For years, educational standards have encouraged young students to get increasingly costly degrees that offer questionably declining real returns in the employment market. To seek-out huge loans, regardless of the choice of career they want to pursue.

According to a report, a regular college student took between $26,450 and $31,200 worth of educational loans in 2016. Luckily, many of those students found relief due to the placement of these student loan forgiveness programs. There is a vast list of both new and old student loan relief programs in place. Through these programs, debt compassion is possible, and there will be more programs surfacing soon as well due to the rising number of untenable student debt burdens in the last few years.

Using Debt Forgiveness

These student debt forgiveness programs have a simple way of working. In a student loan compassion program, selected in debt, students may have some or all of their public debt forgiven either right away or over a specific period. Sadly, none of these student debt forgiveness programs offers private loan forgiveness. The only legitimate way to clear or remove private loans is by declaring bankruptcy or a unique rearrangement with the private moneylender.

According to recent research, there are around four main debt forgiveness programs, along with a few other minor programs that can either cancel or considerably decrease your federal student loan debt. The main debt programs are:

• Public Service Loan Forgiveness
• Perkins loan cancellation
• Income-based repayment
• Teacher Loan Forgiveness

These programs may not apply if the borrower is under defaulting status, which usually happens when a borrower refuses to pay loans for more than nine months.

Each of these plans has strict requirements that a student must meet to be eligible for these loans. Many of these plans necessitate yearly submission of official paperwork to the loan servicers, and even a single slipup will probably disqualify an eligible borrower. If you are currently in or considering these processes and trying to get your loans cleared or reduced, you must recognize the required steps and follow them carefully.

Most Common Loan Forgiveness Options

There are a few different types of occupation-based loan debt forgiveness programs available, depending on how you live. Such programs are mainly for attorneys, doctors, and other professionals who pay more than the average amounts for advanced degrees. Students who used such loans have a great shot of getting the entire debt forgiven after just five years. The process mainly depends upon the type of profession, particularly for the people who have a full-time job in a community.

Obama Student Loan Forgiveness Plan

The Obama Student Loan Forgiveness Plan is another excellent option that students can avail. This debt forgiveness plan was introduced after the 2019 act of Health Care and Education Settlement. It is also known as a debt-restructuring program with a possible chance of compassion in the future.

Students who are considered eligible for this load will combine all of their federal education loans into one big single loan and will be allowed to choose from five easy different settlement options mentioned below:

• Standard
• Graduated
• Income-contingent
• Income-based
• Pay As You Earn (PAYE)

Permanent and Total Disability Release

According to the Department of Education (DoE), anyone who has any significant mental or physical disability or impairment cannot contribute to substantial gainful activities, also known as the authorized government term for a real job. Such students who are willing to apply for permanent disability status must work through the Department of Education procedures to prove whether their disability is legit or not. To prove disability, a student will need a letter from an authentic doctor and other essential supporting documentation. Typically, applicants take around six to three months before the conclusion is rendered. If the application is approved, the student will not be able to apply for any other educational loans until they obtain another letter that says you can engage in some other gainful activity.

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.

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

Small Business Bank Loans for Entrepreneurs with Poor Credit

Small business bank loans remain accessible even with poor credit scores below 650, thanks to specialized programs like SBA microloans that require no minimum credit score, online lenders accepting scores as low as 500, and alternative banking partnerships designed specifically for high-risk borrowers. The SBA microloan program alone has provided over 69,000 loans averaging $16,124, with 48% going to women-owned businesses who often face traditional lending barriers.

My twenty years leading Complete Controller has shown me that credit scores tell only part of your business story. I’ve watched countless entrepreneurs transform their operations with strategic financing despite credit challenges, and the lending landscape has evolved dramatically to meet these needs. This guide reveals the exact pathways to secure funding, from federal programs with zero credit minimums to revenue-based alternatives that prioritize cash flow over FICO scores. You’ll discover how to leverage SBA microloans, navigate online lending platforms, build credit strategically, and combine multiple funding sources to fuel your business growth.

What are small business bank loans for entrepreneurs with poor credit?

• Answer: They are specialized financing options including SBA microloans, online lenders, revenue-based loans, and alternative banking partnerships designed for borrowers with credit scores below 650
• SBA microloans provide up to $50,000 with no set minimum credit score requirement, targeting underserved markets and startup entrepreneurs
• Online lenders like Lendio and GreenBox Capital accept credit scores as low as 500, trading higher interest rates for accessibility and speed
• Revenue-based loans focus on your business cash flow rather than personal credit history, making them ideal for established businesses with consistent income
• Alternative banking partnerships through institutions like Wells Fargo and PNC offer specialized small business programs with more flexible credit requirements than traditional loans

Key Types of Small Business Bank Loans for Poor Credit

The lending landscape for entrepreneurs with credit challenges has expanded significantly beyond traditional bank loans. Each loan type serves different business needs and credit situations, from federal programs supporting underserved communities to technology-driven platforms that analyze revenue over credit scores.

Modern lending options recognize that credit scores often fail to capture entrepreneurial potential. A business owner recovering from medical bankruptcy might have a 580 credit score but run a profitable operation with strong cash flow. These specialized loan programs evaluate the whole picture, considering factors like industry experience, business revenue, and growth potential alongside credit history.

SBA microloans: Federal support for early-stage entrepreneurs

The Small Business Administration’s microloan program stands as the most accessible federal small business loans option for entrepreneurs with credit challenges. With no minimum credit score requirement and loan amounts up to $50,000, this program specifically targets businesses that traditional lenders overlook.

Unlike conventional bank loans, SBA microloans flow through nonprofit intermediary lenders who provide hands-on support alongside capital. These intermediaries often offer business training, financial literacy workshops, and one-on-one mentoring. The program has distributed over $1 billion since inception, with 41% of loans going to rural businesses who face limited local banking options.

Key Requirements and Features

• Time in business: No minimum, though most lenders prefer 6+ months of operations
• Collateral: Required for loans over $25,000, can include business assets or equipment
• Interest rates: Capped between 7.75% and 13%, protecting borrowers from predatory pricing
• Loan terms: Up to 6 years, with flexible repayment schedules
• Technical assistance: Mandatory business counseling helps improve success rates

Real-World Success Story

Nicole Bradstreet transformed her dream into reality using a $30,000 SBA microloan to purchase a flower shop in Michigan. Despite having limited credit history and no prior business ownership experience, the intermediary lender focused on her industry knowledge from years working in floral design. The lender provided QuickBooks training and cash flow management support, helping Bradstreet build both her business and credit profile simultaneously. Within two years, she expanded to a second location using traditional financing, demonstrating how microloans serve as stepping stones to larger funding opportunities.

Online lenders: Fast access with flexible credit standards

Digital lending platforms have revolutionized small business financing by using alternative data points beyond credit scores. These unsecured small business loans evaluate factors like bank account activity, payment processing history, and social media presence to assess creditworthiness.

The speed advantage cannot be overstated—while traditional banks take 30-90 days for loan decisions, online lenders often approve applications within 24 hours and fund within 3-5 business days. This rapid turnaround helps businesses seize time-sensitive opportunities like bulk inventory purchases or equipment deals.

Comparison of Online Lending Options

Lender Type	Credit Score Range	Typical Loan Amount	Interest Rate Range	Funding Speed
Revenue-Based Lenders	550+	$5,000-$500,000	15-45% APR	1-3 days
Merchant Cash Advance	500+	$3,000-$200,000	20-75% APR	24 hours
Equipment Financing	520+	Up to equipment value	8-30% APR	3-5 days
Short-Term Loans	530+	$2,500-$250,000	18-60% APR	1-2 days

 

I’ve guided many Complete Controller clients through online lending decisions. The key is matching your repayment capacity to the loan structure. A restaurant needing $20,000 for kitchen equipment might choose equipment financing with lower rates, while a consultant needing quick working capital for a project might accept higher merchant cash advance rates for immediate funding.

Alternative banking partnerships: Beyond traditional institutions

Regional banks and credit unions increasingly offer specialized small business programs that bridge the gap between stringent traditional lending and expensive online options. These institutions often have more decision-making flexibility than large national banks, considering local market conditions and relationship history.

Wells Fargo’s Small Business Advantage line provides unsecured credit up to $50,000 for businesses meeting SBA size standards. The program considers businesses with two years of operations and focuses on cash flow strength over perfect credit. Similarly, PNC’s unsecured term loans range from $20,000 to $100,000 without requiring collateral, though credit requirements typically start around 600.

Benefits of alternative banking partnerships

• Relationship-based lending considers your full banking history
• Local decision-making allows for exception handling
• Lower rates than online lenders while maintaining accessibility
• Potential for growing into larger traditional loans
• Access to business banking services beyond lending

Navigating Eligibility: Strategic Approaches

Successfully securing a small business loan with poor credit requires understanding exactly what lenders evaluate and how to present your strongest case. The application process involves more than just credit scores—lenders assess your entire business profile to determine risk and repayment ability.

Smart preparation can significantly improve your approval odds. By understanding what documentation lenders require and how they evaluate applications, you can address potential concerns proactively. This strategic approach has helped countless Complete Controller clients secure funding despite initial credit challenges.

Credit score requirements: What banks really check

Banks evaluate both personal and business credit scores, but their importance varies by lender type and loan amount. Traditional banks typically require personal FICO scores above 680, while alternative lenders may approve applications with scores as low as 500. However, lower credit scores usually mean higher interest rates and stricter terms.

Your business credit score, tracked by agencies like Dun & Bradstreet and Experian Business, becomes increasingly important as your company matures. New businesses rely heavily on owner credit scores, but established companies can leverage strong business credit to offset personal credit weaknesses. Building business credit through vendor accounts and business credit cards creates funding flexibility.

Credit Improvement Strategies

• Dispute credit report errors – Studies show 79% of credit reports contain mistakes. Correcting errors can boost scores 20-100 points within 30-45 days.
• Reduce credit utilization – Paying down credit cards below 30% utilization can improve scores within one billing cycle.
• Establish vendor tradelines – Companies like Grainger and Uline report to business credit bureaus, helping build business credit profiles.
• Add authorized user status – Becoming an authorized user on a well-managed account can improve personal credit within 30-60 days.
• Time applications strategically – Each hard inquiry drops scores 5-10 points. Batch similar applications within 14 days to minimize impact.

Documentation and business planning: What lenders need

Thorough documentation demonstrates professionalism and reduces perceived lending risk. Lenders use these materials to verify your business legitimacy, assess repayment ability, and understand your growth trajectory. Missing or incomplete documentation remains the top reason for loan application denials.

Essential Documentation Checklist

Document Type	Purpose	Preparation Tips
Business Plan	Shows growth strategy and market understanding	Include 3-year projections with conservative estimates
Bank Statements	Proves cash flow stability	Provide 6-12 months showing consistent deposits
Tax Returns	Verifies income claims	Include 2-3 years personal and business returns
Accounts Receivable Aging	Demonstrates future cash flow	Highlight contracts and recurring revenue
Personal Financial Statement	Shows overall financial position	List all assets, liabilities, and income sources

 

At Complete Controller, we help small business loan options for entrepreneurs organize their financial documentation year-round. Maintaining clean, organized records not only supports loan applications but improves overall business decision-making. Professional bookkeeping services can transform chaotic finances into compelling loan applications.

Long-Term Strategies: Building Credit for Better Options

Poor credit doesn’t have to be permanent. Strategic credit building while managing current financing needs positions your business for better rates and terms in the future. The businesses I’ve seen succeed take a dual approach—securing necessary funding today while systematically improving their credit profiles for tomorrow.

Credit improvement is a marathon, not a sprint. Most entrepreneurs see significant score improvements within 12-18 months of focused effort. The key is consistency and understanding which actions have the greatest impact on your scores.

Strategic credit improvement for long-term eligibility

Building strong credit requires understanding the five factors that determine your score: payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). Focus your efforts on the highest-impact areas first.

Payment history dominates your score calculation, making on-time payments non-negotiable. Set up automatic payments for all accounts, even if just meeting minimums. One 30-day late payment can drop scores 60-110 points and remains on reports for seven years. Conversely, six months of perfect payments can begin recovering from past mistakes.

Month-by-Month Credit Building Plan

Months 1-3: Foundation Building

• Pull credit reports from all three bureaus
• Dispute any errors or outdated information
• Set up automatic minimum payments on all accounts
• Open a secured business credit card if needed

Months 4-6: Utilization Optimization

• Pay down highest-interest debt first
• Request credit limit increases without hard pulls
• Keep individual card usage below 30%
• Add vendor tradelines reporting to business credit

Months 7-12: Growth and Monitoring

• Monitor scores monthly through free services
• Maintain payment streaks on all accounts
• Gradually pay down total debt below 30% utilization
• Consider becoming authorized user on strong accounts

Small business financing best practices from credit experts emphasize patience and consistency. Your scores might dip initially as you pay down debt and close unused accounts, but long-term improvements follow disciplined execution.

Exploring hybrid solutions: Grants, crowdfunding, and loans

Smart entrepreneurs rarely rely on single funding sources. Combining non-debt options like grants with strategic loans reduces overall borrowing costs and financial risk. This hybrid approach has gained traction as digital platforms make alternative funding more accessible.

Grants provide free money but require significant application effort. Federal programs like SBIR grants offer up to $1.5 million for innovative businesses, while local economic development grants support job creation. Women-owned businesses can access specific programs through organizations like the Amber Grant Foundation, which awards $25,000 monthly to female entrepreneurs.

Alternative Funding Comparison

Funding Type	Best For	Typical Amount	Time to Fund	Credit Required
Federal Grants	Research/Innovation	$50k-$1.5M	3-6 months	No
Crowdfunding	Consumer Products	$10k-$100k	30-60 days	No
Angel Investment	Scalable Startups	$25k-$2M	2-6 months	No
Invoice Factoring	B2B Services	80% of invoices	24-48 hours	Minimal
Equipment Leasing	Asset-Heavy Businesses	Equipment value	3-5 days	550+

 

Crowdfunding platforms like Kickstarter and Indiegogo work particularly well for consumer products with compelling stories. Successful campaigns typically raise 30% from personal networks before gaining momentum with strangers. Pre-launch preparation, including video production and reward structuring, often determines campaign success.

Comparing Traditional Banks vs. Alternative Lenders

The lending landscape has bifurcated into two distinct paths, each with clear advantages for different situations. Traditional banks offer lower rates and larger loan amounts but maintain strict credit requirements. Alternative lenders provide accessibility and speed at premium pricing.

Understanding these trade-offs helps you choose the right lender for your specific situation. A business needing $200,000 for real estate might wait three months for bank approval to save thousands in interest. Conversely, a retailer needing $20,000 for holiday inventory might pay higher rates for immediate funding.

Detailed Lender Comparison

Factor	Traditional Banks	Online Lenders	Credit Unions
Credit Score Minimum	680+	500+	620+
Interest Rates	7.31-7.61%	15-75% APR	8-18%
Loan Amounts	$25k-$5M	$5k-$500k	$10k-$1M
Approval Time	2-12 weeks	24-72 hours	1-4 weeks
Collateral Required	Usually	Sometimes	Varies
Relationship Value	High	Low	Very High
Application Process	Extensive	Simple online	Moderate

 

Recent Federal Reserve data shows small business loan approval rates at large banks increased to 44% in 2023, still below pre-pandemic levels of 52%. This tightening makes alternative lenders increasingly important for businesses with imperfect credit.

Industry-Specific Considerations

Different industries face unique lending challenges and opportunities. Lenders evaluate businesses based on industry risk profiles, with some sectors enjoying easier approval despite poor personal credit. Understanding your industry’s lending landscape helps target the right funding sources.

Professional services firms often qualify for larger unsecured loans due to predictable revenue and low overhead. Restaurants and retail face higher scrutiny due to failure rates but can leverage equipment and inventory as collateral. Construction businesses benefit from project-based financing tied to specific contracts.

Industry Lending Profiles

• Professional Services: Favored by lenders for stable cash flow and low capital needs
• Healthcare: Strong funding options due to insurance reimbursements and essential services
• Manufacturing: Equipment financing readily available using machinery as collateral
• Technology: Venture debt and revenue-based financing align with growth trajectories
• Retail/Restaurant: Higher rates but multiple specialty lenders serve these sectors

Final Thoughts: Your Path to Funding Success

Securing small business funding with poor credit requires strategy, persistence, and the right partners. The financing landscape has evolved to recognize that credit scores don’t define entrepreneurial success. From SBA microloans requiring no minimum score to online lenders approving 500+ scores within hours, options exist for every situation.

Success comes from matching your business needs with the right funding source. Start by honestly assessing your credit situation and immediate capital needs. If you need funds within days, online lenders provide speed despite higher costs. For larger amounts with time to prepare, improving credit while pursuing SBA loans or alternative banking partnerships yields better terms.

I’ve spent two decades helping businesses navigate financial challenges at Complete Controller. The entrepreneurs who succeed approach funding strategically—they secure necessary capital today while building toward better options tomorrow. Your credit score is just one data point in your business story. Focus on demonstrating strong operations, clear growth plans, and responsible financial management.

Take action today by pulling your credit reports, organizing financial documents, and exploring the funding options outlined in this guide. Visit CompleteController.com for personalized guidance on optimizing your finances and accessing best banks for small business loans. Our team specializes in helping entrepreneurs with credit challenges build strong financial foundations that attract funding and fuel growth.

FAQ

What credit score do banks require for small business loans?

Traditional banks typically require personal FICO scores of 680 or higher for small business loans. However, SBA microloans have no minimum credit score requirement, and online lenders often approve applications with scores as low as 500. Credit unions usually fall in between, accepting scores around 620-650.

How long does it take to get approved for a small business loan with bad credit?

Approval timelines vary dramatically by lender type. Online lenders often provide decisions within 24 hours and fund within 1-3 business days. SBA microloans typically take 30-60 days due to additional documentation requirements. Traditional bank loans can take 60-90 days for complete processing and funding.

Can I get a bank loan with a 600 credit score?

Yes, several options exist for 600 credit scores. Some credit unions and community banks approve loans at this level, particularly with strong business financials or collateral. Online lenders regularly work with 600 scores, though interest rates will be higher than prime borrowers. SBA microloans remain available regardless of credit score.

What’s the difference between SBA microloans and standard bank loans?

SBA microloans cap at $50,000 and specifically target underserved businesses with no minimum credit requirement. They include mandatory business counseling and technical assistance. Standard bank loans offer higher amounts (up to millions) but require stronger credit, established business history, and often collateral. Microloans typically fund in 30-60 days versus 60-90 days for traditional loans.

How do I apply for an SBA microloan?

First, locate an SBA-approved intermediary lender in your area through the SBA website’s lender match tool. Prepare a business plan, financial projections, and personal financial statement. Submit your application directly to the intermediary (not the SBA), attend required business training sessions, and work with their advisors throughout the process. Most intermediaries provide application assistance to improve approval chances.

Sources

1. Bankrate. (2025, April 15). “How To Get A Business Loan With Bad Credit.” https://www.bankrate.com/small-business/business-loan-bad-credit/

1. Cleveland Federal Reserve. (2024, March). “2024 Report on Employer Firms: Findings from the 2023 Small Business Credit Survey.” https://www.clevelandfed.org/collections/press-releases/2024/pr-20240307-fed-survey

1. Experian. “How to Improve Your Credit.” https://www.experian.com/blogs/ask-experian/how-to-improve-your-credit/

1. GreenBox Capital. “Business Loans for Bad Credit.” https://www.greenboxcapital.com/business-loans-bad-credit/

1. Kansas City Federal Reserve Bank. (2025, March). “Small Business Lending Survey.” https://www.kansascityfed.org/surveys/small-business-lending-survey/

1. Lendio. “Business Loan Requirements.” https://www.lendio.com/business-loans/requirements/

1. Lending Tree. (2025, May 5). “Best Business Loans for Bad Credit in May 2025.” https://www.lendingtree.com/business/loans/bad-credit/

1. NerdWallet. (2024, November). “SBA Microloan: What It Is and How to Apply.” https://www.nerdwallet.com/article/small-business/sba-microloans

1. PNC Bank. “Unsecured Small Business Loan.” https://www.pnc.com/en/small-business/borrowing/unsecured-term-loans.html

1. SBA.gov. “Loans | U.S. Small Business Administration.” https://www.sba.gov/funding-programs/loans/microloans

1. SBA.gov. (2022, January). “Microloan Program Outcomes Evaluation.” https://www.sba.gov/document/report-microloan-program-outcomes-evaluation

1. SBA.gov. (2017, December). “Microloan Program Celebrates 25 Years in Business.” https://www.sba.gov/blog/sbas-microloan-program-celebrates-25-years-business

1. Wells Fargo. “Small Business Loans and Lines of Credit.” https://www.wellsfargo.com/biz/loans-and-lines/

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.

Social networks are constantly evolving, all the more so with COVID-19. Their goal? Keep their place among the most popular channels of modern marketing. They are, therefore, far from being static. What worked a few months ago may not give the same results today. Habits change, platforms evolve. New ones are created. With COVID-19, all of these dynamics have been accentuated!

 

All of this influences the way people use and respond to social media marketing. Marketers must, therefore, adapt their strategy to reach their business audiences. According to statistics from eMarketer, the number of social media users worldwide will exceed 3 billion in 2020. 80% of internet users are on social networks! These social platforms are an integral part of consumers’ daily lives. To be effective, it is strongly advised that marketers regularly update their social media marketing strategy to drive significant traffic to the businesses they represent.

Instagram Stories

Instagram has grown enormously in recent years. It is a network that continues to broaden its horizons and to introduce innovations that are a hit! Stories are a global trend, regardless of age or culture. Over 400 million Instagram users share stories every day! Story growth occurs both with consumers and businesses. Marketers use this tool to generate leads and generate interest through inbound marketing and influencer marketing. According to Hootsuite’s survey of social trends, 64% of marketers have already started to integrate Instagram stories into their social media content or plan to do so after COVID-19.

But why are stories so popular?

• They offer real-time updates and content.
• They are always up to date since their content is available for 24 hours. No obsolescence!
• They help to create innovative and fun messages.
• They allow sharing the publications of other users. It’s easy to connect to other accounts, other companies. This offers increased visibility for marketers!

With Instagram’s new business features, including “Instagram Insights” and “Stories About You,” you can expect to see more Stories miracles in 2020.

Instagram Insights is a new analysis tool available for each Instagram commercial account. It provides data on content, subscriber demographics, and engagement. This information allows you to track and measure your Instagram marketing efforts to help you improve constantly.

Stories About You is also a new feature that is only available to Instagram users with a business account or a creator account. With this feature, users are notified whenever they are mentioned in “a Story.” Stories About You strengthen user engagement by making it easier to respond and share Instagram stories that mention your account.

Alternative Platforms

Facebook, Twitter, Instagram, and LinkedIn are the main platforms used by B2C brands. LinkedIn is also vital for B2B companies. However, Twitter and Facebook are less and less attractive to young people who prefer other social platforms, including TikTok!

TikTok has around 800 million monthly active users worldwide. It has been downloaded over 2 billion times! Marketers and business leaders whose target audiences are young people should consider TikTok as a winning platform! Since 41% of TikTok users are between 16 and 24 years old!

Another platform that is on the rise: Pinterest! Especially for e-commerce via social networks. Pinterest currently has over 320 million active users. Although this figure is not as high as that of other social networks, it remains substantial, especially when you consider the exceptional sales power of Pinterest.

With 48%, shopping is one of the main activities of Pinterest users, ranking just after viewing photos (57%). It is, therefore, obvious that Pinterest can be a marketing power for online stores. Users buy the products they discover on Pinterest organically at a much higher rate than the average social platforms. This is because Pinterest users proactively search for things to buy rather than scroll through a feed reactively.

Using these alternative platforms allows you to get in touch with an audience that may not be on Instagram, Facebook, Twitter, or LinkedIn. They also offer different ways to share your content. Additional tools that are worth considering in your social media marketing strategy.

Increased Use of Augmented Reality (AR)

Augmented reality (AR) and virtual reality are interactive experiences that integrate virtual objects into the real world or imagined. For example, the user can superimpose sounds, videos, or graphics on the world around him. Studies say that by 2022, this market is expected to reach $ 209.2 billion. This technology is progressively evolving, with an increased application for e-commerce and sales. With an augmented reality headset, it is now possible to visit your next home and choose your parquet. In recent years, social media platforms have found interesting ways to use this technology. Instagram, Snapchat, TikTok use augmented reality through their filters. Users can have fun!

Brands can take advantage of augmented reality to provide a better shopping experience for their customers. For example, Sephora offers a unique shopping experience through its Sephora Virtual Artist application. Just upload a photo of the face to the application to test several makeup products before going to the checkout. The cosmetic brand recently launched this technology on Facebook.

Influencer Marketing

Influencer marketing is not a new trend, but it will grow even faster in the future. Social networks are now dominated by influencers who promote brands. It is, in fact, sometimes much cheaper to invest an influencer than to run an advertising campaign. With just as much, see more, good results. Influencers also help marketers to achieve various goals. Like increasing engagement, lead generation, number of followers, and of course, return on investment!

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.

If you are a small business owner and have not established a succession plan, now is the perfect time to start. You can facilitate the change of ownership of your business by paying special attention to succession planning.

A Prince Edward Island potato producer-only started talking about his retirement at 80, after being diagnosed with dementia. His case is no different from many other small business owners who have not established a succession plan.

By acting now to establish a succession plan, you can help keep your business running smoothly. When the time comes to pass the torch, adopting a prudent exit strategy will allow you to preserve the value of your business – as well as your legacy. 

Why is planning important?

A good plan allows you to maintain good relationships with your employees and business partners, which can be particularly important if your family members are among them. You should also make sure that your business is solid and has good prospects for the sale price you want. 

Succession planning helps you:

• Protect your business legacy
• Ensure the continuity of service in your community
• Adding value to your business
• Ensure the financial security of your family and your partners
• Preparing for the unexpected (illness, accident, death)
• Preparing for the future

A change in management can also cause problems for employees, suppliers, and customers. Ensure your strategy includes a communication plan for your business partners and team members to keep all parties informed during the transition. It is also essential to make sure that the smooth running of your business continues.

When should you start?

Why not today? If you plan to leave your business in the next five years, you should start planning now.

Even if your business is newly established, having a plan allows you to prepare for the unexpected, good business continuity planning. Experts say the transition process can take up to five years, and even up to ten years when it is a family business, depending on the organization’s size and complexity.

In a family business case, the relationships and emotions involved can complicate matters, since most people are uncomfortable talking about things like age, death, and finances. According to Susan Ward, experienced business writer and business owner, 70% of businesses don’t survive the transition from founder to the second generation. In most cases, the factor for failure is a tax or family conflict, two things that can be addressed in a good family business succession planning plan. 

Who is the ideal candidate to replace you?

Whether you want to transfer your business to a family member, employee, or an external third party, you will need to think about the skills and qualifications that a person will need to acquire to run the business, a process that can take years. Once your successor is chosen, a transition plan will take into account the training he needs.

What support will you need?

You don’t have to fend for yourself. Experts are available to assist you with succession planning. The use of professionals is essential to small businesses’ success, including when they are transferred to another owner. They offer knowledge and expertise in areas that you may not be familiar with. They can also complement your management team to keep your business running efficiently.

As an entrepreneur, you could benefit from the services offered by four types of professionals:

• Accounting
• Lawyer
• Financial planner
• Financial security advisor

What is your succession plan?

The choice of your successor, your business structure, and the collaboration with one of these specialists will facilitate the transfer of your business. By determining how you will transfer your business – whether, for example, to a family member or through a cash or financing sale – it will be easier to establish a program to follow to make room for the next generation. And with the helpful resources available to you – and many of which are free – the best time to plan for the future is now.

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 organization seeks to improve its employee productivity by incorporating different training and development strategies. Time management is an essential skill that is rarely found in most employees. It is a skill that isn’t necessarily innate but instead develops over time with proper guidance, procedures, and training. With so many distractions occurring in an average workplace environment, focusing on essential tasks can become quite tricky. This article looks at tips that management can incorporate to elevate employee time management skills that would effectively lead to better efficiency and increased productivity.

Maintaining timesheets

Keeping a record of how and where time is spent on a regular day can provide great insight into how time is being utilized at the office. Maintaining a timesheet will clearly show periods of productive work and areas where time was spent doing work that wasn’t entirely necessary and didn’t bring any value to the business. Even maintaining a timesheet for a few weeks can provide all the information one needs to figure out where time can be better utilized and what activities are consuming too much time that doesn’t benefit the business or its overall goals.  

Working on a fixed schedule

By incorporating, a fixed schedule of tasks and activities to be carried out within the day is another method of increasing productivity. Fixed schedules can be a useful tool for time management, but only if the organization is well versed in knowing how long each task should take on average per employee. Fixed schedules can be used in the manufacturing sector, but it is a difficult thing to implement in businesses that are continually changing as such businesses require flexibility in their workforce that a fixed schedule does not allow. Fixed schedules, however, are beneficial to many businesses, it must be determined on a case-by-case basis.

Set milestones and objectives

Another way one can improve employees’ time management skills is by setting fixed deadlines, milestones, and objectives. This helps ensure that employees know the most critical tasks and how to best divide time to accomplish each task individually in the desired period. This is a relatively autocratic form of management where employees feel empowered to make their schedules as long as targets are being met. However, this method can be both a plus point and a drawback depending on employee etiquette and work ethic. If you are in a business that adheres to strict deadlines, this may be an effective way of managing employees as it ensures that no matter what work is being concluded on time.

Coaching, training & organization

The best to consolidate time management skills within the employee pool is by training and coaching. Training sessions that outline the importance of effective organization and time-saving techniques can improve and enhance employee time management skills. Personal coaching for employees who may be struggling to hit desired targets can also be extremely beneficial. Keeping an eye on employee activities within a workplace environment can provide clues as to where and how their time can be better utilized. Teaching employees how to maintain a proper calendar, to-do list, and even a time journal can positively connotate their productivity and output.

Conclusion

Time is the world’s most precious commodity, and it is one of the few things in life that can only be spent, not saved. Effective use of time, both from a professional and a personal standpoint, is of utmost importance to get to a person’s fullest potential. Encouraging employees to practice time management and mandating specific time management procedures like keeping a time log can lead to a more productive and efficient workforce. Employees must be aware of how valuable and useful time management skills can be from a personal and professional standpoint.

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.

There are many advantages to buying an existing business rather than starting one. First, you avoid many of the ills associated with starting a business from scratch, such as those caused by new product development, hiring staff, and building a customer base. You also avoid going through the crucial first years that are often fatal to new businesses. It can also be an excellent way to break into areas where start-up costs are high, such as tourism and manufacturing. Ask yourself the following six questions to make sure you’re buying a profitable business.

Despite these advantages, existing businesses are rarely perfect, and ignoring their flaws can lead to a host of problems.

Here are six questions to ask yourself to make sure the proposed acquisition is right for you.

Why do customers appreciate the business?

A business with an established client base can be more expensive to purchase, but it is not necessarily bad. You inherit the company’s ” business background, “giving you easier access to cash and building on relationships already established with customers.

But to make sure a business is worth your time, you need to find out why people do business with it.

• Is it for its quality products or its excellent service?
• Is it for its experienced and professional employees?
• Is it for the relationship between the customers and the owner?
• Will a change of ownership make a difference?

Market research can explain ​​how customers perceive the company’s products, services, and overall brand.

Think carefully before acquiring a reputable business, as it can be challenging to change flawed perceptions. Ask yourself why the business is for sale and find out about its reputation and its owner.

See what people are saying about the online business. It may not represent the big picture, but you will get a good idea of ​​what inspires the company and what needs to be done to change negative feelings.

The product or service is unique in the market?

If your target business is in an industry where competition is intense, probe deep to find out how the business stands out, as this is a key reason customers are loyal (see above).

If there are no apparent distinguishing features, think about what you can do to stand out from the crowd, and the efforts and costs involved.

What does corporate culture look like?

Take a look at the company’s culture, its management style, the quality of its work, and the relationships that the seller maintains with employees and managers. Check whether these aspects correspond to your philosophy and whether it is worth making changes to them.  Rapid change after an acquisition can cause resistance from employees, suppliers, and partners.

Long-term employees are a great asset. They know the business, the products, and the processes. Also, they can provide company and sector information. If staff turnover is high, question the cause. Is it due to competition within the sector? Is it because of the corporate culture? Is this linked to the aging of the workforce? The answers to these questions will give you an overview of the challenges or needs in human resources.

Do you know enough about the company or the sector?

Do not fall into the trap of buying a business in a field that is unknown to you because it seems to you to be a “safe deal.”

It is much more challenging to succeed in a sector where you have no experience or which interest you little. Evaluate your skills, interests, and experience, then make sure the business matches this insight’s results. By choosing a known territory, you significantly reduce the risk of failure.

• Will this new business integrate with the businesses you already own?

If you want to expand your business by acquiring, you will need to seek synergy in key areas.

• Its products or services should be related or complementary to your current offer.
• Marketing and sales techniques need to fit in with each other.
• You will also need to harmonize production and distribution methods.

You will need to integrate the new business staff into your existing activities and have a plan to deal with potential redundancies.

It may be useful to start thinking about the integration plan during the due diligence process. Your evaluation must go beyond simple accounting to also take into account your strategic objectives.

Are there any hidden costs?

Hidden issues can make the business less attractive than it initially appeared. For example, if the lease for facilities or equipment expires soon, you may have to incur unforeseen expenses. By doing proper due diligence, you can uncover these problems and avoid costly oversights that can get you into unnecessary debt.

Once you have started the due diligence process, do not limit yourself to analyzing activities and financial statements. It would be best if you also spoke to employees and suppliers to assess the fair value of the business.

Finding a company to buy it can be time-consuming and costly. But, when done right, the effort can be worth 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.

If you are a business owner, you probably focus your efforts on the day-to-day tasks to keep it going. You may not have thought about retirement, even if it is fast approaching. Don’t worry, and you are not alone. More than three-quarters of small business owners do not have a retirement plan, either for themselves or for their employees.

While some workers benefit from a pension plan or a supplemental pension plan, this is not the case for most small business owners. It is you who must plan your future and determine how you will finance your retirement. Here are some questions to help you prepare.

How soon would you like to retire?

It is a good starting point for planning your future. Even if you have only a vague idea of ​​when you will retire, the important thing is to have a goal to achieve. This will help you think about the number of years you want to continue working, what you would like to do after retirement. It will also help you determine how much you can save by then.

There are many factors to consider, such as your physical and financial health, when determining the date that is best for you, your family, or anyone else with whom you plan to retire.

What lifestyle do you want to have in retirement?

It is essential to consider the lifestyle you want to have in retirement when determining the amount you will need to take full advantage of it. Consider how often you would like to travel and ask yourself if you would like to volunteer or stay home. Retiring does not mean that you have to stop working completely. You could delegate specific responsibilities, work part-time, or act as a consultant while your successor becomes familiar with the business’s inner workings.

How will you finance your retirement?

The good news is that you can choose from several options to finance your retirement. Government programs such as the Pension Plans, the Old Age Security Pension Plan can provide you with basic income. And during your working years, you can take advantage of the tax benefits offered by the registered retirement savings plan, and the tax-free savings account to save for retirement.

The individual pension plan and the retirement agreement are also options available to business owners who finance their retirement themselves.

If some owners count on their business’s sale to finance their retirement, this strategy is not without risks, the unknowns being numerous. An important question is whether someone will be ready to buy your business when you put it up for sale. It would help if you also had it appraised to find out its fair market value before you start looking for potential buyers.

Financing your retirement involves many important decisions. It would help if you spoke to your advisor about what to do to diversify your retirement income sources.

What future do you want for your business?

Every owner has to leave his business sooner or later. However, to be in good financial health at retirement and protect your assets, establishing a succession plan is essential.

Here are some scenarios to consider:

• Transfer or sell the business to a family member
• Sell ​​to a partner or employee
• Sell ​​to a third party

Even if you know who will take over your business, it will take time – perhaps a few years – to help them prepare to take over. Your successor may need to acquire specific skills and build relationships beforehand, in addition to having to become familiar with all aspects of the business.

It would help if you did not answer all these questions alone: ​​your advisor, accountant, and a lawyer can help you with your planning, be it estate planning, tax-efficient investments, or retirement savings plans.

Knowing that you are ready for various situations can save you a lot of worries and allow you to focus on your business. Even if retirement is still far away, having a plan means that you can cope with any eventuality. It is merely a good business strategy.

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.

Becoming your boss can be thrilling and possibly a little scary. Once you decide to strike out on your own, you have a lot to consider. While many freelancers or sole proprietors develop their business plans, how to handle taxes should be figured into the financial section of the plan. While it is suggested that you hire a professional to handle your taxes, no matter what type of business owner you are, it is still good to understand how taxes are handled for the freelancer or sole proprietor. Here are five tax tips any freelancer or sole proprietor can apply to their business.

Know the Forms

Because the business’s net profits are taxable, you will need to become familiar with a Schedule C form. It is the form where sole proprietors report income and expenses. If your business earns under a certain amount, you may file a Schedule C-EZ and check with the IRS for the current minimum income. You will also need to obtain a Schedule SE to calculate the self-employment tax appropriately. If doing your taxes, you will need to know these forms and study their instructions. Even if you hire a tax pro, your familiarity with these forms will make the job easier for you both.

If you don’t hire a professional and decide to do it yourself, make sure you have the best tax software specifically designed for the freelancer or sole proprietor. This is not the time to wing it.

Organize Your Income and Expenses

Being self-employed usually means your income is inconsistent, so estimate your tax liability during the year to avoid surprises. Unfortunately, if you’re audited, the burden is put upon the one being audited to prove the income and expenses on the audited tax return. If you are organized in your receipts and bookkeeping, this should be easy to get through. An audit is not always triggered by something the taxpayer did incorrectly; some audits are random, and if you are organized, you will not need to worry. This organization will make your taxes easy to prepare, whether you give it to a professional or prepare them yourself using tax prep software.

Know the 1099

If a client pays you more than $600, they must send you a 1099 and send a 1099 to the IRS. You need to make sure you include it with your tax preparation information. Even if the client does not pay you more than $600 or doesn’t file a 1099, you are still expected to report all income you make as a freelancer or sole proprietor. These tax mistakes are often caught years after the error is made, and the IRS not only expects you to pay the amount you should have but also charges interest. It is best if you claim income and pay taxes on it when it is due to avoid issues with the IRS down the line.

Claim Car Expenses

Even if you don’t primarily use your car for your business, there are times you can write off car expenses. If you drive to any business-related meetings or errands, you should keep an accounting of gas and mileage. You can also write off some of the car repairs if they become necessary. Check the IRS website to find out how many cents per mile you can write off for business-related car use. It would help if you kept detailed mileage accounts for business pertaining to car use to get the most out of this valuable deduction.

You can also deduct your actual car expenses, such as depreciation, licenses, gas, oil, insurance, registration fees, repairs, and tires. The car expense deduction generally is based on the total miles driven for business. If leasing your vehicle, you should check with the IRS and determine if your lease payments can be deducted.

Home Office Deductions

If you work from home or use part of it in your business, you can deduct some of your mortgage or rent and insurance, utilities, repairs, and similar expenses. You can calculate your home office deductions in one of two ways. First, figure out what percentage of square footage you use exclusively for business activities. That percentage of your home-related expenses becomes deductible. So, if your office is 10 percent of your home’s square footage, 10 percent of your rent, utilities, and other home expenses for the year may be deductible. If any repairs occur within the office area of your home, those repairs are often fully deductible.

The second way to figure home office deductions is to deduct $5 per square foot for businesses up to 300 square feet. You keep fewer records but generally get a smaller deduction, so calculate things both ways before filing. Consult the IRS website for details or the latest changes in deduction amounts.

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 responsible adult should have savings in their budget, but the truth is most people don’t have anything saved, nor do they budget. There is a psychology to budgeting and finances that has people worried they would have to give up a lot or make significant changes in their lifestyle to stay out of debt and go further in the budget to save. Most hard-working adults live paycheck to paycheck with no safety net and don’t think there is anything they can do to change that without giving up what they are working hard to do. 

Making a budget is just the beginning. There are many areas where you can make changes or try new ideas that will boost savings without having to live a boring life with no fun or luxury. Here are three quick and easy ways you can boost savings without giving up much if anything at all.

Rework Your Bills

Many people don’t realize they can renegotiate some of their bills. Even utilities. What? Yes, you can negotiate almost everything. Call your utility companies and see about paying a fixed amount usually taken from an average of past bills for that address. If you overpay the actual bills by the end of the year, you get money back, or if you used more than expected, you might have to pay the overage at the end of the year. If you are diligent about keeping it within this fixed amount, this can save you big! If you are a good driver, you can get insurance companies into a bidding war to get your business. They want customers paying in premiums that are low risk ever to make a claim. They will make excellent offers to get you. You can also call your cable company and ask for the deals they are offering new customers. If they say they won’t give that to you, their loyal customer, let them know you will go to another company. You can do the same thing with your phone carrier, find out what offers they have and negotiate them yourself.

The bottom line is, you should try reworking all of your bills, getting better interest rates after you have been paying on time for a period, or getting fixed payments. The most that any company you are trying to negotiate with can say is no, but maybe they will help you save money.

Better Banking

Your banking institution will generally offer you bank accounts that will cost them nothing. Do your research and make sure you look into every type of bank account provided. Some bank accounts offer cash back for debit card usage or higher interest savings or checking accounts. Don’t settle for the plain bank account with no frills you are offered. Research and save!

The recent trend is banking institutions offering what is called a hybrid checking account. This checking account is a checking and savings account in one, and it provides a higher interest rate. This will add up, especially if you steadily deposit into this account.

Good Investments

You are thinking you barely make enough to cover bills. How can I even think about investing? There are a few ways. First, if your company offers a 401(k), contribute as much as you can. If your company matches a certain percentage, contribute that amount, so you get the most bang for your investing buck. Micro-investing is a trend that is also an easy way to invest when you don’t have a lot of wiggle room in your budget to invest. These spare change investment apps won’t make you rich or able to retire early. What they will do is give you the money you can use to pay down debt or put into more significant investments.

When you go for more significant investments, make sure you have paid down your debts and have an emergency fund first. Your priority should be getting out of debt and having the ability to cover emergencies and loss of income, then investments.

Conclusion

The truth is any changes, large or small, can help boost savings. These three ideas are simple and don’t cost you in major changes to your lifestyle or spending. Try them out, and when you see how easy it is, you can get bolder, and before you know it, you will have a great retirement nest egg.

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.

Significant Cyber Attacks:
Lessons from 2020’s Threats

2020 cyber attacks reached unprecedented levels, with the SolarWinds supply chain breach compromising over 30,000 organizations, ransomware incidents costing businesses $11.5 billion globally, and data breaches skyrocketing by 300% as companies shifted to remote work—creating a perfect storm of vulnerabilities that forever changed cybersecurity priorities.

After 20 years leading Complete Controller through technological transformations, I’ve witnessed countless security challenges, but 2020 stands apart as the year that shattered every assumption about digital safety. The pandemic didn’t just change how we work—it exposed critical weaknesses in our collective cyber defenses, teaching us lessons that every business owner, bookkeeper, and financial professional must understand to protect their operations moving forward.

What were the most significant 2020 cyber attacks?

• The SolarWinds supply chain breach, Microsoft cloud exploits, and global ransomware attacks defined 2020’s threat landscape
• Remote work vulnerabilities triggered a 300% increase in data breaches, with 46% of companies experiencing incidents within two months of going virtual
• Manufacturing, healthcare, and government sectors bore the brunt, with manufacturing seeing double the attack frequency of previous years
• Credential stuffing attacks hit 193 billion attempts, causing average annual losses of $6 million per affected business
• Small businesses faced disproportionate damage, suffering 700,000+ attacks and $2.8 billion in total losses

The Biggest 2020 Cyber Attacks: Ransomware, Supply Chain & More

Ransomware transformed from nuisance to existential threat in 2020, with organizations worldwide losing $11.5 billion to encryption attacks that paralyzed operations and held data hostage. The SolarWinds breach stands as the year’s most devastating incident, exploiting trusted software updates to infiltrate thousands of organizations, including U.S. federal agencies, Fortune 500 companies, and NATO systems.

Manufacturing companies became prime targets in Q4 2020, experiencing more ransomware attacks than any previous year on record. Healthcare, manufacturing, and public administration together accounted for half of all ransomware incidents, revealing how attackers strategically targeted sectors already stressed by pandemic response efforts.

Major incidents that defined 2020

• SolarWinds Supply Chain Attack: Russian state actors compromised the Orion platform between September 2019 and March 2020, with malicious updates installed by over 18,000 customers
• Toll Group Double Strike: Australia’s logistics giant suffered two separate ransomware attacks within three months, disrupting global shipping operations
• Cognizant Technology Solutions: The IT services provider faced a Maze ransomware attack that cost between $50-70 million in recovery efforts
• Nintendo Data Breach: 300,000 user accounts compromised, with attackers accessing payment information through legacy login systems
• Broadvoice Communications: 350 million customer records, including call transcripts and personal details left exposed on an unprotected database

Case Study: The SolarWinds Breach—A Global Supply Chain Catastrophe

The SolarWinds incident redefined our understanding of supply chain vulnerabilities. APT29, suspected Russian intelligence operatives, inserted malicious code into routine Orion software updates, creating a backdoor into networks across government agencies, technology companies, and critical infrastructure providers.

Attack timeline and scope

Initial compromise began in September 2019, with attackers maintaining undetected access for over six months. By December 2020, when FireEye discovered the breach, at least 200 organizations had been directly compromised, though the full impact reached over 30,000 entities using the affected software versions.

Critical outcomes

Organizations spent months isolating systems, conducting forensic analysis, and rebuilding trust with stakeholders. The U.S. government alone allocated billions for incident response and future prevention measures. Private sector victims faced average recovery costs exceeding $11 million per organization.

Essential takeaways for financial services

Supply chain vetting must extend beyond direct vendors to include their security practices and update mechanisms. Network segmentation and zero-trust architectures provide crucial defense layers when trusted tools become attack vectors. Most importantly, detection capabilities must evolve beyond perimeter defense to monitor internal traffic for anomalous behavior.

Why Remote Work Made 2020’s Attacks So Devastating

The mass exodus from offices to home networks created an unprecedented expansion of attack surfaces. Within the first two months of pandemic lockdowns, 46% of businesses reported at least one cybersecurity incident directly linked to remote work configurations. Data breaches increased by 300%, while ransomware attacks surged 90% compared to pre-pandemic levels.

Personal devices mixed with corporate data, home routers replaced enterprise firewalls, and rushed deployments left security gaps that attackers eagerly exploited. Cloud services, suddenly supporting entire workforces instead of select teams, became prime targets for credential theft and unauthorized access attempts.

Endpoint protection for remote bookkeeping teams

Financial services firms face unique risks when bookkeepers access sensitive client data from home networks. Each remote connection potentially exposes tax records, banking credentials, and proprietary financial information to interception or theft.

My team at Complete Controller implemented strict VPN requirements, device encryption mandates, and twice-daily backup protocols within weeks of going remote. These measures prevented several attempted breaches that could have compromised thousands of client records. The investment in security infrastructure paid for itself within months through avoided incident costs and maintained client trust.

What Can Business Owners and Bookkeepers Learn from 2020 Cyber Attacks?

Small and mid-sized businesses bore a disproportionate burden in 2020, facing over 700,000 attacks that resulted in $2.8 billion in damages. Nearly half of all data breaches targeted companies with fewer than 1,000 employees, exploiting their limited security budgets and IT resources. For bookkeeping and financial services firms handling sensitive client data, these statistics demand immediate action.

Government agencies, despite substantial security investments, suffered 3,236 breaches between 2020 and 2021. Social engineering, primarily email phishing, accounted for 69% of these incidents. If organizations with dedicated security teams and million-dollar budgets fell victim to basic attacks, smaller firms must prioritize fundamental protections over complex solutions.

Actionable steps for bookkeeping practices

• Implement automated backup systems that create encrypted copies of client data every four hours, stored in geographically separate locations
• Deploy multi-factor authentication on every system touching financial data, including email, cloud storage, and bookkeeping software
• Conduct monthly phishing simulations to identify vulnerable team members and provide targeted training based on failure rates
• Establish vendor security requirements that mandate SOC 2 compliance and annual penetration testing for any third-party accessing client information
• Create incident response playbooks detailing exact steps for data breach scenarios, including client notification templates and regulatory reporting procedures

The Overlooked Human Factor: Trust, Training & Recovery After a Breach

Technical defenses mean nothing when employees unknowingly open doors to attackers. In 2020, automated credential stuffing attacks reached 193 billion attempts globally, with businesses losing an average of $6 million annually to this single attack vector. These breaches often go undetected until clients report fraudulent transactions, making trust recovery as critical as technical remediation.

Recovery demands radical transparency with affected parties. When one of our vendor partners experienced a breach that potentially exposed client data, we immediately notified all affected accounts, provided credit monitoring services, and implemented additional authentication layers. Our proactive communication actually strengthened client relationships, with several praising our handling compared to other firms that delayed disclosure.

Communication strategies for financial services after cyber events

• Draft breach notification templates in advance, including specific details clients need for their own risk assessment
• Schedule quarterly security updates for clients, demonstrating an ongoing commitment to protection even without incidents
• Host virtual security awareness sessions that teach clients to recognize threats targeting their businesses
• Publish post-incident analyses that detail lessons learned and improvements implemented

Building a Future-Ready Cybersecurity Plan

Most 2020 victims shared one fatal flaw: reactive security postures that addressed yesterday’s threats while ignoring emerging risks. Manufacturing companies that invested heavily in perimeter defense still fell to insider threats. Healthcare systems with robust backup procedures discovered their backups were also encrypted by ransomware. Success requires anticipating attack evolution, not just patching known vulnerabilities.

Your 90-day security transformation roadmap

Days 1-30: Foundation Assessment

Catalog every system touching financial data, from primary bookkeeping platforms to communication tools. Map data flows between systems, identifying where client information travels and rests. Audit all third-party integrations for security certifications and breach history.

Days 31-60: Critical Gap Remediation

Deploy missing technical controls, starting with multi-factor authentication and endpoint detection. Update incident response plans with 2020’s lessons, including supply chain compromise scenarios. Begin mandatory security awareness training focused on social engineering recognition.

Days 61-90: Continuous Improvement Launch

Establish monthly vulnerability scanning schedules and quarterly penetration tests. Create security metrics dashboards tracking patching compliance, training completion, and threat detection rates. Schedule semi-annual tabletop exercises simulating breach scenarios specific to bookkeeping operations.

Final Thoughts: Leading with Experience Through Cyber Uncertainty

Twenty years of building Complete Controller taught me that perfect security doesn’t exist, but disciplined preparation creates resilience that transforms potential disasters into manageable incidents. 2020’s cyber attacks weren’t just technical failures—they revealed our collective complacency about digital threats. The question isn’t whether your firm will face an attack, but whether you’ll be ready when it arrives.

Take action today. Audit your systems, train your team, and build defenses that adapt to evolving threats. Your clients trust you with their financial futures—honor that trust by protecting their data with the same diligence you apply to their books. For comprehensive guidance on implementing these security measures while maintaining operational efficiency, connect with our team at Complete Controller, where we’ve spent two decades perfecting the balance between accessibility and protection in cloud-based financial services.

Frequently Asked Questions About 2020 Cyber Attacks

What was the most damaging cyberattack of 2020?

The SolarWinds supply chain breach was the most damaging cyberattack of 2020, compromising over 30,000 organizations worldwide, including multiple U.S. government agencies, with cleanup costs exceeding billions of dollars and taking months to fully remediate.

How much did cyber attacks cost small businesses in 2020?

Small and mid-sized businesses lost approximately $2.8 billion to over 700,000 cyberattacks in 2020, with 46% of all data breaches targeting companies with fewer than 1,000 employees, despite their limited security resources.

Which industries were most targeted by ransomware in 2020?

Manufacturing, healthcare, and public administration sectors experienced the highest ransomware attack rates in 2020, with manufacturing seeing double the attack frequency of previous years, and these three sectors combined accounting for 50% of all ransomware incidents.

How did remote work increase cyber attack risks in 2020?

The shift to remote work caused a 300% increase in data breaches and 90% surge in ransomware attacks, with 46% of companies experiencing security incidents within just two months of transitioning to work-from-home arrangements.

What security measures proved most effective against 2020’s cyber threats?

Multi-factor authentication, automated encrypted backups, employee phishing training, and zero-trust network architectures proved most effective, while organizations that relied solely on perimeter defenses or delayed security updates suffered the highest breach rates.

Sources

• ARIA Cybersecurity. (2020). “The Top 10 Most Significant Data Breaches Of 2020.”
• Barracuda Networks. (October 2020). “Your Remote Workers: A Target for Cybercrime.” American Bar Association Legal Technology Survey. https://www.alanet.org/legal-management/2020/october/columns/your-remote-workers-a-target-for-cyber-crime
• CloudDefense.AI. (2020). “List of Data Breaches and Cyber Attacks in 2020.”
• New York State Attorney General’s Office. “Business Guide for Credential-Stuffing Attacks.” https://ag.ny.gov/publications/business-guide-credential-stuffing-attacks
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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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