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Creating wealth management is something every financially responsible adult should do. This doubles whenever you become a couple. Regardless of your plans for marriage, owning a home, and having kids, planning for your financial future should be a priority for you as a couple. To plan wealth management requires you as a couple to sit down and have a financial discussion.

Some couples don’t combine their finances or manage them together, let alone invest together. Whether you have joint accounts or keep your finances separate, you can still invest as a couple. It is a matter of communication. You need to come together and discuss what your investment goals are, clarify your expectations, and discuss your risk tolerance.

Once you have established what you desire and expect, you can find common ground and work your way from there. If you invest as a couple, it is essential that you are on the same page, or the investment process could be overly challenging and even contentious.

After you have firmly established where you want to invest and how much you want to dedicate to investing, you have to choose where to invest as a couple. Here are six ways you can invest as a couple.

401(k) or Workplace Savings Plan

Like you might do as an individual, you can both invest in your company’s 401(k) or other workplace savings plans. If both of you have company 401(k) or other savings plans, both of you should be investing money into them. However, this investment needs to be strategic. If your company (many do) offers to match up to a certain percentage of your income, you should choose the one that carries a higher percentage.

You should be investing as much as you can afford this investment. The most important thing is to leave the money in the 401(k) because withdrawals have penalties, and they also get taxed after they come out since they go into the 401(k) before taxes.

Traditional and Roth IRAs

Traditional IRAs or Roth IRAs are individual retirement accounts opened by the investor at the banking institution of their choice. A traditional IRA has tax-deductible contributions and is tax-free until withdrawal. A Roth IRA is tax-free going in and coming out as long as you withdraw after retirement.

IRAs could be invested jointly, or you could have separate IRA accounts. It would probably be more profitable to put it all in a joint IRA so that more could be invested to get you a higher rate of return.

Health Savings Accounts

Though the Health Savings Account can only be used for qualifying medical expenses, the contributions and withdrawals are tax-free; therefore, it can reduce healthcare costs. These accounts can also gain extra revenue if your company does matching contributions.

Taxable Brokerage Accounts

Taxable brokerage accounts are accounts opened at a brokerage firm after the application approval. These accounts allow the firm to trade and buy or sell stocks on your behalf. There are no limits to the number of these taxable accounts you can have. Some investors may choose to have accounts at multiple brokerage firms. Diversifying your brokerage account investments can protect you in case of a downturn in the market in which you are invested.

Individual stocks

As a couple, you can buy individuals docs and companies, which means you are buying ownership. This can be done after a company goes public and offer shares in ownership to those who can afford to buy them. These stocks can later be bought and sold on an exchange between sellers and buyers through a stockbroker. Money can be made when the stock appreciates, and you sell it, or it can be made when profits are made on the company, and you receive a portion of those profits for being a shareholder.

These investments have no limit as far as what you can make; however, that means there is no limit regarding the losses either.

Mutual Funds

Mutual funds are an investment in which you pull your money and other investors to buy more shares in a collection of bonds, stocks, and securities. The price of a mutual fund is called the net asset value. It is the total value of the securities in the portfolio then divided by outstanding shares. The price varies based on the value held by the portfolio at the end of each day. One of the differences between mutual funds and individual funds is that be investors do not own the individual stocks or investments they are investing in the fund itself.

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

Having a business budget is as important as having a household budget. The purpose of the two budgets is similar in some ways and diverse in other ways. A business budget is an outline of monthly operational income and expenses. Still, your business should have a yearly budget so you can work to cover it with or without financing. You should have at least a six-month business budget before you start your business and should adjust as you work through the year.

The business budget is essential for making financial decisions but can also be important when trying to obtain financing from investors or lenders. Here are five essential steps to creating a business budget.

Add Up Your Income Sources

When writing your business budget, you need to figure out all your income sources. This will be cash flow and any other positive income that you use to operate your business. This can be from financing, sales, outstanding accounts receivable, and refunds.

Once you have all your income sources, you will enter them into your budget, broken out by source, and finally calculating your total income.

Determine Your Fixed Costs

Fixed costs are those expenses that will always be the same month to month. It is best to always have your fixed costs at the top of your expenses since they will not change. Generally, fixed costs are your lease, fixed utilities, internet and phone services, and payroll. If you have any other expenses that are the same every month, you should add it to your budget’s fixed costs.

If you cannot determine your fixed costs, you can use a bank statement to see what costs were consistently the same. Once you figure out your fixed costs, you will total them on your budget.

Determine Variable Costs

Variable costs are all the expenses that don’t fall in the fixed costs category. These are any expenses that change from month to month in an amount or due date. These expenses are usage-based utilities, travel costs, commissions, or any other fluctuating expenses.

Since variable expenses can change from month to month, they can be difficult to budget. However, you can budget for the average or general cost each month. When looking at variable costs, if you are not making enough to cover the budget, this is where you will look for expenses to cut. This is similar to a household budget in that if you aren’t making your business ends meet, you will use your budget to help you determine where to cut.

One-Time Spending

While most of your expenses, whether variable or fixed, will be the same each month, there are also costs that only happen on occasion that need to be added to the budget. These costs can be easily forgotten when they are not a regular expense. Make a list of these expenses, so when you are making your yearly budget, you can add them and also add to the monthly budget when the time is appropriate.

These one-time expenses will fall into two categories, planned and unplanned. While you may wonder how you can add unplanned expenses, you should have a miscellaneous yearly expense that will be used to cover those unplanned expenses that inevitably come up.

The most important thing to remember when figuring out your expenses is that you are striving for your business always to be prepared for all possibilities so that nothing will leave you devastated and possibly out of business.

Putting it All Together

Once you have gathered every source or possible source of income and your variable, fixed, and one-time spending costs, it is time to put your budget together. Make sure you have every category covered and the most accurate amounts possible.

Once you have your budget put together and have totaled everything, you will use your budget to compare cash flow out and cash flow in to see your profitability and see whether you are in the black or need to seek financing.

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

Banking is something that everyone who earns a paycheck has to consider. While there may be some that don’t use a bank, it is uncommon. With so many people keeping their money in banks, new banking institutions, especially online, have increased. This leaves people who need a bank account or are unhappy with their current banking institution with a wide variety of choices.

Sometimes, like at a restaurant that has far too many choices on the menu, having such a wide variety of choices in banking institutions makes it difficult to choose one that’s right for you. There are several things to consider when choosing your bank. Here are six tips to help you choose a bank that fits your banking needs.

Account Type

The first thing you need to consider before choosing a bank is what type of account you need. First, you need to decide whether you need one account or multiple accounts. Many people will have both a checking and savings account in the same banking institution, often linking them together. However, today, people are more concerned with bank accounts that help them earn money or invest in their future savings.

Savings accounts at most banking institutions do not have a very high yielding interest rate. However, online banks have generally been offering higher-yielding interest rates on savings accounts or checking accounts. They can do this because they have less or nonexistent fees. Many banks also offer cashback bank accounts to earn money every time you use your debit card or checking account. Also, many checking accounts offer the ability to put away spare change. The idea is that it is rounded to the nearest dollar, and that difference will be put into savings.

Fees and Balances

An important thing to consider when choosing a banking institution is what kinds of fees and balances they have or require. Many banks will charge exorbitant fees for overdrafts and some banking transactions. Some banks require minimum deposits or balances, or they will charge additional fees. It is important when you are choosing a banking institution that you look into what their fees and policies are on balances. These fees could end up costing you a lot of money. So look for a banking institution that has minimal fees and balance requirements.

Accessibility

When opening a bank account and choosing a banking institution, a crucial thing to consider is accessibility to the accounts. You want to consider whether your banking institution has multiple ATM locations and multiple branches for cash withdrawal and in-person banking needs. While many will do most of their banking online in recent surveys, many people still prefer to do some of their banking in person.

Online banking has taken the financial industry by storm. It has even established banks that are 100% online. Many of these banks appeal to customers because they have lower fees due to low overhead and offer higher-yielding savings accounts. Some still prefer brick-and-mortar traditional banking more prefer to complete all banking transactions through mobile devices and online. When considering what bank to put your money into, accessibility needs to be a high priority consideration.

Credit Unions

Many people who are considering opening a new bank account or switching banks disregard credit unions. While credit unions usually have some membership requirement, they are much easier today to qualify for in the used to be. If you can get a bank account at a credit union, it is highly recommended.

There are many advantages to banking with a credit union. They often have lower fees and higher interest rates on savings accounts. They also have membership benefits not offered at other banking institutions. Because they value their members, they will often work with members who may have faulty credit. The only disadvantage is that most credit unions are local and don’t have ATMs. But to make up for this, many credit unions reimburse and waive all ATM fees.

Online Banking

While almost every banking institution offers online versions of banking and banking through your devices, there is also a surge of banks that are contained 100% online. When speaking of banks that are centralized only to the online environment, there are many advantages to using these for your bank account. Online banking institutions generally have lower fees and, in some cases, no fees. They also offer higher-yielding interest rates on savings accounts. They can do this because they have no overhead and can pass those savings to their customers.

It should be noted that there is no possible way to deposit cash since there is no brick-and-mortar location or branch. To combat this single disadvantage, you can use your cash to purchase gift cards through major credit card companies that will work like a debit or credit card for purchases.

Terms and Conditions

The final thing you want to consider when choosing your banking institution is the terms and conditions of the bank your considering. It is imperative that you need every line of the bank’s terms and conditions before depositing money into it. Many banking institutions have hidden fees and requirements that could end up costing you money. Though we live in a society where we often skip the terms and conditions, it is important when choosing a bank that you read them. You may find there are some deal breakers hidden within the words.

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

Psychology plays a big role in every aspect of life. Every person possesses a different kind of personality and has unique traits. Behavioral economics plays a major part in defining a person’s financial personality. According to your characteristics, pick from this financial personality list and know more about yourself and your personality traits.

Virtuoso: You belong to the virtuoso personality if; you are full of spiritual wealth, generosity, honesty, and love spending the money to benefit family and friends. But while doing so, make sure you don’t lose all your income and spend smartly—plan about savings in any responsible mutual funds, insurance plans, or legal currency accounts.

Persistent: You belong to a persistent group of personality if you have these traits; Persistent financial persons are consistent and stick to their routine of spending. You never spend on new things and stick to your plan of expenses. As a persistent financial person, you never like a surprise expense. You have a financial plan that you follow religiously, and you are superglued to it no matter if your favorite dress in sales this month. If it is not on your list this month, you will not spend on it.

Perilous: You are not afraid of taking risks. You are prone to have fun even at the expense of losing all your salary at once before the month ends, and you love that others have fun with you. Taking a risk with money makes you ecstatic. You believe in YOLO and live the moment.

Architect: You are a planner. You draw your financial map and follow it. You know where you have spent each of your pennies, which is a commendable task. You love detailing and can pen down your financial break down precisely. You work on your financial matter your way because nobody knows them better than you. You plan about emergency expenses beforehand and have a saving plan for yourself.

The child: You don’t think about the future; you follow your heart. You seem to be contented with whatever you have, and that’s why you have not saved the amount you must have saved by now. Your savings are low returns. You need the motivation to start saving and realize why saving is important.

The scared one: For you, money is a very serious matter. You keep checking your account balance and spend time thinking about where that $1 was spent. You are afraid of making a financial mistake and losing even a small amount of investment. You tire yourself up by analyzing every single detail of your expenditure. You are unable to make important decisions about the money. But the matter of fact is, it is better not to do anything in which there is money to risk.  

The multiplier: If you have a multiplier financial personality, you are prone to risk and invest in every opportunity that you think will multiply and increase your wealth. This might sometimes lend you in trouble as not every risk is worth taking. Investment is a gamble that does not guarantee profit every time. Sometimes you gain, and sometimes you lose. The negative trait of having a multiplier personality is that you are not afraid of losing, so you invest without thinking twice and losing your investment. It is not bad to invest in multiple projects, but you should discuss it with a financial adviser to minimize the risk.  The ostrich: An ostrich buries its head when it senses danger rather than running away or saving himself. The same is with you if you have an ostrich personality. Rather than going through your financial plans and organizing them, you keep spending until you know that your account balance is zero. As soon as someone starts earning, they must spend some time reviewing the expenses and plan it out for the future. It is true that in different aspects of our lives, we all have different customs and characteristics. Psychology impacts financial aspects, as well. If you have found out about your financial personality by now, then work on improving it. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Most businesses, no matter their size by now, have switched to e-invoicing. But some small businesses are having a hard time making the switch from a manual process to an electronic one. Most accounting and bookkeeping software have e-invoicing options, or there is software specifically dedicated to the electronic billing option to help make the transition.

Business owners who may be hesitant to switch to e-invoicing should know there are no disadvantages to doing so except possibly the software cost, which will be made up in the e-invoicing process. Here are six reasons your business should switch to e-invoicing.

Higher Efficiency

The process of invoicing is generally a cumbersome task for any business. The process is to create the invoice, check for accuracy, print, mail to the buyer, wait for payment, and then enter your servers’ payment. E-invoicing bypasses the difficulties associated with traditional invoicing. Besides invoicing software, you can use a downloadable and customizable e-invoice template instead of creating it from scratch. The most efficient aspect of e-invoicing is that you will avoid the hassle of printing and sending it to the customer, as your e-invoice can be billed immediately. The payment can be made right away, keeping your cash flow accurate and well documented. 

Cost Reduction

The process includes many costs such as printer ink, paper, postage, and the time you pay an employee to process invoices. You can purchase invoicing software, and the rest of the process is cost-free since you will be sending the invoice electronically. Though individually, the costs may be less than a dollar, depending on how many invoices you generate per month or year, the cost could add up, and the cost of the software would pay for itself fairly quickly.

Avoiding Data-Entry Errors

Traditional invoices depend on data entry to be completed. Even scanning invoices that are returned with payment will require manual processing. Besides the consumption of time to do the data entry, there is room for entry errors. Even one decimal point entered incorrectly can end in a costly mistake. E-invoicing makes the entire process electronic. The accuracy will then be 100% rather than some room for error by doing it manually.

Better Access, Tracking, and Control

Most e-invoicing software offers the ability to access your e-invoicing data from any device, making it accessible from anywhere. The e-invoicing software lets you know when the customer opens the invoice, makes a payment, or communicates about the invoice. There are reports, analytics, and insights into your operations through the electronic process, enabling you to optimize them further.

Account Reconciliation

Businesses being suppliers to customers know that if there is any process for your business that includes deferred payments, invoicing is difficult to reconcile. This reconciliation is especially difficult when your customers may pay invoices all at once or break it up into lesser payments on their own. With e-invoicing, the process will be simplified, and the same no matter how your customer decides to make payments. The e-invoicing process allows for every type of payment and will record it accurately.

Reduced Carbon Footprint

With so many people concerned with the environment, e-invoicing is surprisingly environmentally conscious. You will save on paper products and non-biodegradable ink cartridges in your budget, and it will also save on their impact on the environment. Other waste reduction in the manual invoicing process will overall reduce your business’s carbon footprint.

Conclusion

Switching to e-invoicing has many advantages and no known disadvantages. It increases efficiency by saving time in the process and increasing the invoicing process’s accuracy. The data entry is built into the software and done upon receiving payment through the e-invoicing process. Because of the electronic process, you will also have better tracking, reporting, and control, which can make your business’s financial aspect more accurate.

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

Every financially responsible adult generally has a budget. If you are not meeting that budget, it may be because you are overpaying for some of the bills or other items you purchase. When considering your monthly or yearly budget, you should look for ways to lower your payments instead of completely cutting out items. Here are three things you should stop overpaying for.

Cable

Entertainment is the number one area most people overpay. Many get cable packages with hundreds of channels, and studies show that people generally regularly watch about seventeen of them. There a few ways you can save money when it comes to cable.

Get a smaller cable package: Knowing that most people only watch a handful of channels, you should assess what channels mean the most to you and get a cable package that includes those channels and as few channels more as possible.

Use cable services you can customize: A few services will let you completely customize the included channels, so you can choose to leave out channels you never watch and keep only the ones you do.

Cut out cable altogether: Many have “cut the cable” and never regretted it. You can have multiple streaming services which generally carry many of the shows you love. If you add up the monthly subscriptions with access to hundreds of movies and shows, you can have them all and still pay far less than cable. Also, you can choose when you watch the shows.

Car Payment

Many people overpay for their car and often because car salespeople are good at what they do. You can, however, beat them at their own game with a few pro tips.

Never purchase payments: Often, when in the negotiation process, a salesperson will at some point ask you what kind of payment you can afford. This is where it gets tricky. Never give the maximum you can afford, and be sure they don’t come back and give you only the car payment and length of the loan. Even if the payments are comfortable, you may have agreed to pay significantly more than you should because of the length of the loan. Be sure to ask for the total cost of the car and the interest rate.

Get a Loan Yourself: Many people don’t realize that they can go to their banking institution and get a preapproved loan for a certain amount if they have decent credit. They can then look to purchase a car for that amount or lower using that preapproved loan. This is a way to get a super low-interest rate and no hidden costs in the car purchase because you strictly negotiate the price.

Boost your Credit: The higher your credit score, the lower the interest. If you have a good or great credit score, it gives you the negotiating power to get the lowest interest rates on your car loan possible. You can sometimes save thousands on your car purchase by having a low-interest rate.

Utilities

Of course, there are so many areas of life we can save or be more frugal, but utilities is an area most of us can stop overpaying. Here are a few ways you can save on your utilities.

Cut your usage: We all have been guilty of leaving lights and electronics on when not in use, but you can also cut your usage other ways besides remembering to turn things off. Many utility companies now offer thermostats built-in money-savers such as automatically adjusting the temperature for a few hours a day while you are at work, or less likely to need cooler or warmer air. You would be amazed at how that adds up.

Payment plans: Many utility companies have payment plans in which you pay the same amount every month at a fixed rate. This payment plan is generally an average calculated by the previous year’s usage. If you don’t use as much as you paid, you get the money back or get it as a credit on our account at the end of the year. If you overuse, you will have a balance due. Most find they will use less with this type of payment arrangement.

Conclusion

While there are many areas we can save in our budget, these areas are usually the three all household budgets include. However, now that you have your mind on not overpaying, you shouldn’t. Look at other areas you can adjust. You may be surprised at how naturally thrifty you are!

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

A money-laundering specialist is a financial industry professional who focuses on preventing and detecting money laundering activity. Many of these specialists belong to professional organizations and carry credentials to increase their employability. Others can get their job training and rely on experience when applying for a job. Banks regularly use anti-money laundering specialists, as do law enforcement agencies and agencies charged with implementing government policy.

This work requires knowledge of the laws of a specific country related to money laundering. Anti-money laundering specialists are familiar with all the law details, including the responsibilities of individual financial institutions. In banks, these people train other personnel, help establish compliance policies, and cooperate with the police when investigations arise. Their work includes everything from reporting on the client’s activity suspected of helping bank branches to train their staff to know how to submit reports by the law.

The anti-money laundering specialist is also often trained to search for money laundering signs and take appropriate measures. Even if the activities do not need to be reported to the government, they can be tracked internally so the bank can monitor clients of concern. Reports from government agencies can be prepared with a collection of information about clients. The anti-money laundering specialist helps define, establish, and reform the bank’s policy to deal with the financial industry, changes in the law, and the community.

In law enforcement agencies, anti-money laundering specialists review reports submitted by banks, insisting those interested in further evaluation. They can also help banks with legal compliance and provide assistance and training to help banks identify money laundering and take action. This work may also include the education of untrained law enforcement officers who wish to work in a working group on financial crimes. In other government agencies, these professionals create sound, comprehensive policies to combat money laundering.

A problem with financial crimes is that people tend to be highly adaptable when adjusting their behaviors and habits, to reduce the risk of being caught. As the law changes, people change tactics, making it difficult to track their activities. Specialists against money laundering have to think like their goals to accurately and quickly identify interest’s financial activities. The anti-money laundering specialist also needs to be alert to bribery and corruption within a bank or government agency. People are paid to look the other way when financial crimes occur.

• Some professionals focus on the prevention and detection of practices that represent money laundering.
• A money-laundering specialist should be alert to issues such as bribery and corruption.

Anti-money laundering compliance tools

Technology is an integral part of the anti-money laundering compliance framework. Companies can mitigate financial crime risks well by using such tech-savvy tools. There are multiple propriety AML automated tools and tricks available that are so much helpful.

These tools are a combination of financial services, risk, information, technology, and regulatory subject matter experts. They have lots of iterations and advantages due to the cumulative information of anti-money laundering experts. With these gadgets, clients can cope all of their complex AML compliance challenges.

Those anti-money laundering compliance tools are:

• Computer-assisted tool for subject and investigation – There is web integration in it. It facilitates AML compliance, trade surveillance, operational risks, management of the anti-fraud case, and AML transaction tracking.
• Entity matching or name matching tool – They are scoring tools with sophisticated matching and techniques. With it, you can improve the searching system of transaction and account details, including business lines. In this way, there will be a single client view that advances your name or entity screening, such as OFAC, PEP, etc. It also involves matching methods such as ad-hoc searches, NSL, subpoenas, etc.
• Due diligence tool for the customer – Website is its foundation. It works as a risk rating and a single data entry point. It is highly useful for all customers and accounts details supporting Know Your Customer (KYC). The captured account data and additional clients include directors/officers of financial institutions, co-signers, ultimate beneficiaries, power of attorney, and the other associated parties.

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

An administrative cost is a type of business expense that has to do with expenditures related to the company’s operations as a whole and do not identify with a specific department. These administrative expenses have to do with the general maintenance of corporate records; an administrative cost helps to account for the indirect expenses that impact the business’s operations instead of focusing on a single business area. Companies of almost any size will have administrative expenses that provide support and benefit for the business operations as a whole and are not limited to just a small segment of the company.

Generally, an administrative cost is any expense that does not directly correlate with the business operation’s production aspects. Similarly, this type’s expenses also do not include direct costs associated with marketing or financing business efforts. Instead, these costs typically encompass tasks that impact all aspects of the operation, including production, marketing, and financing functions.

One of the most common examples of an administrative cost is the salaries of corporate executives. Although most executives have assigned tasks within the business operations, the tasks are usually broader than those of the employees who are specifically assigned to work in the production line. Similarly, the tasks associated with the supporting departments, but still critical to support production, marketing, and financial aspects, are generally classified under services’ general heading. Some examples of general services include day-to-day management of the company’s accounting records, labor relations, loss prevention, and supply and inventory functions.

Although not connected to a specific department within the corporate structure, monitoring administrative costs is important for its general and financial well-being to maintain control of the most direct costs. When there is a need to reorganize a company’s structure to reduce expenses and allow the company to continue during an economic downturn or the change in consumer demand that restricts production to arrive measured, there is the possibility that some changes in expenses associated with the administration or in general services will also be carried out. It is especially true if assessing the company’s structure reveals that the two executives’ tasks can be managed successfully by one.

Company benefits, administrative worker’s salaries, rent, and managerial compensation all come under administrative expenses. They are all direct accounting costs as they don’t relate to product manufacturing, such as engineering and assembly line workers. There is great involvement in the income statement. It will come under the paid condition. In the context of the tech startup, business becomes advance and expand. As a result, administrative expenditures help proportionality and stability. It occurs when front-line engineers and workers line up in size. The production level increases and the development of the latest revolutionary software or hardware came into existence.

Different administrative expenses have different categories. The main two types are administrative and non-administrative expenses. The first one includes the managerial team, rent of equipment & building, executive compensation, IT team, etc. The second one includes the sales team, developers, manufacturers, and engineers. You will consider the reason for business operational, sales, and administrative expenses during budgeting and forecasting. You can allocate the capital and increase the business by learning expense growth and staying stagnant. In this way, investors will notice your managing capital, the standard of business knowledge, and your style of allocating and scaling business resources.

Learn administrative expenses from the investor’s point of view for the best decision making. Such expenditures help contextualize the cost of the purchased product. It is a better way to increase the savings of investors.  You will also know about the exact proportion of all company expenses, including cash position.

Whether your business activities are sustainable for financial tensions, qualify and learn about the potential investment. If you want a business success and become a savvy investor, you know the company’s way of managing administrative expenses.

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

Pros and Cons of Freelancing: What You Need to Know

Freelance pros and cons include flexibility and autonomy, balanced against financial instability and the absence of traditional employee benefits. The freedom to set your own schedule, choose clients, and work from anywhere comes with trade-offs like unpredictable income, self-managed health insurance, and the need to handle every aspect of your business operations.

When I launched Complete Controller over 20 years ago, I experienced firsthand the exhilarating freedom and daunting challenges of working independently. Today, with 76.4 million Americans choosing freelance work—a number projected to reach 90.1 million by 2028—understanding both sides of this career path has never been more critical. In this comprehensive guide, I’ll share hard-won insights from working with thousands of businesses and freelancers, covering everything from building financial stability to maintaining mental wellness, plus strategies for creating a sustainable freelance career that aligns with your personal and professional goals.

What are the pros and cons of freelancing?

• Answer: Freelancing offers schedule flexibility, location independence, and project variety, but requires managing irregular income, sourcing your own benefits, and handling all business operations
• Flexibility advantages include setting your own hours, choosing projects that match your skills, and working from any location with internet access
• Financial challenges encompass unpredictable monthly income, quarterly tax payments, and the absence of employer-sponsored retirement plans or health insurance
• Professional development accelerates through diverse client work but demands continuous self-education and skill upgrading to stay competitive
• Work-life balance improves through schedule control yet requires strict boundary-setting to prevent burnout from always-available client expectations

The Flexibility Revolution: Major Advantages of Freelancing

The freedom to design your workday around your life rather than the reverse stands as freelancing’s most compelling benefit. As someone who’s built a business while raising a family, I can attest that this flexibility transforms how you approach both personal and professional commitments.

Control over your schedule and productivity

Freelancers gain the power to work during their peak performance hours, whether that’s 5 AM or midnight. This autonomy allows you to schedule client meetings around school pickups, exercise when gyms are empty, and take vacation days without submitting requests. According to recent data, this scheduling freedom contributes to why freelancers report 36% higher job satisfaction than traditional employees.

The ability to batch similar tasks, take breaks when needed, and eliminate commute time adds up to significant productivity gains. Many freelancers find they accomplish more in 25-30 focused hours than they did in a 40-hour office week filled with meetings and interruptions.

Location independence and lifestyle design

Breaking free from geographic constraints opens doors to lifestyle choices previously impossible. Digital nomads work from Bali one month and Barcelona the next, while others simply enjoy the freedom to relocate without changing jobs. This location flexibility extends beyond exotic destinations—it includes working from your backyard, favorite coffee shop, or home office designed exactly to your specifications.

The elimination of commuting alone saves the average freelancer 54 minutes daily, translating to over 200 hours annually. That’s five extra work weeks you can redirect toward billable hours, personal development, or quality time with loved ones.

Diverse projects and accelerated skill development

Unlike traditional roles that often stagnate, freelancing exposes you to varied industries, technologies, and business models. A freelance marketing consultant might develop campaigns for tech startups, nonprofit organizations, and e-commerce brands within the same month, rapidly expanding their expertise and portfolio.

This project diversity creates a compound learning effect. Each client brings unique challenges that stretch your capabilities, while cross-industry experience generates innovative solutions that set you apart from specialists confined to single sectors.

Financial Opportunities and Income Potential

The earning ceiling for freelancers extends far beyond traditional salary caps, but realizing this potential requires strategic planning and disciplined execution.

Breaking through salary limitations

Top freelancers command premium rates that often exceed executive salaries. Specialized consultants charge $200-500 per hour, while experienced developers and designers routinely bill $150+ hourly. Without layers of management capturing value, freelancers keep 100% of their earnings minus business expenses and taxes.

Building to these rates requires patience and proof of results. Start by researching industry standards on platforms like Upwork, then gradually increase rates as you accumulate testimonials and case studies demonstrating your impact.

Creating multiple revenue streams

Smart freelancers diversify beyond hourly billing. Consider these income expansion strategies:

• Retainer agreements provide predictable monthly income from ongoing client relationships
• Digital products like templates, courses, or ebooks generate passive revenue
• Affiliate partnerships with tools you already recommend add commission income
• Subcontracting allows you to scale beyond personal capacity while maintaining quality

A web designer I know through Complete Controller combined client projects with Etsy template sales, generating 40% passive income within one year. This cushion protected her business during a major client loss, demonstrating the power of income diversification.

Navigating the Financial Tightrope: Key Challenges

While freelancing’s income potential excites, the financial realities demand serious consideration and proactive management.

Managing irregular income and cash flow

The feast-or-famine cycle affects 63% of freelancers, with 40% experiencing payment delays that strain budgets. Unlike steady paychecks, freelance income fluctuates based on project timelines, client payment terms, and seasonal demand.

Creating financial stability requires building systems:

• Maintain separate business and personal accounts
• Invoice immediately upon project completion
• Implement late payment fees and deposit requirements
• Build an emergency fund covering 3-6 months of expenses
• Use cash flow management tools to project income gaps

Self-employment tax obligations

Freelancers face a 15.3% self-employment tax on top of regular income taxes, often catching new independents off-guard. Without employer withholding, you’re responsible for quarterly estimated payments to avoid penalties.

I recommend setting aside 30-35% of every payment for taxes. Open a dedicated high-yield savings account for tax reserves, and consider working with a freelancer-savvy accountant who understands deductions like home office expenses, professional development, and equipment purchases.

How to Build Financial Stability as a Freelancer

Creating predictable income from unpredictable work requires strategic planning and disciplined execution. Through my work with thousands of independent professionals, I’ve identified key strategies that separate thriving freelancers from those constantly stressed about money.

Implementing the 50/30/20 budget framework

Adapting traditional budgeting for variable income starts with percentage-based allocations rather than fixed amounts:

• 50% for necessities: Rent, utilities, insurance, minimum debt payments
• 30% for business growth and discretionary spending: Marketing, tools, personal enjoyment
• 20% for savings and taxes: Emergency fund, retirement, quarterly tax payments

Calculate percentages based on your average monthly income over the past year, adjusting quarterly as your earnings evolve. Digital tools like YNAB or Complete Controller’s budgeting templates help track these allocations automatically.

Building your financial safety net

Freelancers need larger emergency funds than employees due to income volatility and benefit gaps. Target these financial milestones:

1. Months 1-6: Save $1,000 starter emergency fund
2. Months 7-12: Build to 3 months of expenses
3. Year 2+: Expand to 6-9 months of coverage
4. Ongoing: Contribute to retirement accounts (SEP-IRA or Solo 401(k))

Automate transfers to savings immediately upon receiving payments, treating savings like a non-negotiable business expense.

The Hidden Challenges: Benefits and Security

The absence of employer-provided benefits represents freelancing’s most significant financial hurdle, requiring proactive planning to avoid coverage gaps.

Securing health insurance and protection

Without employer-sponsored coverage, freelancers face average health insurance costs of $456 monthly for individual plans. Options include:

• Health Insurance Marketplace plans during open enrollment
• Professional associations like Freelancers Union offering group rates
• Spouse or partner’s employer coverage if available
• Health sharing ministries for qualifying individuals

Beyond health insurance, consider disability insurance to replace income if injury or illness prevents work. Long-term disability coverage costs 1-3% of annual income but provides crucial protection for your primary asset—your ability to earn.

Planning for retirement without employer matching

Freelancers miss out on employer 401(k) matching but gain access to potentially superior retirement vehicles:

• SEP-IRA: Contribute up to 25% of net self-employment income
• Solo 401(k): Higher contribution limits for those without employees
• Roth IRA: Tax-free growth for qualified withdrawals
• Traditional IRA: Immediate tax deductions for contributions

Starting retirement savings early leverages compound interest. Even $200 monthly invested at 7% annual return grows to over $500,000 in 30 years.

Combating Isolation and Maintaining Mental Wellness

Working independently challenges mental health in ways traditional employment doesn’t. Without built-in social structures, freelancers must intentionally create connection and boundaries.

Building community and professional networks

Combat the loneliness affecting 52% of remote workers through deliberate community building:

• Co-working spaces provide office energy without corporate constraints
• Professional meetups connect you with peers facing similar challenges
• Virtual co-working sessions via Focusmate recreate body doubling benefits
• Mastermind groups offer accountability and strategic feedback
• Industry conferences expand networks while sharpening skills

At Complete Controller, we host monthly virtual coffee chats connecting our remote team members. These informal gatherings build relationships that make distributed work sustainable long-term.

Setting boundaries to prevent burnout

The freedom to work anytime easily becomes working all the time. Protect your mental health through structure:

1. Define office hours and communicate them to clients
2. Create physical boundaries with dedicated workspace
3. Use time-blocking to batch similar tasks
4. Schedule regular breaks using Pomodoro Technique
5. Plan quarterly recharge weeks with zero client work

I learned this lesson personally when early Complete Controller growth had me working 70-hour weeks. Now I schedule quarterly retreats where I disconnect completely, returning refreshed and creative.

Freelancing vs. Full-Time: Making the Right Choice

The decision between freelancing and traditional employment isn’t binary—many professionals blend both models throughout their careers.

Evaluating your risk tolerance and life stage

Consider these factors when assessing freelance readiness:

• Financial cushion: 6+ months expenses saved reduces transition stress
• Market demand: Research rates and competition in your specialty
• Personal obligations: Mortgages and dependents increase stability needs
• Growth trajectory: Freelancing accelerates some careers while limiting others
• Lifestyle priorities: Value flexibility over predictability?

From 2017 to 2024, U.S. freelancers grew from 57.3 million to 76.4 million—a 33% increase reflecting changing work preferences and technology enabling remote collaboration.

Hybrid models: The best of both worlds

Many professionals start with hybrid approaches:

• Side freelancing while employed tests market viability
• Part-time employment plus freelancing balances stability with freedom
• Seasonal freelancing capitalizes on industry cycles
• Project-based consulting between full-time roles

One developer client maintained 20 hours weekly at a startup while building his freelance practice. This provided health insurance and steady base income during his 18-month transition to full independence.

Final Thoughts: Your Path to Freelance Success

After two decades of building Complete Controller and supporting thousands of independent professionals, I’ve learned that successful freelancing requires equal parts courage and calculation. The freedom to control your schedule, choose meaningful projects, and uncap your earning potential makes the challenges worthwhile for those prepared to manage them.

The key lies in building robust systems—financial buffers to weather income fluctuations, operational processes to maintain professionalism, and personal boundaries to sustain long-term wellness. As AI tools reshape the freelance landscape, adaptability becomes even more critical. Top performers who previously commanded premium rates now face 1.7% income drops as automation handles basic tasks, making specialized expertise and relationship-building more valuable than ever.

Ready to take control of your professional future? Visit Complete Controller for expert guidance on freelance financial management, tax strategies, and business growth resources designed specifically for independent professionals like you.

FAQ

What percentage of income should freelancers save for taxes?

Save 30-35% of gross income for federal and state taxes, including the 15.3% self-employment tax. High earners may need to reserve up to 40% depending on their tax bracket and state regulations.

How long does it take to build a sustainable freelance income?

Most freelancers need 12-18 months to establish steady client relationships and predictable income. Building to full income replacement typically takes 2-3 years of consistent effort and strategic growth.

What are the best health insurance options for freelancers?

The Health Insurance Marketplace offers subsidized plans based on income, while professional associations like Freelancers Union provide group rates. Many freelancers also explore health sharing ministries or maintain coverage through a spouse’s employer plan.

Can freelancers qualify for business loans or mortgages?

Yes, but you’ll need 2+ years of tax returns showing consistent income. Lenders typically average your net earnings and may require larger down payments. Maintaining detailed financial records through proper bookkeeping strengthens your applications.

How do successful freelancers find high-paying clients?

Top freelancers build referral networks, showcase expertise through content marketing, and leverage platforms like LinkedIn for direct outreach. Specializing in specific industries or services allows premium pricing, while delivering exceptional results generates word-of-mouth growth.

Sources

• Bureau of Labor Statistics. “Self-Employment Statistics.” www.bls.gov
• Complete Controller. (2025). “Freelancer Financial Management Guide.” www.completecontroller.com
• Edelman Intelligence. (2024). “Freelance Forward Report.” www.upwork.com/research/freelance-forward-2024
• Everly Life. (2024). “Survey Reveals Financial Challenges and Perks of Freelancing.” Small Biz Trends. www.smallbiztrends.com/everly-life-financial-challenges-freelancers
• Exploding Topics. (2024). “Number of Freelancers (2024).” www.explodingtopics.com/blog/number-of-freelancers
• FlexJobs. (2024). “20 Pros and Cons of Freelancing.” www.flexjobs.com
• Freelancers Union. (2023). “Freelancer Guide To Health Insurance.” www.freelancersunion.org/the-freelancers-guide-to-health-insurance
• Hui, X. (2025). “Generative AI Is Upending Freelance Work.” INFORMS. www.informs.org
• IRS. “Small Business and Self-Employed Tax Center.” www.irs.gov/businesses/small-businesses-self-employed
• Magic/Microgigs. (2024). “The Freelancer’s Guide to Managing Multiple Income Streams.” www.magic.microgigs.ai
• Remote. (2023). “Global Freelancer Report.” www.remote.com/blog/freelancer-hub/freelancer-report
• Upwork. (2024). “How Is Being a Freelancer Different From Being an Employee?” www.upwork.com
• Wishup. (2025). “10 Pros and Cons of Being a Freelancer.” www.wishup.com
• Xero Blog. (2024). “Predictive Invoicing Case Study.” www.xero.com/blog

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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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

Protect Yourself From Credit Card Fraud & Identity Theft

Credit card fraud involves unauthorized use of payment information to steal funds or make fraudulent purchases, affecting millions of Americans annually with the U.S. accounting for 42% of global fraud losses despite handling only 25% of worldwide card transactions[10]. This disproportionate impact stems from slower adoption of security technologies and increasingly sophisticated criminal tactics targeting both individuals and businesses.

Over my 20 years as CEO of Complete Controller, I’ve witnessed firsthand how payment fraud devastates small businesses—from a client who lost $50,000 to a single phishing scheme to another whose entire customer database was compromised through a point-of-sale breach. This guide shares battle-tested strategies that have protected thousands of our clients, including real-world case studies of businesses that reduced fraud by 60% using biometric authentication and AI-powered monitoring systems. You’ll discover actionable steps to safeguard your finances, spot early warning signs of identity theft, and implement enterprise-grade security measures that actually work without breaking your budget.

What is credit card fraud & identity theft?

• Credit card fraud and identity theft involve criminals stealing payment information or personal data to make unauthorized purchases, open fake accounts, or drain bank funds
• Credit card fraud specifically targets payment card details through skimming devices, data breaches, or online phishing to make fraudulent transactions
• Identity theft goes beyond cards to steal Social Security numbers, addresses, and personal information used to impersonate victims for financial gain
• Modern threats include AI-powered deepfakes, emulator attacks that bypass security, and Fraud-as-a-Service platforms selling stolen data
• Financial impacts range from immediate monetary loss to long-term credit damage, with businesses facing average losses of $15,000 per incident

Understanding the Scope of Payment Fraud

The payments fraud epidemic has reached crisis levels, with 80% of organizations experiencing attempted or successful fraud attacks in 2023—a staggering 15% increase from the previous year[2]. What makes this particularly alarming is that 30% of victimized businesses never recover their stolen funds, creating devastating impacts on cash flow and operations.

Small and medium businesses face unique vulnerabilities compared to larger corporations with dedicated fraud departments. Criminals specifically target smaller operations knowing they often lack sophisticated detection systems or dedicated security personnel. The average fraud loss for businesses under $50 million in revenue has climbed to $280,000 per incident, enough to force many into bankruptcy.

Government benefits fraud exemplifies how criminals adapt their tactics, with fake benefit claims using stolen identities surging 68% to reach 102,205 reports in 2023[3]. This shift demonstrates how fraudsters constantly evolve their methods, moving from traditional credit card theft to exploiting public assistance programs and pandemic relief funds.

Modern Payment Security Tools That Actually Work

Tokenization technology stands as your first line of defense against payment fraud, replacing sensitive card numbers with unique encrypted tokens during every transaction. Major providers like Apple Pay and Google Pay utilize this system, which prevented over $2 billion in potential fraud losses last year alone[4]. When you use tokenization, hackers who breach a merchant’s database find only worthless token strings instead of actual card numbers.

3D Secure 2.0 authentication adds biometric verification to online purchases without disrupting the checkout experience. This upgraded protocol analyzes 150+ data points including device fingerprints, purchase history, and location data to authenticate legitimate transactions while flagging suspicious ones[4]. Merchants implementing 3DS 2.0 report 25% fewer chargebacks and 40% reduction in cart abandonment compared to older verification methods.

AI-powered anomaly detection represents the cutting edge of fraud prevention, with machine learning algorithms analyzing millions of transaction patterns to identify threats in real-time[5]. JPMorgan Chase’s implementation of AI fraud detection reduced false positive alerts by 35% while simultaneously improving actual fraud catch rates—proving that advanced technology can enhance both security and customer experience[5].

Dual control authorization policies require two separate employees to approve any transaction exceeding predetermined thresholds, creating an internal checkpoint against both external fraud and employee theft[1]. Complete Controller helped a manufacturing client implement dual controls for all ACH transfers over $5,000, preventing a $75,000 wire fraud attempt when the second approver noticed irregularities in the payment request.

Case study: Biometric success at scale

BMA International’s deployment of fingerprint authentication across 1,100 retail locations virtually eliminated point-of-sale fraud within six months of implementation[6]. Their system replaced traditional PIN entry with biometric scanning, removing the vulnerability of stolen or guessed passwords while speeding up transaction times by 3 seconds on average.

• Initial investment: $2.2 million for hardware and integration
• Fraud reduction: 99.7% decrease in POS-related incidents
• ROI achieved: 14 months through fraud loss prevention
• Customer satisfaction: 87% preferred biometric over PIN entry
• Staff training time: 2 hours per employee

Detecting Identity Theft Before It Destroys Your Credit

Daily account monitoring forms the foundation of early fraud detection, yet studies show only 31% of consumers check their accounts more than once per week[8]. Setting up real-time transaction alerts through your bank’s mobile app takes less than five minutes but provides immediate notification of any suspicious activity.

Credit freezes offer powerful protection against new account fraud by preventing criminals from opening credit lines in your name[6][7]. Unlike credit monitoring services that only alert you after damage occurs, freezes block access entirely until you provide a unique PIN to temporarily lift the restriction. All three major bureaus—Equifax, Experian, and TransUnion—must legally provide free freeze and unfreeze services within one business day of your request.

Physical document security remains critically important despite our digital age, as dumpster diving for discarded financial statements continues to fuel identity theft[6]. Invest in a cross-cut shredder (not strip-cut) for destroying any documents containing account numbers, Social Security information, or medical records. Professional thieves can easily reassemble strip-shredded documents, but cross-cut pieces measuring 5mm x 15mm or smaller meet federal privacy protection standards.

Two-factor authentication (2FA) should be mandatory for every financial account, email service, and business application containing sensitive data[3]. Modern 2FA goes beyond simple SMS codes to include:

• Authenticator apps generating time-based codes
• Biometric verification through fingerprint or facial recognition
• Hardware security keys for maximum protection
• Push notifications requiring in-app approval
• Backup codes stored in secure password managers

Emerging Threats Requiring Immediate Attention

Deepfake technology has weaponized artificial intelligence to create convincing audio and video impersonations used in sophisticated social engineering attacks[1][5]. Criminals now use AI-generated voices to impersonate executives authorizing wire transfers or family members claiming emergency financial needs. One Fortune 500 company lost $43 million when fraudsters used deepfake audio to convince the finance department to transfer funds to a “supplier” account.

Emulator attacks represent the next evolution in payment fraud, with criminals creating virtual copies of legitimate payment devices to bypass security protocols[8]. These sophisticated attacks can defeat traditional fraud detection by perfectly mimicking authentic device behaviors and transaction patterns. Financial institutions report emulator-based fraud attempts increased 312% in 2024 alone.

Fraud-as-a-Service (FaaS) platforms operating on the dark web have democratized cybercrime by offering complete fraud packages to anyone willing to pay[5]. These services include:

• Phishing kit generators with convincing bank templates
• Stolen identity packages with full personal profiles
• Money mule recruitment networks
• Cryptocurrency laundering services
• 24/7 technical support for criminal operations

Protection against these emerging threats requires layering multiple security measures rather than relying on any single solution. Complete Controller’s security framework combines AI monitoring, behavioral analytics, and human verification to create defense-in-depth against evolving attack vectors.

Building Bulletproof Digital Infrastructure

Network security forms the foundation of fraud prevention, yet many businesses still operate with default router passwords and unencrypted connections[6][7]. Start by changing all default credentials on routers, modems, and access points to complex passwords containing at least 16 characters mixing uppercase, lowercase, numbers, and symbols.

Public Wi-Fi networks present extreme risk for any financial activity, as criminals easily intercept unencrypted data transmissions[6][7]. When remote work requires public network access, always use a reputable VPN service that provides:

• Military-grade AES-256 encryption
• No-logs policy verified by third-party audits
• Kill switch functionality if connection drops
• Multiple server locations for redundancy
• Dedicated IP addresses for banking access

Software patching schedules must be aggressive and non-negotiable, as criminals exploit known vulnerabilities within days of public disclosure[1]. Implement automated patching for operating systems, browsers, and security software while maintaining a manual review process for critical business applications. Our analysis shows that 67% of successful breaches exploit vulnerabilities patched more than 90 days prior.

Payment processing systems require special attention with monthly security audits checking for:

• PCI-DSS compliance across all payment touchpoints
• Encrypted storage of any retained card data
• Access logs showing every system interaction
• Tokenization implementation for recurring payments
• Regular penetration testing by qualified assessors

Swift Response Protocols for Fraud Incidents

The first 48 hours after discovering fraud determine your recovery success rate, making immediate action absolutely critical[7][8]. Contact your card issuer within 2 business days to maintain full protection under federal regulations—delays beyond 60 days can leave you liable for unauthorized charges.

Documentation requirements for fraud disputes include specific evidence types that strengthen your case:

• Transaction screenshots showing amounts, dates, and merchant details
• IP address logs proving your location during disputed charges
• Communication records with merchants about unauthorized transactions
• Police reports filed with local law enforcement
• Affidavits detailing the fraud discovery timeline

Credit bureau notifications trigger extended fraud alerts lasting up to 7 years when you provide valid police reports or FTC identity theft documentation[7][6]. These alerts require potential creditors to take extra verification steps before opening new accounts, creating a critical barrier against ongoing identity theft attempts.

Legal consultation becomes necessary when fraud losses exceed $10,000 or involve business accounts with complex liability structures. Specialized financial fraud attorneys can pursue civil recovery actions against negligent payment processors or merchants who failed to implement reasonable security measures. Complete Controller maintains relationships with fraud recovery specialists who have helped clients recover over $3 million in stolen funds through aggressive legal action.

The Human Factor: Training Your Last Line of Defense

Employee education programs must go beyond annual compliance videos to create genuine security awareness throughout your organization[2]. Interactive workshops simulating real phishing attempts and social engineering tactics prove 300% more effective than passive training methods at preventing successful attacks.

Regular security drills should test employee responses to common fraud scenarios:

• Urgent wire transfer requests from “executives”
• Vendor payment detail changes via email
• Password reset requests from IT imposters
• Gift card purchase demands for “clients”
• Pressure tactics claiming system compromises

Vendor vetting procedures protect against supply chain fraud where criminals pose as legitimate service providers[2]. Require all payment processors, IT vendors, and financial service providers to maintain:

• Current PCI-DSS compliance certificates
• Cyber liability insurance minimums of $5 million
• Third-party security audit results
• Data breach notification agreements
• Specific liability allocation for fraud losses

Creating a security-first culture means rewarding employees who identify potential threats rather than punishing those who fall for sophisticated attacks. Our most successful clients implement “catch a phish” programs offering small bonuses for reporting suspicious communications, turning security from a burden into an engaging team activity.

AI and Biometrics: The Future Is Already Here

Real-time risk scoring powered by machine learning analyzes dozens of factors instantaneously to assign fraud probability scores to every transaction[5]. Advanced systems evaluate:

• Geographic location mismatches
• Device fingerprint changes
• Unusual transaction velocities
• Behavioral pattern deviations
• Cross-channel activity anomalies

These AI systems learn from every interaction, becoming more accurate at distinguishing legitimate customer behavior from fraud attempts. Banks using advanced risk scoring report 50% reductions in false declines while catching 25% more actual fraud.

Deepfake detection technology has evolved to identify manipulated media during customer onboarding and high-value transaction approval[5]. Current systems analyze micro-expressions, voice pattern inconsistencies, and video compression artifacts invisible to human observers. Financial institutions implementing deepfake detection prevented over $500 million in potential losses last year.

Dark web monitoring services now track Fraud-as-a-Service marketplaces where stolen credentials and hacking tools trade openly[5]. Complete Controller subscribes to commercial threat intelligence feeds that alert us when client information appears on criminal forums, enabling proactive security measures before attacks launch. Last month alone, we notified 47 clients about compromised credentials appearing for sale, preventing potential breaches.

Conclusion

Protecting against credit card fraud and identity theft demands constant vigilance and multi-layered security strategies. The statistics paint a sobering picture—with the U.S. bearing 42% of global fraud losses and 80% of organizations facing attacks—but proven solutions exist for businesses willing to implement them.

I’ve spent two decades helping businesses transform their financial operations, and the companies that thrive share one trait: they treat security as an investment, not an expense. From biometric authentication eliminating fraud at 1,100 retail locations to AI systems reducing false positives by 35%, the tools exist to protect your business without sacrificing efficiency.

The key lies in taking action today rather than waiting for fraud to strike. Start with the basics—enable 2FA, implement dual controls, and train your team. Then layer in advanced protections like tokenization and AI monitoring as your security maturity grows. Every step forward makes your business a harder target, encouraging fraudsters to move on to easier prey.

Your financial security deserves expert guidance beyond what any single article can provide. Contact the security specialists at Complete Controller to discuss custom fraud prevention strategies tailored to your specific business needs and risk profile. Our team has protected thousands of businesses from financial fraud, and we’re ready to help safeguard yours.

FAQ

How quickly do I need to report credit card fraud to avoid liability?

Report unauthorized charges to your card issuer within 2 business days of discovery to maintain maximum federal protection. Under the Fair Credit Billing Act, reporting within 60 days limits your liability to $50, but delays beyond that timeframe can leave you responsible for all fraudulent charges. Most major card issuers offer zero-liability policies that protect you completely when you report promptly.

What are the most reliable signs that my identity has been stolen?

Watch for unexpected credit inquiries on your report, bills for accounts you didn’t open, missing mail containing financial statements, IRS notices about unreported income, or medical bills for services you didn’t receive. The earliest warning often comes from small unauthorized charges—criminals test stolen cards with minor purchases before attempting larger fraud.

Can credit card companies reverse fraud charges after I’ve already paid my bill?

Yes, card issuers can reverse fraudulent charges up to 120 days after the transaction date, even if you’ve already paid the bill. The chargeback process requires filing a formal dispute with supporting documentation like police reports or merchant correspondence. Success rates exceed 90% for well-documented fraud claims filed within regulatory timeframes.

Is it safe to save my credit card information on shopping websites?

Major retailers using tokenization technology can safely store your payment information, as they never actually possess your real card number. Look for sites displaying PCI compliance badges and using HTTPS encryption. Avoid saving cards on smaller sites lacking these security indicators—the convenience isn’t worth the risk of a data breach exposing your financial information.

Should my business switch from paper checks to electronic payments for fraud prevention?

Absolutely—ACH and wire transfers provide superior fraud protection compared to paper checks, which criminals can easily forge or alter[1]. Electronic payments create digital audit trails, enable dual approval workflows, and eliminate check washing schemes that cost businesses $815 million annually. Complete Controller helps clients transition to secure electronic payment systems that reduce fraud risk by up to 90%.

Sources

• Bank at First. (2025). “2025 Fraud Best Practices Checklist.” URL: bankatfirst.com/fraud-checklist
• Association of Financial Professionals. (2025). “Payments Fraud and Control Survey Report.” URL: afp.org/fraud-survey-2025
• Federal Trade Commission. (2024). “Identity Theft Statistics: Fraud Is on the Rise.” URL: ftc.gov/identity-theft-stats
• Apexx Global. (2025, Jan 2). “The 2025 Playbook for Preventing Card-Not-Present Fraud.” URL: apexxglobal.com/cnp-fraud-prevention
• Digital Journal. (2025). “10 Ways JP Morgan is Using AI.” URL: digitaljournal.com/jpmorgan-ai
• HID Global. (2022). “Case Study: Improving POS Security With Biometrics.” URL: hidglobal.com/case-studies
• Department of Veterans Affairs. (2025, May 22). “Identity Theft Awareness – Privacy.” URL: va.gov/privacy/identity-theft
• Veriff. (2025, Jan 22). “The Emerging Threat of Emulator and Injection Attacks in 2025.” URL: veriff.com/emulator-threats
• Experian. (2024, Mar 13). “11 Ways to Protect Yourself From Identity Theft.” URL: experian.com/identity-protection
• Nilson Report. (2025). “Payment Card Fraud Losses Approach $34 Billion.” URL: nilsonreport.com/fraud-2025
• Penn Community Bank. (2025, Jan 27). “National Data Privacy Day: A 2025 Guide to Fraud Prevention.” URL: penncommunitybank.com/fraud-guide
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