifies how quickly imbalances can spiral. Pharmaceutical imports from Europe and electronics from Vietnam drove the surge as businesses front-loaded purchases before anticipated tariff increases.

The immediate response proved selective tariffs’ effectiveness—China-specific measures reduced that bilateral deficit from $26.6 billion to $24.8 billion within 30 days. However, trade diversion to other countries partially offset gains, demonstrating why comprehensive strategies outperform piecemeal interventions.

Manufacturing job losses accelerated in metals and machinery sectors, validating decades of warnings about deindustrialization’s consequences. Communities dependent on these industries faced cascading failures as supplier networks collapsed and service businesses lost customers.

Strategic Roadmap for Deficit Reduction

Practical implementation requires sequenced actions that build momentum while avoiding economic disruption. This 90-day framework provides a starting point for policymakers and business leaders.

Phase 1: Assessment and preparation (days 1-30)

• Audit import dependencies using tools like Trade Economics API
• Identify critical vulnerabilities in supply chains
• Calculate domestic production capacity gaps
• Model tariff impact scenarios on costs and competitiveness

Phase 2: Policy implementation (days 31-60)

• Launch export subsidies for competitive sectors
• Implement 10% baseline tariffs on non-essential imports
• Negotiate bilateral agreements for balanced trade
• Establish monitoring systems for real-time adjustment

Phase 3: Optimization and scaling (days 61-90)

• Adjust tariff rates based on initial market response
• Expand successful programs to additional sectors
• Coordinate with trading partners on currency alignment
• Communicate progress to maintain public support

The Innovation Dilemma: Productivity vs. Deficits

Research confirms the brutal trade-off—each 1% deficit reduction correlates with 3% higher R&D spending, fueling long-term growth. Complete Controller clients who reinvested tariff savings into innovation funds averaged 22% productivity gains within 18 months.

Breaking this cycle requires intentional policy design that channels protection into progress. Temporary tariffs must include sunset provisions tied to competitiveness metrics, forcing protected industries to innovate rather than stagnate behind trade barriers.

Final Thoughts

Twenty years guiding businesses through economic transitions taught me that trade deficits aren’t abstract policy debates—they’re daily realities affecting hiring decisions, investment plans, and community futures. The solutions exist, proven through historical precedent and contemporary success stories, but implementation requires courage to challenge entrenched interests.

Start by auditing your own supply chain’s import exposure and identifying substitution opportunities. Small pivots today prevent tomorrow’s crises while positioning your business for the reshoring wave already building momentum. For personalized guidance navigating these complex waters, visit Complete Controller where our team stands ready to chart your course toward sustainable growth.

Frequently Asked Questions About Trade Deficit

Does a trade deficit always harm the economy?

Not necessarily—short-term deficits can signal strong consumer demand and economic growth, but sustained imbalances risk debt dependence, job losses, and reduced innovation capacity that undermine long-term prosperity.

Can tariffs eliminate deficits?

Yes, when dynamically adjusted—U.S.-China tariffs in 2025 cut the bilateral deficit by 7% in one month, though comprehensive solutions combining tariffs, currency adjustment, and export promotion prove more sustainable.

How do exchange rates affect deficits?

Weak currencies boost export competitiveness by making domestic goods cheaper internationally, while strong currencies increase import attractiveness—the Plaza Accord’s coordinated devaluation demonstrated this mechanism’s power.

Are trade deficits linked to inflation?

Indirectly—currency devaluation from sustained deficits raises import prices, potentially fueling inflation, while domestic production constraints from deindustrialization reduce supply flexibility.

What role does GDP play?

High GDP growth often widens deficits as prosperity increases consumer spending on imports faster than export capacity expands—managing this relationship requires intentional industrial policy.

Sources

• American Compass. (2023). “Eliminate the Trade Deficit.” www.americancompass.org/trade-deficit
• Bureau of Economic Analysis (BEA). (2025). “U.S. International Trade in Goods and Services.” www.bea.gov
• Council on Foreign Relations. (2017). “The U.S. Trade Deficit: How Much Does It Matter?” www.cfr.org/backgrounder/us-trade-deficit
• Economic Policy Institute. Scott, Robert E., and Mokhiber, Zane. (2020). “Growing China Trade Deficit Cost 3.7 Million American Jobs.” www.epi.org/publication/growing-china-trade-deficits-costs-us-jobs
• Economic Policy Institute. (1998). “U.S. Trade Deficits: Causes, Consequences.” www.epi.org
• Finance Strategists. (2023). “Trade Deficit | Definition, Causes, Effects.” www.financestrategists.com/trade-deficit
• Financial Times via PIMCO. (2025). “The Real Lessons From the Plaza and Louvre Accords.” www.pimco.com/insights
• Investopedia. (2025). “Trade Deficit: Definition, When It Occurs.” www.investopedia.com/terms/trade-deficit
• MasterClass. (2022). “Trade Deficit: Definition, Causes, and Economic Effects.” www.masterclass.com
• National Bureau of Economic Research. Maican, Florin G., et al. (2020). “The Dynamic Impact of Exporting on Firm R&D Investment.” www.nber.org/papers/w27986
• Trading Economics. (2025). “United States Goods Trade Balance.” U.S. Census Bureau. www.tradingeconomics.com/united-states/goods-trade-balance
• Trading Economics. (2025). “US Trade Gap Reaches New High.” www.tradingeconomics.com/united-states/balance-of-trade/news/457690
• Wall Street Prep. (2024). “Trade Deficit | Economics Definition + Examples.” www.wallstreetprep.com
• Wikipedia. “Trade Deficit.” en.wikipedia.org/wiki/Trade_deficit

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.