Category: Content

In the contemporary world, almost everyone possesses a card. These cards come in various forms, including banking cards (both credit and debit), establishment cards (enabling purchases within a network of stores or businesses), and telephone or point accumulation cards.

However, our attention will be directed towards a specific category of cards that can lead to complications if lost or stolen – namely, credit, debit, or establishment purchase cards. The criminals’ potential misuse of these cards can lead to unwelcome alterations in our financial accounts.

Loss of Credit, Debit, or Purchase Cards

When it comes to credit, debit, or purchase cards, a crucial piece of advice is to carry only a select few at a time, considering the current era. The loss of a wallet is a bitter experience, given the array of cards it typically holds – from IDs and driver’s licenses to insurance cards and Social Security.

However, if an unfortunate loss occurs, swift action is imperative. Ensuring the safety of your cards and maintaining a constant awareness of their whereabouts is paramount. This vigilance is the key to promptly realizing their absence and taking the necessary steps.

Theft of Credit, Debit, or Purchase Cards

In the event of the theft of credit, debit, or purchase cards, it is crucial to take immediate action. If you have evidence that your cards were stolen, such as a robbery, break-in, or car theft, your first step should be to call the respective card issuer to cancel them. Simultaneously, report the theft to the authorities promptly.

Filing an official complaint is a crucial document detailing the day and time of the incident. This documentation becomes invaluable when addressing any potential misuse of the cards. While you may be fortunate enough to cancel the cards before unauthorized individuals use them, the risk of monetary loss or unauthorized purchases remains. Therefore, swift reporting and follow-up actions become essential in such circumstances.

Understanding Responsibility for Unauthorized Card Transactions

In instances of theft, customers are typically held responsible for unauthorized transactions made before the official complaint, with a liability limit of $150. The financial institution will assume responsibility for amounts exceeding this limit. However, suppose funds are withdrawn from our accounts via an ATM using our PIN. In that case, the entity may not bear responsibility, as it could be considered product misuse, especially if the PIN is readily available (e.g., written down somewhere). It underscores the importance of safeguarding personal identification information to prevent unauthorized use in case of card loss or theft.

Unauthorized Establishment Charge

If the card has been used for purchases in establishments following a report of theft or loss, the user should file a complaint referencing the earlier report. Any purchases made after the denunciation date will not be the user’s responsibility. This is supported by evidence that the user did not sign the receipts for those purchases, and the establishment failed to identify the cardholder through their ID accurately.

Consequently, the establishment is obligated to refund the money to the cardholder. When making purchases at establishments, it is advisable to avoid losing sight of the card to prevent the duplication of the magnetic strip. Additionally, retaining all purchase receipts is recommended to safeguard against being charged amounts exceeding those documented on the invoice. This proactive approach helps protect the cardholder from potentially fraudulent transactions and ensures a smoother resolution of any disputes.

Unauthorized Online Charge

When dealing with online purchases, fraud becomes more intricate, mainly when establishments are located in different parts of the world, making the claims process more challenging. In such cases, reporting the incident to the authorities and promptly canceling the affected cards are crucial steps.

To proactively prevent misuse of cards on the internet, it is imperative to ensure that the websites where card information is entered are exclusively secure. This means using pages with security certificates, identifiable by the “HTTPS” at the beginning of the web address – indicating security. Additionally, a padlock icon should be visible in the lower-right part of the screen. These security measures help users verify the legitimacy of online platforms and enhance protection against potential fraudulent activities.

Duplication of Cards

In the unfortunate event of card duplication and subsequent fraudulent use, it is crucial to report the incident promptly and cancel the affected cards. Moreover, it’s essential to be aware that in such situations, cardholders typically have the right to avail themselves of insurance coverage to address the theft.

Many cards come with built-in insurance coverage that extends to various contingencies, including those discussed here. This insurance can offer financial protection and assistance in mitigating the consequences of unauthorized transactions resulting from card duplication. Therefore, in addition to taking immediate action to address the security breach, cardholders should explore and leverage the insurance coverage associated with their cards to facilitate recovery and resolution.

In summary

In summary, when faced with the loss or theft of cards, the immediate and crucial steps are to call and cancel them as soon as possible. This swift action is essential to mitigate potential risks, prevent unauthorized use, and initiate the necessary procedures for reporting the incident to the authorities and relevant card issuers. Additionally, proactive leveraging of insurance coverage associated with the cards can contribute to a more comprehensive and efficient resolution of the situation.

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.

2020 was a year of struggle and challenge for people and industries, but the housing market stood firm in adversity. Now, in 2024, markets are recovering and stabilizing, adapting and evolving around new innovations and shifting demands. 

Here are some trends and innovations to consider if you enter the housing market this year.

Rising Prices

Prices in the housing market have been on the rise for some time now, having more than doubled in the past 30 years. This trend is about to stay the same, but data shows that prices are now rising slower than in previous years, which is a good sign.

Low Inventory

The primary cause for the consistent rise in prices in the industry is a low inventory; too many people are trying to buy houses, and not enough homes. COVID-19 exasperated this issue further when people started trying to move to locations with lower infection rates. Even after the pandemic ends, it is unlikely that this problem will be resolved.  

Rising Mortgage Interest Rates

Not long ago, the middle class could take on a mortgage to pay the full price for a new house and pay it back gradually over time. This has become increasingly difficult as mortgage rates have risen to impossible highs.

The COVID-19 pandemic positively impacted mortgage rates as interest rates across the country fell in 2020. Market analysts predict that this decline should continue downward throughout 2024.

Demographics

Since 2019, Millennials have surpassed Gen X and Baby Boomers as the dominant age group in the home-buying market. This trend will continue as more Millennials consider buying their first homes.

From Cities to Suburbs

More people have started to migrate away from urban city developments instead of looking for homes in smaller suburban communities. As the new predominant demographic in the buyers’ market, Millennials prefer suburbs over city residences because they are more affordable and experience lower crime rates.

Virtual Reality  

As Millennials have taken over as the primary demographic in the housing market, the tech-savvy generation has brought technological innovations quickly, pushing the industry in a bold new direction.

One such innovation is using Virtual Reality (VR) in the housing market. Virtual Reality housing tours were already a niche practice offered by a few realtors and agencies before 2020. However, the pandemic saw VR becoming a popular method of conducting long-distance house tours.

VR home tours have many advantages over in-person ones for both agents and buyers. 

• VR allows real estate agents to market and sell properties with little investment.
• It allows buyers to participate in several daily tours, making their home-buying journey much faster and more efficient.
• Thanks to VR, buyers can experience house tours from their homes and across cities and countries if they hope to move internationally.
• It allows potential buyers to experiment with the interior design and décor of the house by instantly customizing a digital 3D representation of it in VR, as per their liking, when such modifications to the real house would be time-consuming and expensive.

Smartphone Applications

Since smartphones started using applications over a decade ago, they have become an important part of our everyday lives. There seems to be an app for everything, and we are always connected to our smartphones in some capacity. Seeing this, real estate agencies have also decided to leverage the power of apps, creating their own apps that make the home buyer experience easier and more efficient. Apps allow buyers, sellers, and agents to remain connected and provide a platform upon which buyers can find the best options currently on the market.

Cryptocurrency

The sky-high price of Bitcoin has made it difficult for the virtual currency to function as a standard means of exchange. But with prices rising daily, the housing market may be the perfect space for Bitcoin to thrive. Experts believe the technology upon which cryptocurrency is produced and traded, Blockchain, could also be a tool for innovation in the housing industry.  

Conclusion

In conclusion, the housing market, resilient in the face of the challenges of 2020, is now in a phase of recovery and adaptation in 2024. Despite ongoing struggles like rising prices fueled by low inventory, the market is showing a positive sign with a slower pace of price increases. Demographic shifts, particularly with Millennials as the dominant force, influence preferences toward suburban living and drive technological innovations. Virtual Reality (VR) and smartphone applications have transformed the home-buying experience, offering efficient and customizable solutions.

Moreover, the potential integration of cryptocurrency, such as Bitcoin, into the housing market reflects a dynamic landscape open to innovation. Navigating these trends and embracing technological advancements is crucial for those entering the housing market in 2024, ensuring a successful engagement with the industry’s evolving dynamics.

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

By: Jennifer Brazer

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

Fact Checked By: Brittany McMillen

Subcontract vs. Hire: The Best Choice for Your Accounting Needs

Accounting subcontract or hire decisions depend on your business size, budget constraints, and specific financial needs—subcontracting offers flexibility and specialized expertise for project-based work while hiring provides consistent daily oversight and deeper integration with company culture. The right choice directly impacts your bottom line, with outsourcing typically saving 20-50% compared to full-time employees when you factor in salaries, benefits, training costs, and overhead expenses.

As the founder of Complete Controller, I’ve guided over 500 businesses through this critical decision over the past 20 years. One tech startup client slashed their accounting costs by 40% through strategic subcontracting while maintaining an in-house CFO for high-level strategy—a hybrid approach that transformed their cash flow. This article breaks down the real costs, compliance considerations, and strategic frameworks that will help you make the smartest choice for your unique situation, whether you’re a bootstrapped startup or an established company ready to scale.

What’s the best choice for your accounting needs: Subcontract or hire?

• Subcontract for specialized expertise, variable workloads, and cost savings of 20-50%; hire for daily oversight and consistent financial operations
• Subcontracting eliminates employee benefits, payroll taxes, and training costs while providing access to niche skills
• Hiring builds institutional knowledge and ensures tighter data control for sensitive financial information
• Hybrid models combine the best of both worlds—outsource routine tasks while keeping strategic roles in-house
• Your decision should align with business size, growth trajectory, and compliance requirements

Understanding the Core Differences: Subcontracting vs. Hiring

The fundamental distinction between subcontracting and hiring lies in the employment relationship and cost structure. Subcontractors operate as independent businesses, managing their own taxes, benefits, and professional development while charging you only for completed work. Employees become part of your organizational structure, receiving regular paychecks, benefits packages, and direct supervision while building long-term loyalty to your company.

Control levels vary dramatically between these options. With subcontractors, you define the deliverables and deadlines but cannot dictate how, when, or where they complete the work—they maintain complete autonomy over their methods and schedules. Employees work under your direct supervision, following company procedures, using your systems, and adhering to set schedules that align with your business operations.

The financial implications extend beyond simple hourly rates. A $50,000 salary actually costs employers approximately $78,000 when you include payroll taxes, workers’ compensation, health insurance, retirement contributions, and paid time off. Subcontractors handle all these expenses independently, charging higher hourly rates that still result in lower total costs for businesses needing specialized or intermittent services.

The Financial Reality: Breaking Down True Costs

Smart financial analysis reveals that outsourcing accounting saves businesses 20-50% compared to maintaining in-house teams. These savings stem from eliminated recruitment costs, reduced training expenses, no benefits packages, and avoided overhead for office space and equipment. A retail startup might invest $3,000 monthly for comprehensive outsourced bookkeeping instead of $6,000 for a full-time accountant’s total compensation package.

Hidden costs of hiring extend beyond the obvious salary and benefits. Companies spend an average of $4,000 to recruit each new employee, invest 40 hours in initial training, and lose productivity during the 3-6 month ramp-up period. Additional expenses include software licenses, continuing education, management time for supervision, and potential severance costs if the hire doesn’t work out.

Subcontracting delivers predictable costs with built-in flexibility. You pay only for actual work completed, scale services up or down based on seasonal needs, and avoid long-term financial commitments. During tax season, you might triple your accounting support without permanent payroll increases, then reduce to maintenance levels during slower periods.

Case study: Manufacturing success through strategic outsourcing

A growing manufacturing startup partnered with Farche Solutions to outsource payroll and tax compliance while maintaining one in-house controller for strategic planning. This hybrid approach reduced their accounting costs by 30%, eliminated compliance errors that previously triggered audits, and freed up $50,000 annually for product development. The key to their success: keeping daily financial oversight internal while leveraging external expertise for specialized, rules-based tasks.

Navigating Compliance and Legal Requirements

Misclassifying employees as independent contractors can trigger IRS penalties of $1,000 per worker, with 40% of unpaid employment taxes stemming from classification errors. The IRS examines behavioral control, financial arrangements, and relationship factors to determine proper classification. If you control when, where, and how work gets done, you likely have an employee regardless of your preferred label.

Protecting your business requires clear contractor agreements specifying project scope, deliverables, payment terms, and intellectual property rights. Include confidentiality clauses, data security requirements, and termination procedures. Require proof of business insurance and verify their business entity status through state databases.

Employee compliance involves different obligations: workers’ compensation coverage, unemployment insurance contributions, overtime pay requirements, and adherence to labor laws. While more complex, these requirements provide legal clarity and reduce audit risks. Document all employment policies, maintain accurate time records, and conduct regular compliance reviews.

Strategic Decision Framework for Your Business

Statistics show 37% of small and medium businesses now outsource accounting functions, with cost savings cited as the primary driver by 65% of companies. Your optimal choice depends on several critical factors that require honest assessment.

• Business Size and Complexity Analysis: Companies under $5 million in revenue typically benefit most from subcontracting due to variable workloads and budget constraints. Growing firms between $5-20 million often adopt hybrid models, combining outsourced bookkeeping with in-house financial leadership. Larger organizations usually bring core accounting in-house while subcontracting specialized projects.
• Workload Consistency Evaluation: Map your accounting tasks by frequency and complexity. Daily transaction processing, weekly reporting, and monthly closings suggest hiring needs. Quarterly tax filings, annual audits, and periodic system implementations align with subcontracting advantages. Calculate hours needed monthly—if under 80 hours, subcontracting likely offers better value.
• Total Cost of Ownership Calculation: Compare all-in costs including salaries, benefits (add 25-40%), recruiting expenses, training time, software licenses, and management overhead against subcontractor quotes. Factor in flexibility value—the ability to scale quickly without severance costs or unemployment claims has real monetary worth during economic uncertainty.

When Subcontracting Delivers Maximum Value

Project-based initiatives create ideal subcontracting opportunities. System conversions, acquisition due diligence, or IPO preparation require specialized expertise for defined timeframes. Paying premium rates for 3-month engagements beats hiring specialists you won’t need long-term.

Seasonal peaks demand flexible staffing solutions. Retail businesses processing 40% of annual revenue during the holidays can add subcontracted support for October through January. Tax firms scale up during filing season. Construction companies need extra help during summer building booms.

Specialized expertise requirements favor subcontracting when you need niche knowledge occasionally. International tax compliance, forensic accounting investigations, or industry-specific regulations might require monthly consultation rather than full-time staff. Access top talent without competing for permanent hires in tight labor markets.

Building Your In-House Advantage

Data sensitivity in healthcare, financial services, or government contracting often mandates internal accounting teams. When client information requires strict access controls and audit trails, employees provide better security through background checks, ongoing supervision, and legal accountability.

Companies experiencing rapid growth need dedicated financial professionals who understand evolving business models, can adapt systems in real-time, and provide strategic input during leadership meetings. An invested employee who grows with your company brings institutional knowledge that contractors cannot replicate.

Cultural alignment and team integration matter when accounting interfaces with multiple departments daily. Employees attend company meetings, understand internal politics, and build relationships that facilitate smooth operations. They become trusted advisors who anticipate needs rather than simply responding to requests.

Future-Proofing Your Financial Operations

Automation will handle 40% of traditional accounting tasks by 2025, fundamentally shifting the subcontract versus hire equation. Routine data entry, bank reconciliations, and basic reporting increasingly require less human involvement. This technological evolution makes specialized subcontractors more valuable for analytical work while reducing the need for entry-level employees.

Progressive companies adopt hybrid models that leverage both employment types strategically. They maintain lean in-house teams focused on strategy, analysis, and stakeholder relationships while outsourcing transactional processing, compliance filings, and technical projects. This structure provides stability, expertise, and scalability.

AI integration changes required skillsets dramatically. Modern accounting professionals must interpret AI-generated insights, identify anomalies in automated processes, and provide strategic context that machines cannot. Subcontractors often lead adoption curves, bringing cutting-edge tools and techniques without requiring your investment in training or technology.

Final Thoughts

The choice between subcontracting and hiring accounting support shapes your company’s financial efficiency, compliance posture, and growth potential. Through two decades of building Complete Controller, I’ve learned that dogmatic approaches fail—successful businesses thoughtfully blend both options based on specific needs, growth stages, and industry requirements.

Start by auditing your current accounting workload, calculating true costs, and identifying which tasks require daily oversight versus periodic expertise. Most thriving companies discover that hybrid models deliver optimal results: maintaining core financial leadership internally while leveraging specialized subcontractors for variable workloads and technical projects.

Your next step is clear: assess your unique situation using the frameworks provided, then design a financial team structure that balances cost efficiency with operational excellence. For personalized guidance on optimizing your accounting operations through strategic staffing decisions, connect with our experts at Complete Controller. We’ll help you build a financial backbone that scales with your ambitions while protecting your bottom line.

Frequently Asked Questions About Accounting: Subcontract or Hire

How do I protect sensitive financial data when working with subcontractors?

Require subcontractors to sign comprehensive non-disclosure agreements, use encrypted file-sharing platforms, limit access to only necessary systems, and verify their data security protocols through third-party certifications like SOC 2 compliance audits.

Can I transition a subcontractor to an employee if my needs change?

Yes, many businesses start with subcontractors to validate workload demands and cultural fit before offering full-time positions. Document the relationship change clearly, adjust tax withholdings immediately, and provide appropriate benefits to avoid compliance issues.

What’s the biggest legal mistake businesses make with contractor classification?

Exercising too much control over subcontractors’ work methods, schedules, or requiring exclusive relationships triggers employee classification. The IRS focuses on who controls how work gets performed, not just payment structure.

Do subcontractors handle year-end tax preparation and filing?

Subcontractors prepare and provide Form 1099-NEC documentation, but businesses remain responsible for filing these forms with the IRS by January 31st and maintaining accurate records of all payments exceeding $600 annually.

How does AI adoption impact the decision to subcontract versus hire?

AI automates routine bookkeeping tasks, making entry-level positions less necessary while increasing demand for specialized subcontractors who can implement, optimize, and interpret AI-driven financial systems for strategic decision-making.

Sources

• Better Accounting. (2025). “Hiring vs. Outsourcing Accountant.” URL: https://betteraccounting.com/hiring-vs-outsourcing
• Brady CFO. (2025). “Outsourcing Accounting Services vs. Hiring Internally.” URL: https://bradycfo.com/outsourcing-vs-hiring
• CFO Hub. (2024). “Hiring an Accounting Manager? Why You Should Outsource Instead.” URL: https://cfohub.com/outsource-vs-hire
• Complete Controller. (2024). “Accounting Subcontract or Hire?” URL: https://www.completecontroller.com/accounting-subcontract-or-hire
• Cook CPA Group. (2025). “How to Account for Independent Contractors.” URL: https://cookcpagroup.com/independent-contractors
• Deloitte. (2024). “AI in Finance.” URL: https://www2.deloitte.com/us/en/pages/finance/articles/ai-in-finance.html
• DPE AFL-CIO. (2025). “Misclassification of Employees as Independent Contractors.” URL: https://www.dpeaflcio.org/factsheets/misclassification-of-employees-as-independent-contractors
• DVF CPA. (2025). “Hiring an Accounting Firm.” URL: https://dvfcpa.com/hiring-accounting-firm
• Farche Solutions. (2024). “Cost Savings and Business Growth Through Outsourcing Accounting.” URL: https://farchesolutions.com/franchising/cost-savings-and-business-growth
• Gentle Frog. (2025). “Bookkeeping Subcontracting: Expectations vs. Reality.” URL: https://gentlefrog.com/bookkeeping-subcontracting
• Housecall Pro. (2024). “Subcontractor vs. Employee.” URL: https://housecallpro.com/subcontractor-vs-employee
• Invedus. (2024). “Top Accounting Outsourcing Trends You Need to Know for 2025.” URL: https://invedus.com/blog/top-accounting-outsourcing-trends
• Investopedia. (2024). “Total Cost of Ownership.” URL: https://www.investopedia.com/terms/t/totalcostofownership.asp
• IRS. (2024). “Independent Contractor Self-Employed or Employee.” URL: https://www.irs.gov/newsroom/independent-contractor-self-employed-or-employee
• Lucey Accounting. (2022). “To Hire or Not to Hire.” URL: https://luceyaccounting.com/to-hire-or-not
• NOW CFO. (2025). “Outsourcing Accounting For Business Growth.” URL: https://nowcfo.com/outsourcing-accounting-growth
• Personiv. (2025). “Learn How to Maximize Accounting Outsourcing Cost Savings.” URL: https://insights.personiv.com/blog-personiv/accounting-outsourcing-cost-savings
• Reconciled Solutions. (2025). “Subcontractors vs. Employees.” URL: https://reconciledsolutions.com/subcontractors-vs-employees
• Tesseon. (2023). “Subcontractor vs. Employee.” URL: https://tesseon.com/subcontractor-vs-employee
• TGG Accounting. (2024). “Outsourced Accounting vs. Hiring In-House.” URL: https://tggaccounting.com/outsourced-vs-in-house
• TMD Accounting. (2022). “Bookkeeping for Independent Contractors.” URL: https://tmdaccounting.com/bookkeeping-contractors
• Voolt. (2024). “Subcontractor vs. Employee.” URL: https://voolt.com/subcontractor-vs-employee

Effective communication is the cornerstone of successful relationships, and this holds, especially in the realm of customer interactions. Shifting the focus from viewing customers as mere conduits for profits to acknowledging them as individuals is a fundamental step in enhancing communication skills. The language you choose and how you convey messages are pivotal in shaping these interactions.

Whether it’s face-to-face communication or digital correspondence, the methods employed and the content of your messages significantly impact the customer’s perception. Avoid the temptation of sending generic email blasts and expecting swift responses. As you observe how a shopkeeper addresses you, recognize that your customers are equally observant of your approach.

How do you build relationships with people? These techniques are the same ones you would use to build a relationship with your customer. First, the foundation for building any relationship is trust. When you put your trust in someone, and they trust you in return, you both work on building something that can last for a long time. If that relationship is the foundation of your business, then trust is the cement used to fortify that relationship.

Improve Your Communication Skills

Communication is the bedrock of any good relationship. Work on how you communicate with your customers and treat them as humans instead of a means for profits. If you notice how a shopkeeper talks to you, it stands to reason that your customers would notice the same in you.

Language choice is critical, and communication methods and messages matter significantly. Do not send email blasts and expect quick responses. If a customer walks in, be prepared, and do not give them the impression that they are an imposition.

Consumer’s Point of View

Some states require a form of agency disclosure at the beginning of a relationship. Forget about legal requirements from the agency from the perspective of the licensee and regulatory agencies. The main reason agencies exist is to impose the licensee’s fiduciary duties that need them to protect the customer. Customers trust you because you are representing them under agency employment. You are bound to keep their information confidential, disclose facts, obey the lawful instructions, safeguard all monies entrusted, and be loyal to them.

Consumers do not care about the intricate nature of the regulatory agency rules. They genuinely care whether we will protect their interests and if they can count on us.

Use Realtor Pledge of Performance

The National Association of Realtors (NAR) has summarized the Code of Ethics in a single-page document. The document sets a promise that each realator is bound to uphold in working with consumers and ensuring that their interests are placed above all others.

Ensuring customers that they can trust you because you adhere to a code of ethics and will promote their interests increases customer confidence and loyalty.

Gather and Use Testimonials 

Trust is essential, but you cannot convey that clients must trust solely you. Take a lesson from those businesses and companies that have spent millions of dollars learning and using the power of customer testimonials. When we go to Amazon to purchase a book, what is the first thing we see? Testimonials from others. What determines when you look up a new restaurant or hotel? Testimonials. People tend to trust others’ experiences more than what the hotel or restaurant has to say.

Gather testimonials from your previous and current clients and post them on a visible platform like LinkedIn, Facebook, YouTube, and your website.

Ask for Feedback and Use it

When you ask for feedback, the customers feel heard and valued. It also helps improve your brand, products, services, and processes.

Ask your customers to review your products online and check your reviews at least every week. Timely replies to feedback show how attentive you are to your customers. However, feedback is only valuable when you act on it, so be attentive to customer needs and demands for maximum profit. Be aware of customer feedback because it is critical to building any relationship.

Conclusion

You must do your best to build a long-lasting relationship with your customers. Customers want to buy something from a company they can trust and support. Similarly, create a necessity and use all your selling skills, but remember that customers are people just like you who want a positive buying experience.

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

By: Jennifer Brazer

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

Fact Checked By: Brittany McMillen

Choosing the Right Business Structure: The Key to Unlocking Growth

Have you ever wondered why some businesses scale effortlessly while others stall at every turn? Sure, product and marketing matter—but often, it’s their fundamental structure that’s either propelling them forward or quietly holding them back. From taxes and liability to investor appeal and growth potential, the business structure you choose isn’t just paperwork—it’s a financial strategy. I’ve helped hundreds of founders make the right move early—and today, I’ll show you how to do the same.

Key Takeaways

• Understand the real-world financial impact of each structure on taxes, liability, and funding
• Learn how your business structure shapes future scalability and investor readiness
• Uncover hidden compliance costs and regulatory landmines across states
• Access a step-by-step approach to match your structure with your growth stage
• Learn from a real startup founder who saved thousands by transitioning from a sole proprietorship to an LLC

Why Your Business Structure Matters: Beyond Basics

Think business structure only affects taxes? Think again. Your choice lays the foundation for nearly every financial move you’ll make—which investors you attract, how banks view you, and even whether you keep your retirement benefits intact.

Let me break this down a bit more:

• ⚠️ Liability Protection: Structure determines whether your personal assets are protected during legal disputes. Only LLCs, S-Corps, and C-Corps provide this shield, while sole proprietorships and general partnerships do not. This can save you from losing your home or personal savings if things go wrong in business.

• 💡 Investor Appeal: It influences your ability to issue shares and attract partners. A study by Ronstone OpeX shows that C-Corps are preferred by investors due to their ability to provide equity, making them more attractive for venture-backed startups[3]. Having the right structure can open the door to the funding you need.

• 🚀 Scalability: It supports—or limits—your plan to scale, exit, or innovate. For instance, a SaaS founder I worked with started as a sole proprietor. Their product took off, but their structure didn’t support outside investors or employee stock options, leading to missed opportunities. The switch to an S-Corp not only saved them time and revenue but allowed them to scale effectively.

When you know better—you pick better.

Overview of Common Business Structures and Financial Implications

Let’s level-set. Here’s a breakdown of five core business structures and what they mean financially.

Sole proprietorship

• ✅ Simple to set up
• ❌ No legal separation between you and the business
• 🧾 All income is taxed once, but you foot the bill for all liabilities

👉 Best for: Freelancers, hobby businesses, or solo practitioners testing an idea.

General partnership

• ✅ Shared responsibility and decision-making
• ❌ Each partner is fully liable—yes, even for the other’s mistakes
• 💼 Less formal, but often messy unless agreements are airtight

👉 Best for: 2–3 co-founders exploring ideas with limited external risk.

Limited liability company (LLC)

• ✅ Keeps your assets safe while allowing for flexible management
• ⚖️ Pass-through taxation by default, with the option to be taxed as a corp
• 👍 Favored for its balance between protection, flexibility, and relative simplicity

👉 Best for: Serious startups ready for growth but not VC funding—yet.

S corporation

• ✅ Pass-through taxation while limiting self-employment tax
• ❌ Comes with stricter eligibility and formalities
• 📊 Ideal when you’ve got consistent profits and want tax efficiency

👉 Best for: Service-based businesses with stable income and few shareholders.

C corporation

• ✅ Best for raising capital and issuing shares
• ❌ Double taxation (corp level + dividends)
• 💰 The go-to for venture-backed startups and companies with expansion on their minds

👉 Best for: High-growth businesses seeking investment, IPO potential, or international operations.

📊 Here’s a quick comparison of business structures:

	Structure	Taxation	Liability Protection	Investment Friendly	Compliance Level
	Sole Proprietor	Pass-through	No	Low	Low
	Partnership	Pass-through	Limited	Medium	Low–Medium
	LLC	Pass-through/Corp	Yes	Medium	Medium
	S-Corp	Pass-through	Yes	Medium	High
	C-Corp	Double Taxation	Yes	High	High

The Hidden Financial Effects of Business Structures

There’s more under the hood than most guides reveal. Here’s what you may not hear:

• 📈 Business Credit Score: Your structure can affect your business credit score. Statistically, businesses with an LLC or corporation status have higher credit scores compared to sole proprietorships.

• 💸 Funding Approval: Lenders often prefer LLCs and corporations for funding approval due to the reduced personal risk. This preference can make or break your chance at securing the necessary financing.

• 👩‍💼 Employee Benefits: Offering benefits like 401(k)s is much easier as an S-Corp or C-Corp. Research shows that these structures can provide more robust benefits packages, attracting top talent[2].

• 📉 Grants and Insurance: Some grants and insurance policies are only available to incorporated entities. This means that if you’re a sole proprietor, you might miss out on opportunities that could mitigate risk.

🧠 Case Study: A Denver-based tech company restructured from a general partnership to a Delaware C-Corp. Within four months, they secured $2M in VC funding—funding that would’ve been impossible without the change. Why? Investors need equity, not just ideas.

Regulatory and Compliance Considerations That Impact Your Financial Health

Most founders overlook this important stage—and it costs them.

• Different states = different annual fees, franchise taxes, and filing rules. Be aware that what works in one state may not work in another.

• Noncompliance (even accidental) can mean penalties, lost statuses, or serious legal issues. This could sink your ship before it even sets sail.

• Multi-state businesses? You may owe taxes in more than one state if you cross that invisible “nexus” line. This complexity can blindside you if you’re not prepared.

🔎 Pro Tip: Use tools like ZenBusiness or hire a compliance service to track filing dates. A $99 annual service can save thousands in penalties.

How To Evaluate Your Business Stage and Growth Plans

Ask yourself these five questions:

1. Do I plan to raise capital in the next 12–18 months?
2. Is protecting my personal assets critical right now?
3. How many partners (or future partners) do I anticipate?
4. Can I commit to regular compliance documentation?
5. Am I building for lifestyle or for long-term enterprise value?

Each answer nudges you toward the structure that fits your road ahead.

✔️ Startup with high growth goals? Consider an LLC with the option to convert.

✔️ Consulting solo? A sole proprietor is okay—for now. Reassess after $50K revenue.

✔️ Ready to scale? You’re likely looking at an S-Corp or C-Corp.

Step-by-Step Roadmap to Selecting Your Business Structure

Here’s your no-fluff, crystal-clear path:

1. 🎯 Define your financial goals (tax savings, funding, protection)
2. 📞 Book a CPA or attorney consult — ask about taxation, compliance risk, exit strategy
3. 📊 Build a pros/cons matrix based on your top 5 priorities
4. 📝 Register your entity properly — get your EIN, bank account set up, and licenses
5. 🔄 Need to switch structures later? Plan it during low-revenue months to minimize the impact

⚠️ Pitfall to avoid: Mixing personal and business expenses before your structure update. It wrecks audits and affects credit lines.

💬 Founder Tip: Erica from @CompleteController tells me, “What we see again and again is that tight, accurate books during a structure transition make everything smoother—from tax time to due diligence.”

Case Study

Meet James, a Florida-based photographer who started as a sole proprietor. At first, this setup was easy. But when he started landing commercial projects, clients requested liability insurance, contracts, and an EIN.

He transitioned to an LLC, which cost him $125 and took one afternoon—and here’s what changed:

• 🌟 Secured over $40K in corporate bookings
• 💳 Qualified for a $15K line of credit
• 🧾 Reduced self-employment tax burden through smart write-offs

Lesson? The right structure unlocks doors you didn’t know existed.

Advanced Strategies: Using Structure as a Wealth Engine

Savvy founders don’t just pick a structure—they use it.

Here’s how:

• Use pass-through entities like LLCs or S-Corps to avoid double taxation.

• Issue stock options to attract talent as a C-Corp.

• Create multiple LLCs under a holding company for diversified ventures.

• Drop your tax rate by forming an international entity (but this is only advisable for advanced operators).

💡 Planning for investment? Investors want a Delaware C-Corp—it’s clean, standard, and compliant.

Building a Future-Proof Business Structure

The business world is changing fast. Your structure should evolve, too.

Here’s what’s trending:

• Digital-first structures with virtual compliance dashboards
• Hybrid LLC/Cooperative models in values-driven businesses
• AI tools that alert you to compliance tasks, tax benefits, or state changes
• Structures designed for social enterprises (like Public Benefit Corporations)

Bottom line? What worked in 2014 won’t cut it in 2025. Be proactive and adapt.

Conclusion

Choosing the right business structure isn’t a boring back-office chore—it’s a smart, strategic decision that echoes across your taxes, growth plans, and legal risk.

Start with clarity. Choose based on your vision, not just convenience. And when in doubt, get expert help early—not after mistakes cost you.

Need help keeping the books clean as you transition? Visit CompleteController.com for hands-on support designed to grow with your structure.

FAQ

How do I know which business structure fits my goals?

Review your growth targets, funding plans, and risk tolerance. Our roadmap above should help.

Can I change my structure later?

Yes, but plan carefully. It involves paperwork, tax changes, and possibly renaming/rebranding.

LLC vs. S-Corp tax savings?

LLCs are more flexible; S-Corps reduce self-employment tax if you take a reasonable salary + dividends.

Will my choice affect my personal liability?

Yes. Only LLCs, S-Corps, and C-Corps limit personal liability. Sole props and partnerships don’t.

Are there hidden costs?

Yep. Annual state fees, filing compliance, and CPA costs can sneak up—budget for at least $500/year.

 

For more on mastering your business financials, explore:

🟢 Internal Links:

• Why Bookkeeping Is Crucial in Early Growth Phases
• 5 Founders Who Regret Their LLC (and What They Did Next)
• How to Prepare for Your First Business Tax Season

🔵 External Sources:

• IRS Business Structures Overview
• SBA Guide to Choosing a Business Structure
• NerdWallet’s Startup Legal Basics

Now you’ve got the full map—time to chart your best course!

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.

Moving for most people is like a nightmare that never stops haunting their dreams. Uprooting your life and packing everything up into different boxes is traumatizing. Changing your residence to an entirely new location can be stressful, and that can easily overwhelm you. To ensure your move is as smooth as possible, avoid these common problems during an activity.

Unnecessary Items

Retaining unnecessary items is a common mistake when beginning life in a new home. It’s impractical to pack belongings that have been collecting dust on shelves for years, especially when you know you won’t use them. To streamline your move, consider parting with items unused for over a year. Donate them to charity or include them in a yard sale—avoid investing time and money in things destined to remain unused.

Lack of Planning

The lack of planning is akin to setting oneself up for failure; as the saying goes, “If you fail to plan, you plan to fail.” This phrase aptly captures the essence of moving without careful consideration. Would you embark on a skydiving adventure without a parachute, adopting a “Let’s see how it goes” approach? Moving shares similarities, albeit a bit scarier. Without thorough planning up to the last detail, things can quickly spiral out of control.

Here are the things you need to prepare

• Plan your finances (enough money in the bank for payments)
• Getting all the paperwork in order
• Make a timetable or calendar of the involved tasks
• Discussing your moving details with the moving company (how you want things done)

Before engaging a professional moving company, it’s essential to consider a few key factors. Movers won’t automatically identify sensitive or fragile items within your boxes and won’t be aware of your budget unless you communicate your needs. Establishing a two-way relationship with clear communication is crucial. Here are some effective strategies to optimize your moving experience and save money.

Hiring Professional Movers

Contrary to common perception, hiring professional movers is often more cost-effective than attempting a DIY move. When you enlist a moving company’s services, you ensure precision in handling every box and item according to your preferences. In a DIY scenario, the responsibility for any breakages rests solely on you, and you bear the expenses of replacing the damaged items. Opting for professional movers provides a service guarantee and minimizes the financial burden associated with potential damages.

Proper Labeling

It is crucial to label and categorize each box during packing meticulously. Proper labeling serves several purposes, including facilitating quick retrieval of items and ensuring that everything has been successfully moved to the new location. Additionally, clear labeling aids both you and your movers in identifying the designated area for each box in your new home. This simple yet effective practice enhances organization and streamlines the unpacking process.

Planning Ahead

Prioritize planning by ensuring you have all the necessary supplies well before the moving day. Avoid a last-minute rush for packing boxes when your belongings are already outside. If you’re opting for moving services, it’s advisable to make your booking in advance, especially before the peak season hits. Additionally, consider early bookings for other essential services such as painters, rental supplies, and cleaners to secure a smooth and well-coordinated moving experience.

Looking for any Leakages and Cracks

Upon moving into a new house, conducting a thorough check for any leakages and cracks is essential. Ensuring everything is in proper working order is crucial to avoid surprises. You wouldn’t want your first bathing experience in your new home to become a disaster due to overlooked issues. Taking the time to inspect for potential problems early on can save you from inconvenient and costly repairs later.

Bottom Line

In conclusion, we understand that moving is a challenging endeavor. To assist you in navigating this process more smoothly, here are crucial money-saving tips that can contribute to a comfortable and hassle-free experience in your new place. By following these recommendations, your next move, whether to a new home or office, can be executed quickly, comfortably, and, most importantly, cost-effectively.

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

When we go to a store or search for a service, we usually ask what the value of what we are about to buy is. But do you know that there is a difference between price and value? And as much as we do not always make that distinction when we go shopping, we’d better think about whether we are getting something for value or value when it comes to investments.

Are you confused? What do you think of going deeper into this idea to understand it better? Follow the post we prepared and ask your questions!

How Much Does it Cost to Produce and Distribute Products and Services?

When a company produces a commodity or a service, it calculates the resources needed to deliver the solution to its customers. This calculation includes fixed costs (water, electricity, telephone, internet, rent) and variable costs (inputs, payroll, and distribution). Once you calculate the cost of production, then you will add the taxes due and the profit margin together. At the end of the process, we have the price of the product or service!

What Relevance Does the Consumer Usually Give to Products and Services?

Whoever values ​​an investment is the buyer. So, what is a priority for you may be relevant for another person. For example, it is a case of taking a trip or buying a car. Both options populate the dreams of various consumers. While some want to cruise, others want to buy a new vehicle to make their family more comfortable. And neither of the two profiles is wrong! They are only different points of view, adapted to the reality of each one.

In the End, is it Better to Prioritize Price or Value?

We tend to prioritize lower prices when discussing everyday items such as pens. We can satisfy our needs in the same way as its more expensive counterpart. However, when making investments, you must consider other factors. Here comes the value of a good, which can have an influence overall.

You want to buy a new car because your family is growing. This may seem like an unnecessary luxury. However, this acquisition has excellent value for you, so much so that the price to pay does not equal the benefits you will get once you have your new car in the garage.

For those who dream of traveling the world, the money spent on travel, lodging, food, and other necessities does not compare with the experience of meeting new cultures, experiencing exotic foods, and people of different profiles.

However, you do not have to pay more than the fair price for what you are getting, do you? And this is worth it even if experiences, comfort, and safety have the most incredible value in the world for you! It is the case of buying a property, for example. You have the good at your disposal in less time by opting for financing, but for a higher price than it is worth it. Already choosing a real estate consortium, you can plan yourself more peacefully, paying less, but not for that, letting you see your dream come true!

The same logic holds for other investments. Do you need to travel today, or can you wait? Is the new car urgent, or does it still have time until the children arrive? Think about it: what you save with planning can be used in other investments!

And why are we talking about it? Simple: only end up spending what is necessary. You need to find the balance between price and value, investing wisely!

Conclusion

Distinguishing price from value is crucial for your brand’s success. Value, a magnet for lasting customer loyalty, is exemplified by American brands like Mac and Coke, which are desired by over 90% monthly. Satisfy customers with top-notch quality, and they’ll willingly pay higher prices, ensuring sustained brand reputation and customer satisfaction.

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.

Value investing involves strategically purchasing assets or investments at prices below their intrinsic value. Instead of relying on complex definitions or abstract financial theories, value investing boils down to a straightforward principle: buying something for less than its true worth.

To illustrate this concept, consider the scenario of a store, such as a clothing outlet, undergoing liquidation. During this process, merchandise is often sold at significantly reduced prices. Value investors recognize the opportunity in such situations, as they can acquire items at a favorable cost compared to their regular market value. This principle extends beyond retail scenarios to encompass investments in companies.

Similar to a store in liquidation, there are instances when a company is facing financial distress or undergoing a phase that can be likened to “liquidation” mode. This might be due to factors such as economic downturns, poor management decisions, or industry challenges. In these situations, value investing is a strategic approach to evaluate and capitalize on undervalued opportunities.

Value investors analyze companies experiencing temporary difficulties or market mispricing, allowing them to identify potential bargains that other investors may overlook. By delving into a company’s fundamentals and examining its assets, earnings, and growth potential, value investors aim to uncover discrepancies between the market price and the investment’s intrinsic value.

Value investors gain a distinct advantage through this careful study and understanding of a company’s true worth. While the broader market may be influenced by short-term fluctuations or sentiment, value investing remains rooted in the long-term perspective of identifying and acquiring assets at prices below their intrinsic value, ultimately seeking to benefit from their potential appreciation over time.

Is Value Investing a Fad?

Here is a humble opinion on value investing, and I will also point out what is and what is not. For those who do not know this investment flow, I will start from the beginning:

Value investing was developed as such by Benjamin Graham in the 1928 environment. Its investment philosophy is to buy assets for less than they are worth (intrinsic value) to generate a profit in the subsequent sale.

As you can see, nothing from the other world, buy cheap and sell at its price or more expensive. Sure, before Graham thought about it and carried it out, but Graham was the one who created the school.

Then came other mythical investors such as Warren Buffet, Peter Lynch, Carl Icahn, Seth Klarman, and Jeremy Grantham. It is fashionable because, in an increasingly efficient market, the way to excel is by finding inefficiencies such as those exploited by value investing.

Today, managers are doing things very well by following this philosophy. Therefore, the term and its followers have become popular, but we will study it to avoid mistakes.

Are There Different Types of Value?

Value investing is evolving. People like to make distinctions, although we discuss the same thing.

These subtypes are:

• GARP (growth at a reasonable price). We could not consider these companies cheaply concerning the market average, but this is because their development is much higher than the average of companies. For this reason, they do not list multiples such as PER and EV / EBIT, which are as low as those of other value companies.
• Deep value investing. It is value investing using elements of the “old school” balance. It is about finding companies looking at the balance. They usually hide jewels that are typically true treasures. For example, the NCAV, Graham & Dodd liquidation value, P / Net cash, and modifications of both.

What is Not Value Investing?

Value investing is NOT buying “apparently” good companies and keeping them forever. As much as they are called Coca-Cola, Santander, or Iberdrola, they are large and good companies because they have worked for years. Buying and maintaining them is not value investing. It will be a buy-and-hold or buy-and-hold strategy, but not value investing. See this continuously.

Investors who invest in Telephone or BBVA for dividends deceive themselves by telling themselves and others that they have made a “Valiu” investment when, in the best case, they will long-term aspire to approach inflation.

How Do You Learn About Value Investing?

There are valuation methods. Suppose you want to learn to detect sound and priced companies to enter the world of value investing. In that case, I leave you the link to the most recommended article in my blog on performing a “Fundamental Analysis for Rookies.” A common mistake is to use the same valuation method for all companies.

Each company is different and is in a different cycle (growing, already mature, expanding). Therefore, the considerations we need to know about each company are additional, and we will weigh variables more than others.

The differences are the most complicated part. Although there is a more rational and logical part, I explain myself. Once we understand the analytical role better or worse, we must see if our assumption is crazy.

Conclusion

As we explore value investing, this article aims to demystify its principles, dispel common misconceptions, and equip readers with the tools to discern true value. In a world where financial landscapes evolve, value investing remains a stalwart philosophy that transcends market trends, offering astute investors a timeless advantage.

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.

We have all had the opportunity to take out insurance to cover the possible risks we may suffer at a given time. The contract signed by the client and insurer is a fundamental pillar you should not overlook. We tell you everything you need to know about him!

Whenever we decide to approve insurance on a particular branch, from the beginning, we must be clear that we are creating a contract between the company and us. In this way, we agree with the company for certain services. The agreement we are referring to has a series of characteristics that we show you below.

What Does the Contract with Your Insurance Imply?

Signing the contract with your insurer shows a series of points and values that you and the company assume bilaterally.

Commitment

Both parties express their commitment to conduct what is communicated in writing in the contract. Both parties affirm your consent at the time of signing the policy. You and the insurer start a marriage you hope is as prosperous as possible.

Insurmountable Obligation

This feature involves both parties since both are going to do something. You, as insured, will cover the risk described in the policy, while the company will pay the insurance price, the so-called premium. The obligations are impassable and reinforce the commitment in the contract.

The Law, Above All

The contract you sign with the insurer is not outside the law. The contract will become a legitimate link between the insurer and you as soon as the contract is born. Contracts use legal mechanisms that force compliance with the agreement or repair breaches of either party. For this reason, we recommend that you read every detail of the contract before signing anything to ensure compliance with all clauses.

Qualities that All Contracts Have

The legal nature of the insurance contract uses a series of qualities that we explain in this section.

Unprecedented randomness

It may seem like a joke, but it is the reality. The principal obligation of the contract you sign is unknown if it will take place or not. It is unknown if the fact that the policy provides will happen. The situations reflected in the contract are strange until they happen: a fire in the home, a robbery, and the insured’s death are factors that highlight the randomness of this agreement.

To this, we must add another important aspect. Insurers do not specify the extent of the intensity of the incident. For example, it differs from burning only the kitchen as the entire property. Well, companies do not specify this.

In addition, unlike other contracts, we do not know when you will fulfill the obligation. In terms of insurance, the client can do nothing to cause the event. It would be best if you were foreign to the contractor’s will, which does not occur in other agreements.

Mandatory formality

To ensure that everything you agree upon with the insurance company is guaranteed, it is essential to follow a straightforward process. According to legal requirements, the agreement’s formalization occurs through signing a written document known as a policy. This document serves to secure all aspects outlined in the contract. It’s crucial to note that only the terms explicitly stated in writing will be considered valid; verbal approvals do not constitute a binding insurance right under any circumstances.

The good faith of the parties

The contract will always reflect and demand good faith from you and the insurance company. The insurer completely ignores the risk characteristics, for the good faith of the same must exist so that the needs of both parties are fully met.

Typical bilateral

As in all contracts, the insurance company and the insured approve insurance. There are cases in which the insurance is conducted with two companies simultaneously. It is known as coinsurance. Something more frequent is that the policyholder and the insured are not the same people. Despite this, we would only have two contracting parties for individuals who could be in each part.

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.

Since purchasing a property mobilizes an incredible number of resources, it is necessary to negotiate the right way. We have mentioned this step before, but it is never too much to point out. For this purchase, you must first evaluate your financial situation to study the possible impact on your budget. With that in mind, you will have three forms of payment: financing, consortium, or cash. Check out the major features of each alternative.

In Cash

To make the cash payment, you must have many resources in one go. So, it is recommended to think twice before making a final decision. Thus, if the property costs two hundred thousand dollars and you have 250 thousand dollars available, this may not be an innovative idea since you will immobilize a tremendous amount of your money.

On the other hand, if 200,000 dollars correspond to 10% or even 20% of what you have, this is a beneficial alternative.

Financing

With the financing, you pay the property’s value (plus an interest rate) in a diluted way over the years. It is usually the preferred option of familiar buyers, but it can also be possible if your budget involves a commitment of about 30% of the monthly income. In this case, you will need to get the property back as quickly as possible so that the rent is responsible for paying the most massive portion of the financing.

Consortium

The consortium, in turn, is the option that unites the best of cash and financing. In this form of payment, you pay monthly installments to an administrator, which can be contemplated with a letter of credit in the property’s value at any time.

The detail is that you can make monthly bids to ensure early contemplation. With the letter of credit, you can negotiate the property’s value insight and acquire it to make the subsequent resale or monetize it through the rent. So, suppose you want a real estate of two hundred thousand dollars and have 250 thousand available. In that case, you can bid in the consortium of fifty thousand and increase the chances of being contemplated. With this, you can buy the property by trading sight – and therefore, more cheaply.

What Should You Evaluate When Investing in Real Estate?

When it comes time to choose the property to buy effectively, you must consider factors that can make a massive difference to the success of your investment. To increase your chances of profit, you should evaluate:

Location

Remember that location is one of the few items that cannot be changed on a property, regardless of what you do. Therefore, choosing a property situated in a valued place is essential since this increases the exposure to sound investments. A residential property usually works best in a safer neighborhood with access to different city services. In turn, commercial property should be as close as possible to the city’s financial heart. It is not that complicated.

Appreciation

It is also necessary to keep an eye on the possibilities of valuing both the property and the region. Sometimes, the area is still not highly valued but is in development. Thus, it is possible that soon, it will become a stronghold of highly prestigious real estate. If you realize this trend of acquiring property there while still cheap, you can benefit greatly when the region is more valued.

To do this, check the data on the investments made in the region, look at the development and the local economy, and look for news about future installations and improvements. The more attractive the future looks to the area, the greater the potential for property appreciation.

Age

Another factor to consider is the age of the property. Although this is not a rule, the ideal is to look for newer properties or, if possible, still in the plant. But take your time, too. No discarding older real estate! That is because they tend to be more spacious and are great options, especially if you plan to renovate and improve to achieve more profitability later.

Future

As the property is a durable good, when choosing, you should also consider the future and the projections. Remember: a property that shows trend today may not always be the most sought after, and one that does not seem incredibly attractive at present can become rare and much sought after in the future.

This analysis requires good market knowledge to understand, for example, that a smaller property may make more sense in each area because of the natural reduction of households. At the same time, more significant commercial real estate can be beautiful.

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.