Let’s try to grasp all of the concerns surrounding travel insurance. This tutorial covers the fundamentals of travel insurance, including what it is and how it works, how to choose an insurance program, and how to get the most out of your policy.
What is Travel Insurance?
Travel insurance is a sort of insurance purchased on a purely voluntary basis. It’s worth noting that a tourist policy is required to cross the borders of several nations. Travel insurance coverage can protect you from various unexpected events that may occur during your vacation. Travel insurance protects you from financial risks and losses while visiting another nation. This protection is codified in a unique insurance document known as a travel insurance policy (TZR policy). In the event of an insured event, the criteria and amounts of compensation for specific expenses incurred by the insured individual are specified.
The insurance policy may include the following risks:
medical and other emergency expenses
receiving compensation in case of loss of luggage
protection during sports and outdoor activities on a trip
compensation for damage to the health or property of third parties
travel protection against accidents
protection from the effects of COVID-19 disease
Aside from financial security, travel insurance also provides access to aid services wherever you are. A team of insurance and medical experts will quickly organize emergency care, supervise treatment, act as translators, and assist in replacing lost passports, among other things.
How Does Travel Insurance Work?
In some cases, a traveler’s life may depend on travel insurance.
A visitor who has purchased a policy will have round-the-clock access to one of the service providers provided. They are the ones who, in any emergency crisis, will assist in avoiding confusion, receiving information in their language, and receiving all essential medical care. What does it look like in practice?
Young Russian visitors were on vacation in one of the ski resorts. One of the hikers collided with another skier while downhill skiing, and the visitor suffered injuries to his arms and legs due to the crash. The victim phoned the service business right away. After submitting his application, he was flown to a medical facility in the host country by an air ambulance chopper. With the help of the hospital, an urgent surgical intervention was conducted on the arm and leg. Metal constructions are used. The tourists were evacuated home via plane after the operation. Only an additional business class seat was available for the journey.
There are no other options in such a case.
What Are the Guarantees of Travel Insurance When You Go Abroad?
The extent of the guarantees depends on the chosen policy. Many players offer their own calibrated travel insurance contracts for stays abroad in the competitive market. The three central guarantees of an international travel insurance policy are:
Coverage of medical expenses and hospitalization abroad. For example, you fall off a scooter in Thailand and are hospitalized for a week. The Insurer covers the costs incurred by paying the healthcare facility directly. It will be necessary to advance the costs and then request reimbursement most of the time.
Repatriation assistance . For example, you may be bitten by a mosquito, which can lead to a severe infection that requires hospitalization. The Insurer’s medical team will decide on your return to France. You will be repatriated by air ambulance, and the insurer will take care of all of this financially and logistically.
Foreign Civil Liability cover. Your Insurer covers the financial consequences of human or material damage caused to others while you are abroad. For example, you jostle a pedestrian in New York who dislocates his shoulder while falling. He has to undergo an operation. Other guarantees exist and are included, or not, in the basic travel insurance policies found on the market: luggage travel insurance guarantee (in the event of loss, theft, or damage), travel interruption travel insurance (if you have to stop your project because of an unforeseen circumstance). Those not included in the contract are generally offered as an option for a few extra dollars.
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.
Are you worried about the rise in the price of electricity? Do you think you pay too much? Don’t worry—saving on your electricity is very easy. We have tricks and tips to help you do this.
The price of electricity rose in August 2018 to $64.32, 35.5% more than in the same period of the previous year and 3.9 in July. According to the data of the Iberian Electric Market Operator (OMIE), it accumulates five months in a row of rising.
We cannot reduce the price of electricity in the wholesale market, which supplies the retailers that we later hire at home. Instead, we can take specific measures in our house to consume less and reduce our electric bill.
Watch the Appliances
It’s important to note that the appliances consuming the most electricity are the refrigerator, television, washing machine, oven, and computer. Even when not in use, leaving these devices plugged in can result in standby mode energy consumption. By turning off all devices on standby, you can confidently reduce your energy usage by up to 10%.
The refrigerator is, by far, the appliance that spends the lightest: a third of all household consumption, according to Endeca data. The washing machine accounts for almost 12% and the oven about 8%. If you also have a dishwasher, you will consume even more. Why? Heating water is a function that requires more energy.
“The appliances that consume the lightest are the refrigerator, the television, the washing machine, the oven, and the computer.”
To reduce appliance consumption, you can do two things. First, stop by the store and invest in new devices with energy labeling A +, A ++, and A +++. You are a mandatory seal that indicates its energy efficiency and performance. Although it seems to you that it is a lot of money, they are more than profitable in the long run.
Second, if you do not want to make this investment, use programs with low temperatures when using the washing machine and the dishwasher. For the fridge, try to keep it in a not ridiculously hot place, never leave it open, clean the back frequently, and monitor the temperature. Maybe it is not necessary to be so cold for the food you have.
Adjust the Contracted Power
Once you’ve optimized your appliance usage, it will be easier to save electricity if you pay attention to your consumption. The central part of your bill is the contracted power, which represents the amount of energy you can utilize to run your home efficiently. Contracted power is measured in kilowatts (kW) and is specified on your bill. To simplify, you pay for every kilowatt you utilize, in addition to paying for the actual electricity consumption. You can utilize this helpful calculator to assess the right amount of power to contract without exceeding or falling short.
Study Time Discrimination
Conserving energy by making minor adjustments to your daily routines is achievable. Time-based pricing is a method of electricity billing aimed at reducing consumption during peak demand periods. It operates based on peak hours (costly) and off-peak hours (more affordable). The least expensive hours are from 10:00 P.M. to 12:00 P.M. in the winter and from 11:00 P.M. to 1:00 P.M. in the summer. By shifting 30% of your household’s energy usage to off-peak hours, you may potentially save up to $70 per year on your electricity bill. Moreover, if you encounter difficulties aligning your appliance usage with the off-peak hours, you can return to the standard rate. This serves as an example of a practical approach to conserving energy.
Compare the Rates of the Marketers
Have you ever considered changing the company of light? Marketers offer vastly different prices. Some have offered to attract customers, which usually has significant advantages. Changing companies is an excellent way to save on the electricity bill. Do not worry; the supply will not be cut even if you change providers. The procedure is simple and free.
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.
Proper money management is the center of any household or business’s financial success. Developing a proficient grasp of financial management at a personal level will significantly enhance your effectiveness and ability to achieve financial freedom and success.
How to Manage Your Finances
First, record the current month’s planned income and expenses. Even if you have a good memory, a detailed spending plan cannot be held in your head. Recording it will help create an overall financial picture.
How to do it? To start, we draw up a table with all receipts and expenses on paper (or in Excel, as it suits you). It is essential to think over the aspects of life well and not miss anything. Although the first time, there will be shortcomings. It is impossible to carry out precise and correct planning right away. If you find any defects, you should record them in notes. This approach will help enhance the budgeting scheme for the next month. Then, each following account will be better than the previous one.
Steps to Help You Control Your Budget
You should plan any trip to the store. Following a shopping checklist as closely as feasible will help save money. It is helpful to make a menu for several days, based on which it will be clear how many products you require to purchase and in what quantity. To a considerable extent, the ability to plan your expenses well is influenced by the skill of time management. We have discussed it in detail in our article “Personal time management or how to manage your time.”
Spending accounting: You can write them down in a notebook or notepad or use specialized applications on your smartphone. It helps to detect unnecessary purchases and avoid them in the future.
Putting aside money: There is always a risk of deprivation of a permanent income. It is essential that in case of an unforeseen situation, there is a reserve that will help stretch out for several months. It should be at least three salaries.
Family budget: planning and controlling home finances
The well-being of a family relies, to a large extent, on budgeting skills. Written planning rules are also needed here. The savings capacity is no less important than accounting for income and expenses.
There is an exciting way to organize a household budget. It is called “10-20”. Its importance lies in the monthly saving of at least 10% of the entire income. Financial experts advise you to set the goal of accumulation immediately—for example, a vacation, a significant purchase, or a reserve for a rainy day.
“Seven Envelopes” is another way to handle a family budget. On the day of receiving wages, you need to distribute the money in seven envelopes. Their goals can be as follows (there may be fewer or more points; everything is individual here):
Monthly payments.
Nutrition.
Money for children.
Expenses for essential purchases (furniture, appliances, clothing).
Cash for vacation, entertainment.
Savings.
“Joy” – funds left from the last month after making mandatory purchases and payments.
By the names, it is straightforward for what purposes the family budget is distributed.
Method “Four Envelopes.” This choice is equivalent to the previous one. But here, each envelope compares to a week of the month. This method’s drawback is the difficulty of allocating funds for specific expenses.
When trying to maintain a household budget successfully, it is enough to follow seven basic rules:
Avoid debt. Avoid debt, unexpected loans, and bad credit cards whenever possible.
Moderate accumulation and allocation of funds don’t accumulate just for hoarding. Choosing a specific goal (for example, buying a car) is advisable. Such motivation will enhance productivity.
Each family member must comprehend how and why the budget is planned.
Distribute income and expenses according to financial facts today.
Be sure to set aside at least 10% of income in the reserve fund.
At the end of a certain period (for example, a year), please the family with trips, purchases, and entertainment.
Regularly, preferably every month, plan and record. Only stability will help to achieve results.
These are a few ways of saving out of your budget and managing your spending 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.
The following sources of finances are chosen to be analyzed to access the necessary finance:
Equity Shares
Retained Earnings
Government Assistance
Loan Stock and Debentures
Mortgage
Lease or Hire Purchase
Term Finance
Retained Earnings
The retained earnings are said to be the company’s residual net earnings after paying the dividends. The company saves it for future re-investment in its fundamental business. The retained earnings can be used to finance an organization’s property, plant, and equipment. Retained earnings can save the company large cash payments. The directors determine the dividend policy. A lot of retained earnings means that shareholders might expect considerable dividends. Retained earnings can be an attractive source of finance because it does not engage any shareholders or debtors. Its use can avoid issues of cost, which is generated in the issue of debentures or shares.
Equity Shares
As the name suggests, it is a type of equity financing. There are various ways to raise money by issuing stocks, e.g., new issues of ordinary shares, deferred ordinary stocks, preference shares, and right issues. A company can raise new issues of shares to raise its capital. It is a long-term external source of finance. The company does not have to repay its shareholders, although they can buy back its shares. The company is not liable for any interest or dividend payments, but shareholders expect some dividend payments at the end of each year.
Rights issues refer to issuing ordinary shares to existing shareholders. However, rights issued are offered relatively at a low price to ensure shareholders’ acceptance. Another way of equity share is preference shares. This type of issue can increase a company’s financial leverage, and it is more flexible than debt financing, though it is relatively more costly. Preference shares are redeemable and do not carry voting rights.
Government Assistance
As the name suggests, Government assistance refers to the finance that the government provides through cash grants or another form of direct aid. The government offers grants to strengthen the country’s national economy. They can deliver massive financial rewards with just one proposal. The company which receives government assistance enjoys a high level of credibility. However, the paperwork for the government grant and proposal-making process is very hefty and time-consuming. The company must abide by certain rules and laws. Not all firms are eligible to apply for government assistance. Location is an essential factor. The grant is only provided when the firmoperates within the country’s boundaries.
Loan Stock and Debentures
Loan Stock is a form of long-term debt financing. The company raises money by issuing debt with fixed-rate interest on a half-year or annual basis. Debentures are written acknowledgments of loan stocks that state conditions regarding interest payments and loan repayment. They can be either secured or unsecured.
Debentures are lower in cost than preference and equity shares. Nonetheless, they increase an organization’s financial leverage and risk. Debentures are redeemable but require a large cash outflow for redemption. Interest payments are highly obligatory anyway; they are tax-deductible expenditures and, therefore, sales taxes.
Mortgage
A commercial mortgage is a type of loan where the firm agrees with a lender (bank or financial institution). All the cash is received at the beginning of the agreement, and then the company makes regular payments to the lender in full over a specific and agreed period. The land or building is used as collateral. The interest payments on the money can either be fixed or variable.
The commercial mortgage has a lower interest rate and may result in substantial capital growth over a long period. As the mortgage period is typically long, the company can focus on other financial matters. Mortgages are less difficult and least costly to terminate than long-term lease agreements. However, the property’s security and maintenance are the company’s responsibility.
Lease or Hire Purchase
Lease and Hire Purchase is another type of finance source that allows a business to use an asset in exchange for regular payments over a fixed period. The company selects the property, plant, or equipment it demands, and the financial institute then buys that asset on behalf of the firm.
Hire Purchase
The company becomes the owner of the asset after all the payments are made. This transfer of ownership is based on the payment of the fee option to purchase, otherwise automatically. From the initiation of the agreement, the firm claims ownership of the asset, which results in substantial tax benefits and incentives. The maintenance of the asset is the firm’s responsibility in the purchase of a hire.
Lease
In a lease, ownership is never transferred to the firm. Instead, leasing institutions enjoy capital allowances (e.g., tax), and some of the benefits are passed on to the firm in the form of lowered rental rates.
Finance Lease
This is most like a hire purchase. Also known as a full payout lease, the leasing institution fully obtains the asset of cost and other charges over the lease period. Even though the company does not own the asset, it has most of the risks and rewards of the asset, e.g., maintenance and insurance of the asset.
Operating Lease
An operating lease is often used when the company requires the asset for a short period. The leasing company leases the asset to the firm, and after the lease period, the asset is leased out again to another user. Therefore, the full recovery of the asset’s cost is not made in the operating lease.
Lease or hire Purchase is long-term finance. It might be extremely costly if the company decides to terminate the lease agreement early. The lease and hire purchase methods, which involve regular payments throughout the lease agreement, will aid in adequately budgeting and forecasting for the firm.
Term Finance
Term finance or term loans are the basic source of long-term debt financing used by companies for the acquisition of non-current assets, including land and buildings. They are payable over some time with fixed, regular installments. The interest on term loans is deductible, hence saving tax, in contrast to equity and preference dividend payments. They have a lower issue cost than equity financing. Alteration of the debt instrument’s maturity can occur regarding an organization’s capital requirement.
Term loans are legally bound. Failure to pay interest or principal may lead to bankruptcy. They raise a company’s financial leverage and cost of equity. Term loans are usually secured financing; the asset against which they are raised is known as the primary security.
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 tools and techniques presented in this article facilitate the financial performance evaluation of a company’s financial data. Performance evaluation generally includes analysis of financial statements. Evaluations require comparisons. The various techniques are given in detail below:
Common-Size Balance Sheet
A common-size balance sheet is prepared by dividing each item by the same period’s total assets and expressing the results as percentages. This highlights the balance sheet’s composition, such as ‘What is the mix of assets being used?’, ‘How is the company financing itself?’, ‘How does one company’s balance sheet composition compare with that of peer companies?’ and ‘What are the reasons for any differences?’
Common-Size Income Statement
In a common-size income statement, we divide each income statement item by revenue or sometimes by total assets, especially for a financial institution.
Cross-sectional statement
A cross-sectional statement compares a specific metric of one company with the same metric of another company or group of companies. This allows comparisons even though the companies might be of significantly different sizes or operating in different currencies.
Time Series Technique
The time series technique is widely used in financial performance evaluation, for which analyzing the financial statements is particularly important. The performance over several years or quarters is compared in the time series. This method is also used for inter-company financial performance comparison. The trend developed from time series analysis can be used to predict future earnings, sales, or ratios. The estimation of future earnings is one of the most critical factors investors should consider before investing. The positive future is what drives the investors into the company. Meanwhile, a dubious future means fewer investors are interested in the company, hence a decline in the stock prices.
Ratios
Ratios are the most widely used technique in analyzing financial statements. There are many relationships between financial accounts and between expected relationships from one point in time to another. Ratios are a helpful way of expressing these relationships. They express one quantity about another. The next section gives a detailed explanation of the ratio.
Risk vs. an Average Gain
Estimation of risk and average gain also plays an important role in evaluating a company’s financial performance. Though they cannot be accurately estimated, an approximate estimation of risks and gains is required as the automotive industry has many risks but incredibly low gains. A company’s risk is calculated using the standard deviation coefficient of its total revenue. Similarly, gains are estimated for each company by calculating the average return rate on assets and then comparing it with risk.
Introduction to Financial Ratio Analysis
Financial analysis tools can help assess a company’s performance and trends in that performance. Various financial analysis techniques exist, such as ratios, standard–size analysis, Cross-sectional analysis, Trend analysis, etc. Financial ratio analysis is one of the best tools for evaluating a company’s performance.
The financial ratio is the numeric outcome obtained by dividing one financial data by another and is used to express the relativity of different financial variables. Balance sheets and income statements are the two most important and most used sources of financial information when calculating ratios. The financial ratio is the numeric outcome obtained by dividing one financial data by another and is used to express the relativity of different financial variables. Financial ratio analysis involves calculating and analyzing ratios that use data from one, two, or more financial statements.
Purpose of Ratio Analysis
The value of ratio analysis is that it can evaluate past performance, assess the company’s current financial position, and gain insights that are helpful in projecting future results. Financial ratios provide insights into:
A company’s financial flexibility or ability to obtain the cash required to grow and meet its obligations, even if unexpected circumstances develop.
The ability of the management
Changes in the company and industry over time
Comparability with peer companies or the relevant industry
Limitations of ratio analysis
Limitations include the following
Companies may have divisions operating in many different industries, making it challenging to find comparable industry ratios for comparison purposes.
One set of ratios may indicate a problem, while another may suggest that the potential problem is only short-term.
Only a few ratios are considered, as the number of existing ratios is too great. It is impossible to calculate all the ratios.
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.
Supply Chain Management is the art of ensuring the seamless flow of goods and services. Companies worldwide strive to deliver excellence to their customers and seek out new avenues of competitiveness, all under the auspices of supply chain management. The concept of “relationships” is at the heart of supply chain management, embodying its profound impact and significance. There are different types of relationships, such as strategic, tactical, transactional, internal, and so on.
These relationships are more prevalent within the supply chain community. Effective supply chain management is crucial for organizational success.
Supply chain management is an essential part of any business. It is the process that determines how a company functions, how it needs to work together, and how to create business relationships with customers and suppliers.
The role of Supply Chain Management CM is explained further below:
Sales and Marketing
Finance
Operations
Human Resource
For sales and marketing purposes, the organization will use sales promotion strategies such as product upgrades, gift cards, marketing campaigns, and impulsive buying. Leading corporations inspire the company to invent new marketing promotions.
The finance department has two areas focused on financial reporting and management accounting. These functions have different functions, but working together can enhance the best financial position for the company.
Operation Management has evolved to maintain the position of any multinational organization. The ten areas represent many strategic areas, such as:
Goods and services, which are design and product material
Management of Inventory
Layout Design and Strategy
Strategy of location
Maintenance
Process and Capacity Design
Quality Management
Supply Chain Management
Human resources take care of current and future demands and supplies. HR is always ready to work for future demands, and HR is training for skills needed in production.
Key Drivers for Achieving an Integrated Supply Chain Strategy in an Organization
Some key drivers will help an organization in achieving an integrated supply chain:
Facilities
The facilities manager’s most considerable responsibility is to confirm the quality of the output facilities that have to be maintained by the staff. Proper quality reviews and checks by the operation should be done correctly.
Inventory
Inventory management should follow the system of JIT, also known as Just in Time. This system delivers the order to their customers as soon as they get the order.
Information
A progressive multinational corporation has hands-on information because its IT is powerful, handling daily sales and customer orders.
Sourcing
A prolific firm will be strong in its good sourcing if it begins with direct and indirect suppliers because it has recognized the significant effect of a large, global supply chain. Therefore, the company will directly work with its suppliers.
Pricing
Pricing products and services should be in conjunction with “price building” and “psychological pricing.” That is why top-listed corporations hold the world’s largest share of well-known brand equity.
Globalization
It has become a sign of globalization because every organization wants to be the leading corporation in the world.
Technology
Reputable firms work closely to automate their supply chain management systems to reduce turnaround time and improve functionality. Whenever inventory levels decrease or demand increases, the organization’s automated ERP generates invoices, which are automatically relayed to both ends of the chain.
Customer’s expectation
Prominent firms prioritize their customers because of their feedback. Their customers are their family, so they develop new ideas to facilitate them, such as a mystery shopper checking the customers’ experiences and feedback.
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.
Not everyone knows about ten-year insurance. However, with the real estate crisis and the millions of homes built during the U.S. real estate bubble, the term has been gaining popularity.
Initially, when you are going to work on a project, what do you think first? As a wise contractor, you consider making a good profit and reducing the risk of losing money. A ten-year insurance policy is the best option to make your work highly profitable. Let’s see what it is and how you can leverage it.
What is Ten-Year Insurance?
Ten-year insurance guarantees the responsibilities of builders, developers, and architects of a building for material damage caused by defects that affect the stability or mechanical resistance of the building.
What Risks Does Ten-Year Insurance Cover
Ten-year insurance is backed by Law 38/1999, of November 5, on Building Planning. Its creation tried to solve those problems before the civil liability insurance partially remedied its publication that some professionals or promoters had.
For this, article 19 of the Law establishes three deadlines in which responsibilities can be demanded:
Damages compromise the building’s mechanical resistance and stability. Repairing damages caused by defects in the foundation, beams, and slabs, among other things, takes ten years.
Damages that do not comply with the habitability requirements: up to three years for defects in construction elements or facilities.
One year for defects that have occurred in the finishing or finishing elements of the work.
Mandatory ten-year insurance
The Law establishes its obligation for those buildings whose main destination is housing.
To make this obligation effective, it does not allow the inscription of the new work in the Property Registry, making it impossible for the developer to obtain mortgage financing or market the homes.
In 2002, a modification was made stating that it would not be enforceable if a single-family home were for the developer’s enjoyment.
However, the problem arises that the house can be transferred to an unprotected third party before ten years. Therefore, the Law obliges the self-motor-seller to contract a guarantee for the remaining time until the ten years are completed.
Need for a Technical Control Office
The Technical Control Offices (OCT) are engineering and architecture companies whose mission is to control the quality of the product, execute the materials of the building process, and apply the regulations. In short, the OCTs review and report on both the documents of the work to ensure that what is being done is done according to the required quality.
The OCT supports the insurance company issuing the ten-year insurance since most insurers only admit risks if an OCT supervises the work.
However, there is also the possibility of contracting ten-year insurance without OCT if the building is finished, with very few insurance companies willing to assume these risks and demanding very high premiums.
Essential Facts About Builder’s Risk Insurance
It refers to construction insurance. It helps you when you cover all your construction projects during construction.
It is a specialized part of property insurance that covers the structure during a property construction or remodel project when homeowners’ policies will not work.
It covers all the materials and supplies you need to finish your construction project. They don’t pay from their pocket if the builder’s material is damaged due to flood, fire, or high winds.
You can avail of this policy unless you finish your construction projects, whether the duration is up to three months, six months, or one year. An insurance policy will benefit you if the completion of your project takes longer.
A builder’s risk insurance policy provides comprehensive coverage that protects you from intentional acts, specific inclusions, and short fraud.
It also covers your temporary structures, and you don’t need to pay for the damage to your scaffolding or constructor forms.
This policy will cover the expense of others’ damage during construction. For example, if lightning ruins anything in your neighbor’s house or spreads fire to your project during construction, the builder’s risk insurance policy will give full coverage.
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.
Investing in real estate funds in the United States has increasingly become a preferred option for both seasoned and novice investors. This strategy offers a unique blend of benefits. Such benefits include the possibility for high returns, portfolio diversification, and the opportunity to invest in top properties without the direct hassles of property management. In this comprehensive look at real estate funds and their advantages, we will explore the reasons behind their popularity and provide factual support to highlight their potential.
Accessibility to Premium Real Estate
One of the significant benefits is the access it grants to premium real estate assets. Due to high entry costs, individual investors might need help to invest directly in high-value commercial properties or upscale residential complexes. Real estate funds pool resources from numerous investors, enabling participation in markets that would otherwise be out of reach. According to the National Council of Real Estate Investment Fiduciaries (NCREIF), commercial real estate has delivered an average annual return of around 9.85% over the last decade, showcasing the lucrative nature of premium real estate investments.
Diversification
Diversification is a cornerstone of investment strategy, known to reduce risk without significantly diminishing returns. Real estate funds are an excellent way to diversify a portfolio beyond mere stocks and bonds. Real estate assets are generally uncorrelated with traditional financial markets, providing a strong hedge against stock market volatility. The diversification advantage is critical; as per a report by the Urban Land Institute, real estate has shown less price volatility over long periods compared to equities and bonds, enhancing portfolio stability.
Potential for High Returns
Real estate funds can offer impressive returns through appreciation in property values and rental income. This dual-earning potential sets real estate apart from other investment classes. Fund managers leverage their market knowledge and expertise to select properties with high growth prospects, driving up fund value over time. Data from the NCREIF shows that the total annual returns on real estate investments have outpaced inflation by a comfortable margin over the last several decades, highlighting the sector’s ability to deliver robust returns.
Professional Management
Investing through real estate funds affords investors professional management of their investments. This means individuals do not have to deal with the everyday hassles of property management, such as maintenance, tenant issues, and legal paperwork. Fund managers are seasoned professionals who conduct thorough market analysis, due diligence, and strategic asset management to optimize returns. This level of professional oversight ensures that investments are well-maintained and positioned for growth, offering peace of mind to investors.
Income from Rents
Aside from appreciation, real estate funds generate regular income from rents. This source of income can offer a reliable cash flow to investors, making it an appealing option for those interested in generating passive income. According to the U.S. Census Bureau, rental vacancy rates have been decreasing over the past decade, while rental prices have been on an upward trend, indicating a strong rental market. This trend signifies the potential for consistent and growing income from real estate fund investments.
Tax Advantages
Investing in real estate funds can also offer certain tax benefits. These may include deductions for depreciation, mortgage interest, and certain property-related expenses, which can significantly reduce the taxable income attributed to the investment. Furthermore, real estate funds structured as Real Estate Investment Trusts (REITs) have the obligation to distribute a minimum of 90% of their taxable income to investors in the form of dividends. These dividends have the potential to be taxed at a lower rate than ordinary income, depending on the specific tax situation of the investor.
Conclusion
The advantages of investing in real estate funds in the U.S. are compelling and multifaceted. Access to premium real estate, diversification benefits, potential for high returns, professional management, steady income from rents, and various tax advantages make these funds an attractive investment option. With proper due diligence and strategic selection, real estate funds can be a valuable addition to one’s investment portfolio, providing both growth potential and income stability. Prospective investors should conduct thorough research or consult with financial advisors to align investments with their financial goals and risk tolerance.
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 relationship between an entrepreneur and his accountant is like that between a doctor and his patient. However, entrepreneurs often neglect the management and control of their income and expenses, especially those who are just starting out.
As an entrepreneur, you should not be doing your business’s finances alone. If you have already decided to hire an accountant, you surely have some questions, such as: How do I ensure it will respond to my needs? What services and documents do you have to give me? And what will be my final responsibility?
Here, we present a guide on managing a relationship with an accountant.
Hire an Experienced Freelancer
There are specific, precise requirements that your candidate must meet to guarantee their services:
In addition to being a certified accountant, the accountant must have certifications from the professional association Association of Certified Chartered Accountants. This allows the accountant to verify that the information is up to date, which is essential due to the continuous tax changes that occur.
Among the best sources for hiring is the famous “word of mouth,” that is, the recommendation of a person you trust. Ask him for data that reveals his expertise in the matter, such as growth figures for your market, which tax figure is best for you according to your activity, etc. You can also ask him if he does audits.
Seal the Relationship with a Contract
Once the professional is chosen, a service provision contract must be signed. They must offer you, at minimum, to keep your company’s accounting record and calculate your tax obligations. This includes updating you on changes in tax matters and supporting you in the event of any requirement from the Treasury.
It is Customary to Keep Vouchers
Payment of taxes will be made using the financial information your business provides. So, you must have control over it. The basic documents to deliver to your accountant are invoices, receipts, and all proof of income and expenses, in order and by month.
As a client, you need to receive a list of the state of the company’s financial records (business income and expenses) plus a record of the tax payments made by the accountant and their respective vouchers (certified by the corresponding authority). Among the taxes you will have to pay, depending on your activity, are:
Income Tax (IRS): contribution to be made for the perception of income as a natural and legal person, following the Income Tax Law. It is paid once a month, and to calculate it, you must add all the invoicing that the client has issued.
Value Added Tax (VAT): an indirect tax applied to the goods and services produced or marketed by the company. It is also paid once a month and is calculated based on a ratio of everything that was charged.
Single-Rate Business Tax: This tax applies to individuals and companies and is also taxed on profits. You will only receive the first one if your ISR is higher than the IETU.
It carries a periodicity. As an entrepreneur, you should demand these papers every month, not every time you remember.
Those documents prove that you fulfilled the tax obligations, and it must be remembered that in the event of any problem, the Ministry of Finance and Public Credit seeks and penalizes the businessman, not the accountant. For this reason, the entrepreneur must understand that although he delegates the accounting of the business to a professional, he is the one who ensures that all the papers and payments are in order.
Get Informed
There are some items you can deduct for the payment of taxes, such as the purchase of goods related to your business activity. Regarding invoices (tax receipt for the delivery of a product or service) and expenses, it is essential to consult your accountant about any questions so that he will keep a more accurate financial relationship with your company.
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.
Cryptocurrency arbitrage exploits price differences of the same digital asset across multiple exchanges, allowing traders to buy low on one platform and sell high on another for guaranteed profits. This market-neutral trading strategy capitalizes on inefficiencies between the 370+ global cryptocurrency exchanges, where identical assets can trade at different prices simultaneously due to varying liquidity, regional demand, and technical limitations.
I’ve watched the cryptocurrency landscape transform dramatically over my 20 years leading Complete Controller. When Bitcoin first crossed my desk as a client’s accounting challenge in 2013, arbitrage opportunities were abundant—spreads of 5-10% were common, and manual trading could generate substantial profits. Today’s market tells a different story. Profit margins have compressed to 0.1-2%, automation dominates the field, and success demands sophisticated systems backed by serious capital. Yet for businesses willing to approach arbitrage systematically, consistent profits remain achievable. This guide breaks down exactly how modern cryptocurrency arbitrage works, which strategies deliver results, and the infrastructure you need to build a profitable operation.
What is cryptocurrency arbitrage, and how can you profit from it?
Cryptocurrency arbitrage exploits price differences of identical digital assets across different exchanges for risk-free profits
Modern arbitrage requires automation, substantial capital ($50,000+ for meaningful returns), and sophisticated risk management
Primary strategies include spatial (cross-exchange), triangular, statistical, and decentralized exchange arbitrage
Current market conditions offer 0.1-2% spreads compared to 5-10% in crypto’s early days
Success depends on speed of execution, fee optimization, and understanding regulatory implications
Understanding the Fundamentals of Cryptocurrency Arbitrage
Cryptocurrency arbitrage operates on price discovery inefficiencies across fragmented markets. Traditional financial markets maintain price uniformity through institutional market makers, but cryptocurrency’s decentralized ecosystem creates exploitable gaps. These inefficiencies stem from varying liquidity pools, regional demand differences, regulatory environments, and technical limitations across trading platforms.
The basic arbitrage process involves simultaneously buying an asset at a lower price on one exchange and selling it at a higher price on another. Practical implementation demands sophisticated coordination across multiple platforms, real-time market monitoring, and lightning-fast execution. MIT researchers calculated that during cryptocurrency’s explosive growth from December 2017 to February 2018, daily arbitrage profits often exceeded $75 million, with total potential profits reaching $2 billion during this brief window.
Modern cryptocurrency arbitrage demands significant capital deployment. With spreads averaging 0.1-2% in 2025, traders need substantial position sizes to generate meaningful profits after accounting for fees and slippage. Most successful arbitrageurs operate with a minimum working capital of $100,000, though profitable operations can start with $25,000-50,000 for focused strategies.
Essential Types of Cryptocurrency Arbitrage Strategies
The cryptocurrency arbitrage ecosystem offers distinct approaches, each with unique risk profiles and profit potential. Understanding these strategies helps traders select methods aligned with their resources and capabilities.
Spatial arbitrage purchases cryptocurrency on one exchange at a lower price while simultaneously selling on another at a higher price. This straightforward approach capitalizes on price differences between trading platforms caused by varying liquidity and user demand. Daily Bitcoin price differences of $50-200 occur regularly across exchanges, creating consistent opportunities for prepared traders.
The ‘Kimchi Premium’ phenomenon demonstrates spatial arbitrage at its extreme. Bitcoin and other cryptocurrencies consistently trade 15-40% higher in South Korea due to strict capital controls. During peak periods from December 2017 to February 2018, average price differences between the US and Korean markets exceeded 15% daily, reaching 40% on several occasions.
Triangular arbitrage: Currency conversion cycles
Triangular arbitrage exploits pricing discrepancies between three trading pairs within a single exchange. Traders cycle through multiple currencies and end up with more of their original asset. This strategy eliminates transfer delays and fees associated with moving assets between exchanges while capitalizing on temporary pricing inefficiencies.
Statistical arbitrage employs mathematical models and machine learning algorithms to identify temporary price divergences between historically correlated cryptocurrency pairs. This quantitative approach requires sophisticated modeling capabilities but offers opportunities where simple price discrepancies have been eliminated by competition.
Advanced Tools and Technology for Arbitrage Success
Modern arbitrage demands sophisticated technological infrastructure to compete against institutional traders and high-frequency trading systems. Over 65% of individual retail traders now use automation to some degree, while institutional investors have automated up to 99% of their operations.
Professional arbitrage operations rely on comprehensive scanning systems that monitor hundreds of trading pairs across dozens of exchanges simultaneously. Leading platforms like ArbitrageScanner track over 50 centralized exchanges and 25 decentralized exchanges across 40 blockchains, providing real-time alerts when profitable opportunities emerge.
Manual arbitrage execution has become obsolete due to speed requirements. Successful arbitrageurs deploy sophisticated trading bots capable of executing complex multi-leg strategies within milliseconds. Popular platforms include:
Cryptohopper: User-friendly interface with pre-built strategies
3Commas: Advanced portfolio management and bot marketplace
HaasOnline: Professional-grade customization for experienced traders
Custom Solutions: API-based systems for maximum control and speed
Building Your Cryptocurrency Arbitrage Operation
Establishing a successful arbitrage operation requires systematic planning and disciplined execution. Mike, a retail arbitrage trader, successfully grew his portfolio from $25,000 to $38,000 in 10 months using automated multi-exchange arbitrage. His system executed trades when price spreads exceeded 1.5% after fees, generating profits in 9 out of 10 months with average monthly gains of 4.2%.
Capital allocation framework
Successful operations implement strict capital allocation rules:
Limit exposure to any single exchange to 20% of total capital
Restrict individual arbitrage opportunities to 5% of working capital
Maintain 30% liquidity reserves for rapid opportunity capture
Diversify across multiple arbitrage strategies
Risk management essentials
Cryptocurrency exchanges pose significant counterparty risks. The collapse of FTX, Celsius, and numerous smaller platforms demonstrates the importance of distributing capital across multiple venues. Additional risks include:
Execution delays that allow prices to converge before trade completion
Network congestion is increasing transaction fees beyond profitable levels
Regulatory changes affecting fund access or trading permissions
Technical failures disrupting automated systems
Final Thoughts
Cryptocurrency arbitrage in 2025 represents a mature, competitive landscape where success requires substantial capital, sophisticated technology, and disciplined risk management. While spectacular profit opportunities have largely disappeared, systematic arbitrageurs still extract consistent returns from market inefficiencies.
My experience guiding businesses through financial transformations has shown me that arbitrage works best as part of a diversified strategy rather than a standalone solution. The traders who thrive combine technical sophistication with business discipline, continuously adapting as markets evolve.
For businesses considering cryptocurrency arbitrage within their treasury management or investment strategies, professional guidance makes the difference between success and costly mistakes. Contact the experts at Complete Controller to learn how we help companies navigate cryptocurrency trading complexities while maintaining proper financial controls and regulatory compliance.
Frequently Asked Questions About Cryptocurrency Arbitrage
What is cryptocurrency arbitrage, and how does it work?
Cryptocurrency arbitrage is a trading strategy that exploits price differences of the same digital asset across different exchanges. Traders buy the asset at a lower price on one platform and sell it at a higher price on another, capturing the spread as profit.
How much money do you need to start cryptocurrency arbitrage?
While arbitrage can technically start with any amount, meaningful profits require substantial capital. Most successful arbitrageurs operate witha minimum working capital of $50,000-100,000, as current market spreads of 0.1-2% demand large position sizes to generate worthwhile returns after fees.
Is cryptocurrency arbitrage still profitable in 2025?
Yes, but profitability has decreased significantly from earlier years. Where spreads of 5-10% were common in 2017-2018, current opportunities typically range from 0.1-2%. Success requires sophisticated automation, substantial capital, and disciplined risk management.
What are the main risks of cryptocurrency arbitrage?
Primary risks include execution delays that eliminate profit opportunities, exchange failures that trap funds, network congestion that increases fees, regulatory changes, and technical failures that disrupt trading operations. Proper risk management involves capital diversification and comprehensive contingency planning.
Do I need special software or bots for cryptocurrency arbitrage?
Manual arbitrage is largely obsolete due to speed requirements. Successful operations require automated scanning systems and trading bots capable of executing trades within milliseconds. Popular platforms include ArbitrageScanner, Cryptohopper, and 3Commas, though advanced traders often develop custom solutions.
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.
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.
