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In 2019, banks received a credit history 5.12 million times, 78% more than in 2018. Most people remember credit history, and some learn for the first time now when the bank suddenly refuses to issue a loan. The borrower either had delinquencies on previously taken loans or has a poor credit rating, which banks are guided by. However, the credit history of any of us can affect the possibility of obtaining a loan.

Credit History Knows About Your Debts for Housing and Communal Services

Sometimes even a client who repays a debt on credit obligations in good faith can get a refusal from a bank. You should pay attention to delays in payments or other debts, such as when paying bills for communications, utilities, or transferring alimony. In addition to personal information and details of loans and borrowings, their maturity, information about the outstanding balance, and the presence or absence of overdue debts, banks are trying not to get involved with malicious non-payers for housing and communal services. For example, insurers ask for credit history to determine a fairer price for a policy.

Debt In Inheritance

Sometimes, along with the property or instead of it, a person receives numerous debts as an inheritance. There are cases when the heirs were forced to sell the property acquired under the will to cover the obligations of the deceased and spend their funds. To conclude entering an inheritance, you need to determine if the dead has debts. To do this, you need to contact a notary. From his credit history, you can find out about the credit obligations of the dead person.

Data for both your credit card and your mortgage

After adopting a single scale, it will be easier for users to correlate the values obtained in different credit bureaus. You can store that information in several organizations at once, and with a different maximum score, it is not always possible to compare the values. It is essential when the values are borderline and different bureaus have additional data. For example, one has data for both your credit card and your mortgage, while the other has only your mortgage; to assess the credit history quality as accurately as possible; it is necessary to compare the results from both bureaus. A favorable credit rating does not guarantee mortgage approval: each bank has its scoring system and considers various factors when considering applications. It is not recommended to apply to microfinance organizations: they have lower requirements for borrowers. Suppose you plan to receive a large loan, for example, a mortgage in a bank. Therefore, a new loan received may indicate that you were refused by the bank but not refused here. In that case, it is better to apply for a consumer loan here: this way, you will reflect your solvency in the global credit history and the intra-bank one.

I remember here. I don’t know here.

There are cases when incapacitated people under care took loans. At the same time, his guardian must deal with banks and tax departments. It is impossible to forbid anyone from receiving loans in our country and make bans on their credit history. However, if the court declared a person incompetent or partially incapacitated and decided to include this information in the BKI reports, you can add relevant information to it. If the bank or IRA has documentary evidence of incapacity, it also has the right to send this information to the bureau. But it is not an immediate ban on the issuance of loans or loans but only serves as a warning to creditors.

Challenging Is Easier and Faster

Previously, to correct information in the credit history, the borrower could only apply for a low amount loan. From 2021, you can do this through a bank or loan app. According to the new rules, they must notify the borrower within 15 business days that the information in the credit history is correct, and no changes will be made or make the required adjustments. The time has also been reduced by almost half – up to 8 working days. At the same time, the Central Bank recommended that banks provide an opportunity to submit applications to challenge information in the credit history in electronic form. Credit score checks do not affect the quality of history. You can request this information regularly from your bank or the websites of various bureaus to track changes and adjust your track record if necessary.

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.

Many people say that they can afford to buy the most sophisticated TV or smartphone; no, you can’t if you don’t have the total amount to buy. It will allow him to go through the path of trial and error earlier and understand how to act in the future. He will learn to plan expenses, save money, independently make financial decisions, and value his time and resources. Let his first financial goal be a toy – but he will buy it himself and understand how to move towards his goal. Children are more vulnerable to scammers. Without preparation, the child will not recognize deception because he does not yet understand the risks and trusts everyone.

Check with a friend by phone or at a meeting whether he asks for money, look at the phone balance – whether there was a transfer. It is better to discuss with the child what methods of fraud he may encounter and how to act in such situations. For example, hackers have hacked into a friend’s page on a social network and will be asked to transfer money on his behalf. Or an SMS message was received stating that they allegedly made a transfer to the wrong phone number by mistake and asked to return this amount. It is necessary to explain to the child that such messages need to be checked. Better yet, ask your parents for help.

Explain In a Playful Way

The best way to introduce children to money is through games and experiments. Offer the child a game: imagine that you have found a treasure. How do you know if it’s real money or fake money? You can use actual bills and money from Monopoly. Investigate how to distinguish a genuine bill. Tell your child about the signs of the authenticity of banknotes, show pictures of watermarks, how letters and numbers shimmer, and where other security features are hidden. You can gather friends and hold a competition: who will find the most animals and plants on the banknote using a magnifying glass.

Explain to your child that money does not grow on trees and does not take from the box (ATM), as many kids believe. The child must understand that money does not appear by itself at the first request. Tell us what professions are and why they are paid differently. You can arrange a game, for example, in a profession. Children can choose their role: hairdresser, doctor, baker. Give everyone a set of toy money so they can ask each other for favors and pay for them. Please start with the elementary: we receive products and vital services in exchange for money. For example, if you don’t buy milk, you won’t have anything to eat muesli in the morning, and if you don’t pay for electricity, the house will be dark and cold. Playshop: put a price on different products. Someone will be a seller; someone will be a buyer. The main thing is to convey to the child that things do not get just like that; you need to pay for them first.

Time to Learn to Plan Properly

You can teach planning on the example of a family budget. The child must understand that the costs are divided into:

• Obligatory Predicted Payments: utilities, transport costs, and sometimes – loan payments.
• Necessary purchases: food, clothes, medicines
• Optional Payments: entertainment, travel, buying toys, etc.

First, you should subtract the mandatory projected payments from the budget and calculate the approximate number of necessary purchases. And only then decide what the remaining amount will go to. This approach will help the child to understand the difference between what I want and what I can and teach them to make the right choice. Help your child plan purchases properly – teach him to make a list of necessary products before going to the store. Tell them that products in the same category prices may differ due to composition, volume/weight, brand value, etc. Teach your child to use resources rationally: explain how to use water and electricity economically and why it is not always worth buying what is cheaper – a better thing will last longer.

Conclusion

Finally, explain that a dream is a goal, and a plan is needed to achieve it. If the child correctly prioritizes purchases and saves some pocket money, he will be able to save up for the desired thing. Please encourage your child to regularly keep a diary of expenses to be easier for him to understand what he spends his money on. Some banks issue children’s cards to which you can transfer pocket money. It is very convenient as parents can track their usage. Explain to your child how to protect yourself from scammers – do not give bank card details to anyone, cover the ATM keyboard with your palm while entering a pin code, etc.

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.

This post will look at what forensic accounting is, who forensic accountants are, the many forms of forensic accounting, and how much a forensic accountant makes.

Let’s begin with an explanation of what forensic accounting is.

What is forensic accounting?

The examination of fraud or financial manipulation by exceptionally detailed research and analysis of financial data is known as forensic accounting.

According to Investopedia, forensic accounting examines a person’s or company’s finances using accounting, auditing, investigative abilities, or skills.

As a forensic accountant, you are expected to look beyond a company’s numbers and into the company’s overall predicament. Forensic accounting is frequently used in judicial procedures to give appropriate accounting analyses.

Forensic accounting is frequently utilized in court to clarify the nature of a financial crime in fraud and embezzlement cases.

Forensic accounting is employed in cases where you must quantify losses in litigation support.

In this context, a review of financial data that you can utilize to support a court case is forensic accounting. Parties to legal disputes employ quantifications to aid in the resolution of conflicts through settlements of judicial judgments.

It could happen because of wage and benefit issues, for example. If the dispute goes to court, the forensic accountant could be called an expert witness.

Types of forensic accounting

 Supplier Fraud

Vendor fraud, often known as payment fraud, initiates or routes payments without authority.

Supplier fraud can be committed by those inside the company, such as employees, or outside the company, such as vendors. Supplier fraud follows a pattern that can be divided into three categories:

Sellers Acting Alone Fraud is a type of collection fraud involving the deceived firm’s suppliers and workers.

Bankruptcy

A sort of fraud committed by white-collar criminals is bankruptcy fraud. It is a legal procedure by which individuals or other entities unable to pay their debts seek relief from some or all their obligations. An insolvent’s legal condition is not confined to bankruptcy.

Investment fraud

Investment fraud, also called securities fraud or stock market fraud, is a fraudulent strategy used in the stock or commodity markets to fool investors into making a purchase or sell decisions based on false information, which is illegal.

Financial identity theft

Financial identity theft is another sort of forensic accounting. It occurs when someone earns a financial profit by utilizing the personally identifiable information of another individual (PII).

 Insurance Fraud

When the buyer or seller of an insurance contract commits criminal conduct, it is known as insurance fraud.

Insurance fraud by the issuer includes:

• Selling policies from a non-existent company.
• Failing to submit premiums.
• Creating policies to collect more fees.

Debt default

When a borrower fails to refund their debt due, it is called a default. The parameters agreed upon by the creditor and the borrower decide how long until a default occurs.

Some loans default after one missed payment, while others do not default until three or more installments have been omitted. Such an occurrence can have profound implications, such as a bad credit rating.

Computer forensics

Computer forensics is a branch of digital forensics that deals with evidence gathered from computers and digital storage devices.

Its goal is to conduct forensic investigations into digital media to locate, preserve, retrieve, evaluate, and provide facts and insights into digital data.

Salary of a forensic accountant

According to the BLS, jobs for accountants, particularly forensic accountants, are predicted to expand by 6% between 2018 and 2028.

Furthermore, many states expect accounting jobs to increase even faster, with some anticipating growth rates of 20% or more.

The median forensic accountant salary in 2018 was $70,500. Forensic accountants frequently need a bachelor’s degree in accounting.

Employees’ job and income prospects improve when they specialize and gain suitable certification. Forensic accountants can become certified forensic examiners (CFE) or certified public accountants (CPA).

Conclusion

I hope that this post clearly defines forensic accounting and the work opportunities available in this field.

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 trying to reconcile “business” performance with the protection of society’s overall interests, the market economy must fast devise ways to “count” firm performance “differently.”

This article aims to explain that you can consider another type of accounting. The future appears to be in a report that includes a BALANCE SHEET in each area: social/societal balance sheet, environmental balance sheet, and economic balance sheet. General accounting rules would apply to each balance sheet: double entry, available chart of accounts, and monetary value. IFRS or national accounting regulations would apply to the economic balance sheet.

These social/societal and environmental balance sheets should adhere to regulations that allow them to be used in financial transactions. In the first phase, the proposed technique would select an example (business case) and quantify its action and societal utility using relevant indicators and monetary numbers based on an estimate generated with stakeholders’ help. In the second step, we will attempt to establish the premises of an accounting model based on an “extension of the conceptual framework.”

Accounting application to these two new areas (environmental and social/societal) must be based on a project that first outlines the functions that this “alternative accounting” is expected to perform: considering man and nature.

This better accounting standard (which considers environmental and societal factors) would allow corporations (and organizations) to be distinguished from those that are both efficient and sustainable. It would also allow investors, consumers, employees, and others to express their choice for standardized and unique data, bringing “business” and “public interest” closer together (Eccles and d’Humieres, 2010).

After describing the current scenario marked by the traditional accounting approach’s infamous inadequacies in assessing a company’s social responsibility, we will define the principles of “extended accounting” before offering an example. We will quantify a specific situation and discuss viewpoints and potential research paths to meet this problem.

The remainder of the limits of accounting for corporate social responsibility

Accounting and financial data do not reflect the measures performed by businesses in sustainability! Many recent polls (Price Waterhouse, Medef, and others) have demonstrated that companies are concerned about sustainable development (SD) and social responsibility (SR). At the same time, they highlight the challenges of gathering and combining non-financial data.

For example, the NRE (New Economic Regulations) Law is an example of a “standard” that aims to bring accounting, financial, social, environmental, and economic data closer together. On the other hand, this standard does not address the issue of “disarticulation” between general accounting (standardized and audited data) and SR management accounting, which can be helpful for a company’s strategic management. This ” disarticulation ” exacerbates this “disarticulation exacerbates the secrecy of the company’s scope and governance methods.”

According to SR principles, governance must affect decisions and the organization’s entire performance will be determined by interactions between the primary stakeholders, not just the financial strategy at the priority service of the single stakeholder who represents the shareholders.

Furthermore, traditional accounting information systems are incapable of apprehending potential development and are limited to preserving standardized facts from the past.

“Green accounting,” its interest and its shortcomings

The SR features of the organization are not included in the standard accounting principles. Nonetheless, accounting based on the “Environmental” pillar has emerged over time. Christophe explains, “Effective information system on the degree of scarcity of natural elements generated by the company’s activity, which may be utilized to minimize scarcity and to alert third parties,” according to green accounting (or “environmental accounting”) (Antheaume and Christophe, 2005)

“Green accounting” may appear to be a nascent tool for integrating corporate social responsibility efforts into financial statements…but “When a company harms the environment, it automatically harms humans. Hence the firm must be held ethically accountable for its actions. This argument is founded on the ethical concept of “do no harm to future generations” (Ayotte, 1995).

In 1996, the National Accounting Council advocated isolating “environmental investments” (e.g., de-pollution) in different account numbers or even determining what percentage of taxes and duties is attributable to the environment (taxes on waste).

With IAS 37 “Provisions, contingent liabilities, and contingent assets,” the IFRS rules consider evaluating “intangible assets,” particularly the environment, at the worldwide level. The latter enables a company to acknowledge “environmental provisions” (for example, by considering the delivery of a site report). Companies can thus be held “accountable” for their performance in decreasing environmental consequences in this new framework.

The corporation only considers the market value when calculating its costs. However, during its operations, particularly in production, the corporation uses human and natural resources that are not accounted for in standard accounting since they are unrestricted. The notion of “negative added value” demands that the cost of consuming natural heritage be considered. The environmental costs of a firm can thus be described as the charges that the company must account for to deal with the environmental repercussions of its operations.

They are aware of the “externalities” that the company generates. An environmental expenditure is one made to prevent, minimize, or correct the damage caused by the company. In practice, assessing them remains challenging, such as determining the “price” of natural heritage. (P. Baret and B. Dreveton, 2010).

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.

1. Reduce Electricity cost:

Compare your electricity provider regularly with other providers. If you switch, you can save up to $500 a year. Completely switch off all devices you do not need – because televisions, PCs, etc., still consume electricity in standby mode. Especially before a vacation, you should check that all household items are turned off. Also, use energy-saving lamps for your lights and use economical household appliances – for the latter, look out for the label with the best energy efficiency class.

2. Lower borrowing costs

There are some methods to save money when it comes to mortgage lending. If possible, do without loans and only use them if you cannot finance various purchases in any other way. Above all, avoid overdraft facilities–the interest rates for these are significantly higher than regular installation loans. You can also use debt restructuring: regularly compare different loans and replace your old one’s loan if a new one offers better conditions.

3. Check insurance

Think about it: Which insurance policies do you need, and which ones can you confidently cancel? Read here which types of insurance are particularly relevant for renters? Get a regular overview with the help of lists. Compare your contributions and the contributions of other providers here as well. Switch as soon as you find a reputable provider with better conditions. You can save a few hundred euros a year, especially with property insurance – such as household contents insurance, legal expenses insurance, and private liability insurance.

4. Structure purchasing

Always write a shopping list when you go shopping for groceries – this way, you can avoid impulse purchases. Double trips to buy forgotten items can also be avoided in this way. Go shopping in the discounter: good, branded products are often cheaper here. When shopping for clothes, always consider whether you need the item of clothing. Perhaps you will also find beautiful items of clothing second-hand? Furniture, toys, and the like can often be bought well used. You can also borrow books, DVDs, and CDs.

5. Reduce car costs

If you have the opportunity, ride your bike and train more often or use car-sharing offers. It is much cheaper to buy a year-old vehicle or a used car when buying a vehicle due to the rapid depreciation. Compare your car insurance costs every year and look out for discounts. Also, compare the prices of several gas stations before you fill-up the vehicle. Read here which tricks work best when negotiating prices.

6. Reduce DSL and mobile phone costs

Compare the various providers regularly and switch to cheaper tariffs in good time. Especially for the Internet and DSL, there are often new, cheaper tariffs that “old customers” are not automatically informed of. Sometimes it is worth asking your provider for newer taxes. In this way, you can easily save several hundred dollars per year. Also, consider whether you need flat rates or whether a volume tariff for mobile phones or the Internet is sufficient. You should also think about whether a prepaid cell phone might be enough for you if you only use it seldom.

7. Compare health insurance

Check whether other health insurance companies offer better value for money at regular intervals. If this is the case, change in good time. Since January 1st, 2015, checkout customers can save money. High earners can save up to 445 euros a year in costs, and low earners can save up to a hundred dollars. You can also use bonus programs: you can join a sports club, for example, to collect bonus points. You can later redeem these for cash or non-cash prizes.

8. Reduce water and heating costs

If possible, use the shower rather than the bath. Also, don’t leave the water running unnecessarily – in the shower, you can turn off the water when soaping. Also, check that the toilet is flushed regularly and that all faucets are tight. You can also use a timer and thermostatic valves for the heating to optimally regulate the heat. It is very cost-effective if the heating temperature is lowered significantly at night or if the heating is switched on using a timer, e.g., B. from 10:30 pm to 5:30 am is switched off completely. 

9. Eliminate account fees

Check if you pay any fees for your checking to accouter using your credit card. There are now numerous banks and savings banks that offer free use. Be careful with withdrawals or payments abroad: Check the fees here in advance. Credit card payments sometimes account for between 1.5 and 2.0% of sales. Several financial institutions offer credit cards with which you can also withdraw money or pay abroad free of charge. You can also use our savings tips for vacations for an upcoming trip. Meanwhile, there are also some money-saving apps on the market with which you can quickly transfer money to your savings account.

10. Cancel Membership

Periodically make a list of all the subscriptions and memberships you have. Go through this list and cancel anything you haven’t used within a certain period. Pay attention to the notice periods – some offers, such as registering for the gym or the magazine subscription, are automatically extended. You can also read many magazines in the lending library or use cheaper e-paper subscriptions. And many sporting activities are also possible outside of a fitness studio.

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.

Networking is building and maintaining durable relationships that are beneficial for both sides and can be instrumental in achieving goals in your career and personal life.

Networking goes way beyond exchanging information or begging for favors from others. It’s about building relationships with people who often become your community of colleagues and friends as you progress through your career.

The Power of Networking

You can build a remarkable career on the foundation of networking. No one can deny the importance of networking, but why is it so important?

Opportunities

The most highlighted benefits of a robust network are the opportunities and options. The best chances are always shared within people’s works, often even before being made public! Assignments, projects, mergers, personnel, new clients, and items are just a few examples.

It holds in the job market as well. People in a company are frequently aware of a position that will become available before it is advertised. The first thing people do is notify their friends and family!

What would you do if a job opportunity arose and a friend with practical work experience was looking for work? Market research shows that 21% of Dutch people who changed jobs in 2019 found a job through their network.

The more extensive the network, the more opportunities!

Helping others

Networking is often associated with taking advantage of the benefits it can offer you, and in the business world, unfortunately, this will usually also be the case.

Yet, there is a very crucial aspect of networking that people often neglect. That aspect is that you can serve other people in your contacts!

Helping someone with their career goals is beneficial. For example, consider helping someone get the first job or putting in a good word to help someone get a promotion.

It probably gives you an excellent feeling. In addition, this person will be ready to help you in the future.

Findability

Being visible and noticed is essential in building a career. One of the benefits of networking is that you become more visible to the right people.

By providing helpful information or tips to people who need it, you can build your reputation as knowledgeable, reliable, and supportive. You can gradually become that one person who “knows everyone” and is asked for everything through your contacts.

Knowledge

It is essential for your growth, work ethic, and effectiveness that you stay informed of what is going on in your workplace and the market in which you work.

Your connections are a great place to get new ideas and viewpoints. A broad network of informed, interconnected contacts means complete access to new and valuable information.

Sharing information about challenging experiences and goals is an essential advantage of networking. It may give you new insights that you would never have thought of otherwise! Just think about what is shared on LinkedIn that has added value in your industry.

In addition, offering unmatchable ideas to your network is an excellent way to build your persona as an innovative creator.

Advice

An essential benefit of a network is the possibility of obtaining free advice. Identifying common problems and opportunities might lead to valuable recommendations and guidelines.

Think for a while about having to pay every time you ask for advice from your friends, such as from a service provider. In the business world, advice is often necessary for survival.

Make it count that your network is prepared to give you the necessary advice. Providing real help to your contacts also provides a strong foundation for receiving support when you need it.

You may expect the same from your relationships if you put in the time and effort to advise them. Just make sure that they maintain a balance in giving and taking. There are always opportunists who try to take advantage of certain situations. On the other hand, people won’t be willing to help you if you never do anything in return.

Life experience

Having a large and diverse network ensures that you develop a broader view of life. You may never experience situations, but you will understand the person in question. By getting to know different people, you know these people and the situations they find themselves in.

It also applies to knowing people from other countries. When you experience a different culture, you find out that some things you experience as ‘normal’ are not typical,’ or vice versa.

On a business and personal level, you can gain all kinds of new insights and thus gain life experience. Having experience abroad is seen as a plus when applying for a job.

Gaining life experience contributes to being a good manager, leader, or friend. Knowing many (different) people, in other words, having a large and diverse network, plays a vital role in self-development. The more life you live you have, the better you can put things into perspective.

Confidence

Constantly showing yourself and meeting new people builds valuable social skills and confidence that you can take with you wherever you go. The more you create links, the more you grow and learn to make lasting connections.

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 real world will get worse before it gets better. There is an 80% chance that the US inflation rate will remain above 7%. More increased interest rates will slow down the stock market and hurt rising stocks. For cryptocurrencies, this is good in the short term. But there are dangers in the medium term as crypto businesses become increasingly censored by Western tech and banking platforms amid the crackdown on cryptocurrencies by the Joe Biden administration.

The leading cryptocurrency will become a legal payment method on par with the US dollar for the first time. How this will affect digital assets, and which countries may soon follow the example of El Salvador. Parliament passed a law that gave bitcoin the official status of a means of payment. The authorities of El Salvador will have 100 days after the law enters into force to create the appropriate infrastructure. Acceptance of bitcoins for payment will become mandatory in the country. Cryptocurrency will be legal tender on a par with the US dollar, the head of El Salvador emphasized. According to Coin Gecko, after bitcoin was granted the status of a means of payment in El Salvador, the primary cryptocurrency grew by 7%, and its capitalization increased to $639 billion. At noon US time, the price of bitcoin on the Binance crypto exchange is $33.7 thousand.

A Threat to Traditional Currencies?

First, cryptocurrencies need market regulation. However, an independent cryptocurrency like Bitcoin is unlikely to threaten traditional currencies. However, Bitcoin may continue to develop as an alternative to traditional assets such as gold. In 2019, cryptocurrencies, especially Bitcoin, were the biggest gainers as risk appetite increased and financial markets recovered. If in April 2020 the price of Bitcoin was below USD 4500, then in April of this year, it already exceeded USD 64000. In the mid of May, the price dropped slightly below 55000 USD. Bitcoin also benefited from growing fears that the mass printing of money would devalue traditional currencies and reports that several reputable investors and companies have started investing in cryptocurrencies. Bitcoin currently has a pass to financial instruments such as a functioning futures market, funds, and other investment products. Thus, the growth in Bitcoin so far can also be explained by favorable market conditions and growing recognition as a market asset.

Can The Bitcoin Bubble Burst?

There is an increased risk of a bubble in Bitcoin. However, examining the value of Bitcoin is particularly difficult. Bitcoin and raw materials that lack this ability cannot determine their actual value. For many raw materials, it is feasible to get an idea of the development of their importance by following changes in demand. For example, when predicting the oil price, it is known how much oil will be consumed, considering economic development and other aspects. It is more challenging to price Bitcoin, as all price forecasts must assume how widely and intensively you will utilize this currency in the future. And there is a range of radically different views here, from those who believe that Bitcoin will replace regular currencies to those that Bitcoin will be banned and become worthless.

Headaches for Central Banks

In current years, Bitcoin and other cryptocurrencies have taken the necessary steps toward becoming a recognized investment assets. Last year, Paul Jones, one of the world’s most successful hedge fund managers, announced that he had invested in Bitcoin. Earlier this year, the automotive company Tesla also announced that it had bought $ 1.8 billion worth of Bitcoin. Shinbase, the world’s largest cryptocurrency exchange, has a market capitalization of more than $ 55 billion. There are further examples of companies and banks announcing that they will start offering different cryptocurrency services. Although the prevalence of cryptocurrencies is growing, they are also much skeptical. Central banks are among the most significant opponents whose cryptocurrencies are seen as a growing threat to their currency monopolies.

Avoiding Competition

The United States has good reasons for doing everything to maintain the dollar as the world’s largest currency. Today, the US dollar is used in almost 8 out of 11 global transactions. The dollar is so prevalent gives the United States enormous strength because they control the currency supply. Those who want to utilize dollars electronically are entirely dependent on the US banking system, making the US even more influential. Neither the United States, the European Union, China, nor any other country with its currency has an interest in letting Bitcoin or any other cryptocurrency evolve as a means of payment. The primary weapon for countries is their disposal’s regulatory and supervisory systems. By restricting the effectiveness or legitimacy of cryptocurrencies in different ways, governments can limit these threats. The European Union has already submitted a draft of the legal framework for cryptocurrencies.

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 is often the case, it is more comfortable to understand the answer to the question asked if you know how the system works in the opposite direction. Indeed, the higher the interest rate, the higher the cost of credit, and the less and slower the population and companies spend credit money on consumption—the lower the consumption, the lower the GDP growth. If we want to increase consumption through loans, the central bank must cut the discount rate, which will lead to a decrease in all interest rates in the economy. As a result, there is an increase in demand for goods and services from households and companies, which is almost identical to the economy’s growth. Therefore, we increase interest rates if we want to contain inflation and consumption. If we increase consumption due to slight inflation but economic growth, we must lower the discount rate.

How Do Negative Interest Rates Work?

What happens to an economy when interest rates cross zero and become negative? Lenders are now forced to pay the central bank to keep their resources in their accounts, encouraging lending institutions to use the money to lend to individuals and companies. It will boost economic growth and drive up inflation. The last aspect is essential since the threat of deflation hung over Europe. For example, falling prices are a highly negative phenomenon that stops consumption and economic growth.

Banks do not keep free cash resources in their accounts with negative interest rates but try to get rid of them. In conditions of negative interest rates, it is even possible that for a loan taken, you will need to pay back less money on the repayment date than was taken since the effect of negative interest rates will also operate there. By the way, fears that bank depositors in the eurozone, to whom banks have announced negative interest rates, will massively withdraw their money have not been confirmed. It’s safer at the bank than at home in a stocking.

Government and individual corporate bonds also become negative-yielding instruments with negative interest rates. The purchase price of such bonds is higher than the face value and in such a way that, considering all coupon payments to the maturity date, the final yield of the security remains negative. The market for such bonds reached an astronomical $16.6 trillion (by mid of 2018) US dollars. Why do investors buy such strange securities? Due to their high reliability, everything is simple. In difficult times, many investors do not set the task of making money but set the task of keeping as much of their capital as possible.

The proposal to introduce negative rates on foreign currency deposits arose because banks are losing interest income – they are forced to accept deposits at positive rates and place them in Europe at negative rates. As a result, banks have excess liquidity, putting pressure on their profitability. This situation may result in additional costs for certain banks. Because of this, many banks have already introduced rates on foreign currency deposits close to zero but still face high costs.

How do negative rates work on savers?

Unlike a regular deposit, when the client receives income from the placement, he pays for keeping the funds in the bank in the case of negative rates. For example, if a client has deposited a thousand dollars, then at a rate of (negative) -0.5%, he will receive back $995 after the deposit expires. At the same time, the opportunity remains to earn on the difference in the exchange rate. Now, most banks offer customers positive rates on deposits in euros in the range of 0.1 to 0.5% per annum. However, one must understand that financial institutions holding funds in accounts in European banks face negative returns – the European Central Bank recently reduced its deposit rate to -0.5%. Therefore, some banks charge customers a commission for maintaining an account.

Conclusion

In general, bank profits did not deteriorate, although banks that are more dependent on deposit financing (and smaller and more specialized banks) were hit harder. Larger banks have increased lending, imposed deposit account fees, and benefited from capital appreciation. Of course, there is a chance that the lack of a significant impact on banks’ profitability is mainly indicative of a short-term result that could potentially change over time. And side effects could still arise if policy rates become even more damaging.

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.

Identifying risks and assumptions help determine whether the suggested Goals and Activities are feasible and doable in the time frame and with the available human and financial resources.

Risk is described in this context as an unknown threat that, if realized, could have a detrimental impact on the achievement of the Goal or Activity. On the other hand, an assumption is necessary for the Goal or Activity to be completed successfully.

To avoid duplication and redundancy, you should define risks and assumptions should explain risks and assumptions at two levels: general and specific.

General risks and assumptions can be related to the roadmap’s overall implementation or apply to all Roadmap’s Goals. Single risks and beliefs will be associated with a specific activity, such as a particular risk that could obstruct the successful implementation of a specific Activity or a crucial assumption for the performance of a specific Activity. For instance, a particular belief for the Activity “establishing an Authorized Economic Operators Scheme” is that incentives granted to AEOs are enough to motivate private traders to invest the time and resources to get the certification.

“Two roads parted in a forest, and I took the less used one, which has made all the difference.” This line is instantly recognizable as the conclusion to Robert Frost’s “The Road Not Taken.” Most readers assume that Frost’s poem is hopeful, describing the value of solid individualism that has long served as an American hallmark. On the other hand, a measured reading has a sad, regretful tone. Literary critics claim that the poem’s central message is how we rationalize regrettable judgments after they’ve been made.

Like how Frost provides a thoughtful and regretful view of the path he did not take, executives view risk primarily through the lens of responsibility. This misunderstood poem helps highlight how innovation-seeking executives need to reframe the word “risk.”

When the word “risk” comes out of an executive’s mouth, it’s usually accompanied by one of four mistakes:

• Assume action is the greatest risk: In many cases, the riskiest action is, in fact, no action. Because of the rapid rate of change in today’s environment, being static means falling behind existing and emerging competitors. Many businesses are blind to this reality because of the way they make investment decisions.

Promising entrepreneurs recognize the inherent risk of starting a new firm. After all, it is well known that most new businesses fail and that most of those that succeed modestly enough that the entrepreneur receives a small financial return for his efforts. What promising entrepreneurs excel at is not taking risks but handling them. They do not do it.

• Celebrate failure to encourage risk-taking: There can be no innovation without risk since invention has uncertain outcomes, some of which may be bad. Therefore, encouraging risk-taking can help increase innovation. However, this does not imply a general endorsement of failure. Failure is often a horrible thing. It is never acceptable to praise a lack of effort or preparation. Instead, leaders should accept that the road to innovation is never straight and that hesitation, false starts, and failure are all part of the process.
• Thinking that rewarding success will increase risk-taking: Innovation-hungry corporate executives often gnash their teeth about compensation challenges, lamenting that their system won’t deliver the vast profits that await entrepreneurs in unicorns (start-up companies valued at more than a billion dollars). TRUE. However, this is not what holds innovation back in most companies. It’s not the lack of rewards; it is the presence of punishments. The uncertainty that accompanies innovation means that sometimes people will do everything right and have a business failure anyway. If this outcome carries severe punishment, don’t expect anyone to take risks.

To innovate, we first need to reframe how we talk about risks. So, the next time you prepare to give a speech about dangers, pause to make sure you’re not making any of these mistakes.

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.

Every trader needs a trading platform. It is impossible to make transactions in the financial markets without it. Different developers offer such platforms. The most popular are Meta Trader 4, Meta Trader 5, and the innovative cTrader. Since progress does not stand still, each of the listed trading terminals also comes in different variations of access to it. Every company that provides clients with Forex trading services in the United States must be a member of the NFA. Disciplinary action ranges in severity from a written warning to a fine of $300,000.

What is the return on a Merchant Account?

It all depends on how much you want to invest, where, and how long. If you invest money in government bonds, you can earn an income of 4 to 7% per annum in dollars without much risk to your investments. A good result is considered on average if investments in shares bring 9 to 15% per annum in dollars. But losing part of the invested funds due to a fall in the market value of shares is much higher than bonds. There is no ceiling for potential income in investments on the stock exchange; under certain circumstances, you can multiply your investments many times over. But it is important to remember that there is always a risk of losing the invested funds in the stock market and the opportunity to earn.

What Is Overnight on A Brokerage Account?

Overnight is when a broker, with your consent, borrows your securities overnight between two trading sessions or on the weekend. At the same time, he undertakes to return the securities in the morning of the next business day before the resumption of trading. An investor participating in overnight transactions receives a small reward, usually about half percent per annum of the value of his securities at the close of the exchange before overnight. Overnight does not affect the financial result of your main transactions and does not reset the deadlines for obtaining a tax benefit for long-term holding of securities.

Types Of Trading Platforms

There are several ways to open the platform and access your trading accounts. The first option assumes that you go to the broker’s website, open the Download Center section, select the branded platform you like best, and click on the Windows or Mac icon. It will start downloading the installation file to your computer or laptop. Please note that you need to download the app from Google Play or the AppStore for tablets. The stationary version of the platform is only for computers.

Pros Of Merchant Accounts:

1. The interface is like the desktop version of MetaTrader
2. The ability to create a new demo account directly on the platform
3. Turning windows on and off, adding graphic objects
4. One-click trading
5. Setting pending orders
6. Access not only from a computer but also from a tablet and a mobile
7. Full functionality identical to the desktop version
8. Access in the browser of any device – including Mac
9. Market Depth Level 2
10. Pending orders
11. 50 pre-installed indicators

Cons Of Merchant Accounts:

1. Limited functionality
2. Only a few built-in standard indicators
3. Can’t load custom indicators
4. Can’t use an EA
5. No environment for testing strategies
6. No sound alerts
7. Can’t reconfigure the interface
8. No access to cTrader Automate (advisor/robot trading)
9. No environment for testing strategies
10. No sound alerts
11. You must update your browser to the latest version

What Is a Subaccount and How to Open It?

A sub-account is an additional section of the leading brokerage account where you can account for securities and currencies separately from the main narrative. It is not possible to open a subaccount with risky Investments. It is helpful if you use different strategies and don’t want to mix up the conservative part of your portfolio with the part you are active or risky in.

What is a Browser Platform?

The web version is another type of trading platform – modern and convenient. You need to follow the link from the same Download Center on the broker’s website. The login and password entry page for your trading account will open. If you started trading on the stationary version of MT4, then in the browser version, you will also see all your current positions and transaction history. The paramount convenience of the web platform is that you are not tied to one device. You can leave home without a laptop, and in the office, from another computer and log in to your trading account via a browser. Opening deals through the tab are as reliable as the stationary, desktop version. Synchronization also works in the opposite direction. You will reflect all changes made to the trading process on your account in the browser in the software on your home computer. By the way, it is not necessary to install software initially for trading with a broker. You can only trade on the web or only on a mobile. If necessary, you can download and connect to the stationary platform at any time.

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.