A budget approximates revenue and expenses over a quantified future period; it is accumulated and re-evaluated periodically. Budgets can be prepared for an individual, a family, a group of people, a business, a government, a country, a multinational organization, or just about anything else that makes and spends money. A budget is an internal instrument used by administration among businesses and organizations and is often not essential for reporting by external parties.
Following a budget or spending plan will also keep you out of debt or aid you in working your way out of debt if you are currently in debt. Spending less than we make is usually quoted as the most critical personal finance objective. It helps us to save for emergencies and stash cash away for retirement. The principal practice facilitates us to attain some level of financialfreedom. Constructing a budget with a template can help you feel more in control of your finances.
Common Excuses for Not Having a Personal Budget
Individuals and families have finances, too, of course – or they should. Generating and using a budget is not just for those who need to monitor their cashflows meticulously from month to month because “money is tight”; it’s a valued tool for all demographics. Even though budgeting is an excellent tool for managing your finances, many still think it’s not for them. Below is a list of budget mythologies – the specious logic that halts people from keeping track of their investments and allotting money in the best way.
I don’t need to Budget: Having a grip on your monthly salary and expenditures lets you ensure your hard-earned money is being put to its highest and finest purpose. Those individuals who enjoy a salary that covers all bills with money left over can help maximize savings and investments.
I’m not good at Mathematics. Thanks to budgeting/costing software, you don’t have to be; you have to be able to follow guidelines.
My job is Safe: No one’s employment is truly secure. If you work for a corporation, being laid off due to downsizing or a takeover is always possible. If you work for a small business, it could die with its titleholder, be bought out, or fold. You should always be ready for a jobloss by spending at least three months’ living expenditures in the bank.
And if it’s not, Unemployment Insurance will save me: Unemployment compensation is not definite. Let’s assume that a bad condition at work leaves you with no choice but to resign. Unless you can prove constructive discharge (that is, you were virtually forced to resign), your exit will be measured voluntarily, making you ineligible for unemployment insurance.
I don’t want anything significant: If you don’t have any main savings goals, it’s tough to tap up the motivation to stack away extra money each month. However, your condition and your attitudes can change over time.
I’m Debt-Free: Great for you! But it won’t payyourbills in an emergency.
I always get a Raise or Tax Repayment: It’s never a good notion to count on changeable sourcesofincome. This may be the year your business may not have enough money to give you a raise or as much of an elevation as you’d hoped, even if you’ve earned it. The same is true of bonus money. Tax refunds are trustworthy, but this also depends on how good you are at computing your taxliability.
I don’t have the proper regimen: If you’re still not convinced that budgeting is for you, here’s an approach to safeguard yourself from your spending practices. Set up an automatic transfer from your checking account to a savings account, programmed to occur right after you get paid each time.
Conclusion
Formulating a budget doesn’t have to be complicated. A budget can secure your future financial status and lead you to financial freedom.
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.
Marriage opens up the doors to a new life. Maybe money and finances aren’t the most romantic topics you want to bring to the dinner table. However, it shouldn’t be avoided. Let’s be honest. One of life’s most significant expenses is a wedding, which binds a couple together, and lifelong commitments are made.
Couples who trust their spouses or partners with money matters feel more secure and financially content with gratitude. On the contrary, issues and arguments about money matters harm many relationships. Most couples fight about finances twice as much as they quarrel about their sex life. Issues related to money are the leading cause of stress in relationships. Almost 60% of divorces were finalized due to couples’ financial arguments, making economic arguments the primary indicator of divorces. In the long run, planning and putting your heads together regarding money and finances is better.
Be Clear About Your Assets and Liabilities
Couples should opt for bookkeeping their assets and liabilities and controlling their expenditures as soon as they plan to marry each other. The beautiful journey of love and romance puts you in a new financial life. Therefore, it’s obligatory to be aware of the upcoming financial dilemma in your life. The complications of possessions, properties, and debts can damage a relationship. So, be clear about all income and earnings sources, spending habits, financial goals, and budgets with each other. Being honest about finances enhances a couple’s trust. Clarifying such finances also prevents a great deal of shame and fear in the future.
Share Your Family History
Your family background and upbringing demonstrate how you will handle your new financial life upon marriage in many ways. Therefore, couples should discuss their family history of finances beforehand, how they spend their allowances, the money etiquette they have learned from their parents, their budgeting priorities, and spending habits. The more you know about each other and your preferences, the better your understanding of personal and financial matters that ultimately strengthen trust.
Joint vs. Separate Accounts
Some couples prefer having open, joint accounts and pooling their earnings into that account, while others prefer to keep their income discrete. However, it’s better if couples set up a joint account for shared expenses such as groceries, utilities, house rent or home mortgage payments, and children’s education. And, if you prefer, you can keep the extra money separate for your expenditures or saving purposes. Again, the more open and honest you are, your relationship will be more successful.
Be Flexible in Sharing Expenses
A couple must be flexible with their new financial life and onward when sharing family expenses. It is because one spouse may earn much less than the other, and by distributing equal costs, you will be seen as equals in the relationship. Financial stress can spoil a relationship. It’s best if it’s a shared burden rather than one person struggling to get by.
Sensible Sharing of Expenses Via Joint Account
When one spouse has a habit of overspending money on frivolous purchases, it can cause conflict in your new life together. To ease such tension in a marriage, decide on a monthly figure that each partner can spend freely at their discretion, without being questioned about the expenses. Agree to consult each other on significant transactions to avoid further stress. For such a case, $154 is an ideal amount most couples agree to spend without informing one another. Anything over that amount should be discussed before purchasing.
Take An Early Look At Each Other’s Taxes
When a couple has similar earnings, one might owe more tax than the other at the start of their marriage. The opposite can happen when one earns much less than the other. Therefore, sort out tax issues and update your W-2 withholding forms immediately.
Pay Off Debt Together
Although your new financial life comes with more responsibility, one cannot automatically owe one’s spouse’s debt right from the start of marriage. What they owe will still affect your family budget and life choices. Therefore, aim to tackle such debt together simply as a team and reduce debt to your priority. If there are multiple loans, begin with the obligation carrying the highest interest rate first to reduce the overall interest you both pay.
Team Up To Save
Maintaining household finances as a couple rather than living separately is much less expensive. Paying less on rent or mortgage is just one of many intelligent ways a couple can opt to save more. When you sign up together, car insurers, home mortgage companies, and facilities like gyms and clubs usually offer better deals at reasonable costs. Also, there is no need to have multiple Amazon or Netflix accounts when you have already started your new financial life, the first chapter of your marriage.
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.
Destroying confidential documents is easier than it seems without lighting up a massive bonfire to burn everything! You need a device that is specially designed to do this: A paper shredder. Different types of document shredders are available on the market. Depending on whether you are a homemaker, head of a major firm, or director of an intelligence service, your perception of the word “confidentiality” will be very different.
Paper shredding machines are the most common tools that help destroy confidential documents. The advantage of paper shredders is that they can ruin several pages at a time. The pieces are then recovered directly into a closed basket. Some models offer straight cuts. Others are crosscuts for optimized safety. Some models are also capable of destroying cards and other complex paper types.
Remove the Documents that You no Longer Need
Every month, there is a bombardment of various documents that contain sensitive information: bank statements, invoices, receipts, and the list goes on. Sometimes, you might have confidential company documents that must be appropriately destroyed.
As one of the best practices for document destruction, sort through these documents and remove the ones you do not need. Using a professional paper shredder is always an excellent option. Other methods like burning the papers and throwing the ash in the sink will also eliminate them for good. Extracting information from burned-out ash is impossible, but that method takes longer and makes a much bigger mess!
Do not Throw Sensitive Papers in a Bin
Throwing away papers with sensitive or private information in the trash bin is unsafe. Maybe you work for the government or a company that manages confidential data. Throwing these papers in the garbage is not enough to protect them from those looking for specific information.
Learn how to destroy these documents to protect yourself from the illegal or malicious use of this information. Following the best practices for document destruction is vital to keep you and your company safe.
Investing in a Paper Shredder
A paper shredder is the best choice for document destruction. When you decide on a paper shredder, it is essential to use a crosscut mill, not a straight-cut mill, resulting in finer paper webs. This will prevent people with unauthorized access from piecing together the pages with paper strips. Choose a machine that cuts the paper into strips up to 0.5 mm wide and 0.5 cm long.
Security Level of the Paper Shredder
Considering the best practices for document destruction, experts recommend checking the security level of the paper shredder. A higher security measure would indicate how efficiently the machine cuts the paper. Paper mills are available in office supply stores and are classified into several security levels, depending on the smoothness of the cut strips.
The more fine bands the machine has, the higher the security level. Most companies provide paper shredders that are much more advanced and sophisticated options for document destruction. They offer a higher option for secure paper shredding or other document destruction services.
Shred Your Documents Regularly
Make it a routine to shred your papers. Having a fixed schedule for document destruction will save you and your company plenty of time. An added benefit of having a set schedule is that you won’t have to go through a massive pile of sensitive documents.
Scheduled shredding is one of the best practices for document destruction. It helps minimize the risk of an intentional or unintentional breach in the database. Regular shredding will prevent the information from falling into the wrong hands.
Use Professional Document Destruction Services
What if you have many sensitive documents that need to be destroyed but do not have the time or the equipment to do it securely? Hiring a professional service is always one of the best practices for document destruction. Many companies provide expert services for eliminating sensitive documents with confidentiality. These professional services will eliminate sensitive documents without compromising trade secrets, client lists, and other sensitive company information.
Training your Staff about Properly Securing the Document Destruction
It’s always one of the best practices for document destruction to arrange staff training about properly disposing of documents with sensitive company information. Training your staff about document destruction will help keep confidential data safe. Employees themselves can be held responsible for the theft of trade secrets. Holding each employee accountable for their data is a good practice for document destruction.
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.
Millions and millions of homeowners today have refinanced their mortgages, and some of them are even considering refinancing it a second time. However, although these rates are hitting rock bottom, refinancing is not the correct option for every homeowner. The following are the six reasons to opt out of refinancing your mortgage and consider other funding sources.
A Very Small Loan Amount
With a minimal loan amount, it can become difficult to save enough money by refinancing to make this process worthwhile. For instance, refilling a $750,000 loan from 5.5% to 4% might yield a monthly savings of approximately $678. However, savings for a $75,000 loan will only amount to roughly $68 each month. Lenders also often lack the additional fee or interest rate premiums for a small loan amount. Thus, obtaining a rock-bottom mortgage rate that will serve you well becomes very difficult.
Small Rate Difference
Refinancing a large loan might result in noteworthy savings; however, getting a considerably better interest rate is also very important over the long term. While it is possible to save a lot of money by refinancing to a slightly lower interest rate, it is a painfully slow and steady process. Considering our low mortgage rates today, shoot for an interest rate of at least 1% lower than your current rate to make your time and effort worthwhile.
Short Time Frame
While refinancing at today’s low rates can sometimes translate into substantial monthly savings on the mortgage bill, those savings do not usually come without noteworthy upfront costs. If you have only a few years before you are expected to move or refinance again, you may not want to reap the benefits of saving from a lower monthly rate. There are numerous ways to refinance and save some money alongside “no-cost” refinance plans, even if you have a concise time frame. However, these options often come with complex interest rates, reducing the various benefits considerably.
Term Extension
If you have already refinanced and reduced the term of the loan you have taken, you might be forced to obtain a longer-term loan when you refinance. Characteristically, the shortest fixed-rate mortgage term is ten years. If you have less than ten years remaining on your loan, the one way you can ensure savings is to refinance the fixed-term loans and then make payments to reserve the remaining term.
A Low Rate ARM
Federal Reserve policies have recently driven down short-term interest rates to unparalleled lows. As some of these short-term rates administer the interest rates for adaptable rate mortgages, many borrowers have recently seen their interest costs fall as the new rates have sunk to the 2%-3% range. Refinancing to a fixed-rate loan today might help eliminate the interest rate risk associated with ARMs; nevertheless, this security comes at a very high cost and higher interest rates. Holding onto an ARM with a rock-bottom interest rate, for the time being, may not be such a depraved idea.
Inertia and Hassle
Getting a fresh mortgage in today’s tight lending climate is neither fun nor easy. It may be time-consuming if your current lender does not offer a streamlined refinancing program. If the monthly savings are too small or the reimbursements take too long to materialize, refinancing costs may outweigh the reimbursements.
Refinancing your home mortgage may or may not suit you and your family. However, though there are many reasons to avoid it, there are also positive reasons to do it. Most importantly, you research and decide if refinancing your mortgage will benefit you.
Conclusion
In conclusion, while the allure of rock-bottom mortgage rates entices millions of homeowners, the decision to refinance is not universally beneficial. Homeowners should carefully evaluate their circumstances before diving into the refinancing pool again. Several key factors should guide this decision-making process.
Ultimately, whether to refinance a mortgage is a nuanced decision that demands careful consideration of individual circumstances. While there are compelling reasons to avoid refinancing, there are also instances where it can offer substantial benefits. A thorough understanding of personal financial goals and diligent research will empower homeowners to make informed decisions that align with their unique needs and circumstances.
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 cloud accounting technology is a new player in the economic landscape.
Cloud accounting is similar to traditional accounting; bookkeeping procedures are done on accounting software. Cloud accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud’ where it is processed and returned to the user. All application functions are done off-site, not on the desktop, in the cloud.
The accounting functions are done online and not on desktop software. The internet or other networks are used for the process. Users access cloud accounting software through a cloud application service provider. The software does not have to be installed on a computer. It can be accessed from any place globally, provided the cloud applications service provider is present.
Features of accounting software must include:
Inventory management
Sales tracking
Contacts management and contact history tracking
Account to accept credit card payments
Generating Invoices
Financial statements, cash flow statements, and balance sheet
Budget planning
Payrolls
Taxation matters
Benefits of cloud accounting for small businesses
Cloud accounting technology is a new player in the economic landscape. Why? We’ve listed the reasons below.
Access to accounting and bookkeeping data anywhere and anytime in the world. You can spend time on other business operations-related activities or spend quality time with family. You can access cloud accounting software online while sitting at home and keep yourself updated with your business’s accounting and bookkeeping functions.
You always have an up-to-date view of the business’s financial status to make the right decisions at the right time. Go paperless in accounting and bookkeeping. This step is Eco-friendly, too. Paperwork takes a lot of time for accountants and business owners. Small business owners need time to interpret accounting information.
Accounting software makes it easy to interpret accounting information. Cloud accounting software has multi-user access with automatic updates. It reduces upfront business costs. You do not face regular maintenance and fees for upgrading the system.
A Few Cloud Accounting Software and Their Benefits
You can access FreshBooks from a desktop computer and mobile phone. It has many features used to simplify accounting processes. It makes it easy to track expenses, make online payments, generate customized invoices, develop reminders of late payments, purchase history with time-tracking client records, and manage different projects with different rates.
A 30-day free subscription to FreshBooks is available for new users. After that, it costs $19.95 a month.
QuickBooks is small businesses’ primary bookkeeping and cloud accounting tool and handles accounting operations. QuickBooks is developed and marketed by Intuit. QuickBooks is used to:
Generate invoices with your company’s logo and all the details the customers require.
Process payrolls according to HR policies
Manage all business transactions, including bills from suppliers and vendors.
Outright is an online cloud accounting system for small businesses that tracks expenses, profit, sales, and customers. Bank accounts and other services such as PayPal, eBay, FreshBooks, and web stores can be connected to Outright, and data can be easily exported from one app to another.
Dashboard with bank balances, expenses, and invoices
Customized reports required by the small business
Tracking cash flow in real-time
Graphical presentation of data
Data can be shared and accessible to accountants and others
Generating customized reports and reminders to customers
Scheduling of Payments and returns
Apple, Blackberry, and Android applications are available. Many add-ons like CRM, invoicing, and inventory management packages are also available on demand.
Conclusion
Cloud-based accounting technology is changing the landscape by providing customers with services unavailable a few years ago. One can access their company’s data from anywhere worldwide by logging into the account. Small business owners must avail of this technology as the costs are affordable, and benefits are more abundant than ever.
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.
Cloud hosting is a service providing the host; the host provides the users with virtual servers for extracting and storing data connected to a vast and complex network of physical web servers offered at the back end.
The clients could use cloud hosting services as often as they want, depending on their usage and requirements. Cloud hosting is the ultimate solution for cost-effective data storage without using up a lot of physical storage disks on your end. Furthermore, the client is not required to pay for the extra capacity and pays only for the storage being used by them.
What is an IRS Audit?
An IRS Audit is a detailed review of an organization or a person’s accounts and financials information. The audit checks that all information is reported correctly. All tax laws are being followed, and the company or individual pays their taxes as required and, hence, verifies all the amounts paid as tax to be correct.
The Three Basic Types of IRS Audits
If you or your organization has been earning millions, there is a one-sixth chance that you might be selected for an IRS audit. If you are making an average pay, your chances are even. An IRS audit is random and is a detailed analysis of your finances to ensure that all money is earned from lawful sources and that all taxes are being paid according to the law.
Usually, an IRS audit is triggered if the IRS notices unlawful activity related to your revenues or earnings. It could also be performed because the IRS sees that the taxes required are not being paid. An example of such activity is a sudden massive drop in your revenues or earnings that might indicate that you are trying to hide money to avoid taxes. It is a detailed auditing process in which details of your finances are combed to catch any discrepancies. The three basic types of IRS audits are explained below.
Correspondence Audits
These audits are the most straightforward audits of them all. Correspondence audits usually occur when you have a slight mistake in your tax returns, which could be a human error based on typing in the correct amount.
Office Audits
An office audit is a bit more complicated and scary. During this audit, you are asked to go to an IRS office with all the necessary paperwork. This audit might be triggered if you have increased and high tax deductions – such as a medical expense.
Field Audits
On the other hand, a field audit is similar to an office audit, but the IRS approaches you. In such cases, representatives from the IRS visit you at your home or workplace and request to look at specific paperwork and records of your business dealings.
If you are being audited, the IRS will notify you properly via a call or letter. The letter or call would further let you know the details of the required documents and paperwork that might help them assess your earning and tax-paying patterns.
Does the IRS usually require documents?
When selected for an audit, the IRS informs you about the documents they might need to conduct your audit. However, some of the documents may include:
All documents that are material in the administration of the Internal Revenue law
Records regarding revenues, taxes, earnings, expenses, and purchases for at least the three previous years
Complete employment records for the past four years, at least
Documents required to meet IRS Standards in Cloud Hosting
Electronic times have made things faster and more accessible. Hence, you must create digital copies of all related paperwork and store them in your cloud hosting services. When facing an IRS audit, these documents are readily available and save both parties a lot of time and effort, making the complete audit process easier and quicker.
According to the IRS website, the documents stored electronically, which are acceptable for the audit, should be prepared as follows:
“The electronic storage system must index, store, preserve, retrieve, and reproduce the electronically stored books and records in a legible format. All electronic storage systems must provide a complete and accurate record of your data accessible to the IRS.Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. “
In essence, all of these documents must be complete, accessible, and accurate while proving all the possible transactions and details required and asked by the IRS Audit.
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 Internal Revenue Service IRS is an agency made to collect taxes from Americans and administer the Internal Revenue Code enacted by Congress.
The Internal Revenue Service is consistently generating tax resources for small-sized businesses. Small-sized business owners do not always need to turn to account consultants. They can significantly benefit by using the resources the IRS’s internal Revenue Service provides.
IRS – The Internal Revenue Service is a legal body that makes tax-related laws. At the same time, the Internal Revenue Service offers resources for small business owners.
Here are some of the crucial small business tax resources provided by the IRS -Internal Revenue Service:
A Federal Tax Center for Small Business Owners & the Self-Employed
The Small Business and Self-Employed Tax Center conveys info on IRS.gov to a shared place.
Small Business Tax Resources for Organizing Tax-related Information
The IRS Tax Calendar for Businesses and the self-employed aids owners in systematizing. It contains tax due dates & actions for each month. Users can subscribe to calendar reminders or download the calendar to their desktop or calendar on their mobile phones.
The Small Business Forms and Publications page helps business owners find the documents they require for the kind of business they own. It lists tax forms, directions, desk guides, and more.
Another link to this service and resource is a click away.
Personally Meet Someone from the IRS or Online
Small business workshops, seminars, and meetings are held nationwide. They are funded by IRS allies that specialize in federal tax topics. Topics differ from summaries to further issues such as retirement plans, business bookkeeping, and record keeping.
Conclusion
Small business owners are often busy in their day-to-day business functions. Most of them are managing their resources on their own. From fundamental business functions to bookkeeping and accounting, they are working them alone. Keeping a check and balance type control on bookkeeping is an enormous task. They need more time to calculate new ideas and better interpret their financial status. Especially at the start of business, it is challenging to solve and carry out all business operations effectively. At that time, entrepreneurs require assistance throughout the year until their business gets settled to some extent. Many cannot hire accounting consultants all at once.
At the same time, small business owners also need to pay taxes. They might be trying to manage several loans as well. Knowing how to cope with taxes and loans is challenging for new entrepreneurs and small business owners. That’s why the IRS has made many resources available for the proper guidance and tax assistance for small business owners. Entrepreneurs.
Small businesses work as a network of veins throughout the body. The body is the national economy. Small business owners are essential for the economy of a country. That is why the IRS is facilitating its small business owners in the best possible and legal way. They can get instructions, forms, and other services on the conjoined web portals specially designed and dedicated to small-sized business owners/entrepreneurs.
Small-sized business owners utilize these services provided by the Internal Revenue Service, which is the most convenient way for them. These can be accessed from homes, offices, or sitting anywhere if you have an internet connection. You can download these services from your phone or desktop and use them whenever and wherever you want. A small business owner can access them 24/7.
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.
Essential Fraud Statistics Every Business Should Know
Fraud statistics for businesses paint an alarming picture: organizations lose an average of 5% of their annual revenue to fraud, with small businesses suffering median losses of $200,000 per incident compared to $104,000 for larger companies. These figures represent just the tip of the iceberg in a fraud landscape that has grown exponentially more dangerous since 2020.
I’ve spent over 20 years as CEO of Complete Controller working alongside businesses across every sector imaginable, and I’ve seen firsthand how a single fraud incident can devastate an otherwise thriving company. The statistics I’m about to share aren’t just numbers—they’re warnings that could save your business from joining the 95% of U.S. companies that have experienced employee theft or the 57% of small businesses that have fallen victim to financial fraud. You’ll discover exactly which fraud threats pose the greatest risk to your business, learn proven strategies that reduce fraud losses by up to 52%, and gain insights into emerging AI-driven threats that are projected to cause $40 billion in losses by 2027.
What are the essential fraud statistics every business should know?
Business fraud costs organizations 5% of annual revenue, with global losses exceeding $3.1 billion annually and individual incident losses averaging $145,000
Small businesses face disproportionate risk, suffering median losses of $200,000 per fraud case versus $104,000 for larger organizations
Employee fraud represents 89% of all business fraud cases, with 75% of workers admitting to workplace theft at least once
AI-driven fraud schemes are projected to generate $40 billion in losses by 2027, with deepfake attempts increasing 2,137% over three years
Only 43% of fraud gets detected through tips, while most schemes operate undetected for 12 months or longer
The Staggering Scale of Business Fraud in 2024
Business fraud has reached unprecedented levels, with the Federal Trade Commission reporting that consumers and businesses lost more than $12.5 billion to fraud in 2024—a staggering 25% increase from the previous year. What makes this surge particularly concerning is the dramatic shift in fraud effectiveness: 38% of people who reported fraud in 2024 lost money, compared to only 27% in 2023, representing a 41% increase in successful fraud attempts.
The Association of Certified Fraud Examiners analyzed 1,921 actual fraud cases across 138 countries, revealing total losses exceeding $3.1 billion. Their research estimates that organizations typically lose 5% of their annual revenue to fraud—a figure that can destroy businesses operating on thin margins. The median loss per case reached $145,000, while approximately 22% of cases resulted in losses exceeding $1 million.
Financial fraud against small businesses has increased 70% since the pandemic began, according to Experian data. This vulnerability stems from fundamental structural differences between small and large organizations:
Limited internal controls and oversight mechanisms
Concentrated authority without adequate checks and balances
Insufficient resources for dedicated fraud prevention teams
Informal operational procedures that create exploitable gaps
Employee Fraud: The Hidden Threat Within
Internal fraud represents the most pervasive threat to business integrity, with research revealing that 75% of employees admit to stealing from their workplace at least once. Certified fraud examiners estimate that over 95% of U.S. businesses have been victims of employee theft at some point, costing businesses approximately $50 billion annually.
Asset misappropriation dominates internal fraud cases, accounting for 89% of all incidents. While these cases typically result in lower median losses ($120,000) compared to other fraud types, their prevalence makes them a persistent drain on business resources. The most troubling aspect: 89% of occupational fraud involves first-time offenders, meaning previously trustworthy employees can become threats under certain circumstances.
Tenure directly correlates with fraud severity:
1-5 years of service: median losses of $100,000
10+ years of service: median losses of $250,000
Executive-level fraud: average losses exceed $600,000
The most common internal fraud schemes include corruption (50% of cases), billing fraud, check tampering, expense reimbursement abuse, and payroll manipulation. These schemes often begin small and escalate over time, with perpetrators becoming bolder as they remain undetected.
Cybersecurity Threats and Digital Fraud Evolution
The digital transformation has created unprecedented opportunities for cybercriminals, with 43% of all cyberattacks in 2023 specifically targeting small businesses. Business Email Compromise (BEC) has emerged as the costliest cybercrime, generating $6.7 billion in global losses annually.
Ransomware attacks have become particularly devastating:
82% target businesses with fewer than 1,000 employees
Average recovery cost: $5.13 million (574% increase since 2018)
75% of SMBs cannot continue operating if hit with ransomware
Data breach average cost: $4.88 million globally
The sophistication of these attacks continues growing, with 40% of BEC emails now AI-generated. British engineering firm Arup lost $25 million when a finance employee was tricked during a video conference call with deepfake versions of the company’s CFO and other colleagues. The employee made 15 transactions to Hong Kong bank accounts over a week before discovering the deception.
AI-Driven Fraud: The Next Frontier
Artificial intelligence has fundamentally transformed fraud capabilities, with AI-driven scams projected to result in $40 billion in losses by 2027. Deepfake fraud attempts have increased by 2,137% over the past three years, with just over half of businesses targeted and 43% actually falling victim to these attacks.
Job scam losses exemplify this explosive growth, skyrocketing from $90 million in 2020 to over $501 million in 2024—a 457% increase. These schemes exploit remote work trends, using AI to create convincing job postings and conduct fake interviews to harvest personal information and banking details.
Synthetic identity fraud has become the fastest-growing identity theft category:
Accounts for 80% of new account fraud
Average loss per case: $15,000
Combines real and fake data to create “Frankenstein IDs”
Can remain undetected for years while building fraudulent credit profiles
Finance professionals now view these threats seriously, with 85% considering deepfake scams an “existential” threat to their organization’s financial security.
Building Effective Fraud Prevention Strategies
Comprehensive fraud prevention generates measurable returns on investment. Research from the Association of Certified Fraud Examiners demonstrates specific activities and their impact on reducing fraud losses:
Proactive data analytics: 52% reduction in losses
Dedicated fraud teams: 33% reduction
Risk assessment activities: 38% reduction
Combined prevention measures: 40% average reduction
A real-world example illustrates this impact: A vendor email compromise case cost a local business over $100,000 when fraudsters spoofed their vendor’s email address (ABCinc@email.net instead of ABCinc@email.com) and requested payment method changes. Simple phone verification could have prevented the entire loss.
Detection methods vary in effectiveness, with tip-offs discovering 43% of fraud cases—more than three times any other method. Over half of these tips originate from employees, highlighting the importance of anonymous reporting systems and a culture of transparency.
Technology integration proves crucial, with the fraud detection and prevention market growing from $50.72 billion in 2024 to a projected $61.01 billion in 2025. AI-powered detection tools, used by 50% of organizations, analyze transaction patterns and user behaviors to flag suspicious activities before significant losses occur.
Final Thoughts
The fraud statistics I’ve shared paint a sobering picture of modern business risks, but they also illuminate a clear path forward. My two decades at Complete Controller have taught me that fraud prevention isn’t about paranoia—it’s about smart, systematic protection of everything you’ve worked to build.
The data proves that proactive measures work: businesses implementing comprehensive fraud prevention see average loss reductions of 40%. That translates directly to protected revenue, preserved reputation, and peace of mind. Whether you’re facing employee theft risks, cyber threats, or emerging AI-driven scams, the key is acting before fraud strikes, not after.
Take action today by assessing your current vulnerabilities and implementing the detection methods that generate real results. The experts at Complete Controller can help you develop customized fraud prevention strategies that fit your business size, industry, and specific risk profile. Don’t become another statistic—contact us to learn how proper financial controls and expert guidance can protect your business from the fraud threats that matter most.
Frequently Asked Questions About Fraud Statistics for Businesses
What percentage of revenue do businesses typically lose to fraud?
Organizations lose an average of 5% of their annual revenue to fraud, according to the Association of Certified Fraud Examiners. For a business with $1 million in annual revenue, this translates to $50,000 in potential fraud losses each year.
How much more do small businesses lose to fraud compared to large companies?
Small businesses suffer median fraud losses of $200,000 per incident compared to $104,000 for larger organizations—nearly double the financial impact. This disparity occurs because small businesses typically have weaker internal controls and limited resources for fraud prevention.
What is the most common type of business fraud?
Asset misappropriation accounts for 89% of all business fraud cases. This includes employee theft, billing schemes, expense reimbursement fraud, and check tampering. While individual losses are often smaller than other fraud types, the sheer frequency makes this the most damaging category overall.
How long does business fraud typically go undetected?
The median duration of fraud schemes before detection is 12 months. During this time, losses compound and perpetrators often become bolder, escalating their fraudulent activities. Some schemes, particularly those involving senior executives, can continue for several years before discovery.
What return on investment can businesses expect from fraud prevention measures?
A: Businesses implementing comprehensive fraud prevention typically see a 40% reduction in fraud losses. Specific measures generate varying returns: proactive data analytics reduces losses by 52%, dedicated fraud teams by 33%, and risk assessments by 38%. Most businesses recover their fraud prevention investment within the first year through prevented losses.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
What is an inventory management system? Inventory management systems help keep tabs on merchandise and inventory throughout a business’s supply chain. Inventory management systems cover everything from manufacturing to retail, storehouse to shipping, and everything between.
It all comes down to the business overlooking its operations, allowing it to establish better investments and decisions. Various inventory managers give attention to diverse areas of the supply chain. Usually, small businesses are more concerned with the ordering and retailing side of the chain.
What Features of an Inventory Management System Do I Need?
Do you need help with handling your inventory? If so, it is time to consider an inventory management system to manage your inventory processes in your control.
Now, the problem arises. With all the available options nowadays, how do you determine the right solution for your business? What features should you be considering?
An inventory management system selected to look after your inventory might offer your business requirements’ features depending on your budget and needs. Generally, all of these management systems are most likely to include:
Barcoding
Inventory alerts
Tie-ins or accounting tools
Reporting tools
Inventory forecasting
Top Features in an Inventory Management System
Barcoding and Scanning
Although the number of daily orders being received can be exciting, it could result in problems if you cannot achieve and accomplish those orders competently. Retailers who can process large orders wish to restructure and simplify their procedures by applying barcoding and scanning on the pickup, package, and shipping stages.
Simple Inventory Control
Though it sounds simple, it is on the list of the most demanded features in an inventory management system. With this feature’s help, you can systematically handle and control your inventory throughout your sales channels.
Demand Estimation and Forecasting
This feature is all about helping you prepare for what should be ordered so that your resources are spent wisely. If you have the proper required tools, learning which commodities are selling and which networks are performing will be more accessible.
With access to such features, you can get right down to the details of your sales. This is a great way to provide you with all the indispensable information to maintain accurate inventory levels. Ultimately, you will make much better and wiser decisions on how much and what to buy.
Tracking Specific Stock Items (aka Lot)
Retailers who are in the business of selling Food and Drug Administration-regulated products have a deep understanding of the significance of detecting lots or specific stock items. If a commodity is recalled for a particular reason, tracking the specific stock items will help you know which items are available on the shelves or in stock.
You can also keep tabs on which of your consumers have received and which are about to receive their products.
Accounting Incorporation
Although an accounting system will not perform the work related to a specialized order, it is crucial to managing a successful business. With a direct integration in your accounting bundle, an inventory management system will be of value to you and your business. This will also help you with your bookkeeping requirements.
Aside from an accounting system, it would help if you also employed an accountingor bookkeeping professional. This hiring of an accounting or bookkeeping expert can be part-time or full-time. Still, an accounting professional will ensure your business finances are always correct and your system is used accurately.
Conclusion
In conclusion, an effective inventory management system is vital for businesses, offering features like barcoding, inventory control, demand forecasting, lot tracking, and seamless accounting integration. Choosing the right system empowers businesses to make informed decisions, streamline operations, and maintain accurate inventory levels, ensuring long-term success in today’s competitive landscape.
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.
Marketing plays a vital role in getting through the recession and emerging as an improved brand by practicing vigilant recessionary thinking. Although slashing budgets and laying off the workforce is always an option for businesses, they should initially view tough times as an opportunity to grow internally and externally. It may appear to go against common sense that a recession can boost periods of economic growth. However, professionals believe this is a perfect time to revisit your branding strategies and align them with your core business values.
Making intelligent plans for your business will ensure you stay ahead of the competition even in dire times. Here are some of the tips that will help you survive critical situations.
Marketing Tips
Focus on Loyal Customers
Attracting new customers is hard when times are tough, as everyone is in a tight situation. This is the time to trigger your recessionary thinking and develop effective marketing strategies that keep your existing customers engaged in one way or another. You must retain your loyalty through exceptional services and products, personalized marketing channels, and unpretentious concern for your partners and clients.
Partnerships
Combining your resources with a partner business in targeting the same clients is a great strategy to cut costs and avoid conflict of interest. The focus should be to partner with firms that want to attract the same customer base as yours but are not directly competing with you. Encourage your partners by offering incentives that can help their business. This will connect both companies, which can translate into the conduction of seminars, trade shows, and partner marketing campaigns, which benefit both parties.
Suppose two businesses are working together and share similar business philosophies and objectives. In that case, there is a higher probability that their recessionary thinking is along the same line and is desirable for both.
Don’t Miss an Opportunity
As much as tough times can set you back, there is also a chance for you to acquaint your business with feasible markets. Reevaluate your business units and unprofitable products and whether they will have any influence after the recession. This is an opportunity for you to internally audit your business processes and eliminate things that can impede your future productivity. Have a keen eye for upcoming market segments, as they will allow you to tap them before anyone else. Your team of experts’ marketing tips will play a vital role in targeting these newly created segments.
Advertise
Advertising in tough times may sound like a flawed idea, but, in reality, this can be significant for your business’s survival. Analyze the placement of all your current marketing campaigns and only continue with those creating the most direct impact.
Often, businesses cut their advertising budgets in tough times as an easy way to cut down on costs; however, there is a higher chance for you to reach a potential audience because of lesser competition in the market. Smart recessionary thinking is required from you in this situation, as you can renegotiate with advertising sources and reduce costs significantly. As you have more leverage over your media agent in bad times, ask them to place your ads where they generate maximum reach.
Outsource
You will practically have the same workload in tough times as you had before. It is often hard to efficiently carry out all the tasks because you may have laid off some of your workforce. Other resources are also limited, and you are in dire need of some practical marketing tips. Outsourcing some of your tasks like graphic designing, media strategizing, writing, and editing to the hands of an expert will save you the costs associated with them and ensure their high quality. The outsourcing agencies have specialized skills, which can also be a competitive advantage.
SEO
Search engine optimization diverts traffic towards your business through specific keywords. A manager with shrewd recessionary thinking will use SEO to carry out most of its marketing plans. It costs less than traditional advertising mediums and, if executed properly, can generate a high visitor flow towards your website. As most internet searches are through Google and other search engines, your business will be better off if it appears among the top results. However, your website must be highly responsive and aesthetically pleasing to create an impact on its visitors.
Conclusion
Following these marketing tips is essential, especially in a time of recession. Be proactive in your approach and make use of all available resources. Video advertising on social media has emerged as one of the most popular and effective advertising mediums. A successful video can generate a broad reach and, if it goes viral, can reshape your entire business. Success in recessionary thinking depends on adapting to the situation and efficiently using the available tools and resources.
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.
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.
