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Modern Management Accounting - Complete Controller

There are several differences between modern and traditional management accounting. The most significant difference between modern and traditional accounting is its reporting speed and accuracy. In traditional management accounting, the main aim is to analyze, summarize, and record expenses and companies were not seeking expense behavior, drivers, and fluctuations.

In modern management accounting, the aim is to record, summarize, and analyze expenses and analyze the expense behavior, drivers, and fluctuations. In the past, companies were not competing so closely. Therefore, they did not have to do such an in-depth analysis of their expenses. Companies are competing closely, and companies must know about expense drivers to control them according to the results. Check out America's Best Bookkeepers

Modern management accounting allows companies to record their expenses, break them down into different categories, and analyze them at every business or production stage. By achieving milestones, companies can easily stay on track with their expense drivers, align their expenses with the external environment, and create a win-win situation by aligning the expense structure with their overall business strategy.

Under traditional management accounting, there are numerous opportunities to manipulate because the expense was directly recorded to the account when the product was sold. Therefore, managers were able to manipulate the production process in pursuit of bonuses. In contrast, under modern management accounting, manipulations are almost impossible because expenses are debited directly to their relevant accounts at the time of occurrence, resulting in less opportunity for misrepresentation. 

Moreover, under modern management accounting, companies can gain a sustainable competitive advantage. When companies can get more information about their expense drivers and analyze the external environment, they can know their expense-related strengths and weaknesses and overcome their weaknesses, to gain a competitive advantage.

Modern management accounting can break down expenses into different categories, promptly record expenses, and estimate upcoming expenses. Here are some modern management accounting techniques that a company can use to keep up with expenses. Check out America's Best Bookkeepers

Standard Expensing System

The system allows the company to estimate the expense of material, labor, and FOH before starting the nay project. Afterward, the company completes the project and analyzes the variances among prices of material labor and FOH. Furthermore, standard expensing allows the company to easily estimate production expense and record it on an estimation basis. Afterward, the company analyses the variance and records them accordingly. Higher estimation and lower actual expense result in favorable variances or vice versa, while favorable variances are preferable.

Activity-Based Expensing (ABC)

It is one of the most effective and efficient expense accounting systems that break down all the expense items into small categories. Because it breaks down a broad category of expenses into the in-depth structure of that, the expense that allows the company to analyze that expense is crucial and a waste. Moreover, due to the expense breakdown, the company can also analyze the expense of useful expense drivers and control them. ABC also allows the company to eliminate less value addition activities or wastes from the expense structure. Check out America's Best Bookkeepers

Process Expensing System

Process expensing refers to the estimation and analysis of expense at different levels of production. Process expensing is useful for those companies that produce and manufactures products in different departments. Process expensing allows the company to easily record and analyze the expense of production from multiple departments. Also, using a process expensing system, there is almost no chance of manipulations even if the company is producing a single product in 100 different departments because the expense is being recorded side-by-side, reducing the chances of error fraud.

Finally, from the above section, there are numerous differences between modern and old managerial accounting. Those using modern expense and management accounting have a higher competitive advantage because they have better insights into their expense structure. They can also align their business strategy and the expense structure, and the external business environment.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Cryptocurrency software - Complete Controller

Cryptocurrency is continuing to take the world by storm as a payment option. It is new enough that many still do not understand it or know whether they should invest in it or use it. Before you engage in crypto trading, it is essential that you have some knowledge, a digital wallet, and an online exchange platform to use for trading one cryptocurrency with another. You should also understand the types of crypto trading platforms and the concept of trading them before you decide whether to get involved in cryptocurrency trading. Here are four cryptocurrency exchange platforms and how they work. Check out America's Best Bookkeepers

Conventional Cryptocurrency Exchange

On conventional cryptocurrency exchange platforms, trading essentially follows the stock and commodity exchange markets’ trading mechanism. The conventional cryptocurrency exchange is a platform where trading is conducted among the buyers, sellers, and an intermediary source based on the current market price of any cryptocurrency.

For each transaction, the middleman charges a certain percentage commission. The fee can be in the form of currency, or it can be in cryptocurrency. Online platforms, such as Coinbase’s GDAX, Bittrex, Binance, Kraken, and Shapeshift, are few conventional cryptocurrency exchange platforms. For example, if one wants to convert a cryptocurrency into any foreign currency, they can easily utilize the conventional cryptocurrency exchange platform to do so securely. Check out America's Best Bookkeepers

Direct Trading Exchange

The direct trading cryptocurrency exchange is directly traded and cuts out the middleman, unlike the conventional cryptocurrency exchange platform. Such online exchanges trade directly, and there is no concept of a middleman. The buyers and sellers trading without an intermediary and the seller determines their own cross-currency equivalence and does not use the absolute market price.

Cryptocurrency Brokers

Cryptocurrency broker platforms act much the same as brokers within the stock exchange. These sites facilitate trades between the buyer and seller. These platforms are web-based portals and applications for cryptocurrency exchange and are convenient to users. Using a cryptocurrency broker site or app allows the buyer and seller the convenience of having access to trade via smartphones, tablets, a laptop, or a desktop. These websites and apps play the identical role of a stockbroker, and the prices are already fixed before the purchase or trade of the cryptocurrency. Check out America's Best Bookkeepers

Cryptocurrency Funds

The cryptocurrency fund platform allows buyers and sellers to exchange through a pool of funds. Professionals manage these pools to facilitate the purchasing and selling of cryptocurrency through the pooled fund. These pooled funds platforms are primarily meant for investors who want to purchase cryptocurrencies and hold them for a long period.

Other Information on Cryptocurrency Exchange

While like the stock exchange, cryptocurrency exchange platforms are not part of the stock exchange. How the trades are made are similar but not done in the same arena or on the same platforms. It is suggested that an amateur or a fresh entrant should initiate their first cryptocurrency trade through a cryptocurrency fund since the trades are handled by a professional. Until you are a professional yourself in cryptocurrency exchange, you should always seek a professional. A novice can also use Coinbase, a cryptocurrency exchange platform known to be easy to understand and user-friendly. The only limitation is that it only trades in Bitcoin, Ethereum, and Litecoin.

Bitcoin is becoming rarer as it was frantically erratic in 2017. At that time and since then, bitcoin either helps you become filthy rich or incur a massive loss. It is suggested that while trading in cryptocurrencies, that you trade in a variety of cryptocurrencies such as a mixture of Bitcoin, Ethereum, and Litecoin. Though Bitcoin has been a cryptocurrency that has made many a lot of money, there is little in circulation, and it is rare to trade in it today. Therefore, it is suggested that if you are looking to get into cryptocurrency trading, you look into all the options and find the one right for you.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Earn Money - Complete Controller

Throughout our life, we ​​will need to earn money. And that’s something they do not teach us in any school. They do not teach it to us in any university, either. They only give us knowledge of all kinds throughout our lives, and this knowledge is usually of very little use to earn more money than the average person.

Knowledge and qualifications can help us get a job, so we would be making money with the first way to do it, which is the one used by the vast majority of the population. And this way of earning a living can become very dangerous because if one day it disappears, we are left with nothing. Check out America's Best Bookkeepers

The 3 Ways you can earn money throughout your life

  1. First way: Exchange time for money

We talk about working for someone else, which is choosing to offer our time in exchange for money. There is nothing wrong with looking for life in this way because empires are assembled thanks to the fact that a person in a business can find people who join his company and who work for him.

In the absence of people willing to exchange their time for money, it would be very difficult for us to maintain the figure of the entrepreneur. Check out America's Best Bookkeepers

Of course, this way of making money is very risky from an investment point of view. That is, an investor is taught that he cannot put all the eggs in the same basket because if the investment goes wrong, he is left with nothing. And that happens with paid work. We put all our time and future into a job. We charge debts because, in the next months, they will compensate our time with payroll. We plan for the future with the expectation that we will receive a check from our employer.

In other words, we have bet everything on this investment. If tomorrow closes the company, there is a restructuring of the workforce or, simply, your boss decides to fire you, the problems in your life begin, and you have to look for another place where you can exchange your time for money again.

  1. Second way: Invest money to earn money

Sounds good. Many who use the exchange of time for money save to be able to move to this form. Only a few, the truth, because the truth is that most fail to save anything by not having a financial plan. That is, people adapt standard of living to maintain the level of their income. Check out America's Best Bookkeepers

However, to earn money this way, you must have gone through the first form. We talk about using money we have to generate more money, either with investment in the stock market, investment in real estate, etc.

  1. Third way: Multiply the time to multiply the money

But how? If we all have the same time. On the one hand, it is here where we can use leverage, which is the main feature of the people who earn the most money. We can use the time of other people, the resources of other people, and the contacts of other people. We could also call to create a scalable model, which is that with the same time and effort, we can increase our income.

Who wishes to do a struggling 9 to 5 job to pay expensive rent in New York or when you can earn money online well? The office will be anywhere when you open your laptop. As a result, the majority of people are leaving their jobs to do remote work. The report of Global Workplace Analytics and Flex Jobs reveals that the remote working ratio increased by 195% in 2005, and this rate grew by 50% in 2020. All of this possible due to the easy access to making money online. The statistics also further indicate that remote working trends enhance the rate of female entrepreneurs. As a result, the wage gap has closed. The useful advantage of earning money online is that you can work from home or any corner of the world.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Stock Exchange - Complete Controller

The question of when to sell an Initial Public Offering (IPO) is often asked. Indeed, the psychological biases of fear and greed hinder us also make us commit serious mistakes. 

If most private investors lose money on the stock market, they often give in to their emotions.

The Worst Time to Sell Check out America's Best Bookkeepers

When Guided by Fear

Let us examine the example of the subprime crisis of 2008. Many people were ruined because they gave in to fear by selling their positions in large capital losses. If they had resisted, they would have doubled their capital today.  However, few people have been disciplined enough to maintain their positions. These investors should have continued to finance the best quality actions. This would have allowed them to take advantage of the strong recovery of the stock market since 2009.  The stock market will always go up, but it also consists of a succession of bullish and bearish cycles. It is important to determine approximately what phase we are in to limit errors when we invest.

When Motivated by Greed

Another classic mistake is to be trapped by greed. All stock market investors have the same goal: the lure of profit. They, therefore, tend to make two recurring mistakes:

  1. Resell too soon

Many resell their winning positions far too early for fear of losing their small gains. This happens, for example, when you enter a position and everything goes as planned when you buy quality stocks. Their prices are appreciating for good reasons (solid fundamentals, attractive valuation).  After having gained a few percent, you say to yourself, “Well, I’ve already increased my value, so I’ll take my profits.” As a result, you sell, and in the weeks or months that follow, the stock continues to rise strongly. Unfortunately, you have then missed most of the increase in profit.  The important thing when buying stock is to set a goal to sell and stick to it. Using valuation methods, you know the fair price of the stock. As long as that price is not reached and no other fundamentals have changed, you must stay in position. Check out America's Best Bookkeepers

  1. Invest in volatile “casino” shares

If you invest in the stock market, it is because you are willing to accept some risk to grow your capital. However, this risk must be mastered. Most people are impatient to make “jackpot” winnings. It can happen, like at the casino, but remember that you do not control anything.

To quote Warren Buffet, “You only have to buy what you understand.” Many investors laughed at him when he announced that he did not want to own stocks in the Information Technology sectors. When the Internet bubble of the 2000s arrived, technological actions collapsed. Warren Buffet was the only one who could remain unphased. No one can guess how an ultra-volatile action will behave. Investing requires patience. If you cannot wait, put your money on an active management fund or Exchange-traded Fund (ETF).

The Best Time to Sell

To quote Mr. Buffet again, “The best duration of holding a share is forever.” If the fundamentals remain strong year after year, and the profits are only growing, why want to sell?

As long as the business creates wealth, its price will rise. There is, therefore, no reason to part with it. However, there are two main reasons it necessary to sell one’s shares. Check out America's Best Bookkeepers

Fundamentals have deteriorated

If the basic reasons you had for initially buying the stock are no longer true, you must immediately sell.  It will be necessary to look for what part of your reasoning was wrong to produce this error.  Perhaps the fundamentals were good at the time of purchase but deteriorated. In this case, the first question to ask is simple, “According to the current fundamentals, if I was not already a shareholder, would I buy this stock?” If you hesitate, then the answer is no, and you must immediately sell the action in question.

The fundamentals are good, but the valuation has become too high

If the company you bought is good, but its valuation has become high, it is already good news. Or, if you bought it at a fair price, it means that you have already made a good profit. However, you are not the only one to have noticed the company, and its course has gone well above its fundamentals. It has become overvalued.  Maintaining such a position would be dangerous. When it returns to its average, the fall will be strong and fast. However, it would be a shame to sell it while its price is in a full uptrend. It will, therefore, be necessary to use technical analysis to sell at the best time.

Conclusion

To summarize, you have to sell when:

  • The fundamentals of the company have deteriorated. If the reasons you bought this stock are no longer valid, you must sell immediately.
  • The fundamentals are still good, but the valuation has become much too high. You have to take advantage of the rise and not sell too early. The sell signal will be given by the technical analysis when the uptrend should end.
Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Budget Process - Complete Controller

In the budgeting process, the management aims to allocate capital and financial resources according to the organization’s current needs. For example, in the production department, the manager aims to decide the budgeted cost of production.

After the completion of the production, they address the gaps between budgeted and actual results. Its management can reduce the cost and expenses across all the functional divisions of the origination, which can be essential to increase the overall organizational profits and revenues. Through the budgetary process, a company can achieve organizational goals by effectively managing financial resources. One of the managers who design the budget’s main tasks is deciding on the budgeted sales, overviewing the production and overhead expenses, and the organizations’ capital required to conduct the company-wide operations. Check out America's Best Bookkeepers

The traditional or classical budgeting system is one of the earliest budgeting processes in which the budget is formulated annually. In this system, the company usually formulates the budget based on the previous year’s budget and, based on certain changes, are adjusted in the new budget. These changes or amendments can be essential to eliminate the company’s issues in its previous budget; therefore, it is referred to as an incremental approach. One of the main benefits of using this system is that it provides a budget limit in the allocation, which means that the company cannot spend more than the allocated amount. For the formulation of the company’s budget, previous financial information of the company and its performance are analyzed, resulting in fewer budget allocation changes. Check out America's Best Bookkeepers

Weaknesses of the Traditional Budgetary Process

Along with it some of the advantages, this system also has certain weaknesses. One of the main disadvantages is that the company’s strategic plans matter a lot, but these plans are not focused on under this system. It omits the company’s ability to focus on the organizational plans. The system cannot be used when the budgeting system requires major changes to achieve new opportunities as it only focuses on the marginal changes. The system determines a lot of change responsiveness, due to which the company cannot focus on the innovation in their organizational systems.

Reviewing the old budgetary system will increase the period to review the old budget. Therefore, it takes a much longer time to prepare the budget. The budgetary system did not incorporate any external factors, which makes it inflexible towards organizational change. After the budget formulation, the management cannot change it if any changes are required to overcome errors identified; only fewer changes can be made if required. The system is less focused on motivating employees’ desirable behavior to achieve the organizational objectives. Check out America's Best Bookkeepers

The viability of the Traditional Budgetary Process

In today’s world, every organization wants to focus on innovation and creativity to gain a competitive advantage in the industry. Innovation and creativity have led to several changes in the business environment and today’s organizations. Today management uses new and innovative approaches rather than old ones as it uses decentralized hierarchy and enhances organization-wide communication. Old approaches like centralized hierarchy and authoritative leadership have been omitted from the organizations.

These approaches were used to address the changing needs of the industry. The organizations have adopted these changes to survive in the market and achieve new growth opportunities. Traditional budgetary systems are not focused on the organization’s flexibility and adaptability towards industrial changes. It cannot be used. Furthermore, the customers’ changing needs and the increase of competitors have also increased the need to focus on new and innovative management approaches and techniques. Therefore, the traditional budgetary system cannot be employed due to its inability to meet the industry’s changing needs. Some of the budgeting processes have been discussed that can be used to meet the changing needs and gain a competitive advantage in the industry.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Management Accounting Methods - Complete Controller

Modern management accounting techniques are more technologically efficient as opposed to the conventional budgeting approach. In addition, experts also argue that the traditional approach lacked efficiency and did not have the capability to factor in technological advancement and other resources. The traditional budgeting approach does not have the capacity to create a contingency budget or plan-B if there be a worst-case scenario.

Another aspect of management accounting techniques ensures the availability of real-time information in an organization, thereby helping management take proactive action to overhaul their strategic route. Check out America's Best Bookkeepers

Therefore, a firm needs to invest in technology so that the accuracy of a detailed Management Information System is available for decision-making related to budget and strategy. Companies that are adamant in continuing with conventional budgeting techniques tend to fall behind due to the non-availability of a precise Management Information System. Hence, it is nearly impossible for management to take appropriate strategic and financial action.  It is important to compare the traditional budgeting approach and modern budgeting techniques, but adopting the modern budgeting approach is preferred since it provides extensive and intensive availability of information.  This availability of information ensures that core management can make educated decisions to improve the organization’s performance proactively. Check out America's Best Bookkeepers

The notion of limiting the organization to single production has now become outdated because of fierce and cutthroat competition. This means organizations should add diversification to the product line and market development if they want to keep pace with the competition. Multinational organizations involved in Fast Moving Consumer Goods (FMCG) like Unilever, Colgate & Palmolive are manufacturing assorted and varied goods to increase their business operations. Therefore, it is has become crucial for FMCGs to adopt prevalent modern budgeting techniques if they have a diversified product line and market segmentation. In doing so, an organization will then break down the budget product-wise, and instead of having a top-to-down approach, the assimilation of the budget will follow a bottom-to-top approach. This makes it easier for management to divide the budget product-wise and proactively readjust their budget per market customization.

Technological advancement is clear for an organization that employs modern budgeting techniques as it enhances efficiency and performance. Below are mentioned some of the budgeting approaches frequently adopted by the modern organization:

  • Incremental Budgeting
  • Flexed Budgeting
  • Zero-based Budgeting

These modern management accounting techniques approaches are developed and implemented to maintain the customer satisfaction level of experience. Check out America's Best Bookkeepers

Modern organizations, which vary from one another in terms of their products and customers, altogether conclude that there is a strong affinity with the efficiency and performance of modern organizations. A few modern management accounting techniques for the modern organization are listed below:

Planning

In the strategic planning process, the task of budgeting is crucial. It is important for modern organizations to have flexibility in their budget to stay aggressive with competitors. Since the economy goes through the process of evolution, planning should be done accordingly. To sustain and expand their market share, it is vital for a modern organization to be well-informed of any economic changes and tune their budget planning accordingly.

Performance Appraisal

Currently, performance appraisal is an indicator of how deep the thought process was during the budgeting process. The entire process of evaluating the performance of the company can be ascertained through the process of modern budgeting. It informs the company of the capacity and utilization of resources to enhance and improvise performance evaluation mechanisms.

Flexibility

An organization that is adaptable and flexible can endure the upheavals on a long-term basis. Flexibility does not only include pricing strategy but also involves product development, market development, segmentation, distribution, and diversification.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Excess Cash - Complete Controller

There are many ways to celebrate the new year if you have excess cash. If you own a company, consider giving the employees a bonus. If you are the sole owner of the money, then here are a few suggestions:

Buy a House

This is a no-brainer: if you have cash left over after paying for food, rent, utilities, and other necessities, then buying a place to live would be a cost-effective measure on your part. This way, even if an emergency happens, you and your family still have a roof over your head. If you still have cash left over, help a family member or friend out with their dream home, as well! Check out America's Best Bookkeepers

Throw a Party

Go all out and throw the best party of the year using cash! If you are throwing the party at your home, there are many restaurants that can deliver, but catering companies would be ideal. You can also bring in an event management company to decorate the hall as per the theme you choose.

Go on a Cruise

There are many ship cruises available to choose from. Why not take advantage of your excess funds and go for the change in pace? It will relax you and energize you once you’re back at your office desk. You can choose a themed river cruise, as it is both educational and provides you a memorable experience. For example, if you’ve always wanted to learn how to paint, Uniworld, voted the world’s best, runs floating art workshops with its own art instructor. It was voted in by Travel + Leisure Magazine in 2016. The sketch material is free, and classes fill up fast. Check out America's Best Bookkeepers

Invest in Mutual Funds

Why not invest in a share of mutual funds? It is different than investing in stocks in that it does not give its holders any voting rights. However, a share of mutual funds means that you have invested in many different stocks. Due to the volume of buying and selling of mutual funds have lower transaction costs, and you are able to diversify without paying the many commission charges. If you really have a lot of excess money, why not set up a trust fund for a loved one, as well?

Fund a Wedding

Many couples out there would love to have the wedding of their dreams but are financially strapped and thus unable to do so. Why not find out from the local church, mosque, or synagogue whether couples need help getting married. This goodwill gesture will go a long way with people of that religious affiliation. Check out America's Best Bookkeepers

Give to Charity

There are multiple charities to choose from if you decide to give your excess money to a good cause. Apart from giving money to research different diseases, there are many wars going on in the world that have left the common man needy and helpless. Do a little research beforehand. According to a 2015 literature survey, 90% of charitable organizations have weak or no positive effect in the cause they claim to benefit.  

Exercise with a Trainer

If you are like most other people, going to the gym seems a humongous task. If you have the money, why not hire a trainer to help keep yourself motivated and on the right track towards your health aims?

 

Summary

Not many people in the nation can claim that they have excess money to play with. If you do, then try to ensure that it is well-spent. Make the most out of it by helping yourself and others – the goodwill you generate will definitely pay off in the long run.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Salary Increase - Complete Controller

Asking for a salary increase is something deeply rooted in the culture, but here we are still “afraid” of asking for something that surely corresponds to us if we have been doing our job well. Let’s see what you can do if you want to ask your boss that it is time to raise your salary. Check out America's Best Bookkeepers

  1. Choose the time to ask for the salary increase

The first thing you have to do is find the right time. If you have been in the company for a while, you already know if it works well or not, and you will even know how to detect the signs that indicate if you are in a moment of prosperity or if problems are coming.

  1. Follow the internal protocol

Your performance may be so good that you deserve a salary increase. But if you ask for it inappropriately or to a person who has no decision-making capacity on this issue, your request may fall into a broken sack.

  1. Prepare your exhibition

Surely in your company, they already know how valuable you are, but if you are going to ask for a salary increase, you will have to “sell” a bit, highlighting all the good you have contributed and that you can contribute. Check out America's Best Bookkeepers

  1. Prepare the documentation

As we have just pointed out when talking to your boss, nothing about looking at the “chop” with the script to defend your arguments. But what you should have on hand and show your interlocutor are the documents that can help your argument.

  1. Don’t focus only on yourself

It is clear that if you are going to ask for a salary increase, the conversation will revolve around you, but you should not forget to value the company.

Let your boss see that you are comfortable with your work and that you value what the company brings you. Precisely because of what you contribute to the company and what she brings to you, you want this relationship to be long-term. A salary increase would help strengthen that relationship.

  1. Ask without demanding and without specifying

If you have decided to be brave and take the step of asking for a raise, do not back down when asking, but do it with discretion. Experts advise not to ask for a specific figure. Instead of asking for a certain amount of money, propose to your interlocutor an upward revision of the salary range. Check out America's Best Bookkeepers

The good news about asking for a salary increase

The 2019’s report of the Wall Street Journal reveals American growth in wages will increase next year because many economists predict a competitive labor market will continue to raise employee’s pay. According to the recent private-sector forecasters, around 63.6% of wages will increase next year, and 5.5% of wages will rise fast and substantially.

Workers who have $150,000 income or more than that received the requested amount of the time, 70%. That rate is 25% in comparison to those who earn $10,000 to $20,000 every year. The research report of PayScale (compensation data and software company) estimated the poll of over 160,000 people.

According to the survey of 40% of workers, they got an increment in their salaries with the exact ratio as they requested. But, the remaining 31% of people claimed that they got less as they asked for it. Budgetary constraints compel people to ask for a salary increase. Budgetary restraints are a rationale that the majority of respondents don’t believe.

The majority of employers only consider increment requests. There is no salary increase, even for valued employees. In a world full of talents, employee retention is a major concern for around 66% of organizations. This ratio is in comparison to a 59% rate for the year 2018. The turnover rate of a powerful market has increased as per the belief of 47% of HR and business leaders.

Asking for a salary increment is scary

Such kind of request is somewhat scary whether you have done effective planning. It becomes a crapshoot when you ask for a salary increment without planning and preparation. Also, you lost the best chance of getting consent for pay raise. As a result, the employer gets an opportunity to ignore this request. He/she will never want to discuss with you again unless you contribute to your job or something changes at the workplace.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Re-Lease My Home - Complete Controller

Sometimes, there are emergencies in family finances. A problem may arise, like the need to make a small reform of your home. You may not have all the money you need to deal with this unexpected situation. Therefore you may experience emotional stress in which many doubts arise. One of the first things you might wonder is if re-leasing your home is a good solution. Check out America's Best Bookkeepers

In this case, you are similar to most homebuyers; you’ll need a home loan to back the acquisition of another house. To qualify, you should have a decent FICO assessment and money for an initial installment. Without these, the customary course to homeownership may not be an alternative.

How much is it going to cost me? Is it a good option to expand and get that extra capital that I need? Is it worth it, or is it better to ask for a new loan? Normally, doubts and worries take your sleep away. Do not worry! We will share with you the answers you need.

One of the most often posed inquiries via proprietors is whether to lease or rent their investment property. Albeit a part of the mortgage, holders have clearness on contrasts between the two sorts of arrangements. The lion’s share of proprietors is uninformed, with less information on the “nitty-gritty.”

Renting is a type of understanding among landowners and the occupant. The property’s tenure is for a more drawn-out timeframe, ordinarily from a half year to 3 years. In this sort of tenure, the rent sum is paid by the inhabitant in one single go with no choice for the proprietor to settle on changes to the occupancy’s arrangement terms during the rent time frame until the two players concurred. While tenant contracts occasionally reestablish a month-month, a rent arrangement endless supply of the rent time frame. Check out America's Best Bookkeepers

Each landowner has his/her conditions to manage when searching for tenure for their property. Henceforth, they should understand that leasing and rent are extraordinary. There are downsides to these arrangement choices. These decisions require a certain understanding of the matter and careful analysis of the outcomes that could follow.

Re-lending a regular home is a good solution to get additional capital in better conditions compared to a personal loan. The interest rates on these types of loans are usually higher than those of a mortgage.

What does re-mortgage a home consist of?

Re-lending a flat or house consists of canceling the mortgage you have and hiring a completely new one. The loan amount will be the sum of the money you have left to pay from the old mortgage plus the extra amount you want the bank to grant you for that unexpected need.

The way to achieve this is quite simple: for the bank to analyze your financial situation and your ability to respond to the new mortgage.

To fully understand what a home re-mortgage is, you must keep in mind that it has a series of associated expenses. The operation has two steps: cancel your old loan and hire a new one. You will have to pay the cost of both actions. Check out America's Best Bookkeepers

First of all, if your mortgage has a cancellation fee, you will have to pay it even after hiring an additional one. Remember that it is usually a percentage of the amount of money you have left to pay. You have to sign the public deed of cancellation, which implies notary, management, and registration expenses.

Secondly, you will face the expenses of constituting a new loan. Although it depends on the entity, the most common is a new appraisal of the property, agency, notary and registration costs, and opening and study fees.

Conclusion

When it comes to property situations, leasebacks are more common among people struggling with financial problems. It is also a preferred choice among individuals who need access to money they have invested in their homes. With time, more and more retirees opt for leaseback options as it allows them to keep living in their homes and have more money for their retirement.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers
Business Tax - Complete Controller

Owning a business is no easy task and needs to be handled with caution. When it comes to tax strategies, there are many things you need to look out for. The corporate tax draws up to one-third of the profits of a company.

There are legal methods whose magic formula holds in two words: tax optimization to limit the mowing of its cash.

From the reduction of the taxable profit to the total exemption of the IS, you are given ten tips to preserve the wealth created by your company from the pockets of the authorities.

Here are some tips: Check out America's Best Bookkeepers

  1. Play on your depreciation

Investment = Immobilization?

Revise your classics. The legislation allows, in some cases, to spend your investments in deductible expenses, such as research and development expenses. But even when investments are to be classified as fixed assets, it is possible to play on the duration of depreciation to reduce the IS. Based on the tax administration scales, opt for the shortest duration to accelerate the depreciation and quickly reduce the taxable profit. The idea is to depreciate the entirety of the decreasing amount.

  1. Report your deficits

A deficit is not a catastrophe for your company!

It can help you reduce taxable income in a year and even in the previous year. A deficit result can thus exempt you from corporation tax during several beneficiary years while respecting a ceiling of one million euros (for a carryback, with a possible increase for a carry forward). For example, a significant deficit over a financial year, as a result of large investments, may give rise to a tax claim via a carry-back or an exemption for several subsequent years via a carry-forward. Check out America's Best Bookkeepers

  1. Increase your provisions

Be careful; you will be a double winner!

Provisions help to deal a blow to your company, but they are also a way to reduce your taxable profit, and therefore your corporate tax. But beware: the amounts provisioned must meet certain conditions so as not to attract the tax authorities’ wrath. They must relate to deductible expenses and be the subject of an accurate estimate of the risk provisioned. It relates to a probable loss resulting from events taking place before the closure of the accounts.

Think about provisions for expenses, easy to anticipate. You cannot, however, provide a dismissal … But for this specific case, you can reduce your IS by subscribing to specific insurance; the premium is chargeable on the taxable result.

  1. Boost your income

More in your pocket, less in that of the state!

By increasing your business income, you also mechanically lower the taxable profit. For the operation to be interesting, make sure the sample levels do not turn this trick into a white operation.

  1. Finance the complementary retirement of your employees

Kill two birds with one stone with supplementary pensions!

Their contributions are deductible from the IS, which makes it possible to increase your employees’ income without it costing you.

The advantage for you? Offer a more attractive remuneration to your employees, likely to attract and retain them.

  1. Get tax credits

Finance your investments with tax credits!

Innovation, research, family, apprenticeship, commercial prospection, business training, CICE … There is a multitude of tax credits applying to the IS. As many opportunities to seize to develop his company at a lower cost, rather than pay a corporate tax without “return on investment” … Check out America's Best Bookkeepers

  1. Create your company in an assisted area

Be rewarded for your entrepreneurial audacity!

By setting up your company in a neighborhood in difficulty or a rural area, you can benefit from a tax exemption on companies. Starting a business in a regional aid area (ZAFR) entitles you to a full exemption from tax credits for the first two years, then decreases over the next three years.

  1. Get involved in charity or philanthropy

Make a donation; the state will give you back!

Finally, it will refund you in the form of a reduction in corporation tax of 40 to 90% of the value of the gift if it complies with the conditions set by the tax authorities.

Buy a cultural property considered a national treasure? 40% tax deduction.

Donate to a work of general interest? 60 %.

Contribute to the public purchase of a national treasure? 90 %!

What interest for your company? Benefits regarding the image are more if you build communication around your charitable operation or sponsorship. The donation can also take the form of an employee’s provision, ideal for employing an employee during periods of depression.

Check out America's Best Bookkeepers 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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. Check out America's Best Bookkeepers