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.
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.
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.
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.
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.
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.
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.
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.
Start-ups have been the hyped-up success story of the former decade, with a few new companies hitting it big and changing the face of business development. But for every successful start-up, countless others fail, sometimes mysteriously and often unobserved. No one goes into business expecting to fail, yet many new start-ups do. To understand what causes failures, listed below are the top five reasons why start-ups tend to fail.
Market problems primary reason new businesses fail is that they run into the issue of there being little or no market for the product they have built. Here are some typical indications:
There is no convincing enough value proposition to cause the buyer to commit to procuring. Good sales reps will tell you that to get an order in today’s challenging circumstances, you must find buyers with their “hair on fire” or are “in thrilling pain.”
The market timing is not right. You could be ahead of your market by a few years, and the public may not be ready for your specific resolution at this step.
Luckily, you may have had the funding to last through the early stages, but the market size of people who need your services and have funds to come to you is not large enough.
Business Model Failure
One of the most common causes of failure in the start-up world is that entrepreneurs are too optimistic about how easy it will be to acquire customers. They assume clientele will beat a path to their door because they will build an exciting website, product, or service. That may happen with the first few customers, but it quickly becomes expensive to attract and win customers if you do not have a proper business model in place.
The capital efficiency “rule”
If you want a capital-efficient business, it is believed to be essential to recover the cost of acquiring your customers in less than 12 months. Wireless carriers and banks break this rule but have the luxury of access to cheap capital.
Poor Management Team
A weak management team is a widespread problem that causes start-ups to fail. A good management team will be innovative enough to avoid Reasons 2, 4, and 5 in the business. Weak administration teams make errors in multiple regions:
They are frequently weak on strategy, building a product that no one wants to buy, as they failed to do enough work to validate the ideas before and during development.
They are usually poor at execution, leading to issues with the product not getting built correctly or on time. The go-to-market execution will be poorly instigated.
Running Out of Cash
A fourth primary reason that start-ups fail is that they run out of cash. A vital job of the CEO is to understand how much money is left and whether that will carry the company to a milestone that can lead to successful financing or cash flow favorable.
Product Problems
Another reason that new businesses fail is that they miss the mark in developing a product that meets the market’s needs. This can be due to simple execution or a far more strategic problem, a failure to achieve Product/Market fit. Most of the time, the first product a start-up brings will not meet the market need. The market needs a few revisions to fit the product/market right in the best cases. In the worst cases, the product will be way off base, and a complete re-think is obligatory.
Conclusion
Some start-ups prosper, yet so many fail. And it is failure that teaches us the best lessons. There are many other reasons start-ups fail, but these five were the most common when inquiring about the founders and team members involved in the start-up ecosystem. Should your start-up fail, it is worth trying to understand what went wrong and learn from your mistakes to make it the next time.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Budding entrepreneurs are often attracted to places that offer them better infrastructure, entrepreneurial connections, and resources. Networking events, investor meetups, and demo days provide opportunities to find good advice and investment opportunities. Finding solid connections is one of the initial aims of any entrepreneur, and these valuable connections help them slowly integrate into the ecosystem of the corporate world.
Hub Culture
The idea of start-up hubs is one thing that reduces the worries of an entrepreneur by a bit. Here, you can find all sorts of resources in one place – from necessary connections to valuable information. There are a variety of hubs available depending upon the region you are willing to operate in. There are multiple start-up communities. You may also be able to find a virtual start-up hub.
However, a choice comes in deciding which hub will yield better results here. Virtual hubs are convenient and can be accessed by an entrepreneur from an area that does not have many entrepreneurial resources. However, brick-and-mortar hubs allow entrepreneurs to meet mentors and investors in person, better grasp information, and present their ideas. It is better to meet your investors in person; this will help you build stronger relationships.
Virtual vs. Brick and Mortar
The basic idea of both kinds of hubs is the same. However, there are apparent differences between the two. The number of goals you have already set and the guidance you require can be significant factors in choosing between the two. Suppose you are clear with your business plan and have specific requirements (for example, requiring a professional for accounting tasks such as bookkeeping). In that case, you may be able to go to an online or virtual hub to get a contract that will help you in fulfilling that requirement. However, if an entrepreneur needs more guidance, going to a brick-and-mortar hub is recommended to grasp information from experienced entrepreneurs quickly.
The two main reasons for entrepreneurs to opt for a virtual hub are:
Obstacles like geographic location hinder access to a brick-and-mortar hub.
The entrepreneur has a late-stage, well-settled start-up and seeks contacts to help start operations or growth.
A brick-and-mortar hub has its benefits. Interacting with investors and mentors in person can achieve a lot. Moreover, a physical hub allows the entrepreneur to join a community. Sharing knowledge can help grasp a better understanding of the entrepreneurial world.
Both types of hubs have the same aim, which is to help budding entrepreneurs. Many entrepreneurs believe the kind of hub they choose does not make a difference. Most believe their location is the only significant factor in determining the two. Most entrepreneurs say they would prefer to go to a physical hub in a big city with a lot of resources. Meanwhile, if they are in a remote location far from a big city, a virtual hub would be where they can access the resources they need.
Some entrepreneurs emphasize that both kinds of hubs have a different impact concerning the start-up’s geographical location. Meanwhile, other entrepreneurs believe both types of hubs are essential and that utilizing both is necessary for success in different start-up stages. They also believe that to build a solid company; the entrepreneur must attend a brick-and-mortar hub for guidance and mentorship while using virtual services for contacts necessary to achieve goals. Now, you can decide on virtual vs. brick-and-mortar for your start-up needs.
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.
Mastering Work In Progress: Key Steps To Accurate Calculation
How to calculate work in progress starts with a core formula: Ending WIP = Beginning WIP + Manufacturing (or Project) Costs – Cost of Goods Manufactured (or Costs of Completed Work), supported by detailed tracking of direct materials, direct labor, and allocated overhead. This gives you the value of partially completed work at period-end and becomes the basis for accurate revenue recognition, margin analysis, and cash-flow planning.
As a founder who has spent over two decades cleaning up bad WIP for manufacturers, contractors, and professional service firms, I can tell you most “mystery margin leaks” trace back to inconsistent WIP calculation. In this article, I’ll walk you through the exact formulas, methods, and implementation steps my team uses at Complete Controller to turn WIP from a guessing game into a reliable decision-making tool that drives profitability and cash flow stability.
How do you master work in progress and get WIP calculation right?
Accurate WIP calculation means applying a clear formula, choosing the right percent-complete method, and backing it with disciplined cost tracking and reconciliation.
In manufacturing, you calculate WIP with a roll-forward: beginning WIP plus current-period manufacturing costs minus the cost of goods manufactured.
In construction and long-term projects, you calculate WIP from accumulated costs, then apply a percentage-of-completion method to determine earned revenue and over/under-billings.
The “right” method depends on your business model: units-complete, cost-to-complete, and percent-cost-incurred each have strengths and risks.
To master WIP, you need more than a formula: robust project/job-costing, regular updates, cross-team visibility, and controls that tie WIP back to physical reality.
Understanding Work in Progress: What You’re Really Calculating
Work in progress (WIP) represents partially completed goods or projects that are between raw materials (or initial planning) and finished goods or completed contracts.
Key definitions every owner should know
Work in Progress (WIP) / Work in Process
The value of products or projects that have started but are not yet finished, including materials, labor, and a share of overhead.
Manufacturing Costs / Project Costs
Direct materials, direct labor, and allocated overhead incurred during the period.
Cost of Goods Manufactured (COGM) / Cost of Completed Work
Total costs of items or projects that moved out of WIP and into finished goods or completed contracts during the period.
WIP vs. Construction in Progress
In construction, WIP often uses specific accounts like Construction in Progress and Billings on Construction in Progress to show over/under-billings on the balance sheet.
Core Formula: How to Calculate Work in Progress Step by Step
At the heart of every WIP schedule is a simple roll-forward formula.
Manufacturing/Production Costs = raw materials + direct labor + manufacturing overhead added this period.
COGM = cost of all units completed and transferred out of WIP this period.
Breaking down the inputs (manufacturing focus)
Direct materials
All raw materials that physically become part of the product.
Direct labor
Wages and benefits of workers directly tied to production.
Manufacturing/allocated overhead
Factory rent, utilities, depreciation, indirect labor, machine setup, etc., allocated based on an overhead rate.
WIP calculation example (simple manufacturing)
Beginning WIP: $20M
Manufacturing costs: $250M
COGM: $245M
Ending WIP = 20M + 250M – 245M = $25M
Percentage-of-Completion: How to Calculate Work in Progress for Projects & Construction
For long-term contracts, the real question goes beyond calculating your WIP balance—it’s about determining how much revenue you’ve truly earned so far.
Core WIP and percent-complete formulas (project-based)
WIP (Costs Incurred to Date)
WIP = Direct Materials + Direct Labor + Allocated Overhead
Percentage of work completed
Percent Complete = WIP ÷ Total Estimated Costs
Earned revenue
Earned Revenue = Percent Complete × Total Contract Value
Example: Construction project WIP and revenue
You sign a $2.5M contract with estimated total costs of $2.0M.
End of Year 1:
Direct materials: $350,000
Direct labor: $250,000
Allocated overhead: $100,000
Calculate WIP (costs to date)
WIP = 350,000 + 250,000 + 100,000 = $700,000
Calculate percent complete
Percent Complete = 700,000 ÷ 2,000,000 = 35%
Calculate earned revenue
Earned Revenue = 35% × 2,500,000 = $875,000
Compare billings to work performed
If billings to date are $1,000,000, you are overbilled by $125,000 (billings exceed earned revenue).
The accounting view: WIP and billings
Construction in Progress (asset): accumulates costs and gross profit (value of work done).
Billings on Construction in Progress (contra-asset): accumulates what you’ve invoiced.
The net shows overbilling (credit) or underbilling (debit) on the balance sheet.
Best for: Labor-intensive or highly variable projects where remaining effort can be reliably estimated.
Risk: Requires accurate forecasting of remaining costs—poor estimates can distort WIP.
Weighted average / hybrid approaches
Used in process manufacturing to smooth cost fluctuations and normalize inventory values across periods.
Owner-level decision guide
If you have long-cycle construction or engineering: prioritize percent-of-cost or cost-to-complete with robust job-costing.
If you run high-volume manufacturing: stick with the WIP roll-forward formula plus units-completed analysis.
If you manage professional services or consulting: integrate time-and-materials tracking with a percent-complete framework.
Turning Formulas into a System: How to Implement Reliable WIP in Your Business
Formulas alone won’t save you; the real leverage is in your process. At Complete Controller, we follow a consistent implementation roadmap when we’re brought in to fix WIP.
Map your production or project flow
Document each stage from raw materials/intake to finished goods or completed contracts. Define where an item or project enters WIP and where it exits into finished goods or revenue.
Build a job-costing and tracking foundation
Time and materials tracking
Track hours and materials against specific jobs or work orders using software or structured spreadsheets.
Job or project codes
Assign unique identifiers so every dollar of material, labor, and overhead can be traced to a job.
Overhead allocation method
Decide on a driver (labor hours, machine hours, direct labor cost) and apply a consistent overhead rate. Holding excess WIP inventory increases operating costs by 15–30% annually due to storage requirements, risk of damage, and tied-up capital that could be used elsewhere.
Create a WIP schedule cadence
Set a regular update frequency: weekly, bi-weekly, or monthly, depending on project length and risk. For each job or product line, track:
Contract or standard value
Total estimated cost
Costs incurred to date
Percent complete
Earned revenue (for projects)
Over/under-billings or WIP inventory balance
When properly implemented, WIP limits using Kanban methodology can increase team throughput by up to 40% while simultaneously reducing delivery time by up to 60%. Dell Technologies pioneered a direct-to-customer business model combined with Just-In-Time (JIT) inventory principles, resulting in significantly lower WIP and carrying costs while preserving flexibility for high customization.
Reconcile WIP to physical reality
Compare WIP balances to:
Physical counts on the floor or at job sites
Production reports and project milestone reports
Prior-period estimates vs. actual costs to identify bias or drift
Case Study: How Tight WIP Controls Turned Around a Struggling Contractor
The AICPA highlights that a strong WIP schedule for construction should include contract price, estimated total project cost, and costs and requisitions (billings) to date. One mid-sized contractor discovered through disciplined WIP analysis that several projects showing “profit” on paper were actually underbilled and behind schedule, putting cash flow and bonding capacity at risk.
By tightening their WIP schedule—re-estimating total costs regularly, aligning contract price with realistic budgets, and comparing costs to requisitions—they were able to:
Spot and address chronic underbilling, improving cash flow.
Adjust change orders earlier to prevent margin erosion.
Provide clearer, more credible reports to banks and sureties, strengthening their financial position.
A bearing manufacturer implemented the Toyota Production System with Kanban methodology and achieved measurable WIP reductions: 15% reduction for the JC 8037 Outer Ring component, 12% for the JC 8037 Inner Ring, and 6.7% for the JC 8038/33B variety. Beyond inventory reduction, the company achieved zero machine idle time due to lack of material—a dramatic improvement in resource utilization that directly protected margins.
Key takeaway: For project-based businesses, WIP schedules are not just accounting reports; they are early-warning systems that surface profitability and cash issues long before they hit the income statement.
Where Most Businesses Go Wrong with Work in Progress (and How to Avoid It)
Many of the worst WIP problems we see are not technical—they’re operational and behavioral.
Common WIP pitfalls
Using “percent of budget spent” as percent complete
Assuming 60% of the budget spent means 60% complete is a classic error; materials and early mobilization can heavily front-load costs.
Infrequent WIP updates
Updating WIP only at year-end leads to surprises, distorted margins, and bad bidding decisions.
Weak link between field and accounting
If supervisors don’t provide reliable progress estimates, accounting is forced to guess, undermining WIP accuracy. Industry standard indicates that if a contractor’s underbilling reaches 10% of their total assets, it is considered high compared to standard benchmarks.
No overhead allocation discipline
Under- or over-allocating overhead distorts job profitability and WIP valuations.
Practical fixes from the founder’s seat
Require field sign-off on percent-complete estimates at each WIP cycle.
Implement training so project managers understand how their updates directly affect financials and bonuses.
From Numbers to Decisions: Using WIP to Drive Strategy, Pricing, and Cash Flow
Once you trust your WIP numbers, they become a strategic asset—not just a reporting requirement.
Strategic uses of accurate WIP
Bid and pricing improvement
Comparing estimated vs. actual costs across jobs highlights where your bids are too aggressive or overhead recovery is too low.
Cash-flow planning
Over/under-billing analysis reveals upcoming cash gaps long before they appear in the bank account.
Capacity and scheduling
WIP aging shows which jobs or product lines routinely get stuck, helping you prioritize staffing and process improvements.
Bank and investor confidence
Clean, defensible WIP schedules demonstrate control and predictability—key for credit, bonding, and potential exits.
Conclusion: How I Advise Owners to Master WIP, Not Fear It
From my vantage point at Complete Controller, the businesses that thrive don’t treat WIP as an annual chore; they treat it as a monthly management tool. I recommend you start with one product line or project portfolio, implement the formulas and cadence we’ve covered, and insist on field–accounting alignment around percent complete and costs. Once you can trust those numbers, you can price better, plan cash with confidence, and spot trouble months in advance.
If you’re ready to turn WIP from a black box into a strategic advantage, my team and I can help you design and run a WIP process that fits your systems and industry. Visit CompleteController.com to learn how we support manufacturers, contractors, and service firms with accurate, real-time financials.
Frequently Asked Questions About How to Calculate Work in Progress
What is the formula for calculating work in progress?
The standard formula is Ending WIP = Beginning WIP + Manufacturing (or Production) Costs – Cost of Goods Manufactured (COGM). In project-based businesses, WIP is often calculated as total costs incurred to date (materials, labor, overhead) and then used to determine percent complete and earned revenue.
How do you calculate WIP in construction?
In construction, you add direct materials, direct labor, and allocated overhead to get costs incurred to date (WIP). Divide costs incurred by total estimated costs to get percent complete. Multiply percent complete by contract value to get earned revenue, then compare that to billings to find over/under-billings.
How do you calculate percentage of completion?
A common method is Percent Complete = Costs Incurred to Date ÷ Total Estimated Costs. Alternatives include units-based methods (units completed ÷ total units) and cost-to-complete (revised total cost based on remaining cost estimates).
Is work in progress an asset or an expense?
Work in progress is recorded as a current asset on the balance sheet, representing the value of partially completed goods or projects. Related costs are expensed to cost of goods sold or cost of services when the goods are finished or the project work is recognized as revenue.
How often should WIP be calculated?
Best practice is to calculate WIP at least monthly, and more frequently (weekly or bi-weekly) for large, risky, or cash-sensitive projects. Year-end-only WIP calculations are insufficient for managing profitability and cash flow in real time.
“WIP Schedules: Blueprints for Solid Construction Accounting.” AICPA-CIMA.
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.
Jennifer BrazerFounder/CEO
Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.
Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.
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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.
