Author: Complete Controller

People are often under the impression that you would not have much work to do if you were an entrepreneur during your day. It is a common misconception that business owners only spend two to three hours in their office daily to check that things are happening in order. After that, they leave and enjoy the rest of their day while their employees work nine to five. However, that is just a conclusion people develop in their minds by observing an entrepreneur’s routine, which is why it is entirely wrong.

An entrepreneur’s daily tasks are much more hectic and mentally draining than an employee’s. Entrepreneurs must think in all directions when working for their business’s growth. Tasks like creating a comprehensive business plan and overlooking new employees’ hiring processes are all part of an entrepreneur’s job. While managing these tasks, an entrepreneur must consider taxes‘ impact on their business.

Here are a few tax tips that every entrepreneur should know if they are looking to obtain maximum tax benefits while getting their business finances structured.

The Difference Between Hiring Employees or Subcontractors

One thing that every entrepreneur must know is the difference between hiring employees or subcontractors. Tax rules and obligations are different in both cases. The company must pay full-time employees specific social security and health-related tax benefits to which contracted or freelance workers are not entitled.

Freelancers and subcontractors are also hired for a specific project, and their term/contract ends when the project ends.

Keep Separate Accounts

Another critical factor entrepreneurs must not ignore before starting a business is keeping business and personal accounts separate. It is an essential practice for tax purposes. No one knows if their company will excel or result in a flop idea. Nevertheless, they must consider the possibility that their business will grow and run for the long term; hence, they must keep both accounts separate so tax authorities can deal with both funds according to different regulations.

Experts say that if personal and business funds are combined in any way, then complications occur in terms of business tax debts. These are problems related to shareholders and board members and can involve tax regulatory authorities’ penalties.

Structure the Payroll Account of the Business

Due to some tax obligations, entrepreneurs must provide a proper structure to their business’s payroll account. Tax regulatory authorities strictly check these matters and scrutinize companies not paying their tax dues associated with the payroll. Employees bring tens of scheduled payments and tax forms, so entrepreneurs must know these matters.

Start-up Tax Deduction

When an entrepreneur is planning to start a business, there are certain expenses that they usually rack up. Such expenses can be used as a tax deduction. In most states in the US, an amount of five thousand dollars can be deducted as a tax deduction in the name of start-up costs and research and development. In the name of research and development, conclusions include the costs of employee training sessions, checking the viability of the business idea, ordering supplies, etc.

Claim Depreciation

Entrepreneurs can claim the depreciation of business items with time. Deterioration of the physical state of resources and supplies, fleet, or office vehicles can all be claimed by the business owner. As per the latest regulations from the regulatory authorities, machinery, furniture, buildings, cars, and other equipment are all depreciable, along with other intangible items like copyrights, patents, and software.

Entrepreneurs have two approaches in such cases: either they claim the depreciation of their business’ properties and resources periodically to improve their tax situation yearly, or they take the lump sum approach.

Conclusion

Apart from these, entrepreneurs must learn many other tax tips before starting their venture. These tips can also benefit an already operational business and help the owner improve its tax situation. Indeed, new entrepreneurs have too much on their plate; tax planning is something they must not ignore.

Such practices can help entrepreneurs save quite a fortune for their business eventually. 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 management is usually associated with changes for the employees concerned. For these to take part in the changes and to master the new processes, special measures are required. Even though it is sometimes called the delicate side of progress, dealing with the individual’s side of a change is frequently the most testing and essential part of an authoritative change.

Think about a merger or procurement. The technical side of the change is positively unpredictable. It would help if you worked out the money–related courses of action of the arrangement, coordinated business frameworks, and settled on choices about the new association’s structure, and that’s only the tip of the iceberg. Be that as it may, getting individuals ready and taking an interest in the merger or procurement can affect progress and disappointment.

From Thinking in Functions to Thinking in Processes

Despite the great importance of processes in companies, they have been out of sight for many years. Instead, companies thought in the function category – and many still do so today. There is a development department, production, sales, accounting, customer service, and many other departments. Often, there were breaks at the departmental boundaries; the process flow mostly stalled there. Time was misspent, costs rose, and quality dropped.

Only in the early 1990s did the process idea return to the focus of companies. One trigger was the “Business Process Reengineering” concept by Michael Hammer and James Champy.

With his value chain model for describing the corporate strategy, Michael Porter also clarified that processes are the core of a company because they make visible which services are essential in the market in relation to customers and comparison with competitors.

With his process model of the value chain, Michael Porter also emphasized that processes are of different importance for a company’s success. The following can be distinguished:

• Core processes that directly contribute to added value, competitive advantage, and thus to the company’s sales and profits are core services; examples are sales, production, or product development.
• Supporting processes that are also important or necessary but do not directly add value; examples of such support services are bookkeeping, strategy planning, or maintenance of the IT infrastructure.
• Unnecessary processes have no purpose and do not contribute to any corporate goal. They may have made sense in the past but only exist because they have not yet been discontinued; it can hide examples of such reactive power in all specialist areas of the company.

Process Analysis and Process Design

Process management and the change to a process–oriented organization are complex projects in organizational development. Check on which occasions you intervene in your company or department’s running processes.

• What is the reason for the process analysis?
• What goals do you pursue with revising, redesigning, or optimizing the processes?
• Which departments are affected?

The following template describes the significant steps for analyzing and designing processes in the company. You will find step-by-step instructions and checklists for process analysis and process management in your company.

The following subtasks of process analysis and process design are dealt with in this template:

• Delimitation of the considered process (in scope / out of scope)
• Clarification of goals and strategies
• Description of core processes and sub-processes
• Location in the value chain model, according to Michael Porter
• Information research for process description (actual analysis)
• Process analysis with strengths, weaknesses, opportunities, and risks
• Assignment to process indicators for quality, time, costs
• Identification of weak points
• Analysis of process errors with the cause and effect diagram
• Action planning for process design and process improvement

It is helpful for process analysis if you put your processes in a flow chart. With the following template, you can visualize your processes on different levels and with further details.

Process description and process visualization often use standardized models and description languages. It should help to make processes comparable and to standardize or automate them.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.

Did you need help getting your bills paid quickly? Would you like to focus entirely on your core business and avoid repeatedly raising your customers? Find out how factoring works!

What is Factoring?

Factoring, receivables calculating, or indebted person financing is when an organization purchases an obligation or receipt from another organization. Considering is likewise observed as a type of receipt limiting in numerous business sectors and is fundamentally the same as, however, just inside an alternate setting. In this buy, sales records are limited to permit the purchaser to make a benefit upon the repayment of the obligation. Factoring moves the responsibility to another gathering that, at that point, pursues the commitment.

It diminishes the primary party’s obligation for not precisely the aggregate sum furnishing them with working cash flow to keep exchanging. At the same time, the purchaser, or factor, pursues the obligation for everything and benefits when it is paid. When the burden has been settled, the element must pay extra expenses, ordinarily, a nominal rate. The factor may likewise offer a markdown to the obliged party.

It is also a typical strategy exporters utilize to help quicken their income. The procedure empowers the exporter to attract up to 80% of the business receipt’s incentive for conveying the products and when the business receipt is raised.

Factoring designates a method of financing a company’s client position. It involves assigning the debts of its customers to a financial organization called a “factor.” The company concerned immediately recovers cash, and the factor is responsible for collection. 

No matter their size and their sector of activity, all companies can use this financing technique. The sine qua no condition is that it works with B-to-B customers. When you sell goods or services to another company, the receivable materializes when you issue an invoice. If you decide to use factoring, you will send a copy of the invoice to the financial institution, where the payment period granted to your client is mentioned. The corresponding amount will be paid to you by the factor upon receipt of the copy of the invoice. As for him, he will get paid at maturity directly by your client and take care of a solvency problem.

The Cost to the Business

How is the factor remunerated in detail in the context of such an operation? First, he receives a factoring commission, which includes the management costs and any collection costs. Then, he benefits from a financing commission linked to the cash advance and enjoys a guarantee fund for non-payment risks and participation returned to the company at the end of the contract.

Types of factoring

Classic Factoring

This form of factoring is ideal for small businesses. Customers are notified of a factoring contract, and the bank details of the financial institution through which they must make the payment are communicated to them.

Other forms of factoring

We then distinguish semi-confidential factoring based on the transfer to the factor of the receivables notified; however, the company internally keeps the follow-up operations and collection of invoices from its customers. As part of confidential factoring, a financial institution makes regulations, or clients are not informed of the subscription to the factoring of receivables. Companies also use reverse factoring, where the factor receives a mandate to settle suppliers.

A Growing Market

If you still doubt the interest in this technique, know that it embodies the first source of short-term financing for companies faced with an overdraft in our country. 

The factors do not intend to stop there and aspire to develop this market. They can take advantage of two levers with little exploited potential to do this. It is, first, a question of taking more responsibility for the claims of foreign companies. Indeed, the central part of the operations materialized to date are at the local level. On the other hand, factoring professionals want to attract more microenterprises by offering more flexible offers. 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.

Accounting Tips – How do Small Business Owners Make Bookkeeping Easier & Efficient?

Small business owners have a lot on their plate, and among the many tasks they have to take care of, accounting is undoubtedly one of the most crucial. Your trade records can be seen as a report card that reflects how well you are performing your bookkeeping duties. While some entrepreneurs may enjoy poring over spreadsheets and analyzing financial data, many others may find it to be a daunting task, especially if they are not comfortable with numbers.

However, regardless of how you feel about accounting, it’s a duty that no business owner can afford to ignore. Failing to keep accurate records can lead to severe consequences, such as inaccurate tax filings, financial discrepancies, or even legal issues. Therefore, it’s essential to stay on top of your finances and ensure that your accounting practices are up to par.

Moreover, some business owners are determined to work harder to manage their finances but end up getting stuck in the daily grind and losing sight of the big picture. They may focus too much on the day-to-day tasks and fail to plan and execute long-term strategies that can help their business thrive. It’s crucial to strike a balance between managing the daily operations and working towards achieving your long-term goals.

In conclusion, accounting is a critical aspect of running a successful business. As a business owner, it’s your responsibility to ensure that your financial records are accurate and up-to-date. Whether you enjoy crunching numbers or find it to be a chore, it’s a task that cannot be ignored. By staying organized, planning ahead, and seeking professional help when needed, you can ensure that your business is on the right track to success.

Individual trade and private finances

Co-mingling prices and profit is a standard blunder in small firm accounting—and one that will create massive jumbles for your trade-in prospect. Start an enterprise treasury account as early as you determine to run with your startup, and arrange an individual company balance card. It does not only distribute your reports but also improves your company’s credit grade.

Do a periodic survey

At the top of the per area, get an in-depth survey of your bookkeeping and finance reports. Watch for drifts, such as rising or dwindling exchanges, year-by-cycle ROI (return on investment), or an advance in late-paying clients. Chat with your bookkeeper. They may encourage you to stare at a significant idea to be ready for better future money requirements, such as purchasing extra material or driving to a more prominent position.

Observe your operators’ minutes with time-monitoring software

Use cloud-based monitoring software that will track the working time of your employees. It also lets workers do the timer in and out on their cell phones, tablets, or desktops. But it stores their troubles and addresses your experience more naturally by automatically monitoring with time, PTO, and much more. You can detect time tracing software composed merely regarding any business. Pick one that serves with your accounting software, and staff will be eased further.

Wait on the head of tax final time

To evade growth, grabbed small, form, and fixed wages for any expected tax proposals. Return on the assigned time so you don’t risk penalties. The IRS web’s tax calendar for trades can sync with your cloud-based schedule. This way, you never drop a final time; it can also convey your prompts a week or two before a refund is due.

Conduct periodic fiscal treatments

If you don’t keep up with your accounting, you may end up with bounced checks, late payments, or discrepancies in your records. Check your records weekly to ensure accuracy.

Keep your business bank account separate

Business owners mostly use their personal and professional credit cards for business expenses or personal. This miss-match or hodgepodge of financial activity leaves you at tax-rising risks, liability issues, and economic mismanagement. It always falls upon your business and personal experiences or events. The precaution to keep yourself and your business from this headache is keeping the business bank account separate from the personal account. This practice will also help you track your spending, saving, and investing. You can also improve your financial predictions, business plans, and budgeting process. You can also manage tax deductions for shared expenditures such as mobile phone bills and vehicle expenses. Such events include business loans and investor funding.

Leverage from digital tools

Bookkeeping is a necessary business process, so it must be error-free. You can get help from digital apps, automation, and software.

• Third-party apps
• Business management programs

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.

As modern technologies continue to emerge, companies must prioritize digitization to enhance the customer experience. There are several crucial factors to consider when developing a digital customer experience strategy. What are these factors? And how can we leverage digital tools to optimize the customer experience?

The User Experience

Facilitating navigation and access to digital content is crucial for ensuring exceptional user experience (UX) on digital platforms. To provide your customers with a positive digital experience, it’s important to understand their objectives, intentions, and journey. Are they visiting your site to find information or make a purchase? Which pages of your site are the most visited? And why are they leaving your website? By knowing your customers well, you can create a user-friendly website that meets their needs and helps them achieve their goals.

By answering all these questions, a company can easily lead improvements and optimizations in the digital journey of these customers and thus better engage and retain them.

The Competition

Buyers have a wide choice of products and services with the Internet and all digital technologies. They will review several offers before making a purchase. Companies and brands must stand out and find differentiation to convince consumers.

Good customer knowledge, identifying the most critical product and service attributes, and a strategy of constant optimization of the digital experience allow brands to stand out.

Companies must also work on their e-reputation to differentiate themselves from the competition. Responding to consumer reviews and monitoring comments on social media is of utmost importance.

The Conversion Phases

A secure payment platform is essential to optimize your digital conversion rate. This reassures customers who do not hesitate to make their purchases. However, even if this means optimizing the conversion process and improving the digital customer experience, it is not enough to increase conversions.

The company must question its buyers and identify the abandonment factors online (delivery form too complicated, poor navigation on the site) and offline (costs and delivery times too long, the carrier not incredibly careful). After browsing the website or the mobile application, the steps must also be considered to optimize the digital customer experience and the digital purchasing journey.

Inbound Marketing: Sharing News and Relevant Web Content

Digital communication channels are an excellent platform for building customer loyalty. Social media is ideal for informing customers of the launch of a new product or service or any other news concerning their brand. These digital resources make it possible to create communities of buyers and forge an e-reputation. They are called strategies that involve attracting clients inbound marketing implicitly. These new digital advancements have caused a move in client desires, bringing about another present-day purchaser.

Assistance

Consumers are increasingly inclined to want to solve the problems they encounter with a product or service themselves. Therefore, websites must have support sections and online tools (chatbot, FAQ, video, tutorial, etc.) so that customers can find answers to their questions. These sections are essential to provide an optimal digital experience and improve customer satisfaction.

The Loyalty Process and Recommendation

Once a customer has purchased a digital channel, it is essential to encourage them to share their opinions on their digital experience and express their satisfaction level. Today, the comments of buyers have the most weight in consumers’ purchasing decisions.

For brands, the Internet and digital technologies offer many possibilities for loyalty. Digital tools enable automating customer reminders, targeting the correct times to contact consumers, and offering personalized offers and relationships. These technologies also facilitate the collection of data and information on its customers and Internet users. However, it is by knowing their customers and their behavior that a brand can offer them an optimal digital experience. It will be able to optimize its digital return on investment. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud 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 representative work contract has changed, convincing business pioneers to fabricate associations that connect with workers as delicate, enthusiastic, imaginative patrons. Two years of examination and conversations with several customers recommend five significant components and basic systems that cooperate to make associations “compelling.”

Following quite a while of corporate talk about the war for ability, the fight is finished, and knowledge has won. Today, representatives have expanded dealing power; the activity advertises exceptionally straightforwardly, and pulling in top-gifted specialists is a profoundly severe movement. Organizations are presently putting resources into examination devices to make sense of why individuals leave, and the subjects of direction, commitment, and culture burden the brains of business pioneers all over the place.

The worker work contract has changed: People work more like free operators than before. To put it plainly, the level of influence has moved from manager to worker, driving business pioneers to figure out how to construct an association that draws in representatives as delicate, enthusiastic, inventive supporters. We call this a move from improving representative commitment to an emphasis on building an influential association.

A local manager is the one who heads an operational unit of the company. He often has a leading role in the engagement of the employees of his team. Thus, a survey was conducted of 1,016 representative local managers. If the survey shows a strengthening of the commitment of the company’s employees, it also displays breaks linked to a lack of means.

Local Managers: Pillars of Employee Engagement, Not HR!

Opinion Way sought out who is responsible for developing employee engagement in the business. For 47% of local managers, this is quite the management role. Forty-four percent believe that the entire company must develop the commitment, while only 27% of those surveyed believe that this is entirely the role of the human resources department. The HR department is, therefore, far behind the managers and the employees themselves. In addition, according to the survey, the proximity manager is the crucial player in engagement for 47% of respondents. 89% think it is a task close to their hearts.

And Yet, The Employees are Engaged in the Business!

It is the managers who say it. The employees’ commitment is manifested by the spirit of initiative and constructive and by the adhesion to the company’s strategy and its motivation. Today, being a workaholic is no longer synonymous with commitment. Eighty-one percent of local managers believe that their employees have an elevated level of commitment. Eighty-five percent even think that employees are proud to work within the company, and 83% believe they align with its values ​​and culture.

Difficulties in Developing Employee Engagement

Local managers encounter great difficulties in developing employee engagement. For 44%, the main obstacle is combating habits and resistance to change. Forty-two percent of respondents believe that it is a lack of resources. Then, other difficulties, such as employees’ lack of development perspective and time devoted to them, intervene. Managers are also very poorly equipped. Sixty-three percent of the tools allow, however, to promote teamwork. The Observatory considers that employee engagement is a maximum of five devices. There are digital tools such as messaging or social networks, management training, bonuses, internal surveys, and the organization of events.

However, the survey expresses a lack of support from business stakeholders. The human resources department does not seem to support managers in developing engagement. Fifty-six percent of local managers feel that the HR department supports them. Their support, therefore, comes from the N + 1 or management. This gap widens in large companies where the human resources department helps even fewer managers. Without support and with few HR tools, it is difficult for local managers to develop the commitment of their teams. To successfully build engagement, you must act on different levers—recognition of the individual’s work and the excellent atmosphere at work. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

When purchasing a home, most people opt for a mortgage loan. This type of credit is usually the first choice as the acquired property is committed as collateral for the payment guarantee. It is commonly known as “mortgage” housing. Sometimes, people also mortgage their home which is already owned outright to obtain financing at lower rates or for significant loan amounts compared to personal or consumer loans. The question that arises is whether to opt for a fixed or variable loan. While it may seem like a gamble, with the right information, the decision will probably come down to personal preference.

Mortgage Loans at Variable Interest in Stable Economies

Almost all mortgage loans in the US, 98%, are contracted at variable interest rates (see the article on EURIBOR ). This interest is calculated every six months or a year, considering the EURIBOR of that period and a small amount added (For example, EURIBOR + 0.5).

With a fixed-rate contract, the home loan rate and installment you make every month will remain the equivalent for the term of your home loan. With a variable rate contract, in any case, the home loan rate will change with the prime lending rate as set by your moneylender.

In contexts of low-interest rates and low inflation, it is not even usual to consider making mortgages at fixed interest since they tend to have a much higher interest rate than the variables. Therefore, in economies that are assumed and expect stable medium and long term, which is the duration of mortgages, we will always opt for mortgage loans at variable interest.

When Inflation Rises

But what happens when the economy suffers a more confusing period? When the prices (inflation) rise more than the account, the Central Banks increase the interest rates to stop the consumption. In other words, the money is more expensive, so the investors do not move their money as much if the simple deposits already offer acceptable interest rates. There are also repercussions in variable-rate mortgages because of increases when the time comes for their semi-annual or annual review. As seen in the news or other media sources, many people have seen their mortgage payments rise to several hundred dollars, depending on the case, in recent years.

The question arises: do I opt for the fixed rate and eliminate the uncertainties?

Advantages and Disadvantages of Fixed-Rate Mortgages

Payment stability is the main advantage of fixed interest in mortgages. We will not be affected by rate increases, although this is a double-edged sword because when the rates fall again, we will not benefit from that drop, and we will be paying the price above the market.

Also, the interest differentiates between variable-rate mortgages (average of 4% APR for amortization in 25 years) and fixed-rate mortgages (average of 6% for 25 years), which gives us a margin that, despite the increases in types, we continue to pay less than in a fixed-rate loan.

In any case, if the economy is stable, as in Europe, the maxim will be that everything that goes up comes down. And in credits, as long-term, as they are now, the fees are lower, and the increases are less noticeable.

Mortgages at Mixed Interest

Another product offered by the entities is the mixed-rate mortgage. There is usually a fixed term (for example, five years at the beginning or the end of the loan), and the rest is varied. It will be a good product if one gets into debt in the context of uncertainty and continuous rate hikes. Because of this type of loan, we can be patient for five years and wait until the interest varies.

Conclusion Regarding Which Type of Mortgage We Are Most Interested

In short, fixed interest rates are more expensive and usually have a shorter repayment term, which requires more excellent solvency throughout the loan. In return, we will not be affected by the rise in rates, which can be overwhelming at certain times due to the increase in our fees.

In any case, the variable rates are recommended since they are cheaper and allow a more extended amortization period, with which the quotas will be lower and more affordable. Given the variations, we can always think we will find rising and falling moments in the long term.

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 last days of the month arrive, and you realize that you have little money to make some of your payments. Has it happened to you? Do not worry! No doubt, it is a situation that most people have ever faced; the important thing is that it does not become a constant and take action to achieve the economic stability you want.

Financial security empowers other full-scale monetary goals, such as stable costs and steady and feasible development. It additionally makes the proper condition for work creation and equalization of installments. It is to a great extent since steadiness makes assurance and certainty, energizing interest in innovation and human capital. Tragically, an unintended result of globalization is the improved probability of financial stuns, including graceful side stuns as oil and item value stuns and request side stuns like the credit munch.

1. Take care that your expenses are less than your income

The golden rule for economic stability will always be that your costs are less than your earnings.

Therefore, it is worth reflecting and studying in detail to allocate your economic resources and learn to discern between purchases aimed at satisfying basic needs that you can do without.

How often do we not run into stores with specific items for months without interest? We usually acquire them because we do not have enough liquidity to buy cash, but do you plan the amount of money you will have to save each month not to get behind and generate interest for this payment? That is basic!

If doing your accounts does not unbalance these acquisitions, there is no problem! But if so, establish a short-term savings goal to do them without causing stress.

2. Set your budget

Establishing a budget may sometimes seem unreal, but it is the only way to understand and control where you invest your money.

To start, consider all fixed fees, such as payment for home services, such as water, gas, and electricity. Although the amount may vary depending on your consumption, you must check your receipts for the last months and do an average to have a base to help you estimate.

Keep in mind that these types of calculations are not fought with your expenses and entertainment. The idea is to allocate a percentage of your salary to each activity and responsibility you would like to perform each month and not deviate from the plan.

In short, you will see significant changes if you respect your budget. As you pay attention to how you manage your money, you can save more and have greater possibilities of starting up your personal and professional projects.

3. Control your resources

This point goes hand in hand with the previous one. It will not do anything for you to make a budget if you do not stop analyzing it and looking for ways to put it into practice.

Today, hundreds of applications can help you control your expenses. If these platforms are not your thing, you can even create or manually create spreadsheets on your computer. The important thing is that you are aware of every movement you make.

4. Define your savings goals

When discussing establishing a quantity of savings, most people agree it is essential for everyone. However, creating this habit is not easy since it implies necessary changes.

If you are ready to start saving a certain percentage of your money, it is recommended that you make three diverse types of savings that we will discuss below.

Short-term savings means defining specific goals you want to fulfill in a few months or up to a year. For example, go on vacation with your family or buy a cell phone or car. The achievement of this type of objective will motivate you to follow and increase your purposes for the next period.

5. Be disciplined

Self-control is the key to the success of all the above. As discussed in this article, the key is establishing and respecting your goals.

If you see something in the shopping centers and run to buy it, avoid bringing more of the money you need and leave your credit cards at home. Likewise, you should pass it directly to your savings funds if you get a bonus or extra income. 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.

Taking out a mortgage is like entering into a long-term relationship with your bank. As life is constantly changing, it’s normal to have different needs, concerns, or worries halfway through the process.

For instance, you may want to install air conditioning throughout your home but don’t have the budget for it. You may be thinking of building a pool in your garden but lack the necessary savings. Or you might be considering buying a second home or have purchased a car, which is making it difficult to make ends meet. Under these circumstances, you may have considered a mortgage extension. Would you like to know more about whether this option is suitable for you?

Home loan renegotiating isn’t generally the best thought, in any event, when home loan rates are low, and companions and partners are discussing who caught the least financing cost. They can be tedious, costly at shutting, and bring about the bank pulling your FICO assessment.

Before starting the long cycle of social event pay stubs and bank proclamations, consider why you are renegotiating. While you can practice some money-related objectives, facilitating your month-to-month income, managing a budgetary crisis, or taking care of your home advance sooner, this will motivate you to renegotiate.

The uniting obligation is regularly something worth being thankful for. However, it must be done well. Indeed, obligation union fouled up can be one of the most hazardous financial moves any mortgage holder can make. Taking care of high-intrigue obligations with a low-intrigue contract appears to be a brilliant move, yet there are some potential entanglements.

First, you are moving uncollateralized debt into an obligation sponsored by your home as collateral. If you can’t make your home loan installments, you can lose that home. While delinquency of charge card obligation can have adverse financial assessment outcomes, they are generally not as desperate as abandonment.

The mortgage is a long-term relationship with your bank, and life is a continuous change, so it is normal for you to have different needs or concerns halfway.

If you need extra capital to deal with a domestic project or to arrive quieter at the end of the month, you have these options:

• The option when you need more funds. Remember that the fee to be paid each month will increase, so think carefully about how far you can go without being overwhelmed.
• Extension of the term. In this case, you ask for more years to repay the loan and pay a lower monthly fee. Good option if you need a break.
• Capital increase and term – you can combine both options and, in this way, get extra funds while adjusting the monthly fee to your economic capacity without suffocating.

How to Extend Your Mortgage?

What do you have to do? To start, negotiate with your bank. But let’s go into detail. In any of these situations, you will have to go to your bank, which will ask you for a series of documents to evaluate your financial health and study the possible expansion options. In legal terms, the operation is completed as a mortgage novation.

A novation agreement is a term used after an initial agreement with the two parties for a mortgage; the following is a negotiation with your bank to achieve the conditions you need. With this change, it is a new operation that involves certain costs.

Mortgage Extension Expenses

In general terms, an extension is usually cheaper than taking out a new mortgage. It is an option, for example, if you want to buy another home. Despite everything, it has certain costs that you should consider to be calm.

• The commission for novation is usually a percentage of the outstanding capital.
• The notary fees: a game generally around 0.2% to 0.5% of the outstanding capital.
• The registration: which costs about half the notary fees
• The agency: whose prices range from $200 to $400
• The valuation: which varies depending on the value of the property and the rates of the appraiser

As you can see, expanding your mortgage depends a lot on your financial health, employment, and the general state of the economy. 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 Income Tax for Individuals, commonly known as Income Tax, is one of the ways that the United States uses order to raise funds from the income of individuals. In this way, the Government tries to redistribute wealth through public spending among the entire population.

It is a law in which all individuals receive income for work, capital, economic activities, property losses and profits, and other established income charges. In today’s post, we will see what the tax consists of and the key factors that define it. 

Key Elements to Calculate the Income Tax

Two key parameters define the Personal Income Tax: the tax base and the type of tax. These concepts are roughly the amount of income that computes the tax and the fraction due to the Public Treasury.

The tax base is the net income amount corresponding to a person who must pay tax. Two types of income count for the tax base, and those that do not matter to add to the tax base.

The tax rate is the percentage applied to the tax base in such a way that it marks the amount of money to be paid because of the income tax. It is a progressive percentage, which means that not everyone must pay for it, but it goes through income brackets, in which a different percentage applies. The higher the volume of income, the higher the percentage or type of tax.

Each exercise is typical in that variations of the tax calculation may arise. For example, several new regulations come into force for the current year in higher retention of work income than in previous years and taxation for purchasing and selling investment funds, shares, and real estate.

The government’s changes in 2012 made the Treasury forecast that this year, there will be a lower volume of returns, 4.5% lower than the previous year. At the same time, revenue from the tax is expected to increase by 3.5%.

Mechanics for the Calculation of the Tax

Different tools are available for taxpayers to calculate the result of Personal Income Tax. The Tax Agency issues an automatic in-person, online, or telephone upon request and corresponding accreditation.

In addition, there is the Father Program, a tool to calculate the tax from scratch. The calculation system is complex for most people since many tax concepts are not easy to understand, so it never hurts to request help from an expert who can help us prepare the statement.

When calculating the income statement, the first thing is to classify the income according to its origin and see which count to add to the tax base and which do not. These sources of income can be:

• Work performance
• Income from the capital
• Income from economic activities
• Profit and loss of assets
• Income taxes are established by law

All previous income is integrated and adjusted based on the possible compensation to which each person may be entitled. The latter is a deduction, allowing an individual to avail of the discount at a certain amount if specific requirements arise in different subjects.

The deductions may vary each year, depending on the autonomous community where the person has the tax domicile. To know them, you must go to the Tax Agency and consult the Practical Handbook of the Declaration.

Once the income deductions and inventory are applied, the declaration’s result can easily be known, which can be positive (paid) or harmful (charged). If it goes out to pay for the taxpayer, he has until the end of June to make it effective, incurring a penalty if he fails to comply with this obligation. If it is negative, the Tax Agency will refund the amount throughout the year, starting 48 hours after the presentation of the declaration.  

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.