Author: Complete Controller

Your business will only progress if you stay in the competition, which is only possible by keeping track of the constantly changing drifts and keeping up with the latest trends. If we talk about the bookkeeping trends, they are not slowing down any sooner, and one must keep pace with them.

Technology has taken over the entire world; the word itself means development. It is reshaping businesses and industries in the modern setup. Take the worldwide crisis of COVID-19 into account; it has transformed almost everything, including systems and processes, and changed manual tasks into automated jobs, from the traditional ways of working to now an increased dependency on digital technology like online schooling, work-from-home businesses, etc. Digital industries are evolving increasingly, and now businesses, big or small, depend more on remote bookkeeping. 

With prevailing technology and the evolving IT industry, a paradigm shift has occurred, and businesses operate more efficiently and effectively.

The six key bookkeeping trends that young entrepreneurs and small businesses can use in the coming years follow.

Bulk Data Transfers

Today, data doesn’t mean numbers and figures, which accountants have dealt with for decades. It also includes amorphous numbers that can be analyzed through natural language processing. It works like a fuel driving various transforming finance and accounting in the fourth industrial revolution through swiftly changing technology trends. The audit process has also been digitalized now. These reforms are vital and help generate more revenue by improving internal operations. Now, it’s no big deal to transform numbers and figures, i.e., date in bulk, and save considerable time and extra effort.

Majority Of SMEs Shifting to The Cloud

Many small businesses and medium-sized enterprises adopt cloud-based computing services, also known as software as a service or SaaS; they allow users access to various software applications that run on shared computing resources. It is not only user-friendly but convenient as well. You can use different software like QuickBooks and Xero for this purpose; however, every user has their requirements and can choose any such digital software according to his demands. 

Data Analytics

Data analytics is one of many rising trends in technology that helps to reach fresh, innovative, and valuable insights from your existing data. This helps to bring the faults and deviations of your technology into sight. While it also provides solutions to deal with them. All of this is possible in less time now due to analytics. It also offers detailed and actionable statistics that help to build trust among your clients.

Artificial Intelligence (AI)

Artificial intelligence can help accountants and bookkeepers to be more productive and efficient. Robotic process automation or algorithms allow machines or AI workers to finish lengthy and time-consuming tasks in significantly less time. These machines also help reduce manual labor, reducing the chances of high costs and errors. Modern technologies have altered client’s expectations of businesses and corporations. Clients demand high-level accuracy and more efficient jobs since AI has made things more precise.

Improvement in Inventory Tracking and Management

With the increasing use of the internet and the development of modern technology and devices combined with artificial intelligence, communication and operation can occur without much human assistance. Now, professional financers can track their transactions and other records in real-time. Audits have become much more streamlined due to this uninterrupted monitoring. Inventory tracking has become more accessible, and checking and managing the right amount of available supply (in a business stock) is not a problem. 

Learning Bookkeeping is No Biggie

Thanks to technology and the internet, every piece of information is available online, and with a single click, one can search for anything. Online video tutorials are a big help, and beginners and entrepreneurs running either small or low funds can get help from these software programs.

Bookkeeping trends will keep changing and evolving in the future, and you can only succeed in your business if you keep pace with these shifting trends.

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.

No matter how big or small, every businessperson loves to maintain a level of focus on business targets. Entrepreneurs now realize the importance of using technology to achieve goals. Not only that, but they also learn how innovative tech helps companies achieve the impossible. Training is a must for all employees, and companies realize why. Organizations ask managers to develop innovative training programs based on meeting the upcoming challenges resulting from organizational changes. Cutting-edge tech tools like augmented reality are becoming increasingly common.

Why Use Technology For Training?

It is where innovative technology comes into play. Using Augmented reality for employee training is the way forward. Sooner or later, companies will use it as a matter of requirement. Knowing this helps managers realize what and how they are required to do:

Identifying The Requirements

Is there a need to introduce new technology for employee training? If old procedures were working great, where does the new training method come into play? Businesses must ask questions like these before incorporating new technology. Firstly, the company hierarchy must identify the need to induct the latest technology. The company hierarchy will ask questions like these so they know if there is a need to incorporate the tech or not. Managers will revisit previous employee training methods and check for the possibility of integrating with AR. The idea is to provide better technology to pave the way for proper training. Accustoming employees to modern methods of training is equally important.

Identifying Training Targets

In the second phase, the management will identify the company’s targets by revisiting training regimes. Incorporating AR will improve training remarkably. It will pave the way for new possibilities and help employees learn interactively. The AR will effectively replace previous technologies for good.

Gaining Momentum

Did you know that augmented reality is by no means a new technology? It has been around for decades, albeit it maintained a low profile. AR was the brainchild of Howard University computer scientist Ivan Sutherland. The far-reaching implications of this technology were evident. They have been using the tech for decades very seldom. The possibilities were endless, being mindful of its capabilities. 

It combines hardware with software and produces a simulated environment. The visual effects are cutting-edge, and it can use different types of software, be it gaming, training, or simulation. IDC estimates that AR combined with VR is an 18-billion-dollar industry that will likely continue growing.

Steps To Introduce AR

As discussed, businesses around the world are welcoming new technologies. These companies are willing to accommodate changes if necessary. Introducing new technology is as good as implementing a change. Steps are implemented to ensure the tech correctly implements the organization’s structure.

Providing AR To Users

After introducing the technology to users, the next step is to continue with the assessment. Augmented reality is flexible enough to be incorporated into different situations if needed. The ability to produce demonstrations to meet various conditions is where AR tech comes in handy. It is worth noting that AR is a technology that was designed with versatility in mind. That’s why it stands out when used for negotiating with different scenarios. It is dynamic and has the flexibility to perform.

Building an innovative AR experience is essential for training. Employees will get a hold of the technology once they have studied it. Trainers can help them with the tech by explaining how to use it properly. Training using the VR may take some time, but they’ll love it once they get used to it. An immersive experience is where employees learn the most. Initial states may call for an audit of the technology necessary for removing caveats and gaps. These are common obstacles when a new technology is presented for employee training.

Each time a versatile tech such as AR is handled, these gaps will occur as the training program may be specific, whereas the technology used is dynamic and has a broader scope. Identifying this using auditing techniques is necessary, as it will help companies properly use the tech and eliminate possible gaps.

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 management for a small and medium-sized enterprise isn’t a piece of cake. There can be leakages and eleventh-hour requirements, leading to mismanagement of cash flow and an imbalanced balance sheet. 

Better cash flow management is pivotal to any business’s smooth running. Particularly, companies in the start-up phase cannot afford poor direction of cash flow as it can directly impact their reputation with lenders and creditors and adversely affect business functionality. 

Cash flow management determines how much money is coming in and going out of the business, which can help prevent the liquidity problems a company can face in the future if your business is constantly spending rather than earning. For all businesses, especially small businesses, it is necessary to have enough money to pay creditors and avoid extended cash shortages, mainly because of a considerable difference between cash inflows and outflows.

Here are some of the top concerns and potential solutions for managing cash flow for small and medium-sized businesses. 

High Amount of Credit Dealing

This is usually the case with manufacturers and wholesalers. Most buyers typically work on a minus-one crediting formula. It is quite a risky situation. If the buyer runs out of money or fails to resell the stock or whatever happens, there’s a high chance of delay in payments or no payments at all. It causes many issues for the manufacturer or sellers and can lead to asset liquidation or even bankruptcy. While there may not be an apparent solution since the entire industry runs on credit, here’s what you can do. 

Credit insurance is a viable solution to protect businesses against non-paying clients. Remember the college security deposits you had to pay at private institutions? Credit insurance works exactly like that. Your crediting clients deposit a set amount of money before entering your credit dealings. If the debtor cannot pay off your dues because they are bankrupt or facing cash flow problems, you can always utilize the credit insurance money and pay them back later once and if they pay you the due amount. It can further help you manage your cash flows easily and prepare you if your debtor is going to be a bad debt.

Loans with High-Interest Rates

High-interest loans are another critical concern for small and medium-sized businesses regarding cash flow management. A high debt causes difficulty in managing the cash flows and is a common problem a company faces. A high-priced loan with higher interest rates from the bank can disrupt the cash flow if the sales targets are not meeting requirements. 

The best solution to having extensive debts can be refinancing your loans. Refinancing the loans means replacing the high-interest-rate loan with a lower-interest-rate loan, reducing the payments by decreasing the interest rate. Moreover, suppose the business must make higher payments. In that case, you can also consider cutting other overhead expenses, such as finding a cheaper supplier to reduce your cost of sales. You can also increase the selling price of your products, increasing the return on capital employed, further increasing your inflows, leading you to pay your debts relatively quickly.

Surplus Inventory

Hoarding is as harmful to business as it is to a household budget. An excessive inventory restricts the cash flow and risks potential loss given the expiry or timeliness of the goods stocked. A surplus inventory usually happens when a manufacturer manufactures more than demanded products or a product quickly goes out of trend, causing declining sales. It causes the business to have higher amounts of current assets, i.e., the closing inventory, and makes the management of the cash flows rather tricky to handle. The stock stays longer on the shelves, which might result in obsolete stock, and it will take up extra storage, again increasing storage costs and resulting in higher expenses and high outflow.  

You could use the just-in-time production method if you’re in a manufacturing business. It will ensure you produce only the necessary inventory that could go to waste later. This way, there wouldn’t be any additional costs, and the cash flow would be stable. If you’re in a retail business, you should only buy the amount of inventory you are sure will be sold. The company will have fewer current assets, and the income will be higher, reducing the outflows. Further, it makes it easy to analyze the cash flow position.

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.

Pay-per-click or PPC marketing is one of businesses’ most valuable digital marketing channels to reach their targeted customers. It enables enterprises to develop quick and highly converting results without waiting for the slow build of SEO or other channels. While most companies and businesses have mastered the art of running PPC campaigns, errors and mistakes occasionally happen.

The success of your campaign depends on the effective use of the technique. If you are applying a marketing budget on PPC but are not getting the desired results, then there is something wrong that you need to address.

Some Common PPC Mistakes You Need to Resolve

• Running multiple campaigns without testing

Another common mistake marketers make is running multiple PPC campaigns without proper testing. While running different campaigns may give you traffic, it will not help you identify the target and message. Conduct regular split tests to determine the usefulness of each campaign. Optimize all the marks, keywords, and other metrics to make your PPC a successful run.

• Failure to plan your campaign

Like every marketing strategy, your PPC campaigns need an effective plan to generate desired results. One of the most common mistakes marketers make is doing sloppy research on the target market before initializing the campaign. Diving headfirst in a movement without a plan will exhaust your marketing budget without giving you any results.

A planned strategy will inform you about the market and the budget needed and set you apart from the competitors. You can quickly outline marketing design and performance metrics using a well-thought-out plan.

• Neglecting the quality of landing pages

A common misconception in running PPC campaigns is neglecting landing page quality. Many marketers consider landing page quality only for SEO and leave it in PPC, significantly costing them. Always remember that a landing page’s relevance and quality influence the buyer’s decision. If your landing page loads too slowly or has useless content, it will harm your campaign more than reasonable.

Focus on designing quality landing pages with relevant information and run them on the PPC to gain maximum engagement.

• Only using broad matching keywords

Keywords are the soul of a successful PPC campaign. Effective campaigns start with the strong support of keyword research to identify the search preferences and intent of the targeted audience. A common mistake is leaving those keywords without proper analysis of broad-match keywords in your campaign. These general match keywords often have various phrases misspelled and affect the results.

A broad match keyword also influences other campaign factors, such as recent search history, variety of keywords, or the range of searches an advertisement appears. While this practice may give you many impressions, it will not show you the desired results as expected. Such a practice may eat your budget and as your ads display to a broader audience. Incorporate phrase-match keywords that relate to your industry and easily reach your target audience.

• Not keeping ROI in check

It is easy to lose focus on ROI whenever a campaign runs successfully. They often decide based on metrics such as clicks, impressions, or conversions. They fail to address the success that generated their revenue, resulting in money spent in the wrong areas. The best way to prevent such a situation is to keep ROI in check and address where the campaign made the most successful revenue generation.

• Neglecting call to action
  

A call to action, or CTA, is necessary for online marketing, whether you do SEO or run PPC campaigns. A strategically placed and visible CTA gives potential customers an easy way to engage with your brand and get acquainted. Place a CTA in an area your visitors can see clearly to maximize your marketing success and revenue.

Bottom Line

PPC is a valuable marketing platform that generates immediate results that convert. Planning and strategizing your campaigns is the right way to ensure maximum yield and revenue. Take guidance from the common mistakes mentioned above to prevent campaign downtime and stop the wastage of the marketing budget.

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.

Several psychology and neuro-marketing studies show that buying or acquiring a product results from a decision-making process that includes a non-conscious component. As a result, it is essential to know some persuasion techniques to increase sales quickly.

What is Persuasion?

Often, the mistake is made to confuse persuasion with manipulation. To understand the application of sales techniques, it is necessary to understand the concept of persuasion, which is the ability to change, form, or reinforce specific attitudes in others through communication.

Persuasion requires you to generate a desire or sense of necessity in your consumers so that they acquire your products and services. Your responsibility is to convince them that your goods or services are the best option without using deception or coercion.

Persuasion Techniques to Increase Sales

All people have a series of innate behavior patterns, so if you can identify them correctly, you can use them to promote business sales. It is similar when you develop the profile of your ideal client; the more knowledge you have about them, the better product you can offer.

These are some of the best persuasion methods you can apply in business:

Reciprocity

The concept of reciprocity is fundamental. It refers to the value that you bring to your audience spontaneously.   In one way or another, it is human nature to feel in debt. When this type of attention is received, consumers will want to return and be faithful to your business.

Reciprocity is a positive factor in sales, but keep in mind that it is not a matter of reminding them of what you have done for them but researching what they prefer, what their problems are, what they have disliked, and what is needed.

Social Test

Most people have a gregarious sense of their actions, which results in the notion that a famous brand or product has excellent quality. While this may sometimes be true, it is not always the case.

You must ensure positive testimonials to break with this idea and promote customer confidence. To achieve this, comments on social networks or word of mouth will be your best allies.   An advantage of the internet is that you can quickly locate positive reviews that attract the attention of new potential clients.

Authority

Something completely indisputable is that authority sells. A simple example of authority can be seen regarding colds. Professional understanding of colds and instruction from a doctor is heeded differently than advice from a neighbor or friend. In essence, people will typically rely on an expert. In sales, the same thing happens; the best way to get customers to perceive you as reputable is through people with more significant influence than yours.

Currently, making use of social media influencers is the best advertising. If they comment on your brand, speak well, or refer to an expert opinion, many of your followers will be interested and want to buy your products or services.

Commitment and Coherence

One of your priorities should be to achieve the perfect balance between what you say and what you do, much like you expect your employees to fulfill the same function. It is essential for proper functioning and stable sales to have rules for sellers and see that these rules are met.

It is equally important to be honest; do not say that one of your products can provide a benefit if it is invalid. If a client believes you have lied, they will not speak well of your services, will not recommend it, and may want to return it for a refund. Committing to honesty and coherence in messages and product claims will increase consumer confidence and sales.  

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.

Today, it is difficult to avoid seeing advertisements on the internet or national television that broadcast the beautiful qualities of forex (foreign exchange) trading. The popularity gained by the forex market over the last decade has been incredible, considering the high risk involved and the propensity for novices to fail.

The Forex Market

The foreign exchange market is the largest and most liquid market on the planet. Also, it has a daily trading volume of more than $4 Trillion. It is not a market where we are accustomed to seeing investors shouting and no bell rings to start or end the day, as in Wall Street. Except for some specialized markets, it is fully decentralized and is supported by internationally protected electronic networks connected to the world’s largest banks.

These banks constitute more than half the daily volume since they move $5 million on average among themselves in what is commonly known as the “interbank market.” These transactions support international trade, but most of this volume is related to the investment decisions of each bank individually. Forex brokers establish agreements with one or several banks so that other participants can access the market, among which are other banks, financial institutions, hedge funds, and individual investors in retail forex trading.

Why Is It Popular?

Until the 1990s, the foreign exchange market was the “playground” of big world banks. The smallest amount of the lot was one million units, well above the investment limit made by the wealthiest investor at that time. However, a combination of technology, the internet, and creative forex brokers that added client purchases made trading in the forex market available to anyone.

Forex trading is different from investing in the stock market. You do not have to study the companies. The currencies come in pairs, and the market estimate of the economic strength of each country determines their values. When the primary data of the economy is made public, there is an impact on price behaviors. Investors use technical analysis to suggest when a trend has been created, when it is appropriate to settle in, or when one should exit a position. A newcomer must realize there are great risks and take advantage of specialized training and hours of practice operating demonstration accounts.

Every business day, the forex market opens in the morning in New Zealand and moves with the sun to Tokyo, London, and, finally, New York. Therefore, it can be accessed 24 hours a day, every day of the week. The attractiveness of this market is its flexibility, comfort, and the absence of manipulation. If you have a laptop or a next-generation mobile phone with internet access, you can trade currencies in your room or from the nearest Starbucks.

Knowledge, experience, and emotional control are the keys to success. Impatience and inexperience are the main reasons for failure, so prepare well if you want to move forward.

Forex Trading and United States Stock Market

Daily American stock market trade is nearly $275 billion, which is quite a large sum. American forex trade occurs 24 hours daily within five days a week across banks. It includes multiple financial institutions and individual business owners around the world. In the case of forex trading, there is a lack of a centralized marketplace for international trading. At a given time, whatever market category is available, traders trade currencies over the counter.

Implementing Forex Trading

Forex trading’s other name is FX, which includes purchasing one currency and selling of others. In FX, traders must sell and purchase different currencies of the world to gain a desirable profit. They actively trade in the direction currencies are projected to take in the market for future progress.  

Below are the world’s largest currencies and their currency symbols:

• United States of America – USD
• Eurozone – EUR
• Japan – JPY
• Great Britain – GBP
• Switzerland – CHF
• Canada – CAD
• Australia – AUD
• New Zealand – NZD

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.

Do you know the types of bank accounts that exist? What are their differences? Below is all the information you need about the different types of bank accounts available to you.

What is a Bank Account?

The bank account is a financial product by which the account holders can manage their money through the different features offered by the financial institution.

You can deposit your funds through a bank account, complete transfers, enter and review payment of receipts, withdraw money through an Automated Teller Machine (ATM), submit payments by credit card, and more. It is essential to remember that all transactions made regarding income and outflow of funds will be recorded in the bank account.

Bank accounts are considered an essential financial product from which by-products or supplementary products like loans or debit cards can be generated.

Checking Account

This is the most common type of bank account, allows you access to your money whenever you want, and provides money management such as transfers, income, and payments.

Unlike other types of accounts, this is not aimed at saving but is designed to manage money daily. For this reason, it does not offer any return for the money that is saved in it.

A checking account is typically subject to maintenance fees or operational charges. It can be canceled anytime without being penalized or notifying the bank in advance.

Savings Account

A savings account is a financial product that allows clients to save their money safely. The savings account is the most used product to save and dispose of money quickly. The funds deposited in the account will generate interest according to the bank’s policies and the characteristics of each product.

A savings account allows you to review the details of the rates and know what interest is generated by the account at any time. It also lets you have the money quickly and easily through the bank’s debit card when the account is opened. This card also makes it possible to make withdrawals from any ATM part of the bank’s network.

To summarize the operation of a savings account, you can deposit money using different channels: offices, ATMs, and virtual banking. The money that is held in the account generates interest according to the policies of the product, and the bank allows you to withdraw money from it at any time through the assigned debit card.

Payroll Account

As the name implies, the payroll account is a bank account in which the salaried worker receives his salary. It also applies to those who receive their pension or other types of regular subsidy.

Generally, these types of accounts are exempt from administration and maintenance fees, and in many cases, a commitment is not required.

Set Up Direct Deposit

To set up the direct deposit of your paycheck, you must have a copy of your worker’s signup form. The US Bank Direct Deposit Authorization Form (PDF) is available online, or you can download this PDF as an alternative to the hard copy.

When you complete your authorization form, you will add your account type of US bank and include a check or savings account. Also, you will provide your account number, routing number, and other necessary or required information. Once the form is complete, you will submit your direct deposit form to your employer. This eliminates the need for payroll checks to be printed and signed by your employer, safely and securely allowing your income to be directly deposited into your desired account.

Completing an Authorization Form

If you are going to submit or complete your direct deposit authorization form, you must remember the following:

1. Read the whole form thoroughly and review checklist items with complete accuracy.
2. Save your information digitally or keep the photocopy of the form before giving it to your employer as proof and for safety purposes.

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.

Even with the benefits offered by life insurance, it should also be noted that certain disadvantages should be considered.

The most significant disadvantage of life insurance in cash value is the lack of consistency in premiums because the monthly cost may increase over time for various reasons. This can make an initially inexpensive policy become something financially stressful for people who depend on a budget, especially if it is a policy with significant coverage.

While many policies contain clauses in which dividends from cash accounts can be used to pay premiums, this situation almost always results in removing funds from the cash value or the investment account. Additionally, there is never a guarantee that sufficient funds will be available to cover lost premiums if an insured is late.

There are also several notable disadvantages of Term Life Insurance, primarily that its duration is not permanent. Although an insured can enjoy low premiums when he is young, term products expire after a certain number of years or when the insured reaches a certain age. At that time, you must buy another policy to continue enjoying the coverage, but new rates will now apply based on your current age and health. Often, this translates into higher premiums or rejection by the insurance company because the coverage is “unfit” due to health or age. Conversely, there are certain cases where renewal options are included that do not require proof of the contractor’s suitability to continue coverage.

Misconceptions

When talking about life insurance, many people think of an economic payment given to a beneficiary or beneficiaries after the insured’s death. While this is true, the reality is that there are usually conditions that reduce the amount paid to beneficiaries, especially with some types of life policies with cash value.

In this type of policy, only one payment is made after the insured’s death, regardless of what the cash value account is worth at that time. For example, if a person has a whole life policy with a death benefit of $100,000 and a cash value account worth $25,000, then the beneficiaries would expect to receive a payment of $125,000. But this is not always the case; because the cash value account is worth $25,000, the insurance company will only pay $75,000 or death and another $25,000 from the cash value account. As a result, the beneficiary will typically receive only $100,000, not the expected $125,000. 

Some products, however, provide beneficiaries the right to receive death benefits and cash value accounts when their loved one dies. However, only an amount equal to the nominal value of the policy is paid with the insured’s death. For this reason, it is essential to know these terms before buying cash-value insurance.

Recommendations

It is recommended that you consult with an experienced insurance agent before buying life insurance. It is also important that you choose a product that suits the specific needs of the individual policy and your family. For example, your concern may only be to protect your family from the most significant mortgage obligations for the next 10 or 15 years. So, purchasing a policy that can accommodate this and nothing else is important.

If you want to be covered by a policy for the rest of your life, then a cash-value policy is the most convenient. Consider whether using life insurance as an investment vehicle is the right choice for you. It may be more profitable to buy term life insurance and take advantage of low premiums than invest the money you have available in other types of financial tools not linked to insurance policies, such as mutual funds or stocks, 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.

Whether a new or used vehicle, the first goal of vehicle insurance is to protect the car itself. Typically, insurance has two options: basic coverage and comprehensive coverage. Basic coverage includes fire, theft, and guaranteed compensation in certain cases. Comprehensive coverage provides coverage in the event of a collision or accident.

Damage to Driver and Passengers

If an incident caused injuries to the driver or other vehicle occupants, Personal Accident per Passenger (PPP) coverage is responsible for securing the indemnity. This type of coverage relates to medical and hospital expenses, permanent disability, and death exclusively from accidents.

Third-Party Damages

Third-party liability coverage is known as Vehicular Optional Liability (RCF-V). It covers material, moral, and bodily damages caused to other persons involved in an accident if the driver of the insured automobile has caused such an accident.

In this case, if you must pay damages for an accident, the insurer will bear the expenses up to the amount contracted, potentially including attorney fees and lawsuits. However, third parties are not people associated with you in any way. Similarly, if you are driving someone else’s car, your insurance will not cover the incident.

Additional Coverage

Other coverages are available that guarantee protection for window-related repairs to the windshield, mirrors, headlights, and lanterns, damage to equipment and accessories, including multimedia equipment, gas kit, and adaptive equipment for people with disabilities, car booking, 24-hour assistance, and towing in case of crash, accident, or tire change.

Absence of Coverage

If you misuse the vehicle by overcrowding the car or using an inappropriate trailer, for example, there will be no coverage. The same applies to cases where a person drives the vehicle without authorization or when false information is provided.

How Is the Value of Vehicle Insurance Calculated?

The value of car insurance is calculated based on several factors. Most importantly, the greater the risk of a theft or accident, the higher the price charged. Following the same logic, lower-risk people and cars will pay lower values.

Below are the main factors considered when calculating the value of vehicle insurance:

1. Region of circulation

The more dangerous the area in which the vehicle circulates, the more expensive the insurance is. However, that is not part of the calculation judgment. This information is obtained from searches, police occurrences, and the insurers’ history. Typically, the more robberies a region presents, the more residents will pay to secure their automobiles in case of theft.

2. Driver profile

You have probably heard that younger people pay more for insurance, which is true. Statistically, less experienced drivers 18 to 24 years old engage in more accidents. Hence, the high value. On the other hand, women and older people pay less for being historically more careful in traffic.

3. Vehicle model

The type of car also affects the amount charged for insurance since repairs and replacements tend to have more expensive parts.  Additionally, some car models are victims of break-ins more often than others. Likewise, the car’s total value is considered since the insurer pays the full price of the vehicle in cases of total loss.

4. Type of coverage

The more services and coverage options you choose, the more expensive your car insurance will be. If you want the policy to cover all kinds of possible incidents, then the cost will be higher.

5. Franchise and award

There is also a relationship between the car insurance franchise and the premium.  As we mentioned, the premium is the value the insurer gives to guarantee payment of the indemnity agreed upon in the contract. The insurance franchise is the indemnity portion that is paid by the insured, the amount paid to receive the indemnity money when triggering the insurance.  In general, the higher the franchise value of the contract, the lower the premium to be paid since the insurer’s risk is lower.

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.

Buying a car can be stressful for many people because there are different factors to consider. Some people assume buying a new car is the best option, while others prefer to purchase a used car. While each person might be correct according to their needs, determining the advantages of new vs. used is relatively easy and can assist in decision-making.

Before reviewing the advantages of each type of car, it is essential to understand how  “new” and “used” are defined.

Used Car and New Car Defined

Many people have doubts about the distinction between new and used, but a car is no longer considered new if it:

• Has had its structure affected by accidents
• Has changed its engine or fuel type
• Has downgraded or included accessories other than the original ones

For example, consider two different cars. One car has a maximum of 3 years of use, only one owner, bodywork in good condition, and none of its mechanical parts are defective. A second car has signs of rust on the bodywork and defects in the engine, clutch, gearbox, or suspension. The changes to the second car caused its status to change from new to used, while the first car is still considered new.

Comparing Advantages

Consider the following benefits of a used and new car before finalizing the purchase. Make sure they meet all your requirements and budget.

New Cars 

• Financing options – There will be fewer limitations on loan acquisition. The majority of owners and manufacturers offer specific incentives like cashback and low Annual Percentage Rates (APRs).
• Manufacturer deals – Car dealerships often lower the price to move older models off the lot. There may be a good deal available for a new car.
• Latest technology – Whenever people go to buy a new car, they look for the latest features or a car with modern technology. However, these features will increase the cost of the car, so it is important to compare models with basic and premium packages.

Used Cars

• Lower registration prices – This registration fee depends upon your current location. The expense of registering a new car is higher than the registration cost of used cars.
• Small upfront price – Once you get a new car from its showroom, its value depreciates. A used car in prime condition may be more cost-efficient than a new model car. This is often the case for a used luxury car.
• Reliability – Significant car maintenance and repairs are not needed until you reach at least 100,000 miles. Typically, a new car warranty does not cover any repairs after the first 36,000 miles. 

While there are advantages to both new and used cars, also consider:

Price

This is the main advantage of buying used cars. Vehicles have a high depreciation rate, so the value of a zero-mile car drops substantially by at least 10%.

Therefore, the amount used to purchase a new car could also be used to buy a used model with more mileage but better features.

Safety

The amount of used car insurance is less than the amount charged in the case of a new car. Since it is charged annually, this difference can be quite significant over time.

Documentation

Buying a used or new car is not just about the vehicle’s value and the insurance. The cost to register a new car is greater than the amount needed for a used one. Registration documents usually exceed $1,000, while the used transfer fee costs less than half that amount.

Taxes

The Tax on Property of Motor Vehicles (IPVA) is paid annually, but the rates used to calculate this tax are different.

In this case, the IPVA is:

• 3% for flex-fuel vehicles
• 4% of the value of the vehicle with one type of fuel

As it focuses on the value of the good, the used car naturally has a lower value. In that case, the tax rate will also be lower than that charged for a new car.

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.