Author: Complete Controller

1. Experience

Find out how long the fund manager has been in business. Is he able to furnish references? What credentials does the advisor possess? Check out the type of counsel you’re dealing with. Is it a big or little office? Will several employees work for you, or will you only deal with one person?

2. Do it yourself or not?

Wrong judgments regarding sophisticated financial items like investments, mortgages, and life insurance can cost you a lot of money. Do you have a basic understanding of these complex financial products? Then, it’s a good idea to get advice from a financial counselor.

Furthermore, financial product suppliers have a responsibility of care. They are not authorized to sell you a sophisticated product that does not suit you under the Financial Supervision Act.

If you want to buy a product like this without guidance, the vendor will put you through a knowledge test. With this, he determines whether you have sufficient knowledge to plan.

3. Choosing the type of advisor

Banks and insurers are primarily providers. They supply financial products. They can also act as advisers or mediators if you inquire about their possibilities. Do you do business with them? Then you must show the costs of the product and the advice separately. Usually, employees of a provider only advise on products from that provider.

4. Decide on the horizon and psycho type

Point of no apparent importance. And the significance here is oh so fabulous. It would seem, what is there? After all, no one has a goal to invest at a loss, regardless of the horizon. So it is, but misunderstanding one’s horizon leads some people to losses.

For example, a person wants to invest in stocks but expects a positive return in a month. And, without waiting, he sells at a loss, gets disappointed, and forgets about the stock market, like a bad dream.

5. Expand your horizons and knowledge about the world

I’m not talking about economic or financial models (I have never used them in practice), but more superficial things. Well, for example, my favorite story with Intel. You use a computer with an Intel processor and know it’s good company.

6. Develop critical and systemic thinking and the skill of working with information

Critical thinking is the ability to question any incoming information. It is also an understanding that any information not confirmed by facts is just shaking the air. It is the ability to verify data in original or reliable sources or with one’s hand. This skill helps to get closer to the truth in case of conflicting information. This filter allows you to separate valuable information from background noise and fakes.

7. Have confidence in what you buy and think about the future

I see an iron principle for any investor: there is no certainty in choosing a business and no peace in case of a drawdown. I’m not talking about speculators and traders who earn according to entirely different rules. What will serve as your source of confidence is up to you. My source in the statement is that business is a system. If I see a stable and promising strategy, I will buy it. The system can be expressed in historically effective results (Facebook), a systematic approach to doing business (Danaher), and competitive advantages (ISRG).

8. Calculate the yield in dollars

Calculating the yield is necessary for whatever your denomination is. Depending on the denomination, your product could be more or less than the dollar.  

9. Do not think that there is a secret

What a sin to conceal, I once thought. There seemed to be a person, course, or book that would teach me how to invest. Someone is looking for the secret of how to love, get a good job, or not get sick. All of us are united by the search for the magic button “happiness” (“loot” in the case of investments).

10. Admit mistakes

I don’t even know if I should add something here. It’s probably easier to tell a personal story. I started learning about investing at the end of 2017, after the liquidation of the business. I was attracted by the opportunity to diversify investments qualitatively.

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.

Assets and Liabilities

Assets are anything that can be sold and is worth at least some money: an apartment, a car, a house in the country, deposits, stocks, bonds, etc. Assets may or may not bring returns. You can put up with this (as in the case of the apartment you live in) or increase the return on assets (as is the case with finding better investments). Your debts, loans, credit cards, and other financial obligations are liabilities. You can’t sell them and get cash for them. The more liabilities you have (in the form of consumer loans), the closer you are to bankruptcy.

Loan Repayment Rules

So you have a clearer picture of all financial obligations. You may close some of them with the sale of assets. If this is not possible, let’s see what can be done with loans using various ways to get rid of debt. Several options are available here.

• Snow avalanche method

The Snow Avalanche Method is the most accessible and understandable way. Its essence is to be the first to close the debt with the maximum interest rate; that is, you should direct all additional money first to its repayment. Then, focus on the next highest-rate loan and close it. Thus, we first repay the most expensive loans to service. Economically, this is the most efficient way.

• Snowball method

It consists of paying off loans from the smallest in terms of debt to the largest. When the minimum debt is closed, the amount intended for payments begins to be used to repay the following loan. Here’s what you need to do.

Sort the debts by the total debt amount – from minimum to maximum. This sorting of obligations is a different feature: we sort not by interest rate but by debt.

• • Start making the lowest possible payment on each debt.
  • Estimate how much you can contribute above the minimum payment on the first, smallest debt.
  • Start paying off your first loan by making the minimum required payment plus additional money until you pay off the entire debt.

As soon as the first debt is repaid, add the additional money (the minimum and other payments you made paying off the first debt) to the minimum payment on the second debt and start paying off the second debt on the list.

Refinancing

The procedure allows you to combine several loans. Refinancing can be done at the bank where you took one of the loans (or opened a credit card) or at any other that agrees to give you a new loan.

Restructuring

Restructuring differs from refinancing in that the procedure concerns one loan and takes place in the same bank with which you already have a valid agreement. It is possible if:

• • Your income has decreased significantly – for example, you have lost your job, or your salary has been reduced
  • You went on maternity leave or paternity leave
  • You have lost your ability to work and cannot earn money due to an injury or illness.

Bankruptcy

Bankruptcy is the incapacity of the debtor recognized by the court to fully satisfy the requirements of creditors for monetary obligations and mandatory payments.

As a borrower, you can initiate a procedure if:

• • You know that you will not be able to fulfill your obligations on time (lose your job, become seriously ill, etc.), regardless of the amount
  • The main advantage of bankruptcy to eliminate the debt burden is writing off all debts by selling the property. You would not have to pay the remaining debt even if the proceeds from the sale of the property were not enough to pay all the creditors’ claims. At the same time, creditors cannot demand the debtor pay more than he owes. They cannot take only housing and necessities.

Collectors

A long delay on a loan can lead to the bank’s transfer of the debt to a collection agency. At the same time, fines and penalties will continue to accrue for late payments on the loan.

If you still have to communicate with collectors, then remember that when speaking with a debtor, the law requires them to:

• • Introduce yourself (name the surname and name, organization and its contacts)
  • Confirm their authority by submitting documents on the transfer of debt
  • In no case use violent actions against the borrower

Collectors can call you twice a week and at a strictly allotted time. Disturbing debtors are prohibited from  8:00 PM to 8:00 AM on weekdays only.

Most importantly, the faster you pay off your loan debt, the quicker you will get rid of the obsessive attention of debt collectors.

Total

Let us briefly formulate the main ideas of the article. It is necessary to understand that you can manage your assets and liabilities.

To do this, they must first be known and taken into account.

If there are assets, the yield is lower than the loan’s interest; you can use them to pay off liabilities (except for the financial security reserve fund).

There are several options for optimizing the credit burden or getting rid of debts: early repayment, refinancing, restructuring, or bankruptcy.

Communication with collectors must be within the framework of the law, according to which they can call you no more than twice a week and at a strictly allotted time.

Do not fall for the bait of fraudulent lawyers who offer you to get rid of all debts for 30-50% of their value.

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.

Setting up and running a business is a tough job. It involves significant challenges and hurdles that need to be crossed to stabilize a business. A business can be run in two ways: as a sole proprietorship or as a partnership. Both have their pros and cons.

A sole proprietorship is when a single entity runs the business and can enjoy all the profits. Also, this entity alone endures the losses as well. Running a business this way can seem incredibly beneficial but has some significant disadvantages. The owner is the only one responsible for the liabilities of the company; in case a business fails to pay off the debt, the creditors have the potential to seize their assets. It is also exceedingly difficult to attract investors and raise capital; when the owner dies, a business fails. Due to these reasons, many people consider running a business under a partnership to avoid these problems, but even a business partnership has flaws!

There are different types of partnerships, such as general, limited, and limited liability, each with advantages and disadvantages. As this article covers the burdens of a business partnership, the cons of each have been highlighted!

General Partnerships

General partnerships provide equal rights and responsibilities to all partners. Each partner has the right to act on behalf of the whole business.

Ambiguous Authority

A disadvantage of a business partnership is that the authority limits are vague and unclear. Even though the responsibilities are divided among the partners on the outside, both partners seem to have authority. It can lead to situations where one partner may sign an agreement, and the other must live by it even if they do not want to. When two partners disagree on a common thing, it gives rise to arguments and instability in a business.

Risks of Instability

With a business partnership, high risks of instability get attached to a business. If one partner files for bankruptcy or dies, the company becomes unstable, resulting in dissolution. The case worsens if a profitable business suddenly shuts down because a partner has retired, quit, died, or filed for bankruptcy.

Lack of Flexibility

When there is no agreement about transferability, the default rule is that without the consent of all other partners, a person’s stake is not transferable. It is a significant hurdle in achieving transferability. Also, if partners argue over the transferability issue, the process stops.

Risks of Management Disputes

Management disputes are bound to occur without a written agreement regarding which partner will oversee what aspect of a business. A general, unstructured partnership is more likely to end up in chaos. It is not an issue in a limited partnership but something that must not be overlooked in general partnerships.

Taxation Problems

Even though a business gets subjected to income tax benefits with partnerships, some serious taxation issues emerge. Each partner must pay tax like sole traders by submitting a yearly self-assessment. It can get worse if the business is very profitable, as higher taxes are imposed on people if it generates more than a specific number of profits.

Shared profits

When a business runs under a partnership, the losses must be endured by all the partners, which reduces the impact of losses. In the case of profits, even though profit must be shared among the partners. It can be a problem for people who put in more effort than other partners and do not receive the deserved outcomes. Without much effort, partners can benefit from one partner’s hard work.

Limited Partnerships

It is a type of partnership that is like the general type in many aspects. The difference lies in the fact that in a limited partnership, there must be at least one general and at least one limited partner, which plays the role of a silent partner.

Termination of Partnership

One of the significant threats to a business in a limited partnership is that when one of the partners dies or retires, the partnership is terminated. It makes a company unstable and can lead to a business shutting down.

Excessive Taxation

When a business is run under a limited partnership, the chances of excessive taxation are high. Only a little can be done to save a company from excessive taxation if it is run under a limited partnership.

Unprotected Assets of a General Partner

The general partner remains under threat as their assets are unprotected. If a business fails to repay the business debt, the general partner’s assets can be sold by a creditor.

Limited Liability Partnership

Limited Liability Partnership or LLP combines a partnership and a corporation. In such a partnership, no other partners are held accountable for the actions of other partners. The share is decided, and an agreement is signed, which helps in the smooth running of a business, but even this type has some disadvantages.

Complexity and High Taxation

The formation of LLPs is complex, so many states do not allow the formation of such companies. The conditions will enable the building to impose heavy taxes, making it difficult for a business to run smoothly.

Legal Recognition

Many states do not recognize these types of businesses as legal entities and self-employment taxes are imposed on the partners. Also, these types of companies are not given the same credibility as the other businesses.

Reviewing each partnership type’s cons is best before setting up a business under a partnership. Until or unless a plan is drawn up for how each of the legal matters will be handled, a partnership must not be chosen. It reduces the risks of a business getting dissolved or completely chaotic!

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.

While they already face the problems of arrears and mismanagement, SMEs today face new financial problems. In particular:

• The volatility of the foreign exchange market
• The fluctuation of commodity prices
• Interest rates

SMEs are more fragile than large companies and present a particular sensitivity to financial risks. This greater exposure to risks is explained first by their size. Less structured SMEs underestimate their working capital requirement (WCR) and neglect the debt recovery part.

The Financial Risk goes Beyond Simple Debt Collection

Interest rates, dollar prices, commodity prices, etc. The instability of the financial markets represents a significant risk for one in three SMEs. They are, however, rare to act to protect themselves from it. The reason? The solutions proposed are still unknown and raise many reservations for a large part of the 60,000 failures recorded yearly concerning small and medium-sized enterprises, which are more vulnerable to financial risks than large companies. 

Large companies have integrated the risk culture linked to the financial markets. It has put them at the heart of their overall development strategy. Small businesses suffer the most from these risks due to their ignorance of existing solutions or distrust of a universe perceived as opaque, speculative, and complex.

Insufficient Preventive Strategies

Many SMEs have implemented preventive strategies by reducing their debt to avoid interest rates, diversifying their offers, or forming partnerships to diversify risks. However, these measures have their limits. Solutions to transfer all or part of the risk to a third party, offered by banks and specialized brokers, can be particularly attractive for entrepreneurs. Among them is the futures contract, which consists of the SME buying an asset at a fixed price for delivery and subsequent settlement. This asset can be traded on a futures market or over the counter. Another possible solution for small businesses is to bet on the future value of an underlying asset.

Whatever strategy the company chooses, it is advisable to favor simple products with a precise mechanism. The objective for the entrepreneur is to opt for a strategy to protect against the level and volatility of future prices and to apprehend the financial consequences of erroneous anticipation. Efforts have been made at the national level through different programs to facilitate SMEs’ access to the equity and bond markets. Despite this, many SMEs are reluctant to use so-called “hedging” instruments, perceived as complicated or expensive. Yet the financial risks are currently very evident in the context of high global volatility. SMEs have every interest in preventing these risks.

Global Financial Crisis

International Monetary Fund (IMF) has encountered multiple crises after the Great Depression. In a recession, the financial condition of SMEs worsens. The loan-taking prices increased, and banks started enforcing many restrictions while lending to SMEs. Also, banks shorten the debt payment time to cope with the risks of the global financial crisis.

Consider and carefully understand the Chinese PR case study.

The statistics of the China Banking Regulatory Commission reveal state-controlled banks lent 2.2 trillion as a total estimation in 2008. The small businesses got only 300 billion in loans, equal to 15% of the total ratio of the state bank’s lending amount. As a result, a maximum of 20% of registered SMEs face massive bankruptcy, while other SMEs still encounter severe capital shortages with the same ratio of enrolled ones. If we compare the state-owned enterprises, SMEs did not get much protection and support from the Chinese government during the pandemic.

SMEs in other states are also facing the same situation. Therefore, all governments must consider the financial status of their SMEs. They should reduce all SMEs’ problems, especially financial ones. So, consider information asymmetry, relationships between banks and enterprises, and internal restrictions within the SMEs’ financial system.

Determinants of SMEs’ Financial Structure

It is beside the dependent variable like total debt and total asset ratio. It has the returns on assets, non-debt tax shields, liquidity that you can measure by a quick ratio, the asset’s size of the firm, tangibility, and strong growth qualities. All of them operate and maintain the profit margin for SMEs

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.

Exploring bureaucracy and its characteristics has been a fascinating subject for many theorists. Max Weber and Rosemary Stewart are two notable contributors whose observations have illuminated the profound impact bureaucracy can have on organizations. Their insights are invaluable for understanding this complex topic!

What is Bureaucracy?

To define bureaucracy, Weber put forward several characteristics which would form an ideal type of bureaucracy.

1. The hierarchy of command is an essential element for any business. Weber believes that every organization should have a hierarchy of command starting from the top-level management to the bottom level of employees.
2. There should be no biases. Every position and level must have a clear set of instructions and expectations related to it. This way there can be no room for questions. 
3. Employees must be rewarded for their work and the achievements they have made for the betterment of the organization.
4. Specialization of work related to the division of work theory

What are Authority Types?

With the characteristics of bureaucracy, he also defined the authority types that exist in our society and, hence, in the organizations. 

1. Traditional: The traditional form of authority existed in the earlier ages, where authority was mainly linked with hereditary power. If a father dies, the power of the authority gets transferred to the son. Such authority still exists in companies with a single owner instead of multiple owners (shareholders). 
2. Rational Authority: This form of authority is linked with bureaucracy, where candidates are selected based on their skills and work experience. Every selection for the main position is made through rules and following a professional channel where impartial decision-making is done.
3. Charismatic Authority: The individual is selected by considering his charisma. If the individual has the charismatic characteristics of making other people do what he wants to get done, he is usually selected as the manager.

Weber believed that one of these authorities exists in all organizations and that bureaucracy can enhance the productivity and efficiency of the company. On the other hand, Rosemary worked and defined the features of a bureaucratic organization. She put forward these points.

1. Specialization: Unlike others, Rosemary focused on describing that the specialization must be of the job and not the employee. It means that when an individual leaves the position, the job must continue, and another individual must be hired to fill the vacancy.
2. Hierarchy: The line of authority and management level must be clear.
3. The system of Rules: A system of rules is present where all the people are aware of the rules and perform their jobs accordingly.
4. Impersonal: All the rules and decisions must be taken using the impersonal decision-making authority following the pre-defined rules.

   Bureaucracy Growth

   Apart from the features, she defined the reasons and causes that give an organization’s bureaucracy growth. Bureaucracy does not exist from the beginning; therefore, these factors give birth to it.

   1. The growth of the organization
   2. Increase in the complexity of the work.
   3. Implementation of the scientific management principle.
   4. Equal and impartial treatment.

In Conclusion

Wow, the field of management has truly benefited from the insightful theories proposed by Max Weber and Rosemary Stewart! Their ideas have truly helped us understand the unique characteristics of bureaucracy within organizations and why it may be necessary in certain situations. It’s incredible to think about the numerous theorists who have contributed to our understanding of bureaucracy and its impact on organizations. Still, Weber and Stewart’s observations truly stand out as noteworthy and valuable.

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

The self-employed do not win the scare. Every quarter, the Treasury knocks on our door, and we must make the corresponding payment. But, in addition, now the declaration of the rent approaches, it is possible that we also must make some payments.

If you fear that the moment will come and the accounts do not come out, pay attention to this post. Today, we are going to teach you how to organize better the finances of your company with these five essential tips:

Do Not Think About Your Income as if it Were Your Payroll

One mistake in being self-employed is to believe that all the incomes from the bills to the bank account belong to him. However, it would help if you remembered that you are only a mere intermediary of VAT. That money does not belong to you; therefore, you should not use it. Otherwise, when it comes time to return it at the end of the quarter, you will have a big problem.

In addition, the income is subject to IRPF, which you must also discount if you want a clearer idea of ​​the money you have earned.

Separate Personal Accounts from Those of the Company

It is highly likely that you only have one account in the bank or, at the most, two: one daily and one saving. However, to efficiently organize the company’s finances, it is convenient to open three accounts: a personal account, an activity account, and a third for taxes. This way, you will have a more realistic vision of the business and avoid surprises with the Treasury.

In the tax account, you must enter the VAT and the IRPF that corresponds to you. If you are self-employed by modules, you can plan and know what amounts you will pay. If you pay indirect estimation, the most advisable thing is to transfer the VAT paid to you from the invoices you are issuing directly to this account. You will also have to set aside 15% as income tax. At the end of the quarter, you can direct the tax charge here so that you will have everything in order.

In the personal account, you will include your payroll. That is, the income you get from your activity, fewer taxes and expenses, and the percentage of savings you want to save. Finally, you must enter the business expenses in the activity account (rent, insurance, communication, telephone, etc.). You can save some extra money to make future investments or face unexpected expenses if possible.

Manage Invoices on Time

Try to keep the accounts up to date. It is crucial to invoice the work now you have finished it. It thinks that delaying the emission of the invoice will only contribute to lengthening the collection even more. That can generate liquidity problems in the medium term. Take care!

On the other hand, having updated accounting is the only way to control the money in your account. Remember that even if you have the help of a professional, you must be aware of your funds to manage the business correctly. So you will not make excessive expenses and know to what extent you can invest or not.

Claim the Money that Corresponds to You

And do it as many times as necessary. The self-employed have few mechanisms to defend themselves against delinquency, especially when the amounts are small. Hence, it is crucial to insist again and again until they pay us what they owe us. Do not be ashamed!

Ask for Help When You Need It

If you are going through a complicated situation and lack liquidity, ask for help. Resorting to the bank or borrowing with high interest is only sometimes necessary. First, visit your family and friends, look for subsidies, and delay the possible payments. For example, you can request a postponement of the social security fee or divide the taxes.

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

The owner has several alternatives to cover their backs when taking their floor to the market and avoiding scares because renting is easier. Only a few premises are needed:

1. Find the ideal tenant: The remedy to avoid headaches is to select the most appropriate tenant. It seems obvious. Find a tenant who takes care of the house as if it were his, who is punctual with the payments and respectful to the community members in which he lives. It is not an impossible mission.
2. Adjust the price: If this is not the first time, you will know about the price fluctuations. However, if this is the first time that you rent an apartment, it will happen that for different reasons, you are emotionally bound, and that will prevent you from seeing the matter. Before putting the condo for rent, make a firm decision. When you are sure to rent, and it is time to decide the property’s price, it is crucial to conduct a market study. Compare data from similar rentals. For this, you can use a startup called Third B that collects all the properties; you can consult data from the cadastre, the Ministry of Finance, sales, and rental data, with a history of the price evolution and information on all services in ​​the property.
3. Complies with the regulations: There is a precise regulation of urban leases in terms of the periods of mandatory fulfillment of the contract and the terms for the tenant to pay the rent. Do not try to filter abusive clauses because it would not be the first time that a judge gives the reason to the tenant. We highlight the variations the law has had in recent years.
4. Better to talk face to face: A rental agreement is not the same as a mortgage but establishes a tenant-owner relationship that lasts several years. You have the mission to offer the impression that you are willing to meet and speak in person with the tenant interested in your home, which will establish a relationship of trust.
5. Consult a legal professional: At this point, it is essential to have the advice of a professional who knows the law well and can defend both parties’ interests. It will help you understand what procedures are necessary, how to rent a flat safely, and what steps to take to deliver keys. Before that, you must make one of the houses if it is not empty. Take photos of the appliances and everything that belongs to you and that you want to keep. In addition, this inventory must be signed by the owner and tenant.
6. Ensure that the floor is in condition: The floor must be delivered in good condition, both clean and habitable. Indeed, the law does not require to provide the apartment clean or all painted, but it is assumed that the owner is first interested in the tenant’s comfort. Nor does the law require the owner to contract light and water supplies, but any facility will be welcome. Typically, in these cases, you only need to change ownership. But providing as much information as possible is good to feel part of the whole.
7. Asks for guarantees: The law stipulates that a month’s deposit is required, but many owners ask for additional guarantees.
8. Make improvements in the home: If the tenant has a disability or is older than 70, if he previously notified the landlord in writing and the works are necessary for the house to be used correctly and according to the disability or age over 70 years, perform adaptation works. However, if, as the owner, you want the house to be in the same condition once the contract is finished, you can demand it. Recording all the information in writing and requiring invoices is essential because they are carried out.

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.

Our relationship with money begins to forge; without realizing it, we learn everything about how our parents handle it. Much of what we know can be good or bad. Neither they nor we are to blame. They did the best they could within their means.

Improving Your Relationship with Money

Being adults is when we begin to put into practice everything we learned. The way we understand what works and what does not, but the worst of the mistakes we can make is to keep doing the same thing repeatedly and expect different results. Here are some tips so you can improve your relationship with money.

Money is medium – It is not the end

Earning money to treasure it or put it to work to accumulate more is not the primary purpose. Money helps you achieve goals and dreams; it should never be the end of having a lot of money. You can also use it as a future investment for the retirement period. Remember that investing real cash in assets will never give you what you want. You should invest your long period’s earned money in different investments.

Learn the meaning of income

Any amount that enters your accounts or portfolio at the end of the month is considered. It includes the income from salary, an ordinary entry, and extraordinary ones such as gifts, bonuses, or donations. When you know the actual value of a payment, you will spend it on valuable things rather than wasting them. The proper use of income will never put you in financial danger.

Learn the meaning of expenses

Everything you spend, from debt payments to liabilities and purchases, are considered expenses. It is money that comes out of your accounts and wallet and that is recovered. Expense management always demands a proper plan with complete financial understanding. First, make a good schedule and set aside your necessary expenditures. Estimate how much money you can save. Then, figure out how much money you will have for savings. If you can manage all these things together, especially your saving purpose, you must cut your additional expenditures.

Money helps to achieve happiness

Money is not happiness. You may not have managed your money well if you do not consider it that way. Money can help you achieve any goal you set. If you want to open a business, buy a car, go on vacation, etc. Everything is completed with money.

Recognize the importance of good administration

Money management is the key to getting rid of your debts and making money yield. It does not matter that you earn little money. If you reach a lot and it is not managed, you will waste it. You will acquire more debts if you make small ones and do not handle them.

Find the enemies of saving

The leading cause you cannot save is that you have found other ways to use your money. Some of them are ant expenses and phantom expenses. They are small and invisible, but little by little, they end up with their salary.

Set financial priorities

Who is happier, the one who has more or the least needs? Many of the purchases are not necessary. Perhaps the media has been responsible for making us believe that we need everything they offer. The more things we have, the more worries and expenses we have.

Regarding savings

No matter how much money you earn and how many debts you have, it would be best to always think about saving and set aside a certain amount of money month by month. It does not have to be much; it should be constant.

About the use of credit

Credit can be your best ally or your worst enemy. It can help you build wealth if it is appropriately managed. You can also sink it into debt if you use it to waste. You can also be a credit card user, but you will have to pay all your bills on time for the best credit history on your credit score. It will make you eligible for any loan amount.

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

The objective of our talk was not to discourage them but to tell us the faults you should not make if you are starting a business or thinking about doing it.

These are the ways that are considered infallible to kill your business:

Start a Business Without Even a Minimal Financial Cushion

Whatever your product’s benefits, it will still take time for people to learn about it. At the initial stage, investments often exceed income. Therefore, you need a minimum amount of money. Even if you do not have hired employees, you will need money to settle with suppliers and pay for advertising.

More than 60% of domestic startups use the founder’s capital as the primary source of financing, and a third of entrepreneurs work for hire at the same time as the development of the startup.

Working elsewhere to fund a startup is a great way to insure yourself: the guaranteed income from your main job will not depend on the profit of a still-developing company. You have to forget about such a thing as “free time.” Now, it will only go to sleep.

To avoid being torn between your business development and work for hire, first collect a certain amount of money you can hold out until the company you founded begins to generate a stable income.

The planned list of expenses should include payment for the official registration of the business (registration of an individual entrepreneur, acquisition of a license), rent of the selected premises, and purchases of products, materials, and equipment.

Remember your expenses. In addition to advertising, you will also require money to create your site. It would be nice to save up an amount equal to a six-month living wage before going into free-swimming from a hired job.

Have No Idea About Your Target Audience

If an entrepreneur does not have a clear answer to the question: “Who will buy your service/product?” and he answers something like this: “Everyone around,” then know that such a business will not last long. With such considerations, it is difficult to trade even common goods, let alone narrowly segmented products.

For a product to be in demand, it is necessary to determine what your potential customers are interested in and then offer a solution that meets their needs.

For example, the installation of vending machines in a shopping mall. Let’s face it: the idea is somewhat dubious. Of course, plenty of people are there, but most will prefer to eat slowly and comfortably in the food court. It is another matter to install such equipment in an office center where people are used to snacking on the run or at the workplace – here, such an option can be very profitable.

To study the target audience, use the 5W methodology. This method requires answering five questions:

1. What (What)? What group of goods or services do you offer?
2. Who (Who)? What category of people can become your potential buyers? What is their age, income level, and where do they live?
3. Why (Why)? Why should your offer be of interest to customers? What customer needs can your product group satisfy?
4. When (When)? What situations might motivate a customer to buy your service or product?
5. Where (Where)? How can the buyer get acquainted with your products and purchase them?
6. Wrong prioritization

One of the surest ways to kill your own company at the start is to solve secondary issues. Many, for example, do this: they order the most incredible site with an incredibly complex design. After that, they begin to finalize and design it, but they never start it up.

The Eisenhower Matrix will Help You Prioritize Correctly

Aspiring entrepreneurs often suffer from procrastination and postpone the start of work instead of solving essential and secondary tasks. New studies seem too incomprehensible, voluminous, and scary to them.

Let’s say you started with the right things. Further, it is essential to pump sales and marketing constantly. After all, sales are the blood of business.

Starting with the design of the picture and not looking for potential customers is, to put it mildly, wrong. Learn and understand in detail how and what you should be selling because, at the initial stage, all sales rely on the owner himself.

It would help if you devoted most of the time not to solving routine issues or to what you like best but to finding buyers.

No Plan

If you want to kill your business immediately, do not plan anything but act as you see fit. All because having drawn up a plan, it must be carefully implemented, and only then can the result please. Of course, planning takes a lot of time, but you need to imagine the path and follow it to achieve the goal.

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

The temporal value of money (TVM) is crucial for investors since a dollar in one’s possession today is worth more than a dollar guaranteed in the future; the dollar in one’s possession today can be invested to earn interest or capital gains. Due to inflation, a dollar pledged in the future is relatively low now.

Money’s temporal value is separated into present value and future worth.

Present Value

Present value = (future cash flow) / (1+ return) ^ number of periods

The present value of a future cash flow defines how much it is valued in today’s money. It uses annual returns and the number of periods to discount future cash flows. If you put the present value amount with the indicated return and the class period, the investment will increase to the future cash flow amount, regardless of the present value.

Future Value

Future value = present value x {1 + (return x number of periods)}

The future value indicates what a cash flow obtained is worth significantly depending on the interest rate or capital gains. It determines how much a current cash flow would be worth in the future if it were invested at a specific rate of return and for a certain number of periods.

The present and future values consider the impact of merger interest or capital gains, which is essential for investors seeking profitable investments.

Due to money’s earning potential, the time value of capital assumes that the value of accessible money now is greater than that of the available amount in the future. The percentage difference of one choice given up for another is the opportunity cost of funds.

Why is TVM Important?

Because a dollar in hand now is worth more than money promised in the future, the temporal value of money (TVM) is essential for investors. This fundamental concept of finance is that money may generate interest and that all money is worth more than it received.

How do You Calculate the Time Value of Money?

The formula for the Time Value of Money:

FV = Future Value of Money

PV = stands for present value.

I = interest or any other type of return on the money.

T = the number of years to be considered.

N is the number of compound interest periods in a year.

What is an Example of the Time Value of Money?

The amount of cash you can earn between now and the time for a future payment is the time value of money. If you lent your brother $ 3,000 for three years, you would only deplete your bank account by $ 3,000 once you received your money back.

What are the Five Elements of the Time Value of Money?

They are:

• The total number of periods involved (months, years)
• Annual percentage rate of interest (or discount rate, depending on the calculation)
• The current price (what you currently have in your pocket)
• Expenses (if there are any; if not, the payments are equal to zero.)
• Future value (the amount of money you’ll get).

Why is Money More Valuable Today than it Will be Tomorrow?

Because of inflation (terrible for you) and interest, today’s dollar is worth more than tomorrow’s (the side you can do for yourself). Inflation causes prices to rise over time because every dollar you hold now will purchase more in the future.

What are the Benefits of the Time Value of Money?

The time value of money is significant because it allows investors to make better decisions about investing their funds. Depending on interest rates, deflation, risk, and return, TVM can assist you in determining which choice is the best.

What is the Idea of Value for Money?

A tool obtained from every purchase or amount of money spent has been characterized as value for money. Value for money is determined by the cheapest purchase price (economy) and the purchase’s most excellent efficiency and effectiveness.

How to Calculate Future Money?

The future value formula:

Future value = current value multiplied by (1 + interest) n. To put it in mathematical terms, the formula is as follows:

PV (1 + I n = FV The number of interest rate improvement periods that will occur when you are calculating is represented by superscript in this calculation.

$1000 x (1 + 0.1) 5 = FV

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.