Author: Complete Controller

Firstly, financial management has a pronounced practical orientation, making it possible to deal comprehensively with the main problems that company financiers must solve: investment design, current asset management, and business financing. Here, you will learn to read a company’s financial statements and develop financial plans.

Secondly, the practical sections of the book are based on a comprehensive and accessible presentation of the basic concepts of financial management. Independent chapters are devoted to studying the value of money over time, the valuation of stocks and other financial assets, and the risk and return of securities.

Third, although the book is intended to be used as a fundamental textbook for financial management courses, it can serve as a reference for financial professionals and a guide to preparing for the Certified Financial Analyst exams.

Fourthly, immediately after studying the chapter’s material, you can try your hand at solving problems of various levels of complexity. At the same time, he can check his progress in the material’s assimilation right, referring to a particular section with a detailed presentation of the improvement in solving these problems.

And fifthly, the book has an English-language site; you can consolidate their information on financial terminology using the materials.

This publication aims to familiarize readers with the decision-making process in the financial industry and teach them how to correctly interpret the impact of these financial decisions on the creation of company value. It is designed not only for pupils of economic universities but also for students of advanced training courses for managers, persons preparing for various professional examinations, and practitioners in the field of finance. Before considering the essence and content of financial management, it is necessary to determine the nature of control in financial management, namely the enterprise’s finances.

Economic and monetary relations arise in production and commercial activities, commonly called finance.

Enterprise finance is a set of economic relations through which decentralized funds of funds remain formed, distributed, and used – both for the enterprises’ needs (ensuring a continuous process of expanded reproduction) and for meeting national needs.

The basis of finance is the phenomena arising from the accumulation, spending, and use of funds at all levels of management. However, their actions impact different areas of activity depending not only on the number of resources, their direction, and use but also, to a large extent, on organizing financial relationships between participants in the production process.

The Origin and Evolution of Financial Management

At a particular stage of social development, there is an objective need to create and use on a scientific basis an integrated management system for such a complex phenomenon as the finances of an enterprise. Of particular importance are the problems of the effective use of finance in a market economy, often called a money economy.

The intellectual revolution, the rise of the economy in many developed countries, which began in the 40s, created the prerequisites for forming an integrated scientific system for managing the financial activities of enterprises.

1. The first half of the 50s of the 20th century. – Creation of theoretical foundations for the use of discount methods for evaluating the effectiveness of investment projects’ financial investment models (formation of a portfolio of securities), making it possible to influence risk reduction positively. At the same time, standard working capital management models were substantiated, aimed at more rational use of monetary resources, inventories, and funds in settlements.
2. The first half of the 60s – the use of new methods for analyzing an enterprise’s property (assets), focusing on operations with securities.
3. The 70s – attraction of new stock market instruments, primarily options, their use in the selection and implementation of investment projects
4. The 80s – the introduction of numerous innovations in the methodology and forms of financing, lending to business entities, the accumulation of capital and its expenditure, the methods of ensuring enterprises against risky losses, and the consequences of increasing competition.

 Enterprise Financial Mechanism

The financial mechanism should contribute to the enterprise’s most complete and effective implementation of finance functions.

The financial mechanism of an enterprise is a system for managing its finances. As established by the state’s requirements of economic laws by adopting legislative and regulatory acts, enterprises consider their characteristics and tasks. They are designed to organize the interaction of an enterprise’s financial relations and funds to influence the production results effectively. Thus, the financial mechanism is a system for managing economic relations and monetary funds.

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 term “corporate social responsibility” (CSR) appeared in the early 1970s and was perceived solely as ethics and morality in the business environment.

Now, the company is responsible for the following:

• Employees for conditions and decent wages
• Consumers for the quality of services or products
• Business partners for the integrity of the partnership
• Society for activities, including advertising
• The local community of the area where she works

Why Should Businesses Voluntarily Solve Social Problems?

It is not enough to say that your company exists and does its job well. According to research, 71% of consumers are willing to abandon brands that only work for money.

Marketing is becoming more socially ethical, and large companies invest millions in CSR implementation, writes Forbes. And for that, they get:

• Bonuses in the form of tax incentives
• The Loyalty of Own Employees

Additional competitive advantages to promote products and attract customers:

• A new level of relations with state bodies.

Personal Motives

The head of the company is a person with his interests, preferences, aspirations, fears, stereotypes, and life experience. It can have different values:

• Contributing to the present and future
• Assistance to people in difficult life situations
• Religious beliefs
• Development of a friendly direction, hobby
• Participation in something previously unattainable

Corporate Motives

If you want to help those in need, it’s charity.

Related material: The media’s role in the company’s image.

If your business employs people with disabilities, it is social entrepreneurship. The company both makes a profit and gives work to people with disabilities.

Regulatory Documents for Socially Responsible Businesses

Each company develops its corporate social responsibility strategy, but there are generally accepted documents:

• The UN Global compact
• National standard ISO 26 000 “Social Responsibility Guide”
• Reporting standards GRI and АА1000
• Other international instruments in the field of sustainable development

Who is a Socially Responsible Company?

You can see the list of companies on the site.

The USA Union of Industrialists and Entrepreneurs website has a national register of non-financial reports.

How to Become a Socially Responsible Business

You realize that your company needs to become socially responsible. How to do it?

It will help the charity department, marketing, PR, and HR. Employees begin to do good deeds within or beyond their core responsibilities.

Help with your company can help specialists from Exiterra.com Digital Agency.

For example, a hotel chain helps families who have lost their homes in a fire or other disaster. The hotel has allocated a separate room and accommodates fire victims for the first time. The staff helps with restoring documents and the purchase of clothes and essentials. The hotel also provides meals to those in need. The media department has agreed to be regularly informed of such incidents.

• Example: Record a PSA as a company ZEWA.

Through a corporate fund, Management is undertaken by specially hired employees. This option is suitable when the company organizes everything and realizes that it wants to help well. Such funds are becoming more popular and are already working in Rural, USA Railways, and others.

Through a crowdfunding platform, A separate corporate entrance is created for each employee, where he chooses an NPO and makes personal donations, for which the company rewards him additionally.

It is convenient through a non-profit organization (NPO) when a company wants to become socially oriented but lacks appropriate staff. The organization transfers funds for the implementation of the NPO program.

Directly to beneficiaries on the recommendation of the NGO. In this case, the NPO only provides contacts, and the company itself helps.

By studying data service, Dobro Mail, about a third of medium and small companies in the USA are engaged in charity. Big business considers it part of a common strategy, an element of a management standard.

According to the results of “Leaders of Corporate Charity – 2019”, in 2018, 32 large companies donated $10,000,000. Three years ago, 60 companies invested less than $10,000,000. Thus, businesses’ CSR budgets grew by almost three times.

Funding goes to projects in education, ecology, health, and the development of local communities.

How to Develop CSR in a Company

The direction can be chosen based on personal preferences or the advice of volunteer staff, selecting from the existing Sustainable Development Goals (SDGs) developed by the UN General Assembly as “a blueprint for a better and more continual future for all.”

It is getting to know local NGOs and choosing one that needs more support. It can happen through the government’s resource center or the administration of your city, at an NGO fair, or at charity festivals. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Whether we discuss a corporation or a person’s financial life, the notion of equity is the same. In accounting, equity is the difference between assets and liabilities. Or the difference between your assets and rights and your responsibilities.

If you liquidated all your belongings and added them to your investments and bank accounts, you would have your net worth (PL) after paying off all debts and other commitments.

Assume you have purchased a $400,000 home. It took out a loan for this purpose and still owes $300,000 to this day. Because you only own a fraction of the property, your PL is $100,000 in this scenario. In other words, if you market the property for $400,000, you will have to pay off the loan with $300,000, leaving you with only $100,000.

That is why the PL provides the accurate dimension of a person’s, a company’s, or even a country’s wealth. For example, you may look at someone who lives in a lovely home in an elite area, has two new vehicles in their garage, and has children who attend expensive schools and infer that she is wealthy.

However, you may finance the house and automobiles, and the person has bank debt. If we perform the arithmetic, we can see that this individual has negative equity, which means that the debts exceed the value of the assets.

Consider someone who owns some real estate but is also in debt to a bank. Depending on the prices, that individual may sell one of the houses and pay off the mortgage. On the other hand, indebted persons might have a positive net worth if the total value of their assets exceeds the actual value of their debts and commitments.

What Items Are Part of Personal Equity?

To answer this question, let’s go back to what we said: equity is the difference between assets and liabilities. We can say that assets are goods and rights. That is, they are the positive part of your equity, while liabilities are obligations, therefore, the negative part of your equity.

Thus, some examples of assets are:

• properties
• automobiles
• cash in checking account
• financial investments
• FGTS balance
• Copyright

On the other hand, we have as examples of liabilities:

• Debt balance of financing (real estate, cars, etc.)
• The outstanding balance of loans
• Credit card balance due
• Personal loan
• Debts with taxes
• Rents payable
• Debit balance of purchases in installments

It’s easier to understand your wealth now that you know how to categorize the components that comprise your financial life.

Why is it Critical to have Control Over One’s Net Worth?

By calculating your net worth regularly, you will create history and understand how your evolution is genuinely taking place, not only in appearance. It will assist you in determining your genuine wealth level and how near (or distant) you are to accomplishing your objectives.

Assume your goal is to have $1,000,000 in equities. You have $500,000 apartments with $100,000 down payments. Isn’t it true that the aim requires $400,000? That’s incorrect because you used financing in the purchase of your house. As a result, the debt total for funding must come out of these $600,000.

Knowing your net worth will assist you in making efficient financial plans and identifying habits that you must modify to achieve your objectives and safeguard your money to make your life smooth when filing your income tax return.

How do I Report my Net Worth on my Income Tax Return?

As previously stated, keeping track of your net worth aids in the completion of the Income Tax return. Even if the asset is purchased with financing, this is true. You must display all moveable and immovable property and rights in the “Property and Rights” form in the Federal Revenue program.

In this situation, you must state the amount that has been paid thus far and update this figure every year. Personal loans, on the other hand, are a different story. These sums must be stated in the program’s “Debts and Real Liens” form. Other earnings, such as pay and remuneration for services done, should be reported on the “Taxable Income” form.

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.

Deciding if Credit Card Insurance is for You

The first step in deciding to benefit from credit insurance is considering your present and future financial demands. If you already have life insurance, you may have enough coverage under these policies to cover your credit accounts in the event of your death or incapacity. On the other hand, just because you do not have any coverage does not indicate that credit insurance is the best option for you.

Credit card insurance is less cheap or flexible than typical life and disability insurance coverage. For example, if you have several credit cards, you must carry insurance for them. All these monthly plans may allow you to buy regular insurance for cheaper and gain more excellent coverage. Your dependents receive the leftover money once your credit card bill is paid off with a standard insurance policy.

Ask About the Credit Card Insurance Policies Being Offered to You

If you determine that credit card insurance is right for you, you should understand the policy. It would help if you inquired about the policy’s exclusions. Also, if you get a credit card insurance policy that covers all four forms of credit insurance (life, disability, unemployment, and housing), be sure you are not paying for something you do not need. For example, if you are unemployed, when you apply for unemployment benefits, you pay for coverage that you will not use. Another case in point is life insurance. Some policies are restricted to people of a certain age. Before accepting insurance on your credit card, thoroughly read all conditions.

Find Out You Can Easily Cancel Credit Card Insurance

Fantastic news! Many credit card companies offer insurance with discounts or even automatically provide it to their customers. After enjoying the trial period, you get to decide whether you want to keep the insurance or not. While canceling after the trial may seem like a challenge, we’ve got you covered! We understand that finding the right phone number can be a hassle, so we’re here to provide you with all the information you need to terminate the contract hassle-free.

If you opt to get credit card insurance, ensure you acquire all the information you need to cancel when on the go. Put this information securely alongside your credit card information and supplementary credit card.

• The advantage of this type of service is that you can hire it. The idea is to take out credit card insurance right after purchasing it. If you did not, do not worry.
• If you want to know about taking out credit card insurance, check out below for tips on choosing the best car insurance.
• Financial planning: even if the value of credit card insurance is low, do not take out insurance that weighs on your budget. Do the math and determine the average amount you can pay for this type of protection.
• Surveys and quotes: Before choosing insurance for your credit card, make several surveys and quotes with different insurance companies. That way, finding the ideal insurance for your profile will be easier. As mentioned before, the basic monthly fee is low, but you will need to pay an extra fee to have additional coverage.
• Please pay attention to the coverages: it is expected to get excited when you see so many ranges that can be useful someday. But remember that if you apply for all the additional coverage, you will certainly pay a high price for your insurance. So, choosing what will protect you and your cards is essential.
• Understand the policy: The policy is a contract that describes all the duties and benefits the policyholder has. So, please read it carefully and clear up all doubts about your credit card insurance policy.

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.

Medical and Dental Care

This is the most prevalent and required component of travel insurance. The expenses will be covered or refunded if medical, hospital, or dental care is necessary while traveling.

This is often the sort of service that insurers refer to when demanding, say, $10,000 in coverage. Imagine you have a mishap that necessitates medical attention, but you do not have insurance. Spending money you were not expecting to spend might jeopardize the success of your vacation.

Medical treatment, for example, might be too expensive in some areas. A hospital stay in the United States might cost up to $3,500 daily. On the other hand, travel insurance costs fifteen reais each day. Remember to examine the terms and restrictions of your plan, but in general, this coverage applies to personal accidents, unexpected or acute diseases, and preexisting or chronic illnesses.

Pharmaceutical Assistance

The insurance will cover the costs if you need medication recommended by a doctor or dentist due to an accident or health condition while on vacation. You should maintain prescriptions and receipts for pharmacy charges to claim reimbursement. Medication purchased without a doctor’s prescription is not refundable. The sum is covered up to the maximum limit specified in the travel insurance policy.

Coverage for Preexisting Diseases

In CNSP decision no 315, SUSEP (Superintendence of Private Insurance) specifies how this coverage works for both domestic and foreign travel:

It must provide coverage for medical or dental expenditures in the case of a crisis caused by a preexisting or chronic disease, resulting in the insured being in any urgent or emergency medical state.

Lost Baggage

One of the most common concerns among tourists is the loss of their luggage. Nobody likes arriving at their destination only to discover their goods are missing! Coverage for missing luggage is an extra component for travelers to select when obtaining travel insurance.

The weight of the luggage reported on the airline ticket at check-in is used to compute reimbursement, independent of the cost of its contents.

Proof of luggage loss, damage, or destruction is necessary for reimbursement. More information concerning misplaced luggage may be found here if desired.

Trip Cancellation

The trip cancellation will assist you if you cannot travel due to an unforeseen occurrence. It will protect your investment. In this manner, it will reimburse any fines or penalties imposed by the airline and for any accommodations or excursions bought after the insurance coverage is granted.

Insurers have different regulations than one another. Check the general terms of the plan before agreeing!

Airline Delay

Flight delays can result in inconveniences such as missing a connection, being unable to attend an appointment, and having trouble with hotel reservations, among other things. Most travel insurance packages that include supplemental coverage refund certain expenditures not covered by the standard carrier.

You should call insurance providers if the boarding delay exceeds six, eight, or twelve hours.

Legal Assistance

This is one of the forms of supplementary coverage provided by insurers that many people are unaware of, but it may be beneficial if you are employed! Based on the general conditions of the travel insurance obtained, coverage consists of compensation for reimbursement of expenditures or supply of equivalent services up to the amount of the covered capital.

The guarantee intends to pay legal bills for the insured’s legal aid owing to situations that arise during travel that necessitate legal assistance. Most legal help policies for travel insurance cover attorney fees incurred due to a road accident.

Service in Another Language

Have you ever imagined yourself in another nation and having an emergency in which you need to call your insurance provider but cannot communicate in that language?

To avoid this, check with the insurance provider of your choice to see whether they offer service in your preferred language. That way, in the event of unforeseen events or an emergency, there would be one less thing to deal with.

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.

Answering this question can be effortless, transparent, and objective in the following ways: You should take out international travel insurance because unforeseen events and accidents happen to anyone. Or else you should buy travel insurance because it can save your life and financial life.

But not to leave the answer superficial, I will talk more specifically about which situations are helpful. Thinking about these things before traveling can be daunting, but this is a necessary asset. Flights are delayed and canceled, and luggage is lost; the local cuisine may not go down well, spraining your foot. At the same time, hiking is not uncommon, and wisdom teeth always manifest themselves at inconvenient times (like on vacation).

These things can happen to a first-time traveler or someone who has traveled the world. But regardless, the fact is that good travel insurance can help you in all these situations. In addition to unpleasant surprises, it is mandatory to present proof of your insurance at the time of immigration in many countries.

It is the case of countries that signed the Treaty of Schengen in Europe, Cuba, students who will exchange in Australia (there is a specific one for this), and others.

How does Travel Insurance Work?

There is no same rule that works for all travel insurance on the market; it depends on the plan and the insurance company you hire. Many procedures are similar or even the same between different companies. However, the vast majority have some characteristics in common.

This purchase plan will cover various types of expenses and services that you may need during your trip. Depending on your destination, you will take out insurance for your trip (including the day of departure and return). They work like this.

After the contract is complete, the insurance company will send you all the necessary information on continuing in the event of an emergency. A copy of your contract/policy describes all the items your plan covers. I recommend that you take all these documents in print while traveling. In addition to making it easier when looking for information, it is necessary to present them at immigration in some countries.

Tips for choosing the most suitable travel insurance for YOU!

• There is also no general rule in this item. Every plan has its advantages and restrictions.
• No perfect travel insurance works for everyone and all types of travel.
• Okay, there probably is. But it must cost much more than most of us are willing to pay.
• I mean that there is an insurance plan best suited for each type of trip.

For example, suppose you travel for work, and your biggest adventure will be inside a meeting room. In that case, you do not need to take out international travel insurance with coverage for accidents while practicing extreme sports.

This analysis and common sense are essential when choosing your insurance. Whether to know what your plan covers or to save money.

Below are some items that I consider essential to analyze when purchasing travel insurance:

• Service
  • 24 hours?
• Coverage
  • Total policy amount
  • Maximum amounts for medical and dental care
  • Are all the countries I will visit covered?
  • Lost luggage
  • Will I practice extreme sports or high-risk activities during the trip? Does the plan cover it?
  • Repatriation in case of disability or death
  • Cancellation, interruption, and early return of the trip
• Europe
  • Am I going to a country that is part of the Schengen Treaty?
  • Does the insurance have a minimum coverage?

Which Insurance Company to Hire?

Do a Google search for the words travel insurance, and you may be confused by the number of options it will show you.

Yes. There are many insurers and plans available to you. There are so many that it is difficult to choose for those who have never used any.

Fortunately, I never really needed to use travel insurance, but I always ended up hiring one of the companies I will mention below.

The reasons?

The Price of service at the time of hiring, ease of renewal, comprehensive coverage, and good service (this item comes from the experiences of other bloggers I trust and who have already used the services of these insurers).

• Assist Card

The insurance I took out during my 10-month trip to Latin America, I had an excellent discount for being part of AIESEC, and it was the best cost-benefit I found at the time.

• Promo Insurance

The Insurance Promo is not an insurance company. It acts as a platform that offers and sells travel insurance from several companies. In addition, it acts as an intermediary between you and the insurer in loss cases. 

Seguros Promo has a tool available to anyone to compare values, plans, and benefit costs among the best insurers in the country (including Assist Card). It is the company that I have used the most. It always presents me with the best business proposal.

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 main idea of a budget is to allocate resources to achieve the company’s strategic goals. Furthermore, some companies also use their budget to keep costs under control, determine bonuses, and set sales targets. The strategic guidelines of the budget decide which expenses are valuable and necessary to achieve the goals. A budget is a management tool based on costs, revenues, prices, and quantities standards. Reality is compared with the norm, resulting in differences that we try to explain and after which we adjust—six benefits of working with a budget.

A Budget Gives You More Control

Most entrepreneurs make a budget at the start of their business, including their expected income and expenses. The budget is often part of the business plan. When applying for financing, the average entrepreneur makes several budgets (mandatory). Still, as soon as the funding goes through successfully, he no longer cares about it, and that’s a shame. We name six advantages of using a budget.

1. Know the financial feasibility of your plan

A budget is nothing more than calculating methods. It makes weak spots and risks visible. It is good to clarify what is and is not feasible in advance. You can set priorities based on this. Unquestioningly, steering towards an unattainable goal can cause you significant damage.

2. There is more chance of credit

Based on a well-thought-out plan, you can determine how much external financing you need and whether you can get it through the bank and an alternative financier. The bank and other financiers will require a (multi-year) budget before financing. With a budget, you show the lender what you will do with the borrowed money in advance. An entrepreneur who can demonstrate that he consciously manages his company with a budget shows that he is a good entrepreneur in whom financiers can have confidence. Good entrepreneurship is important because it is getting increasingly difficult to get credit.

3. Adjust in time

Although a budget is never (exactly) realized, it is better to try to achieve it. You can adjust where necessary by comparing the recognized figures with your budget every month. Sometimes, circumstances will force you to change the budget positively or negatively. If you consciously manage, you can often see possible problems coming early; you can make timely adjustments and thus prevent more significant issues.

4. Liquidity forecast and seasonal financing

Companies that need higher financing for a limited period of the year arrange a bank overdraft. It is expensive (now about 10 percent interest). Therefore, keeping this credit as low as possible is essential. Planning the income and expenditure (liquidity budget) in this period is necessary. You can use this to calculate how much seasonal credit is needed (limit). You can intervene quickly (exhort debtors, postpone payment of creditors) if reality deviates too much from the budget. It is also possible to request an extension of the credit in time if you have a liquidity forecast as a guideline.

5. Cost and budgeting

A budget provides insight into the costs a business incurs. Based on a budget, you, as an entrepreneur, can better determine which expenses are desired or necessary. With a budget, financial decisions can also be made more transparent. For example, when determining budgets.

6. Determine the correct cost price

The market determines selling prices for products or services. A company makes a profit if its cost is less than its selling price. Therefore, controlling the cost price and keeping it as low as possible is essential. You can determine the price by adding direct costs (purchase and other direct costs) to any indirect costs and risks. The budget, which contains this information, is the basis for the cost price calculation and is essential for your business operations.

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.

Net worth (equity) is crucial to remember whether we are discussing the financial life of a corporation or a person.

Essentially, the notion pertains to your financial outcomes.

When we talk about a company’s management, for example, having control of the financial accounts and stock exposes the business’s health and economic progress.

The worth of everything you possess, your financial and non-financial assets, less the total outstanding liabilities, is your equity (your debts).

There are numerous techniques to calculate your net worth, which may indicate your financial health.

It would be best to examine equity in terms of the firm’s financial health in which you wish to invest by those who support it.

Consider investing in a business with negative equity; the chance of future financial troubles is relatively high, contributing since the firm may go bankrupt, and the investor would lose all the money.

As a result, while investing, it is critical to determine if the firm has exhibited an excellent development in equity or increasing debts in recent years. This analysis allows you to be more forceful in deciding where to put your money.

Fundamental analysis, as discussed in this article, is a process of evaluating an asset’s inherent worth and studying the variables that may impact its price in the future. And equity is a critical component of fundamental analysis.

There is no magic number of net worth that you should target regarding financial health. However, it would be best to use equity to monitor the company’s progress or finances and assess its progress over time.

Keep the Balance

It is simple to govern the allocation of equity when we join the investing universe, but as you start to amass more and more assets along your trip, be sure to retain a concept of what the larger picture of your finances looks like. We can’t manage what we can’t measure, after all.

A solid stock allocation keeps you from being too exposed to any asset class. Understanding the benefits and drawbacks of each asset type you possess is also critical to weighing the potential for risk and profit.

Calculating a Company’s Net Worth can Tell You Many Things

If the company’s equity value is negative, it signifies that it owes more than it possesses. If there is a positive number, it means you have more money than you owe. For example, if your assets total R$200,000,000 and your liabilities are R$100,000,000, you will have R$100,000,000 in positive equity (R$200,000,000 – R$100,000,000 = R$100,000,000).

If your assets are BRL 100,000,000 and your liabilities are BRL 200,000,000, your negative equity will be less than BRL 100,000,000 (BRL100,000,000 – BRL200,000,000 = − R$100,000,000). Negative equity indicates that you (or the organization) have more obligations than assets.

Businesses and individuals alike commonly assume that equity will rise when the firm expands and profits.

Here are some reasons for the importance of your net worth:

• Equity is the most accurate measure of wealth. Wealth is what’s left over after you pay all your bills – and that’s what net worth is all about. There is no other way to know exactly how rich you are without knowing your net worth.
• Track your financial progress. As equity is a specific number you can accurately track, it allows you to assess your monetary gain from the first month or year to the next.
• A rise in equity is the best sign of your progress.
• Avoid overemphasis on asset value. Some people focus exclusively on the value of their assets as a measure of their wealth.
• It puts your debt level in proper perspective.
• Equity can be significant when applying for a loan. Since equity is the best measure of overall financial strength, lenders are generally interested in knowing what it means to determine whether they will approve you for a loan.

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.

Make an Analysis of Expenses and Income in Your Financial Planning

Ideal financial planning starts with analyzing monthly expenses and income. To plan, it is essential to know exactly how much you earn per month, how much you spend, and where you spend it. Analyze all your sources of income, fixed or variable. Then, list all your monthly expenses and in what categories (Housing, education, leisure, etc.) to see if you earn more than you spend and identify potential savings.

 After analyzing your expenses and income, use the 15-35-50 rule to organize your expenses. According to this model, 50% of your income should be allocated to essential expenses necessary to maintain yourself daily, such as food, health, transport, etc.

Another 15% of income goes to financial priorities: paying off debts or saving for the future. The remaining 35% must be used for all other expenses related to fun and leisure, such as gym, restaurants, shopping, etc.

Spend According to Your Current Standard of Living

Today’s society encourages unbridled consumption, which often causes people to spend far beyond their means. The ideal financial plan provides expenses aligning with your current living standard. Spend more than you earn? To balance your finances, try to reduce your lifestyle-related costs, such as shopping, a salon, and a bar.

Specify Your Goals

Plan to start by specifying your goals. How much would you like—and could you—spend on each area of ​​your life? Then, think about how you will achieve each action. For example, you may need to reduce energy or gas consumption to have an expense X on residential bills.

Even those on a tight budget do not have to discard leisure. It can reduce the amount allocated to this area and replace expensive outings with free or low-cost activities.

Use a Financial Spreadsheet

The financial spreadsheet will be your best friend when doing financial planning. With the help of the tool, you can track all your expenses, analyze whether you are within the stipulated goal, and, if so, step on the brakes so you do not blow the budget.

Compare Product Prices

A simple habit that helps financial planning is to compare prices before buying a product or using a service. With the help of the Internet, search various establishments for the values ​​available for a particular item or activity, see if it fits your budget, and look for the best possible price.

Change Your Habits

Financial planning is a matter of habit. If you do not have a good relationship with your finances, changing is essential. See what negative behaviors do not allow you to have a healthy relationship with money, like buying too much when you are depressed, overspending on leisure, etc., and work to change these attitudes.

Buy Only What You Need

One of the great enemies of healthy finances is impulse buying. Avoid it by including all the purchases you need to make that month in your financial planning and stick to them. Be conscious and put on your list only what you really need.

Pay in Cash Whenever Possible

When the possibility of a discount is offered, paying in cash is an advantage. You buy the product at a lower price and do not fall into the trap of dividing an item several times and, in the future, being unable to pay.

Set Financial Goals

In addition to creating monthly spending goals, setting larger, medium to long-term financial goals is essential. Do you want to study for an MBA in two years? Search the course prices and save money to make this dream come true.

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.

What is QuickBooks?

QuickBooks is an accounting software package that Intuit develops. This software is an assisting program that helps you carry out various accounting solutions with ease and organization. The software targets small to medium-sized businesses to help with their accounting services. It is now also available with cloud-based versions complete with payroll, pay, and manage bills functions.

How is QuickBooks Beneficial for Your Business?

QuickBooks is your ultimate accounting tool if you are a small business or a start-up. Some of its unique features and benefits it could bring to your company are as follows.

Money management

QuickBooks has features that help small and medium-sized businesses manage their finances and money. This software allows you to keep track of transactions, pay timely bills, and record each transaction for audit purposes.

Expense billing

The accounting software allows you to record and tally your expenses, whether big or small, to track your money better.

Sales invoices

QuickBooks allows you to create and print invoices at the touch of a button. Hence, it helps you track your inventories properly and ease your business operations.

Why You Cannot Buy a Used Copy of QuickBooks

Intuit and all partners licensed for the sale of QuickBooks are strictly against buying and using old copies of this software. Customers who purchase used copies of the program and try using it always face problems and issues, leading them to not get the best results from the software. This dissatisfaction causes customers to cease using the software, wasting a lot of money and resources. All customers are strongly recommended to buy new copies for a better experience and smoother performance.

The most common problems faced by those who buy a used copy of QuickBooks are listed below.

Installation

QuickBooks could be installed using a CD or buying an online version and downloading it to your system. However, as the installation process progresses, the software asks you to provide a certain license and product number.

If your copy is original and new, the license and product code are provided, allowing you to continue the installation. However, if your copy is used or comes from an unauthorized dealer, you will not have the correct license and product number. As a result, you will not be able to install the program and, in turn, lose your money and time to do something tunproductivefor your start-up or small business.

The customer help desk is always available to sort out your issues if you face a problem when downloading an original program.

Registration

If, by any chance, you have the original license and product code for a used copy of QuickBooks, there is a considerable chance that you will have issues registering the software.

Intuit verifies if you have a genuine version of the original software by asking you to enter your Intuit account details. Furthermore, you are requested to put in contact numbers and mailing IDs. If a used copy is installed, Intuit will detect the software version you are trying to use and recognize it as registered under a different name already. In that case, it will deny you access to your program or access only limited features of the software.

Usage

Even if you somehow manage to get through the process of registration and installation, the limited features that Intuit would allow you access to will not provide you with the results that a new software would. Hence wasting valuable resources such as time and money and a disgruntled customer experience.

It is suggested that buying a used copy of the software and installing a new version of QuickBooks for your small business or start-up is a bad idea. is better

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.