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

5 Ways You Can Reengineer Your Business Processes Effectively

Let’s be honest—clinging to outdated business processes is costing you more than money. I’ve seen it firsthand: companies burning time, draining teams, and strangling growth with inefficient workflows. Recent data shows that 21% of companies save 10% or more through business process optimization strategies. Reengineering isn’t just a buzzword—it’s a survival strategy for your bottom line. I’ll walk you through five proven strategies to cut inefficiencies, boost performance, and reclaim your competitive edge.

Key Takeaways

• Map existing workflows using visual tools to spot redundancy and streamline bottlenecks
• Implement AI-driven automation for repetitive tasks to increase productivity by 20-35%
• Design processes around customer needs to drive retention and satisfaction
• Use predictive analytics for supply chain management to prevent inventory chaos
• Build agile, cross-functional teams with collaboration tools to sustain improvements

Map and Analyze Existing Workflows for Hidden Inefficiencies

You can’t fix what you can’t see. After 20 years helping businesses transform their operations, I can tell you that mapping your current processes is non-negotiable. Use tools like Lucidchart or Miro to visualize each workflow—from sales to inventory to customer service.

Follow established business process mapping standards to ensure you’re capturing everything that matters:

• Look for loops where work cycles back unnecessarily
• Identify delays where handoffs stall between departments
• Spot duplicated roles where multiple people do the same task
• Perform time-motion studies to see where minutes leak away

In my work with manufacturing clients, we’ve found that cross-department process optimization often reveals surprising inefficiencies. One client discovered that their approval process required six signatures when only two were truly needed—cutting their purchase order cycle time by 75%.

Remember Honeywell? They discovered their high defect rates stemmed from human error and undefined accountability. After mapping and overhauling their workflows, they slashed rejections by 57%—but that was just the beginning of their transformation.

Automate Repetitive Tasks with AI-Driven Tools

If your team is still manually entering data, you’re leaving money on the table. Studies show that AI-based business process reengineering tools can lead to a 20-35% productivity boost. Automating isn’t about replacing people—it’s about freeing them for higher-value work.

Here’s what you can automate right now:

• Accounts payable/receivable: Tools like Bill.com or QuickBooks can reduce processing time by 80%
• Inventory management: Platforms like NetSuite or Zoho can track stock levels without manual counts
• Employee onboarding: Systems like BambooHR can standardize the experience for every new hire

One retail client I worked with implemented workflow automation best practices and cut their invoicing process from three days to three hours. This aligns with broader workflow automation and productivity gains documented across industries.

From My Experience: “After automating our accounts payable process, our month-end close time went from 10 days to just 48 hours. The team now spends their time analyzing data instead of inputting it—a much better use of their talents and training.”

Redesign Processes Around Customer Outcomes

Your business exists to serve customers—not internal red tape. I’ve helped dozens of companies rebuild their processes with clients at the core, and the results speak for themselves.

Start by creating a continuous feedback loop:

• Set up Voice of Customer (VoC) surveys after key touchpoints
• Analyze CRM data to spot service gaps and friction points
• Map the buyer’s journey from first contact to repeat purchase

IBM transformed their approach with customer-first process redesign and saw improved retention, simplified workflows, and better sales conversion. You don’t need IBM’s resources to follow their lead.

A small e-commerce client of mine redesigned their return process based on customer feedback. Instead of requiring customers to call for return authorization, they created a self-service portal. Returns actually decreased by 12% because the transparency built customer confidence, and their satisfaction scores jumped 28%.

Optimize Supply Chains with Predictive Analytics

Too much inventory ties up cash. Too little means missed sales. The solution? Inject predictability into your supply chain with analytics.

Tools like Kinaxis and SAP IBP help you:

• Forecast customer demand based on historical patterns and market trends
• Optimize shipment timing and inventory levels to reduce carrying costs
• Identify weak links in your vendor network before they cause disruptions

I’ve seen the power of operational efficiency in manufacturing workflows transform businesses. One distribution client reduced their inventory by 31% while improving order fulfillment by using predictive analytics to fine-tune their stocking levels.

Consider Procter & Gamble’s approach—they saved over $2 billion by reengineering their logistics with real-time analytics and demand forecasting. Your savings might not reach billions, but the percentage impact on your bottom line could be just as significant.

Foster Agile Teams Through Cross-Functional Tools

Even the best process redesign will fail without the right team culture to support it. You need agile, empowered teams that can adapt quickly as conditions change.

To build this culture:

• Use collaborative tools like Trello, Asana, or Airtable to keep projects in sync
• Train key staff in Lean Six Sigma methods for continuous improvement
• Empower teams to suggest and implement process refinements

Research shows that agile team structures improve operational efficiency and innovation when properly implemented. Honeywell’s TotalPlant program trained hundreds of employees on real-time performance monitoring and saw productivity surge dramatically.

In my own company, we hold weekly “process improvement power hours” where team members can suggest workflow refinements. This practice has generated some of our most valuable operational improvements and helps everyone feel invested in our efficiency journey.

Overcome Resistance: A Change Management Playbook

Let’s talk about the elephant in the boardroom—resistance to change. Many guides skip this, but after two decades helping companies transform, I know this is where many improvement efforts die.

Here’s what consistently works:

• Schedule “listening tours” before any changes—it’s about co-creation, not top-down mandates
• Turn learning into a game—Honeywell linked pay to performance metrics and saw morale skyrocket
• Host “innovation hours” after implementation where teams can suggest improvements to the new system

People don’t resist change—they resist being changed. Bring them into the process early, listen genuinely to their concerns, and they’ll often become your strongest advocates for improvement.

Conclusion

Improving business processes isn’t optional in today’s competitive landscape—it’s how you stay viable and grow. Whether you’re mapping workflows, automating routine tasks, or redesigning around customer needs, each step brings you closer to a leaner, smarter operation.

The companies I’ve seen thrive don’t treat process improvement as a one-time project but as an ongoing commitment to excellence. They build the tools, teams, and mindset needed for continuous evolution.

Ready to transform your operations? Visit Complete Controller to learn how our team can help you design and implement streamlined, scalable business processes that drive growth and profitability.

FAQ

How long does business process reengineering typically take to implement?

Expect 3-12 months for full implementation. Small businesses can see results from targeted improvements in as little as 6-8 weeks, while enterprise-wide changes often take 9-12 months. Honeywell’s employee retraining alone ran six weeks, but they saw initial benefits within the first month.

What’s the biggest mistake companies make when reengineering business processes?

Skipping stakeholder buy-in is the #1 killer of process improvement initiatives. Ford Motor Company avoided this pitfall by involving employees at all levels in their accounts payable redesign. This approach allowed them to reduce staff by 75% through natural attrition and reassignment rather than layoffs.

Is business process reengineering only for large companies?

Absolutely not. Small businesses and solopreneurs often see the fastest results because they can implement changes quickly. Start with high-impact areas like automating your invoicing, streamlining your CRM workflows, or optimizing your customer onboarding process.

How do you measure the success of business process reengineering?

Track specific metrics before and after implementation. Key indicators include cycle time (how long processes take), error/rejection rates, customer satisfaction scores, employee productivity, and cost per transaction. Set clear baselines and goals for each metric.

What are the best tools for small businesses starting process improvement?

Start with accessible tools that offer quick wins. Zapier connects your existing apps for simple automation. Miro or Lucidchart work well for visual process mapping. Trello helps organize workflow steps. QuickBooks or Xero automate financial processes. Choose tools that integrate with your existing systems.

Sources

• ActivTrak. (2024, August 5). 8 Workflow Optimization Strategies. https://www.activtrak.com/workflow-optimization-strategies
• Cflow. (2025, April 2). Business Process Management Statistics 2025. https://www.cflowapps.com/business-process-management-statistics/
• Cflow. (2025, April 2). Honeywell – Business Process Reengineering Examples. https://www.cflowapps.com/business-process-re-engineering-examples/
• Cognitive Market Research. (2025). Global Business Process Re Engineering Market Report 2025. https://www.cognitivemarketresearch.com/business-process-re-engineering-market-report
• IBM. (2024, April 25). Business Process Reengineering Examples. https://www.ibm.com/topics/business-process-re-engineering
• Insights.co. (2025, February 23). Business Process Re-engineering Implementation Guide 2025. https://insightss.co/blogs/how-business-process-re-engineering-is-implemented/
• McKinsey & Company. (n.d.). Harnessing Automation for a Future that Works. https://www.mckinsey.com/featured-insights/digital-disruption/harnessing-automation-for-a-future-that-works
• MIT Sloan. (n.d.). The Challenges of Sustaining Innovation Through Agile. https://sloanreview.mit.edu/article/the-challenges-of-sustaining-innovation-through-agile/
• Proven Consult. (2024, April 18). 20 Insightful Business Process Reengineering Examples. https://www.provenconsult.com/business-process-re-engineering-examples
• RubinBrown. (2025, February 22). Rethinking Business Process Improvement in 2025. https://kpcteam.com/kpposts/rethinking-business-process-improvement-in-2025
• SixSigma Institute. (2025). Business Process Reengineering with Examples. https://www.sixsigma-institute.org/business-process-reengineering
• Wikipedia. (n.d.). Business Process Mapping. https://en.wikipedia.org/wiki/Businessprocessmapping

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

Blockchain Technology: Transforming Business Across Industries in 2024

Blockchain technology isn’t just about Bitcoin anymore — it’s quietly rewriting how the world does business. I’ve seen firsthand how companies in finance, healthcare, and logistics are using it to solve real-world problems — and if you think it’s all hype, you’re already behind. With over 83 million blockchain wallet users worldwide, this technology has moved far beyond theory into practical application. In this guide, I’ll walk you through how blockchain is changing major industries in 2024 and where it’s heading. Whether you’re a curious beginner or a tech-savvy professional, there’s something here you can use.

Key Takeaways

• Blockchain technology offers secure, transparent, tamper-resistant solutions across industries like finance, healthcare, and logistics.
• Smart contracts automate agreements, reducing fraud and manual errors.
• Blockchain applications in supply chain management allow real-time tracking and authentication of goods.
• Healthcare organizations use blockchain to securely store and share patient data, ensuring privacy and data accuracy.
• Governments and real estate sectors are adopting blockchain to cut fraud, reduce paperwork, and improve public trust.

What is Blockchain Technology?

At its core, blockchain technology is a decentralized digital ledger. Transactions are recorded in blocks, timestamped, and linked in a chain — think of it like an open notebook that gets more secure the more people write in it.

Here’s what makes it different:

• 🔐 It uses how blockchain works and cryptographic algorithms to protect each transaction.
• 🧩 It lives across multiple computers — no single point of failure.
• ✅ Once recorded, information can’t be altered without consensus.

But let me be clear — blockchain is not just about crypto coins. The real power lies in its ability to create trust in untrusting environments — and that opens up doors in nearly every industry. With over 83 million blockchain wallet users worldwide as of 2022, the technology is gaining significant traction across sectors.

Blockchain in Finance: Speed, Security, and Inclusion

I’ve worked with fintech teams who used to spend hours clearing transactions — until they brought in blockchain.

Here’s how it’s transforming money:

• 💸 Instant settlements: No more waiting days for international payments.
• 🧾 Smart contracts in insurance: Claims are processed and verified automatically, without human bias or delay.
• 🌍 Financial access: Peer-to-peer networks allow the unbanked to transact securely using only a smartphone.

The impact is huge — in March 2023 alone, there were 336,600 Bitcoin transactions conducted each day, with 85 million Bitcoin block explorer users. These aren’t just numbers; they represent real people using blockchain applications in finance for faster, cheaper, and more secure transactions.

Blockchain’s potential to reduce banks’ infrastructure costs by 30% (over $10 billion annually) is driving major financial institutions to adopt this technology. Even the FBI owns 1.5% of the world’s total bitcoins, showing how mainstream institutions are engaging with cryptographic algorithms and blockchain-based assets.

Digital currencies like stablecoins and Central Bank Digital Currencies (CBDCs) are also gaining traction, proving that blockchain isn’t a fringe experiment — it’s the new foundation for global finance.

Blockchain in Supply Chain Management: Track Everything, Trust Everyone

Imagine being able to trace your coffee from the farm to your cup. That’s not wishful thinking — companies like IBM and Maersk have already made it a reality using blockchain.

🔍 With blockchain technology in supply chain management, you get:

• Real-time tracking of products at every step
• Verification of authenticity (no more counterfeit goods)
• Instant detection of disruptions or delays
• An immutable record of supplier performance

For example, a shipment of mangoes that once took 7 days to trace through the supply chain can now be tracked in 2.2 seconds with blockchain. This level of transparency doesn’t just save time—it builds consumer trust, reduces waste, and cuts costs throughout the entire supply network.

If transparency is power — blockchain gives it back to consumers and businesses alike.

Blockchain in Healthcare: Data Security You Can Trust

Healthcare and privacy don’t always go hand-in-hand. But they should.

Blockchain is helping hospitals and clinics:

• 🧬 Securely store and share patient records without risking leaks
• 💊 Prevent prescription fraud through tamper-proof tracking
• 🌐 Coordinate patient care across providers without needing paper trails

By 2025, 55% of healthcare applications are expected to adopt blockchain for commercial deployment. This isn’t just a technical upgrade—it’s a fundamental shift in how sensitive medical data is handled. With healthcare data breaches costing an average of $9.23 million per incident, blockchain’s immutable and encrypted nature provides a compelling solution.

The investment is significant—blockchain in healthcare may cost $5.61 billion by 2025—but the returns in patient safety, operational efficiency, and data security make it worthwhile. When every second counts, blockchain ensures the data is accurate, private, and available when needed.

Blockchain in Real Estate: No More Middlemen

Transferring property can feel like a bureaucratic maze. But what if I told you blockchain could turn that months-long mess into a simple, verified process?

🏡 Here’s what it improves:

• Cuts out costly intermediaries like brokers and title agents
• Digitally verifies ownership records
• Reduces fraud with tamper-proof contract execution

In Sweden, the government is piloting a blockchain-based land registry that could save over $100 million per year. That’s not theory — that’s happening now. This system is streamlining property transactions so they can close in days instead of months, while dramatically reducing the risk of title fraud.

For buyers and sellers, this means lower costs, faster closings, and greater confidence in property rights—real benefits that improve one of life’s most significant financial transactions.

Blockchain in Government Services: Trust in Transparency

We don’t often associate tech innovation with government efficiency. But blockchain is flipping that script.

Governments are exploring blockchain for things like:

• 🗳️ Voting systems — secure, auditable, and tamper-resistant
• 🆔 Identity verification — fast and fraud-proof
• 📁 Managing public records — from licenses to tax receipts

India has already begun large-scale blockchain deployments for identity verification and public record management, enhancing public trust and efficiency in government services. Estonia’s e-government system uses blockchain to secure 99% of its public services, allowing citizens to vote, pay taxes, and access healthcare information online with confidence.

When citizens can verify, audit, and trust processes — public confidence goes up, corruption goes down, and government services become more efficient for everyone.

Real-World Case Study: Sweden’s Blockchain Land Registry

Let’s look at Sweden — a country pushing the boundaries of governance technology. Its Land Registry is using blockchain to speed up property transactions. Instead of months, deals could close in days. And the government projects saving $106 million per year doing it.

The system works by creating an immutable chain of title transfers, each verified by multiple parties and permanently recorded. This eliminates the need for paper documents that can be lost or forged, reduces title insurance costs, and creates absolute certainty about who owns what property.

It’s not just innovation for innovation’s sake — it’s solving long-standing public inefficiencies, with real dollars (and trust) on the line.

Future of Blockchain Technology: What’s Next?

We’re just getting started. The global blockchain market is expected to reach $1,431.54 billion by 2030, growing at a CAGR of 85.9% from 2022 to 2030. This explosive growth reflects how blockchain is moving from experimental technology to essential business infrastructure.

In 2024 and beyond, expect deeper integration with:

• 🤖 Artificial Intelligence for predictive automation
• 📡 Internet of Things (IoT) devices for secure, hands-free communication
• 🌐 Web3 platforms that move power from corporations to individuals

Worldwide spending on blockchain solutions is expected to reach $19 billion by 2024, showing strong commercial confidence in this technology. The future of blockchain technology will likely see it become invisible but essential—integrated into everyday business operations without users even realizing it’s there.

If blockchain was the backbone, these technologies are the nervous system. The future of blockchain technology is interactive, intelligent, and more human-centered than ever before.

Conclusion: You Can’t Afford to Ignore Blockchain Anymore

Blockchain technology isn’t a buzzword — it’s a business tool. From cutting fraud in finance to creating traceable supply chains to ensuring privacy in healthcare — the benefits of blockchain technology are becoming too big to ignore.

If you’re thinking, “How can I apply this?” — that’s exactly where you should be. Whether you’re managing logistics, patient records, or municipal data — opportunities to implement blockchain are closer than you think.

Don’t wait until your competitor gets there first.

Ready to future-proof your business? Explore more insights and expert strategies with us at Complete Controller — let’s innovate where it matters.

FAQ

What exactly is blockchain technology, and how does it work?

Blockchain is a digital system that records information in a way that makes it nearly impossible to change or hack. It works by storing data in “blocks” that are linked together and copied across a network of computers. When new information is added, it’s verified by multiple computers before becoming permanent. Think of it like a digital ledger that everyone can see but nobody can alter without agreement from the network.

How is blockchain different from traditional databases?

Unlike traditional databases controlled by one organization, blockchain is decentralized—meaning it’s stored across many computers with no single point of control. Once information is added, it can’t be changed or deleted without consensus from the network. Traditional databases can be modified by whoever controls them, making blockchain more secure for situations where trust and transparency are crucial.

What industries benefit most from blockchain technology?

Finance sees immediate benefits through faster payments and reduced fraud. Supply chain management uses blockchain to track products from source to consumer. Healthcare organizations secure patient data while allowing appropriate sharing. Real estate reduces paperwork and speeds up property transfers. Government services increase transparency and reduce corruption through blockchain adoption.

Is blockchain only useful for cryptocurrency?

No. While blockchain first gained attention through Bitcoin, its applications go far beyond cryptocurrency. Any industry that needs secure record-keeping, transparency, or trust between parties can benefit—from tracking medicine authenticity to verifying academic credentials to managing digital identities.

How can small businesses start using blockchain technology?

Start small with specific problems blockchain can solve, like supply chain verification or secure customer records. Consider blockchain-based payment systems to reduce transaction fees. Look into industry-specific blockchain platforms rather than building your own. Partner with blockchain service providers who offer ready-to-use solutions. Focus on tangible business benefits rather than adopting blockchain just for its novelty.

Sources

• Acropolium. (2023). “8 Blockchain Use Cases in Key Industries | 2025 Guide”
  • https://acropolium.com/blog/blockchain-use-cases/
• Chainalysis. (2023). “The 2023 Global Crypto Adoption Index”
  • https://www.chainalysis.com/reports/global-crypto-adoption-index-2023/
• Deloitte. “Future of Blockchain Technology”
  • https://www2.deloitte.com/us/en/pages/consulting/articles/future-of-blockchain.html
• Dig.watch. (2023). “Blockchain in 2024 | Main Developments and Trends”
  • https://dig.watch/trends/blockchain
• E3S Web of Conferences. “Blockchain Technology: Applications and Challenges in Computer Science“
  • https://www.e3s-conferences.org/
• Emeritus. (2023). “Top Blockchain Trends 2023 That Will Dominate the Tech Industry”
  • https://emeritus.org/blog/technology-blockchain-trends/
• IBM. “Blockchain in Supply Chain”
  • https://www.ibm.com/blockchain/industries/supply-chain/
• Market.us Scoop. (2023). “Blockchain Statistics and Facts (2025)”
  • https://market.us/statistics/blockchain/
• NIST. “Cryptography”
  • https://www.nist.gov/topics/cryptography
• Oxford Corp. (2023). “Blockchain Technology Is Stepping Up in 2023”
• Rapid Innovation. (2023). “Blockchain Technology: Applications, Challenges, and Future Insights 2023”
• SoftLedger. (2023). “Blockchain Applications in Business for 2023”
  • https://www.softledger.com/blog/blockchain-applications
• Statista. (2023). “Blockchain technology market size worldwide 2032”
  • https://www.statista.com/statistics/blockchain-market-size/
• Sweden.se. “Blockchain Land Registry”
  • https://www.sweden.se/life/society/blockchain-land-registry
• U.S. Department of Health & Human Services. “Blockchain”
  • https://www.healthit.gov/topic/scientific-initiatives/blockchain
• Wikipedia. “Blockchain”
  • https://en.wikipedia.org/wiki/Blockchain

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.

In the ordinary world, we are used to keeping money in a wallet, and if we draw an analogy between paper money and cryptocurrencies, they will have a lot in common. It means that you must also store bitcoins in the wallet. However, if a regular wallet can have only a few parameters and is intended only for storing money, then in bitcoin wallets, everything is somewhat more complicated. There are several brands of hardware wallets on the market, and the list is constantly growing. You may ask why we consider the options above the best hardware wallets. First, these are some of the oldest hardware wallets on the market. They are also the most used wallets around the world. In short, these are brands and models that have proven themselves in the market. We analyzed certain aspects of these hardware wallets, including cost, user experience, supported cryptocurrencies, security, and others. According to the type of storage of bitcoins, they can be divided into hot and cold, by the kind of storage of private keys – custodial and non-custodial, and by the type of installation – into local, mobile, hardware, browser, and paper. In this writing, we will attempt to understand all aspects of bitcoin wallets so that you can create a secure place to store your digital assets.

What Is a Bitcoin Wallet?

In essence, a bitcoin wallet is an application with which you can store bitcoin. Although, to be honest and accurate, it is not physically held anywhere – users are given data that provides access to their account. Depending on the type of wallet, this data can be a standard email + password pair, a private key, or a seed phrase; we have already talked about it here. The primary purpose of a wallet is to store and be able to send and receive bitcoins from other people. In principle, everyone who is somehow connected with cryptocurrencies receives payment in bitcoins, trades on cryptocurrency exchanges, etc., must have such a wallet. Before creating a bitcoin wallet, let’s study each type of wallet in more detail.

Hot Wallet vs. Cold Wallet

The contrast between a hot wallet & a cold wallet is that a hot wallet works when linked to the Internet, while a cold wallet can work without it. Hot e-wallets are less secure, as there is a risk of your data being stolen over the Internet. However, they are more in demand among users. Cold e-wallets are used for cold storage of cryptocurrencies, so they are more secure. Which bitcoin wallet you use is up to you – if you often make small transactions, then a hot wallet is suitable for you, and if you need to store large amounts for an extended period, then it is better to use a cold wallet.

Custodial Wallet VS Non-Custodial Wallet

The essence of custodial wallets is that they do NOT give you access to their private key but store it on their centralized server. Often, such a solution is provided by cryptocurrency exchanges, but there are also several cryptocurrency wallets – Crypto Pay and Blockchain.info. This explanation benefits you can restore access to your account via mail if the password has been lost. Minus – your account may be frozen. In case of intervention to unfreeze, you may be asked to undergo KYC. Also, you can lose money during hacker attacks, which have been a very popular event lately.

Non-custodial e-wallets work the other way around – they give you complete control over your private keys without using a server. Of these wallets, the Trustee Wallet has gained popularity among users, but others are also. A huge plus of this explanation is that the funds belong only to you. No one else can get hold of them without your seed phrase. However, this is also a minus of such a wallet because if you lose your key, then you can no longer return access to it. For example, if you crashed your computer or lost your smartphone, you can only restore access using the seed phrase given to you when you open an account. Therefore, we recommend storing your seed phrase NOT on your mobile device but separately in a safe place.

Local Wallet

A local (desktop) wallet is an application installed on a desktop computer or laptop. This kind of wallet is one of the most difficult for users, but at the same time, it has the best indicators for security and anonymity. You should note that they are often used by actual crypts or companies that produce developments on the blockchain. Desktop e-wallets can be divided into thin and thick. The bitcoin hardware wallet is a separate device that looks like a flash drive. Such a blockchain wallet is used for “cold” storage of bitcoins and connects to the Internet only when a transaction requires to be made. 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.

There are both positive aspects – for example, the Rural Mortgage state support program, which allows you to purchase a house in the village at 3% per annum, and difficulties: it is necessary to confirm the status of a residential facility, land ownership. Mortgage banking programs allow the purchase of housing in the secondary market. It is an affordable and common way to purchase your own home. Mortgage means issuing a loan secured by the acquired apartment. For the bank to approve a mortgage for secondary housing, you need to responsibly approach the choice of an object and the preparation of documents. Buying an apartment on the secondary market is different from a deal on the primary one.

Features Of a Mortgage for The Purchase

When applying for a mortgage on a private house, difficulties often arise, especially if the object was built more than 20 years ago and is in a rural area. During the past years, there has been a lot of unauthorized construction. The order of land use has changed. Not all owners had documents drawn up correctly: if, at the time of the conclusion of the contract, the land on which the house is found does not belong to the category of land of settlements, it is impossible to issue a mortgage on such real estate with homes built on the grounds of categories: Specially protected area, Special purpose, Defense or military purpose, purchase and sale operations are prohibited by law if the ownership of land or a house is not registered, it is registered for different people, or some of the documents are lost, you can obtain a mortgage after the documents are brought into line.

What Is Secondary Housing?

The secondary market includes all apartments that have an owner. It does not matter if he lives in this apartment or not. As soon as the house is put into operation and the owner has registered the right of ownership, the housing is automatically transferred to the second fund. No need to wait for the fulfillment of construction; you can move immediately after the execution of the contract of sale. You can also register right away: you can enroll in a polyclinic, register your children in a kindergarten or school at the place of registration, can receive social benefits without waiting. housing on the secondary market is in areas with developed infrastructure

Stages Of Obtaining a Mortgage for Secondary Housing

Bank Selection

Explore available mortgage programs: for military, large and young families, with the participation of maternity capital, with state support. Use the mortgage calculator and calculate its total cost.

Submission Of a Preliminary Application

When evaluating a potential borrower, banks consider credit history, solvency, age, and existing credit burdens. To get pre-approved for a mortgage, fill out an application on the bank’s website. The bank will consider the application within three days and make a preliminary decision.

Search For Housing and Collection of Documents

When an apartment is found, it is necessary to submit information about it to the bank and confirm the mortgage. You will need personal documents of the borrower, the seller, and documents for the apartment, including a contract of sale. At this stage, a property appraisal is carried out. For this, an independent expert is involved. The bank’s final decision will depend on the correctness of filling out the documents, the completeness of the package, and the reliability of the assessment of the property.

Risks When Buying a Second Home

State support programs for purchasing an apartment in a new building from 2021 to 2022 include the requirement to buy real estate from sure developers. The chances of making a deal with an evil company are minimized. But when purchasing an apartment in the secondary market, most of the responsibility lies with the borrower. He must carefully check the seller and the legal purity of the object. You can order a cleanliness check of the thing at the bank or insure the title – this will help avoid trouble if the seller is dishonest. If the selling agent becomes a scammer, the borrower will be left homeless, while you will need to continue to make payments on the loan.

Conclusion

When buying real estate in a mortgage on the secondary market, the technical characteristics of the object and the legal purity of the documents play an essential role. The higher the liquidity of real estate, the greater the chance of obtaining a mortgage loan. When dealing with houses, they also check the absence of encumbrances on housing and land. Like the land plot, the house should not be pledged or under court. Another factor is the recognition of the object as a safe residential building. The assessment considers the age of the house, wear and tear, the date of the last overhaul, and the condition of engineering networks and heating systems.

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.

When you’re close to retiring or have already retired, you want to protect everything you’ve worked so hard for. While some factors, including market fluctuations, are beyond your control, some actions can cause your nest egg to dwindle.

Here are a few ways to get into retirement trouble:

1. Ignoring Your Long-Term Strategy

It’s easy to get seduced by the allure of active markets and high returns. However, a long-term approach is considerably more appropriate for someone planning for retirement. Every day, the needs vary, and attempting to time them may cost you additional stress and possibly harm your finances. To avoid this trap, develop an investment philosophy based on your goals, personality, and risk tolerance. Then stick to it, regardless of what happens in the markets or the headlines.

According to a Dalbar study from 2015, when playing the market results in underperformance. In a panic, buying high and selling cheap diminishes your overall return and jeopardizes your retirement. Instead, what should you be concentrating on, refusing to ride the market roller coaster, and maintaining a long-term view and disciplined approach?

2. Borrowing from Your Retirement Savings

It happens more frequently than you may believe. According to the Transamerica Center for Retirement Studies, 23% of those questioned used their retirement savings to cover an unexpected bill.

In two ways, this conduct can lead to a reduction in retirement savings.

If you take out a 401(k) loan, the interest is taxed twice. While any money borrowed is tax-free, the interest on the loan is paid with after-tax dollars.

You are taxed again when you withdraw funds in retirement. You must also repay the loan within 60 days if you leave your employment or are dismissed, regardless of the borrowed amount. If you don’t, you’ll be subject to income tax and a 10% penalty if your income is less than $5,912. Except for specified conditions, early withdrawals from a traditional IRA are subject to a 10% penalty and taxes. Roth IRAs provide additional flexibility and allow you to withdraw contributions tax-free, but they come with long-term costs.

Second, and most significantly, when you take money out of your retirement account to pay off a debt or cover an obligation, you forfeit the opportunity for growth and compound interest.

Depending on your age, you may never be able to replenish your funds. Create an emergency savings account instead and tell yourself that your retirement funds are off-limits. While it may appear easy to use your retirement money in this manner, you are robbing your future retirement.

3. Failing to Take Required Minimum Distributions

If you reach the age of 7012, you must begin taking RMDs from your traditional IRA and employer-sponsored retirement accounts. You must follow the RMD guidelines regardless of whether you need the money when you reach this age. What happens if you don’t stick to your word? The IRS will charge you a 50% penalty for excess accumulation! It might drastically reduce your retirement funds. If you are obligated to withdraw $5,000 and do not, you will be responsible for $2,500. That was an unnecessary loss. To make matters worse, if you don’t have enough money in an emergency fund to cover the penalty, you may be forced to utilize your retirement funds to protect it, severely jeopardizing your financial future.

4. All your eggs in one basket

For this reason, diversification is one of the most widely discussed financial strategies. It safeguards your money from market fluctuations. While you can’t eliminate risk from your portfolio, you can mitigate the impact if things go wrong. You risk losing your retirement savings if you invest too much of your money in one stock or one sector of the economy. Combine that with global exposure, alternative assets, and a stock-light portfolio. Examine the overall picture of all your accounts, including those sponsored by your employer, and make sure you’re well-diversified.

5. Working Alone

If you don’t work with a reputable financial advisor, you could jeopardize your money. An adviser can assist you in sticking to a long-term goal, managing emotions, and providing invaluable assistance and advice. Our number one mission as independent financial advisors specializes in guiding people through their Second Growth phase of life, a time of protecting, building, and transferring money. It is to provide you peace of mind and the guarantee that you will meet your retirement needs. Contact one of our locations now for a friendly consultation to take the first step in preserving your hard-earned retirement 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.

That is why it is essential to comprehend the benefits and drawbacks of debt financing. It is said that it “needs money to make money,” but it is also required to be able to “borrow inexpensively” to be successful.

The question then becomes which source of funding to seek to establish and expand its business: while there are many alternatives, we will focus on the bank loan here.

Debt financing is borrowing money from a moneylender or a bank to raise capital. Creditors must pay interest on borrowed funds in exchange for a loan.

Debt can be paid off, allowing small firms to stockpile merchandise, hire more employees, and buy real estate or equipment.

Benefits

One of the most practical benefits of debt financing is that you retain control of your company. When you accept a loan from a financial institution or an alternative lender, you must make timely payments throughout the loan.

On the other hand, suppose you give up ownership in the form of shares in exchange for funding. In that case, you are giving up a portion of your restaurant or business to an outside entity, who can then influence the future of your business based on their investment. It isn’t the best option if you want to be the sole master on board.

You benefit from tax deductions

Deductions from taxes are a significant advantage of debt financing. You can deduct this debt’s principal and interest payments from your business income taxes because it is classified as a business cost.

Low-interest rates are available

Credit cards, peer-to-peer loans, short-term loans, and other debt financing options may not be beneficial if interest rates are incredibly high. You can, for example, use bank rate comparators to compare the various interest rates offered by different banks.

You develop your credit history

Lack of financing or insufficient operational capital is one of the leading causes of business and restaurant failure.

If you want to get long-term, low-cost debt financing, you’ll need a good credit history. As a result, the chance to improve your business credit history is a significant benefit of taking out a loan.

Long-term debt can eradicate reliance on expensive debt

Specific lenders employ high-pressure sales tactics to get firms to take up short-term loan advances. It’s not unusual for firms in desperate need of cash to take out five or six cash advances in a run.

This method can trap a borrower in a never-ending debt cycle. To prevent becoming trapped in a cycle of constant borrowing, search for a loan with low-interest rates, long periods, and affordable monthly payments.

Disadvantages

You must reimburse the lender (even if your business goes bankrupt)

The guidelines for operating with a lending institution are relatively straightforward. You must refund the loan according to the terms agreed upon, and it means you must make payments even if your company goes bankrupt. Because most lenders require collateral, you may liquidate your assets to repay your obligation.

High rates

Predatory lenders exist, and their methods for luring naïve small company owners are becoming more sophisticated.

Some unethical lenders utilize measures other than the APR (annual percentage rate) to hide the exact cost of a loan. Although this tendency is not specific to debt finance, it is worth noting. Work with a lender who is evident and provides you with accurate information. Know your loan’s APR and payment and compare them to the original sum.

You will need a guarantee

Collateral is one of the “5 Cs” of lending, described as a secondary source of loan repayment that you can utilize to ensure the lender.

If a bank may sell an asset for cash, it is considered collateral. Equipment, structures, and (in some situations) goods may be deemed enough collateral.

Collateral helps lenders mitigate risk and is required for many types of loans. The quantity of collateral a borrower must furnish is usually proportional to the loan amount. Some borrowers consider this to be a disadvantage.

If you’ve concluded that more money will help you grow your company, you should think about the advantages of debt financing.

All debt is the same. So, work to keep your credit score high to acquire the best interest rate and more extended payback periods, which will boost your chances of staying in business.

If debt financing is one of your options for expanding your company, you’ll need a versatile and adaptive checkout solution to handle your point of sale and save money over time. Contact our experts right away to learn how Lightspeed can assist you.

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.

Key Factors Influencing Product and Service Pricing Today

Pricing factors are the fundamental economic, competitive, and strategic elements that determine how businesses set prices for their products and services, including cost structures, market demand, competitor positioning, consumer behavior, technology adoption, and external economic conditions. In today’s dynamic marketplace, successful pricing strategies must account for interconnected variables ranging from supply chain costs and digital transformation to consumer price fatigue and AI-driven optimization tools.

As someone who’s guided hundreds of small and mid-sized businesses through pricing challenges over the past two decades at Complete Controller, I’ve witnessed firsthand how the pricing landscape has evolved dramatically. What used to be straightforward cost-plus calculations have transformed into complex, data-driven strategies that require understanding everything from behavioral economics to geopolitical impacts. With the AI Price Optimization Software Market projected to reach $4.1 billion by 2032 (growing at 14.6% annually), getting your pricing factors right has never been more critical for sustainable growth.

What are the key factors influencing product and service pricing today?

• Cost determinants include production costs, supply chain expenses, labor, materials, and overhead that establish pricing floors
• Market demand factors encompass consumer purchasing power, seasonal patterns, economic conditions, and price elasticity
• Competitive pricing analysis involves monitoring competitor strategies, market positioning, and value differentiation
• Technology and digital transformation enable dynamic pricing, AI optimization, predictive analytics, and real-time responses
• Economic and regulatory environment includes inflation, tariffs, interest rates, and government policies affecting costs

Cost Structure and Production Economics

Understanding your true cost determinants forms the foundation of any sustainable pricing strategy. Modern businesses must account for both direct and indirect costs while considering how economic volatility affects their cost base over time.

Production costs have become increasingly complex due to global supply chain disruptions and inflationary pressures. Raw materials, energy costs, and labor expenses have experienced significant volatility, with major financial data providers increasing their prices by an average of 15% in 2024, while companies’ budgets only grew by 2%. These fluctuations require businesses to move beyond static cost-plus pricing models toward more flexible approaches that can adapt to changing economic conditions.

Manufacturing and overhead allocation

Manufacturing overhead has evolved to include technology investments, quality control systems, and compliance costs that weren’t significant factors in previous decades. Businesses must accurately allocate these costs across product lines to sustain profitability.

Labor costs present particular challenges in today’s market, with skilled worker shortages driving wage inflation across many industries. Companies must factor in not just current wage rates but also training costs, productivity variations, and potential future increases when setting long-term pricing strategies.

Market Demand and Consumer Behavior Analysis

Market demand factors represent the critical link between what businesses want to charge and what customers are willing to pay. Understanding demand elasticity, seasonal patterns, and consumer psychology has become essential for optimizing pricing strategies.

Consumer behavior has fundamentally shifted due to years of price increases and economic uncertainty. Price fatigue has made customers more selective and value-conscious, requiring businesses to justify every pricing decision with clear value propositions. Netflix’s Q4 2024 success demonstrates this perfectly—they added 19 million subscribers (their largest quarterly growth) while announcing price increases, proving that value perception can overcome price resistance when communicated effectively.

Price elasticity and sensitivity

Understanding price elasticity for different customer segments allows businesses to optimize revenue while maintaining market share. Research shows that 90% of Amazon shoppers compare prices before purchasing, making competitive intelligence and value differentiation crucial for success.

Behavioral pricing psychology significantly influences purchasing decisions. Techniques such as price anchoring and bundle strategies can impact willingness to pay by 10-20% for identical products, depending on presentation and positioning.

Competitive Landscape and Market Positioning

Competitive pricing analysis has evolved from simple price monitoring to comprehensive market intelligence systems. Modern competitive intelligence enables businesses to position themselves strategically rather than simply reacting to competitor moves.

The competitive landscape varies significantly across industries, requiring tailored approaches to analysis. In highly commoditized markets, small price differences can significantly impact market share, while differentiated markets allow for premium pricing despite competitive pressure.

Value differentiation strategies

Creating sustainable competitive advantages requires developing unique value propositions that justify premium pricing. This involves understanding not just what competitors offer, but how customers perceive and value different features, services, and brand attributes.

Value-based pricing strategies focus on aligning prices with specific customer benefits rather than simply comparing features or costs. Successful implementation requires clear communication of value propositions and consistent delivery of promised benefits.

Technology Integration and Digital Pricing Transformation

Digital transformation has revolutionized pricing capabilities, enabling dynamic pricing, predictive analytics, and real-time market responsiveness. Technology adoption for pricing excellence has become essential for maintaining a competitive advantage.

Artificial intelligence and machine learning are transforming pricing decisions. AI-powered systems analyze vast amounts of data to identify optimal pricing opportunities, predict customer responses, and automate adjustments based on market conditions. These technologies enable proactive pricing strategies that anticipate market changes rather than simply responding to them.

AI-driven price optimization elements

Modern pricing optimization leverages machine learning algorithms to analyze customer behavior patterns, predict demand responses, and identify optimal strategies across different segments and channels. These systems process far more variables than traditional approaches, enabling sophisticated and effective pricing decisions.

Dynamic pricing capabilities allow real-time adjustments based on demand conditions, inventory levels, competitor actions, and customer behavior. Airlines and hotels pioneered yield management decades ago, but the digital revolution has democratized these strategies, expanding dynamic pricing from niche industries to mainstream retail and e-commerce.

Economic Environment and External Market Forces

External economic factors have become increasingly important as global interconnectedness creates rapid changes in cost structures and market conditions. Businesses must develop capabilities to monitor and respond to macroeconomic trends affecting both costs and demand.

Inflation and interest rate changes directly impact business costs and customer purchasing power. The current environment has created particular challenges as businesses navigate post-pandemic recovery, supply chain normalization, and varying inflation rates across markets. Financial data pricing increases averaging 15% while budgets grew only 2% exemplifies these unsustainable pressures.

Regulatory and compliance considerations

Government regulations, taxes, and compliance requirements increasingly influence pricing decisions. ESG requirements and environmental regulations add costs that must be factored into pricing strategies while maintaining competitive positioning.

Currency fluctuations dramatically impact pricing effectiveness for businesses operating internationally. Exchange rate changes affect both imported input costs and exported product competitiveness, requiring sophisticated hedging and pricing strategies.

Strategic Pricing Models and Implementation

Modern businesses must choose from diverse pricing models, each with different implications for revenue generation and customer relationships. The choice of pricing model has become as important as specific price levels in determining business success.

Traditional cost-plus and competitive pricing are being supplemented by sophisticated approaches, including value-based pricing, dynamic pricing, and outcome-based models. Each requires different capabilities, data requirements, and customer engagement strategies for effective implementation.

Implementation and change management

Successfully implementing new pricing strategies requires careful change management. This includes training sales teams, updating systems and processes, and communicating changes to customers in ways that emphasize value rather than simply announcing increases.

Measurement and optimization systems enable tracking effectiveness and making adjustments based on actual market responses. This requires establishing key performance indicators, monitoring systems, and feedback loops for continuous improvement.

Final Thoughts

The pricing landscape has evolved into a complex ecosystem requiring sophisticated analysis and rapid response capabilities. Success demands understanding traditional factors alongside emerging influences, including AI capabilities, consumer psychology, and global economic interconnectedness. I’ve seen firsthand how companies investing in comprehensive pricing intelligence consistently outperform those relying on outdated approaches. Today’s thriving businesses view pricing as a dynamic capability, continuously adapting strategies based on market feedback and changing conditions. For expert guidance on optimizing your pricing strategies with advanced analytical support, contact the team at Complete Controller to transform your pricing approach for sustainable growth.

Frequently Asked Questions About Pricing Factors

What are the most important pricing factors for small businesses?

Small businesses should focus on understanding their true costs, monitoring local competition, and assessing customer price sensitivity within their specific market segments to develop sustainable pricing strategies.

How do external economic conditions affect pricing strategies?

Economic factors like inflation, interest rates, and supply chain disruptions directly impact both business costs and customer purchasing power, requiring flexible pricing approaches that can adapt to changing conditions.

What role does technology play in modern pricing decisions?

Technology enables dynamic pricing, competitive intelligence, predictive analytics, and automated optimization that help businesses respond quickly to market changes and identify revenue opportunities.

How can businesses balance competitive pricing with profitability?

Successful businesses focus on value differentiation, understand their unique value propositions, and use competitive intelligence to identify opportunities for premium positioning rather than simply matching competitor prices.

What pricing factors are specific to digital or SaaS businesses?

Digital businesses must consider customer acquisition costs, lifetime value, churn rates, usage patterns, and scalability factors that don’t apply to traditional product or service companies.

Sources

• Academy of Business Administration. (2024, August 29). “The Impact of Consumer Behavior on Market Pricing: A Microeconomic Perspective.” Boyd, M., and Bellemare, P. www.abacademies.org/articles/the-impact-of-consumer-behavior-on-market-pricing-a-microeconomic-perspective-17103.html
• Boston Consulting Group. (2025, January 30). “Five Trends Will Define the Future of Pricing.” www.bcg.com/publications/2025/five-trends-define-future-pricing
• Bureau of Labor Statistics. (2025). “Consumer Price Index.” www.bls.gov/cpi/
• Chief Marketer. (2025, February 7). “Beyond the Price Tag: What Netflix’s Latest Increase Reveals About Subscription Value.” chiefmarketer.com/beyond-the-price-tag-what-netflixs-latest-increase-reveals-about-subscription-value/
• DataIntelo. (2024, October 16). “AI Price Optimisation Software Market Report.” dataintelo.com/report/ai-price-optimisation-software-market
• DealHub. (2025, May 2). “What is Digital Pricing?” dealhub.io/digital-pricing
• Iris Pricing Solutions. (2025, April 28). “Pricing Trends 2025: Winning in a Market That’s Had Enough.” Jackisch, Kirk. www.pricingsolutions.com/pricing-blog/pricing-trends-2025-winning-in-a-market-thats-had-enough/
• LeanDNA. (2025, February 28). “Impact of Inflation: Global Logistics and Supply Chain.” www.leandna.com/resource/inflations-impact-on-the-global-supply-chain/
• MyAmazonGuy. (2025, April 29). “Complete Guide To Amazon Dynamic Pricing Strategy in 2025.” myamazonguy.com/amazon-product-launch/amazon-dynamic-pricing-strategy/
• Oracle. (2023, December 8). “Supply Chain and Inflation: Issues and Impacts.” www.oracle.com/scm/supply-chain-inflation/
• Revology Analytics. (2024, September 23). “Dynamic Pricing: Balancing Profit and Customer Satisfaction.” www.revologyanalytics.com/articles-insights/dynamic-pricing-balancing-profit-and-customer-satisfaction
• Salesforce. (2025, January 10). “Pricing Strategy Guide: Types, Benefits & Examples.” www.salesforce.com/blog/pricing-strategy-examples/
• SBG Funding. (2025, February 21). “9 Essential Factors That Influence Pricing in Your Business.” sbgfunding.com/factors-of-pricing/
• Substantive Research. (2025, February 27). “Index, Ratings and Terminals Pricing Inflation ‘Unsustainable’ as Cost Hikes Outpace Budgets.” substantiveresearch.com/insights-and-press/market-data-pricing-inflation-unsustainable-as-cost-hikes-outpace-budgets-new-research-finds/
• Twenty5. (2025, January 15). “5 Cost Estimation Trends to Watch in 2025.” www.twenty5.com/post/ai-in-pricing-for-complex-products-services-1
• Wikipedia. “Cost Structure.” en.wikipedia.org/wiki/Cost_structure

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

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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You can utilize the balance sheet to understand this financial structure’s uses and financing methods.

Financial structure: a significant indicator

The financial structure allows the proportion of financial debt and equity to be calculated. In other words, the debt-to-equity ratio.

This structure can change. It is determined by the financial limits imposed by the nature of the companies’ activities and the investment decisions made by their management.

The financial structure analysis allows you to do things like:

• Evaluate the danger of failure
• Examine the job and resource stability

There are two types of jobs: temporary jobs related to the company’s activity, such as acquiring intangible, material, or financial resources, and permanent jobs related to the company’s activity, such as operating expenses, financial expenses, etc. Financial resources include shareholders’ equity and net debt.

Because it shows the accounting balance of resources and their utilization, a company’s balance sheet is the most excellent representation of its financial structure.

The balance sheets

It is shown as a two-part table, with the correct part titled “liabilities or resources” and the left section titled “assets or jobs.”

The assets represent the company’s capital (liabilities) and its intended use (destination).

The obligation represents the source of the funds needed to fund the assets.

• Debt/equity and financial structure

Choosing a financial structure for a business boils down to choosing between debt and equity.

• Debt

Debt has two functions:

• Debt provides for the compensation of the difference between income and disbursements and the financing of working capital requirements
• In the case of long-term debt, fund an investment that will be repaid by future income

• Equity

These are the financial resources available to a business (excluding debt). These capitals include:

• Social capital
• Legal and statutory concerns
• Yet another postponement

• Negative equity

A company’s value is negative when its equity (or equity) falls below half of its share capital. The company’s legal representative must then call a meeting within four months of the annual general meeting to endorse the accounts for the fiscal year in deficit and decide the company’s fate.

Own funds: calculation methods

Equity includes:

• Social capital
• Accumulated reserves
• Carryovers (credits or debts)
• Paid issue premiums
• Exercise outcome

Consequences of negative equity

When equity falls below half of the share capital, the corporation (theoretically) loses the ability to fund its investments and operations.

The following are two options:

• Dissolve the corporation
• Continue the business for another two years to re-establish the regulatory quantity of equity

This judgment must be published in a medium that is permitted to receive legal announcements (press publishing or online press service) and registered in the Kbis in both situations (official document attesting to the legal fact of a commercial enterprise in America).

Financial structure: choice

A company’s financial structure refers to the proportion of bank loans and equity it uses to fund its operations.

You can utilize the balance sheet to understand this financial structure’s uses and financing methods.

The cost of financing is meant to purchase an asset whose profitability must exceed the profitability of this resource for the business to be profitable.

Several factors will influence the decision between debt and equity. Among the most important are:

• The rate of interest (low rates encourage debt)

The situation of shareholders can choose between using stock to protect the company’s independence or using debt. On the other hand, select borrowing to prevent capital growth that they could not sustain, and so on.

Stout frequently assists customers in obtaining the capital they require to pursue expansion prospects, make acquisitions, or manage shareholder cash targets and recapitalizations.

Acquisition financing

Obtaining the necessary financing to execute an acquisition can be a complex undertaking. Stout balances the market across the entire equity structure using the most competitive terms. We also ensure that the financial structure is flexible enough to satisfy the company’s future goals following the transaction.

Capital increase in cash

Entrepreneurs frequently require assistance in determining the feasibility of acquiring partial funding for their company while actively involved in management. We routinely work with instances where one shareholder wants to sell their stock while the others want to keep theirs. To complete these types of transactions, Stout assists companies with arranging debt and junior financing.

Growth opportunity funding

Many businesses require capital to take advantage of lucrative expansion prospects. Stout can uncover sources of money for various situations, including extending a product line/location or operating capital to scale a growing 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.

Annuities Can Be Complex

There are numerous different types of annuities, which can cause a lot of confusion among consumers. Is a single premium instant annuity right for you? A variable-rate deferred payment annuity? An indexed fixed annuity? It might not be easy to sort through the various elements of each annuity, especially when one insurance company’s fixed indexed annuity differs from another’s.

Holders of annuities and other insurance products, for example, are frequently subjected to a mortality and expense (M&E) risk charge. It compensates the insurance for any losses incurred by unforeseen events, such as the annuity holder’s death.

Your Upside May Be Limited

When you buy an annuity, you’re sharing your risk with the rest. You’re paying a charge to the insurance company that sells you the annuity to manage that risk. You might not make more money from an annuity than you put into it or as much as you could have made if you put your money somewhere else, just like you might not make more money from homeowners’ insurance if your house doesn’t burn down.

You Could Pay More in Taxes

Several potential annuity disadvantages relate to taxes.

Ordinary income vs. capital gains

An ongoing criticism is that annuity income is taxed as ordinary income, subject to 22% to 35% marginal tax rates for middle-income households. However, this disadvantage of annuities is not as severe as it may appear.

Traditional 401(k) and IRA payouts are likewise subject to regular income taxation. (Roth 401(k) and Roth IRA distributions are tax-free since you put money into them with money already taxed.) When these are sold, they are taxed at long-term capital gains rates. The essential comparison applies to nonretirement investments held for more than a year.

No step-up in the cost basis

Here’s a step-up basis when you leave them investments like stocks, bonds, mutual funds, and real estate. Even if you paid $10,000 for an investment, if it is worth $20,000 when you die, the IRS considers your heirs to have paid $20,000. They won’t owe any taxes if they sell it right away for $20,000. They will only pay tax on $5,000 if they sell it for $25,000 two years later, and that money will be taxed at their long-term capital gains rate. Tax penalties before age 59½

It’s difficult to read an article regarding annuities without hearing about the drawback of the 10% early withdrawal penalty, but most themes don’t explain when it applies. You may have misled yourself into believing that pulling any money out of an annuity contract before the era of 5912 will result in a 10% penalty tax. It’s not that easy, and the punishment occurs far less frequently than you might assume.

Expenses Can Add Up

The total cost of an annuity might be obscured by fees, reducing the amount it pays out. 17 Before you acquire an annuity, know how much you’ll have to pay for all the features you want. While a mortality and expenditure charge is always required, some fees are only applicable to types of annuities. Other costs are only charged if you add optional features to your annuity.

The following are common annuity expenses you should be aware of:

• Expense fee and mortality
• Fee for administration
• Charge for contract maintenance
• Fee for subaccount
• The premium tax imposed by the state (in seven states and Puerto Rico)
• Fee for transferring investments
• A “surrender charge” is a contingent deferred sales charge.
• The primary safeguard
• Cost-of-living adjustment/inflation protection
• Rider for long-term care
• Rider for lifetime income
• Check the fee disclosures for any annuity you’re thinking about buying. To learn how costs for similar annuities differ, compare them.

Guarantees Have a Caveat

The insurer’s financial soundness determines the annuity’s guarantees. Because the FDIC, like bank accounts, does not protect annuities, you should examine the insurance company’s financial strength ratings with AM Best and Standard & Poor’s before you buy.

If the insurance firm that supplied your annuity fails, few possibilities are. Another insurance firm might take over and make the changeover smooth. You may have to rely on the coverage provided by your state guaranty association if another insurance carrier does not take over.

Inflation Can Erode Your Annuity’s Value

Any investment loses value due to inflation. If you obtain an 8% return on your investment and inflation is 2%, your real return is only 6%. If you get 1% on a certificate of deposit (CD) but inflation is 2%, your real return is -1%. Similarly, given long-term historical average inflation rates of over 3%, your annuity payout is unlikely to keep up with your spending if it is not adjusted for inflation.

The Bottom Line

Apart from marketing, there’s a reason Stan the Annuity Man has a column, a website, a podcast, a YouTube channel, and multiple books: When it comes to annuities, there’s a lot to unpack. An annuity prospectus can be the length of a short book and contain a lot of strange jargon, so it’s understandable that people avoid reading them and don’t completely comprehend these arrangements.

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.

What steps should be taken to increase the level of motivation in your company? Here are some essential strategies.

1. Be open

As a manager, you need to create an open work environment where you can involve employees in the planning and decision-making process. Employees should feel like full-fledged participants in discussing decisions, plans, and other important moments in the company’s activities.

Instead of hiding behind closed doors and enjoying their power, leaders should be among employees, communicate with them, and encourage them on the value of their work and their thoughts, opinions, and suggestions.

2. Develop a culture of collaboration

Try to have your subordinates use “collaboration” and “teamwork” when discussing corporate culture.

 With the help of business games, you can increase their desire to contribute to overall success. The organization of such events and the allocation of funds should be a priority for management.

Such events give the participants a chance to establish or strengthen their relationships and highlight the positive results of cooperation.

3. Set goals

Setting goals for employees helps not only to monitor their level of motivation constantly but also to increase it. Studies show that goal-setting alone improves employee performance by 12-15%, even without financial investment.

Setting objectives for employees allows you to keep track of their motivation and will enable you to boost it.

Because it takes a long time—not a week, but at least a year and a half—to achieve most of the goals set for individual employees or the entire workforce, frequent discussions become a necessity, especially for those who are stimulated by frequent rewards.

But this in no way means that the manager should hand out goals and assessments to the right and left without considering the employee’s opinion.

4. Communicate more often

Employee motivation is not something that can be adjusted once and rest on it. It’s not enough to hang a slogan on the office wall about what an incredible culture you have. If you want to have a highly motivated staff, motivate them to interact with employees face-to-face more often.

During these face-to-face meetings, ask each of your subordinates a simple and honest question:

Do you feel passionate about work?

Based on your responses, look for patterns that indicate, for example, departments that are overburdened or areas that need more resources.

While leaders should strive to get their questions answered, Sanchez advises taking the lead in such conversations with employees. They should be able to communicate with their superiors frequently about their concerns, difficulties, and objectives. Regularity is crucial in this situation. The manager can analyze changes in employee motivation over time and work through past problems by meeting with them weekly.

5. Collect reviews

Personal conversations will give you a lot of food for thought. But company leaders should go a little further and find a way to collect additional employee feedback – anonymously or not.

Many conduct company surveys to monitor employee sentiment. But before you start bombarding your team with long and tedious surveys, try Brooks’ tips for conducting effective surveys.

Ask more. “Reviews should be only the first freshness! Brooks says. “Don’t wait a whole year to discover what your employees thought and felt last summer.”

Be brief. If you ask many questions, you will have to put in much more effort to analyze the data. In addition, this will affect the number of people who want to take part in the survey.

Do something with the information you receive. It may seem obvious, but in Brooks’ experience, most companies fail at this stage. “Since you asked, go ahead!” he says.

Even if you collect feedback through a form on a website or anonymously, employees may fear losing their jobs if they are entirely honest.

But Kim Scott offers a tactic to get around this problem and allow employees to speak their minds more freely.

Do not ask for feedback on this or that person. Instead, ask for feedback on the problem. Talking about a specific project or its outcomes or a form of communication will help the other person feel more confident, and both of you will be able to look more objectively at the root of the problem.

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