Author: Complete Controller

Passive management is not new, but it is an incredible novelty in investment funds and savings control for retirement. So much so that in 2016, it was left with 86% of the new money that went into funds worldwide. Although inequity, it still only accounts for 28% of the total.

The attractiveness of passive management focuses on the ease of understanding its operation, lower costs, good diversification, new technologies, and a community of loyal eager to share their portfolios, which communicates with the value investment so fashionable.

What is Passive Management?

To understand passive management, we must face the most traditional, active management. The main difference is that in the first, the role of the manager, who is responsible for moving the money to obtain profitability, is much more dynamic. Money moves more to receive more benefits. This implies a series of commissions per operation and a larger team of managers that analyzes the market to overcome the average profitability.

On the contrary, the passive management model uses products limited to replicating an index, such as the Ibex 35. Hence, it is also known as indexed management. In this case, the objective is not to overcome the market but to replicate it and do the same.

An investor who bets on passive management will use several products replicating indices and even whole sectors to build an investment portfolio as an investor in traditional funds would.

Advantages of Passive Management

Like any style of investment, passive management has its advantages and disadvantages. Its most important strengths are the following:

Lower costs

Passive management is cheaper and transfers fewer costs to the investor. The reason is easy to understand when a fund’s objective is replicating the market instead of overcoming it. The management is much less complex, so many operations are unnecessary, and the management team is much smaller.

One only must look at the differences between the commissions of an investment fund and an ETF, the star product of passive management. The commissions will surpass 1% in the first, while they will not reach 0.5% in the second.

A reasonable degree of diversification

Diversification is assured by investing in a specific index, sector, and category. Another question is the geographical one. To understand better, if you buy an ETF on the Ibex, you are betting on different types of companies in the same country.

Fortunately, there are also global ETFs and even a single sector.

Easy to access

Accessing ETFs and other passive investment tools is becoming easier thanks to new technologies. The outbreak of Fintech has led to the emergence of platforms where, for a short time, it is possible to start investing in these types of products and let the savings revalue at the same pace as the market.

Finally, although we have already mentioned it, many users are willing to share investment portfolios and strategies based on passive management. Try typing “Bogelhead” on Google, and you’ll find one of the most active communities.

Risks of Passive Management

As is logical, only some things can be advantageous. Passive management also has its black spots.

Replicating does not guarantee success

The stock market has risen for over 15 years, but replicating an index does not guarantee success. The Ibex, for example, does not always rise and may fall as a fund or an action will. The key to passive management is to make periodic contributions to compensate for periods of ups and downs.

Tax doubts

Most passive management strategies are carried out through ETFs or listed investment funds. These funds function as stocks since they can be bought and sold more quickly than a traditional fund.

The problem is that its taxation is also that of the shares, at least for Spanish ETFs. It means the reinvestment exemption cannot be applied, and you must pay taxes whenever you want to undo a position. There is now some controversy about the taxation of ETFs of foreign managers (the majority) and the possibility that they could benefit from this advantage.

Biased diversification

As much as an ETF replicates an index, if it is limited to one of them, the diversification will be relative, as we have already seen. A combination of ETFs will be necessary to diversify the portfolio and avoid risks.

In the end, passive management is an excellent complement to active management. Both do not have to be faced, and a portfolio can combine strategies that include products of all kinds.

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.

Process Costing is a method of determining the manufacturing cost at each stage, and it is assumed that the price of each unit produced is the same. As it comes under the branch of operation costing, it makes cost pricing easier. It includes accounting methods in many organizations or industries where the standardized product is produced and passed through multiple processes to be transformed into the final product.

The methods of calculating production costs are as follows.

First in First Out method (FIFO)

FIFO is a complex method of accounting, but it is significant in that it helps determine the cost of a product when its manufacturing is initiated, the time it is completed, and the current price of that product estimated with its initial cost.

Weighted Average Method

It is the simplest method of process costing as it depends on assumptions. The price of each unit produced remained the same until it was produced.

Average Method

It is the process of the weighted average method. The cost of the product that begins to produce is standardized rather than the actual cost. Therefore, it is sometimes called a standardized method of product costing.

You can easily find the direct costs, including manufacturing, labor, and raw material costs. In contrast, you will not find the indirect cost due to the numerous factors involved in the production. Expenses like the salary of access to employees, insurance, quality assurance, and depreciation rate all come under indirect cost. 

In an organization, production is continuous and standardized, as product costing is a sequential process, so it simultaneously calculates the cost of each unit produced. Process costing gives a complete account of price per product; therefore, you can predetermine the output cost. It reduces risk factors and additional losses. It may include the cost of byproducts and raw materials, thus satisfying the investment sheet with a direct and indirect cost.

For example, an application development organization like ABC International produces its products. Each product requires working from different departments, like the casting or production department, so the costing process is divided into different sections. Thus, accounting gets a lot easier for the direct cost of the production sector and the indirect cost of overhead labor and IT facilities.

An organization focuses more on the fact that input cost comes out as output cost. Process costing is the optimal method of monitoring all expenses included in a production process. If there is any change in the price of the raw material, then it will affect the final product cost. Therefore, it is necessary to reprice in such situations. Chevron Corporation is a petroleum company that produces petroleum products. As there are continuous fluctuations in petroleum products, management needs to keep a strict check on the production of each cost.

Cost Accounting 

When companies must make cost-effective products and enhance profits, they use cost accounting. It analyzes all prices associated with your company’s financial progress. The way price accounting is done changes according to the nature of the industry. Understand this by having an example of an advertising company. It works according to a series of different projects. In this case, job costing will refer to the correct usage of the cost accounting process. Company owners will record and analyze each project with all prices that relate, respectively. 

The manufacturing unit must analyze the cost of production. It should change from one another in which you produce all manufacturing products in terms of product variety and type. Spare parts-creating companies have features in batches. That’s why their costing process should be according to the collection costing. If they produce bulk items and standard products, the costing process will be Process Costing. The pricing strategy of the paper manufacturing unit should consist of the cost of finishing, pulp to paper, beating, and making pulp costs. Thousands should be in the pricing range. 

There are different costing processes.

Operation Costing

Process costing methods and operating costing methods are the same. The core difference between them is that it is suitable for various operations. Mostly, Toy manufacturing companies use this method. 

Unit Costing

If your team produces only one product, you will use the unit cost process to set its cost. You will divide the total price by the number of units and finalize it according to the unit cost. This method primarily benefits paper, textile, and cement manufacturing companies.

Operating Costing

Define and recognize services by operation costing process for the service industry. Hospitals and railways mostly use this costing method.

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 live in an age where technology is helping us reach new heights. Going back a century, you will notice lift patterns vastly different from today. Concepts like the internet and digital marketing can change how we live forever. While the internet is changing our homes, digital marketing is reshaping how we do business.

A cursory look reveals that digital marketing is all around us. Digital marketing is a vast field that comprises blogs, websites, search engines, social media, magazine sites, digital libraries, and anything available online. This variety of options suggests that digital marketing is here to stay and will continue to dominate for many years. Here are seven reasons you should consider digital marketing for your business.

Dynamic

Digital marketing has many manifestations. With so much tech around us today, the need to stay connected is a must. Thanks to innovative concepts such as digital marketing, staying connected is easier than ever. Everything around us is just a click away.

From business to education, jobs to sports, digital marketing makes it possible like never before. One can say that digital marketing is a concept that creates ease in our daily lives.

Promotion

Digital marketing comes in handy for promoting and marketing your business and products. The sheer reach of digital marketing is something other marketing channels can only dream of. Think about it: you have access to 71% of internet users through social media. You can market your products and services for free.

Furthermore, you can use paid and affiliate marketing by spending a fraction of the cost of paying for marketing on other channels. Digital marketing is trendy and expansive, so you need not worry about gaps and spaces in your marketing campaign. Whatever you promote will reach your desired audience.

Support

Though most people would prefer to get human support when needed, that is not always feasible. Therefore, we now have chatbots as support staff for queries from online users and buyers. You can request a chatbot to answer your queries, and it will comply.

Chatbots create new possibilities for entrepreneurs and sellers, allowing them to satisfy customers easily and swiftly. Chatbots feature artificial intelligence that is highly customizable. Without them, companies would have a hard time providing 24/7 support.

Voice-Activation

You no longer need to log into your system and type your queries in the search engine when you can do the same using your smartphone. Online assistants like Cortana, Siri, and Google Assistant are always at your service.

Just go to your phone settings and activate voice search, and you can inquire about anything from your phone assistant. Voice-activated search is by no means a recent trend. Several Linux and Microsoft OS versions had built-in voice assistants launched years ago.

Website

You can use digital marketing to promote your business through a business website. Your business website will help the audience find your business anywhere in the world. Using efficient business promotion means such as digital marketing creates more possibilities.

Ensure your business has an online presence and use online tools such as SEO and PPC to promote it to the world. It’s all about finding the right audience to convert into customers. None of this would have been possible without digital marketing.

Blog Content

Promotion and marketing through content is a valuable way of increasing online traffic to your website. Uploading fresh content on a weekly or monthly basis will help. You can audit old content by identifying areas where it needs adjustments.

Updating the blog section on your website is another way of driving more online traffic to the website. Blogs are popular and attract more traffic if the content is catchy, engaging, and contains authentic information. Regularly amass your website with fresh content and blogs to make it more attractive for readers.

Visual Content

Advertising your business using visual content can work wonders for your business. Visual content is eye-catching and appealing to users. Sometimes, it attracts twice or thrice as many users as composed content.

Prepare and upload informative videos about your business and services to ensure higher conversion rates. It will also add more authenticity to your business. Digital marketing is changing concepts and proving its worthiness effectively. It will continue to expand and bring more valuable and innovative concepts to its users through its versatility.

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.

Search engine optimization (SEO) is a powerful tool that helps entrepreneurs promote their businesses to the world through the internet. Using SEO will bring a fast response to your business and make it reach a much wider audience.

It is a tool that has shown remarkable resilience for many years despite several changes in Google’s algorithms. It is said that Google has made nearly 6000 changes to its algorithms since 2010, and the trend will likely continue. Surprisingly, SEO has proven its worth all these years and continues to do so.

This longevity makes it one of the more reliable and lasting methods in digital marketing. Does this mean that the SEO will remain as relevant in the future as now? Only time will tell, but keeping its track record in mind, it will survive and do better in the future.

SEO emerged early in the invention of search engines but fulfilled only basic tasks. Today’s SEO is leaps and bounds ahead of its humble beginning and will likely continue to improve with time. SEO has helped startups and growing businesses and will continue for some time. Though some believe Search Engine Optimization is fading as a marketing tool, it is still relevant. 

Here are four reasons Search Engine Optimization is here to stay.

SEO is Evolving

SEO has been changing consistently and will continue this pattern. What worked for sites five years ago may not work today. This change doesn’t mean that SEO is dying; it just means it doesn’t work as it used to. Today’s SEO is as effective as it was six years ago, with some differences. Google searches now work differently than SEOs must adopt.

The Google algorithm loves brands and expects them to be organic. This branding is why content is so crucial for SEO. Paid promotions still work, but SEO wonders for websites when combined with content that boasts quality and pertinence.

Innovation through Position Zero

As discussed, SEO is growing more innovative with every Google revision. Position Zero is the first result that comes up in an organic search. Most people using a search engine will enter the site of the Position Zero (P0) result. The results also include answers outside the site.

Readers can read these answers without having to click on a link. These snippets are displayed just above the organic SERP results. It is recommended to keep your content short, use bullet points to write it, and make it more readable with the help of charts, videos, tables, and images.

SEO is Adaptable

One of the reasons SEO is still around and doing great is that it is adaptable. You can incorporate or combine changes with other tools, which will still work best. Today’s customers are challenged to convince through traditional marketing such as emails, paid ads, and cold calls.

That is where businesses use SEO to make their business presence felt in that demography. SEO works like inbound marketing, attracting clients rather than reaching them through sales tactics.

Interestingly, SEO experts can attract more customers using innovative strategies such as long-tail keywords and potentially draw a large audience. This type of keyword works well when there is a need to attract a specific audience. In addition, comparing brand A with B and inserting keywords as questions also bring fruitful results and position you well against your competitors.

SEO Diverts Traffic to Your Site

Driving traffic to a site is not easy. SEO teams work day and night to drive more traffic to your site using various means. Despite several changes in the past few years, SEO strategists are developing efficient strategies for diverting traffic to sites.

They use innovative algorithms and content useful when crawlers go through the site. Quality sites get indexed fast and are more likely to get ranked above others in queries. It is a race between which site ranks higher, and SEO experts know how to bring yours to the first page. Site ranking works gradually, so you might not see yours on the page overnight.

Stuffing random keywords and creating low-quality content will not work. An SEO expert will tell you that quality content still dominates if it is coupled with searchable keywords. Search Engine Optimization will be relevant for years because of adaptability and scalability.

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.

Performing efficiently in a codependent environment is a trademark of successful organizations. That means once some portion of your company needs to function in a flat structure, assets are shared, and associates report to different managers. This is the matrix organizational structure.

Setting up a matrix organizational structure could help your company accomplish goals like relieving pressure or creating silos of internal resources. It could catalyze working collectively across the department to attain organizational-wide objectives, like maximizing client segment income and distribution channels and preserving functional excellence.

But a matrix organizational structure will not work just because you set it up. Too frequently, organizational structures fail before they get off the ground because companies need more foundation to support the flat structure.

A business with a matrix organizational structure must be reinforced by solid interpersonal relationships and exact decision-making procedures to succeed. Here is how a company could lay the basis to provide your matrix organizational structure, providing an opportunity for success.

Make Sure Your Senior Leaders Are Aligned

Your senior and professional leaders team is not essentially part of your matrix. Still, they want to set a sample example for all other organizations by modeling what it looks like to collaborate and work together.

Noticeable combined leadership is crucial, and your experienced team has to rule by example, displaying how they connect arms toward an expected end. After all, if your experienced leaders cannot play pleasant, how can you think the organization can communicate or collaborate effectively?

Clearly Define Roles and Stick with Those Definitions

The more precise you can bring to people’s responsibilities, roles, and responsibilities, the more similar people will achieve the performance level you imagine. The continuity role is also significant, so avoid tempting to transform things up at the initial sign of trouble.

Remember that people want time in reposting and roles to develop confidence and build skills to perform well in a matrix environment.

Stop Assuming the Worst

A medium of environment relies on trust. So, you have to encourage trust in benevolent intent. Rather than assuming associates are out to weaken each other, your culture must support respect, honest care for each other’s agendas, and positive regard for others.

Building this sort of culture could be relaxed, said that one. But it initiates at the top, with owners displaying how they work instead of against others to get the job done.

Expect Conflict; Don’t Avoid It

Resource allocation, conflicts over priorities, and view differences come along the matrix territory. And your company has to learn how to achieve it healthily. It is significant for everybody to feel comfortable stating dissenting opinions.

But in the last hour of the day, people want to clearly understand the policymaking procedure and their role in that procedure. In other words, they must understand when a choice is theirs to make and when it isn’t.

Understand the Whole

The matrix structure could widen your understanding and perspective. It is significant for the people working and putting efforts into the matrix to see the broader landscape of all that is happening at their organization. Once they do, they can stand in their colleagues’ shoes and see from others’ perspectives.

Seeing the vast image also helps people better understand whom they want to share information with and who must be involved in choices. Once people know how their zone impacts other zones in the system and vice versa, the parts work more productively and successfully than they would have alone.

Learn From Experiences

Companies that make the matrix work spend great time reflecting, querying, and inquiring about why things failed. Your company wants to provide the people involved in the matrix the freedom and space to examine their collective and individual experiences. And the flexibility to retool when mandatory to put what they have learners to work.

Conclusion

An effective organizational structure takes effort and promises to succeed. But it could deliver significant advantages for your company, not the minimum of which is getting everybody aligned and working together to move your organization forward.

Suppose you invest time to ensure your organization has what it takes to support a matrix. In that case, you will be rewarded with an organization where people have each other’s back and effectively work together for the common good.

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.

Business planning is necessary to ensure your company’s solvency and know whether it is profitable. In uncertain and dynamic markets, simple planning is essential, which shows what you want and can achieve. You can do this with the Excel tool that is presented here.

Business Planning and Financial Planning

Strategizing sales and costs and achieving profitability are fundamental responsibilities in effective management. The imperative lies in securing liquidity while gauging your company’s profitability and individual business sectors. Given the dynamic and unpredictable nature of the future, adapting to evolving scenarios becomes paramount. The foundation for this adaptability is built upon the historical trajectory of business areas and informed assumptions about their prospective development.

That is why planning is sensible and essential. The business must carry it out for the company, which is legally independent and therefore must be accountable to owners about economic success. In addition, it must fulfill its tax and other legal obligations for accounting and proof of success.

A company’s management wants to see what contributes to economic success and in what form. For this reason, sales and costs are not considered across the board but divided and analyzed. Depending on the industry, type of company, size, and performance, various issues are considered in the planning.

Which Business Units and Planning Units are There?

The circumstances and areas where you plan sales, costs, payments, and profits depend on your area of responsibility and tasks. What can and must you arrange, design, change, improve, manage? Here are some examples of planning units:

Products and services

It provides a diverse array of products and services. With a strategic focus, the management is actively seeking insights into the profitability of each service. This evaluation informs decisions on promoting lucrative offerings, exploring expansion opportunities, and assessing the viability of phasing out less profitable ones.

Branches

The company has several branches. The management wants to know how successful the individual departments are, where to invest, and which to optimize and close.

Business areas, business units, and profit centers

A large company has several business units, business units, or profit centers. The management wants to recognize their successes to derive the company’s goals and strategies.

You can use the Excel tool from this manual section for differentiated but manageable planning for your company and individual product groups, branches, or business areas. Structure and functionality are explained step by step so you can start planning immediately.

Excel Tool with Menu and Overview of the Partial Plans

The Excel tool first differentiates the following planning areas or sub-plans for a company, its product groups, branches, or business areas:

• Sales
• Costs
• Liquidity
• Operating profit

You can plan sales and direct material costs as assignable direct costs for up to twelve different planning units. Planning units include individual products or services, product groups or segments, branches, or business areas. These planning units are product groups in the Excel tool.

The gross profit for each planning unit is calculated from sales and material costs.

All other costs for the company are considered and planned. Personnel, insurance, fleet, operating, financing, and other expenses incurred across the board.

Success planning results from the sales and gross profit for the individual planning units and the overarching costs. It includes liquidity planning. On the one hand, the company’s solvency is monitored, and on the other hand, the necessary capital requirements are determined for budget planning.

In addition, the operating result, the company’s profit, is determined in the profit and profit planning. Additional costs, depreciation, and taxes are included.

Considered Planning Period and Time Grid

The Excel tool was designed for six years. This planning period is structured as follows:

Development so far

The actual sales values and monthly costs are recorded for the past three years. The starting point is the current year, from which three years are considered: t-3, t-2, t-1.

Current underlying

The mean value is calculated from these actual values from the past three years. It means value for sales and costs are the basis for future planning.

Future development

Future development is planned based on the current underlying. The plotted values can result from assumptions about how sales and costs can develop and how targets (target values) can express themselves. The planning units for the future three years are:

• For the current planning year (t + 1): months
• For the coming planning year (t + 2): quarters
• For the following planning year (t + 3): full year

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.

Small and large businesses have struggled very hard to survive the brunt of the COVID-19 pandemic. Be it North America, Europe, or the Far East. The pandemic has hit businesses globally at a massive scale, particularly impacting SMEs significantly. The global pandemic has led many companies into severe debt. 

With the business pace slowing down and revenue taking a step down, hundreds of thousands of businesses filed for bankruptcy or filed for closure themselves in the last 15 months.

According to the Wall Street Journal, over 200,000 small and medium-sized businesses were closed during the COVID-19 lockdown, a number that experts have suggested to be far better than what they initially suspected.

The most complicated businesses to take the hit include entertainment and service-driven companies such as restaurants, theaters, cinemas, and retail shopping. While online shopping platforms like Amazon, e-bay & Flipkart, etc., and online food ordering had already taken a massive toll on the retail and restaurant industry, the pandemic only led to further consumer demand, reduced spending, and social distancing SOPs being mandated for businesses to hit the companies hard. From Deans and Deluca to Hertz Car Rentals and CMX Cinemas, many major companies have filed for bankruptcy recently due to the impact of the Covid-19 pandemic. 

But those are all gigantic companies with enormous cash to settle down unpaid debts and creditor loans. If you, however, are a small business owner and your revenue generation has taken a plunge, here are your top business insolvency options to get you out of debt.

Settle Out of the Courts

If you have run out of business and can’t figure out a way to pay off the debts of your creditors, it’s about time you reevaluate your decisions. Try working a solution out of the court. Liquefy any company assets like infrastructural components, brand name, & data, etc. Instead of filing for bankruptcy through court, discuss your situation with your creditors and give them at least half the minimum amount you owe them. Settling out of court can benefit both you and the creditor, and they can get some of the money owed to them. Otherwise, your creditors might not get a single penny. To settle out of court, you must have cash or assets that you can quickly liquefy. 

File for Bankruptcy

If your business accounts have completely drained, you can file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. With Chapter 7 bankruptcy, any assets not exempted by the state laws are sold to pay off the creditors. Whatever debts remain will be wiped out in the end. In Chapter 13 bankruptcy, you can make repayments in 3 to 5 years. You don’t lose any property; your creditors also get their money back. Chapter 11 bankruptcy is more of an organizational restructuring where you don’t completely shut the business down. But instead, you can borrow new money from a different creditor. 

The bankruptcy option usually works better for a Limited Liability Company (LLC) as the owner cannot pay creditors by selling personal assets. If you have signed personal guarantees to your creditors, even bankruptcy won’t help you keep your other properties or assets. 

Another thing that can go down while filing for bankruptcy is that your creditor can go to court and sue you for leading the business to losses. Then you might also have to pay off the debts. 

Negotiate Deals on Your Business Debts

You can negotiate deals with them if you can’t pay your creditors the total amount. You can be done out of court directly with your creditors. You can discuss paying partially or in long-term installments. While negotiating these deals, prioritize your debts first and settle the ones that can eventually make you personally liable if you can’t pay them in time. 

Conclusion

In conclusion, the global repercussions of the COVID–19 pandemic have inflicted significant hardships on businesses, both large and small, with SMEs facing substantial challenges. The economic downturn, combined with diminished consumer demand and social distancing measures, has resulted in the closure of hundreds of thousands of businesses globally, particularly affecting sectors like entertainment and services. 

Major companies have filed for bankruptcy, underscoring the severity of the crisis. Small business owners grappling with declining revenues are advised to consider options such as settling out of court, engaging in negotiations with creditors, or filing for bankruptcy under different chapters. Recognizing the potential legal ramifications and personal liabilities associated with these options is crucial. Navigating these complexities requires careful evaluation and strategic decision-making to mitigate the pandemic’s impact on small enterprises.

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.

Selecting a PAC (Authorized Certification Provider) for your clinical billing is a decision that requires careful consideration. The powers granted by the SAT to issue valid CFDIs make this choice legally binding, emphasizing the need for meticulous selection. This guide delves into crucial evaluation aspects, from understanding your billing volume to assessing records and client reviews. Whether managing a general practice or a specialized field, finding the right clinical billing software provider is pivotal for enhancing revenue and staying compliant with industry standards. Let’s explore the key factors to ensure a seamless and effective billing system for your clinical practice.


Let’s explore the key factors to ensure a seamless and effective billing system for your clinical practice.

Be Sure to Choose a PAC

Ensure your selection of a PAC is meticulous, as only an Authorized Certification Provider possesses the SAT-granted powers to issue valid CFDIs, making it legally binding.

Evaluate Your Billing Volume

Do you issue a dozen invoices a month or thousands? You must know the approximate volume of billing that you give to see the billing system you will need to acquire.

Advice and Support

We know that our clients are not experts in electronic invoicing and that our job is to help them understand the system’s operation in depth.

Price

This point is probably one of the most important because you, like us, have the right to take care of and manage your money in the best way. Find out about the costs and services offered by a PAC; in many cases, there are hidden costs, deadlines to meet, or extra charges that could cause you to spend more than necessary. Ensure that the prices offered to you are per stamped invoice since only when you get the bell from the SAT will your invoice be valid and legal.

Conditions of Use

Not all companies work the same way. Some entrepreneurs perform their billing personally, or international companies have departments that manage their billing. Whatever your needs, ensure the PAC you choose offers tools and solutions that fit them.

Past Record

How long has the clinical charging programming supplier been doing business? Life span is a significant factor. Select an organization that has a decent history in the industry. The more it has been near, the more probable it will have the option to draw in and keep up great ability.

Reviews by Clients 

Anybody can turn a survey to sound cheerful, so search for audits with meaningful data, clarifying that a clinical expert assessed and composed the audit and that it’s not simply promoting.

Experience Related to Speciality 

You will have less explicit worries about charging than numerous claims to fame rehearses if you run a general practice. Talk with the supplier to ensure the application will work with your specific claim to fame or sub-forte. It merits looking into because regardless of whether you run a general practice, you may extend with claims to fame under your corporate umbrella one day.

Size of the Staff

What number of individuals are utilizing at the firm? It’s ideal to go with a scope of laborers with skill and information in various zones of clinical charging. It enables the organization to react better to floods of charging in the middle of quieter durations.

Fees

What sort of yearly charges will be due? Is it true that you are qualified to get a rebate if you get a more considerable volume of business? How long are the current expenses set to be set up? You don’t need a startling spike in charging after the initial year of administration.

Reminders

Does this clinical charging programming supplier incorporate an amicable and helpful technique to remind patients about installments? It ought to be taken care of with the most extreme of graciousness and tact to avoid causing some disruption.

Conclusion

Whether you run a general practice or are accountable for a strength, finding the best clinical charging programming supplier should assist you with improving the income circumstance. Doing so will likewise help you with the remaining current on consenting to government guidelines and industry best practices.

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.

Cash flow is the primary function of any business, and it determines whether your financials are running successfully. Positive cash flow means paying off your debts and liabilities and maintaining more equity than liability.

Businesses have often needed help maintaining their cash flow, even those with a profitable financial period. Even if your business is posting a profit, it may still need to do better in terms of liquidity and may face problems covering overhead expenses and payroll.

A business must have a positive cash flow to manage its day-to-day business and have a credible balance sheet. 

Here are four ways to improve your business cash flow.

Offer Incentives for Early Payments 

Try sending out invoices as soon as you send them out. It helps keep track of everything that’s going out, and the sooner it’s sent out, the sooner means, the sooner you can expect payment. Try to offer discounts to customers who pay on time.

For example, if your terms for payment are net thirty days of invoice submission, try offering incentives where you’ll give them a small discount if they complete the terms within fifteen days instead. This incentive especially helps customers buy bulk orders of your product or services.

The incentive will also help you save on your costs and liabilities, as you can get your cash faster to pay off expenses or invest further. By keeping your business liquid, you’ll be prepared for any sudden changes in the market or economy, and this is something on your balance sheet that shareholders and potential investors will be looking for.

Impose Penalties for Late Payments

Try to set it in your terms and conditions that any payment made after the Net 30 period will be penalized with a late fee. It shows that you’re running a serious business with professionalism and that there can be no compromise regarding payment collection.

It also helps expose you to the market and, through trial and error, can help you learn who to do business with. Any customer who doesn’t honor your net terms and offers late payments is ultimately detrimental to your company’s bottom line, and you would be better off not doing business with those kinds of unprofessional practices.

Keep Track of Your Spending and Remove Unnecessary Expenses

Identify and remove necessary expenses by doing monthly or semiannual expense reports. Try to cut out any unnecessary expenses as much as you can. Research and invest in software that can help your business grow, such as accounting software tools to help you do your bookkeeping more efficiently.

Keep track of your purchases and remove those that don’t show any significant purpose or that be replaced with something more affordable. Try purchasing your supplies in bulk as, just like with your Net Terms with customers; more suppliers will offer discounts if you pay them in time.

If available, take full advantage of these discounts and try paying off your vendors as soon as possible to avoid having cash tangled around in loans and back payments.

Open a High-Interest Savings Account and a Business Credit Card

Try investing in high-interest savings accounts, as it is a safe way to help generate cash and improve your cash flow in the long run. Pay attention to applying for a credit card that has cashback options.

Be sure to use it responsibly, and you’ll be able to enjoy the benefits of receiving cashback on purchases paid on time. It is also one of the best ways to help boost your business’s credit score and help get you approved for future loans and other banking benefits.

Conclusion

Cash flow is about managing expenses and keeping your business flush with cash. The more liquid your business is, the better equipped it will be to anticipate unforeseen circumstances.

It is vital for future investments, expense budgets, and the daily welfare of the organization. Regardless of the profitability of your business, it will be less successful than a company that may project fewer profits but with a much stronger cash flow statement in the same period.

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 digitization of the world is revolutionizing traditional customer relationships. In the digital world that results from merging the natural and virtual worlds, the new battle for power between customers and companies is now taking place as a battle for data. Because whoever has the data also has the power.

Customer Experience Management

Companies lure with new customer experiences and want data as wages. Customers wish to get data on offers and prices to get the cheapest products and services. Here, analytics becomes essential because analytics turns data into the necessary knowledge that brings companies to glass customers and customers to the glass market.

Innovations in information technology are driving the digitization of the world. Cloud, Social, Mobile, Big Data, and the Internet of Things revolutionize our world, just as fundamentally as the steam engine at the time, which broke up and rearranged society, the economy, political systems, and even state systems at the center of these upheavals is – then as now – people whose living and working conditions are changing accordingly.

In this article, we want to highlight two aspects: the person who is a consumer in his life and the company through which the person is simultaneously involved in working life and is, therefore, part of a producer or service provider. In the digital world, he is such a digital customer and part of a digital company.

Digital Customers and Digital Companies

You can define a digital customer via his digital networking and communication. He lives in his world of experience and communicates at eye level through dialogue and interaction. He maintains his social relationships. He values authenticity, transparency, and loyalty. He develops momentum and prefers simple content production. He uses diverse digital platforms (not just Facebook) and leaves traces in the digital world: customer data as part of big data.

Therefore, finding, interpreting, and using these traces in big data is one of the main concerns of digital companies because this is the only way to manage the customer’s world of experience. What distinguishes a digital company from a traditional company? A digital company is created by digital transformation within the company. Specifically, this means that information technology no longer only serves as a support process but also serves to innovate the business model and business processes. New digital business models and processes mean new sources of revenue and disruptive competitive advantages. Digital products complement the product portfolio, and information is used as a strategic advantage. In other words, the company is reinventing itself.

According to Forrester, IT departments need consulting skills and comprehensive collaboration. This requires political sensitivity and methodological competence.

Big Data Becomes Smart Data

The second essential characteristic of a digital company is that it masters digital communication. New media and channels are continually integrated into corporate contact with all business partners and at all levels. This is the only way to follow digital customers and track down all traces in the digital world. This is how you can filter big Data: Smart Customer Data is the result.

The first consequence of digitization is that small, medium-sized, and large companies no longer show the known classic differences. In the digital world, everyone is equal because the cost of taking advantage of digitalization is small.

Thanks to the cloud, computing power is equally accessible to all companies. Now, the little ones can use the same methods as the big ones. Thanks to the cloud, you can find the complex infrastructure significant data analytics needs at user-related prices. This means that all significant data sources are accessible to everyone. Everyone can individually relate all Big Data sources to their customers and put them in context: Big Data becomes Smart Data.

Data is the New World Currency

In the old world, there were currencies in which customers paid country-specific for products and services. During digitization, there is a new currency: data! If you (the customer) give me your data, I will provide (Facebook, Google, and others) a “free” service. Digitalization makes the breakthrough. Data becomes the world currency by merging the virtual with the real world.

For example, data in the virtual world are enriched by corresponding sensor data using a spatial coordinate. The localization and navigation data of smartphones and other devices make localizing the customer and offering location-based services possible. As a result, the most significant data collectors, such as Apple, Facebook, and Google, are among the highest-rated companies in the world. This is no wonder because those who use data using analytics have the power to intervene in the customer’s world of experience. Smart data (customer-related and appropriately filtered data from big data) turns customers into long-awaited glass customers.

Conversely, the power of data is available to customers. Because in the digital world, prices, product features, and services are transparent. As a result, the digital market is evident and more transparent than the traditional market. Customers use this to hunt for the best offers. A flight from Berlin to Rome can be cheaper than a taxi from Spandau to Kreuzberg. Therefore, a power struggle will occur in 2015 and the following years. Customers want to pay increasingly for data, and companies are getting hungry for data to convince customers of better customer experiences to reveal increased data.

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.