Author: Jennifer Brazer

Providing a smooth and safe checkout process is crucial to improving your online store’s consumer experience. Using the correct payment gateway might make this a lot easier. If you do not confirm how to do it, this article will teach you everything you need to know about payment gateways.

What is the difference between a payment gateway and a payment processor?

To comprehend the rest of the text, you must first grasp the concept of a payment gateway.

A payment gateway is a vendor service that e-commerce application service providers provide to accept payments for online purchases made on merchant websites. It enables your clients to enter their payment information and pay for their goods on your online store safely and securely.

What to Think About When Selecting a Payment Gateway?

Choosing the correct payment gateway is essential to the seamless operation of your organization. When picking a payment gateway for your WooCommerce business, keep the following points in mind.

Is it better to use a traditional or a new payment gateway?

There are two types of payment gateways: classic and modern. The first step in obtaining the best payment gateway for your store will be to choose between them. The critical distinction is that traditional payment gateways require a merchant account to process transactions, whereas current payment gateways do not.

The majority of WooCommerce’s payment gateways are classic gateways, although there are a few new gateways. To make the most excellent decision, you must first understand their distinctions.

A standard payment gateway

Regular payment gateways feature cheaper transaction fees but a longer setup process and require a merchant account. Because API integration is needed, you must have a basic technical understanding. Authorize.net and World Pay are two of the most well-known traditional payment gateways.

Gateway for modern payments

Modern payment gateways like PayPal and Stripe are well-known. Unlike old payment gateways, contemporary payment gateways are simple and do not require a merchant account. However, it has higher transaction fees than other payment gateways and sends users off-site to pay, hurting your Woo Commerce store’s conversion rate.

Price

The expenses of using a payment gateway may vary depending on the payment gateway. As a result, you should consider the cost structure of each payment gateway while making your decision. The payment gateway’s total cost is comprised of three fees: setup, monthly, and transaction. To find the most cost-effective payment gateway for your business, you must consider both the amount and cash transactions.

For most businesses, a fee structure of 1% is not excessive, but if your payment costs rise or you sell high-end goods, you should opt for a payment gateway with a low processing fee and a flat subscription payment.

A location

You’ll need an international payment gateway if you market to customers worldwide. Many payment gateways only support a limited number of countries and currencies. Therefore, you won’t be able to transact in a nation that your payment gateway doesn’t support.

Because most consumers prefer to shop in their currency, you must select a service that not only operates in your customer’s nation but also accepts the proper currency. When transacting with international countries, note that payment gateway provider costs differ by country.

Security

Because online transactions entail handling sensitive financial information from merchants and customers, security is essential. As a result, you should choose a payment gateway with robust security features to safeguard your information. Payment gateways adhere to a variety of security criteria. Always use a payment gateway that is PCI DSS Level 1 compliant and has a VeriSign SSL certificate and CVV2 certification.

You must also secure your WooCommerce store and select a secure payment gateway. The majority of payment gateways demand that your website has an SSL certificate. It’s also good to check that your website follows the Payment Card Industry Data Security Standard (PCI-DSS).

Method of payment

If you have many clients or customers, having a variety of payment alternatives is critical. If you don’t give your clients enough payment alternatives, they’re more likely to abandon their cart.

As a result, double-check that your payment gateway accepts all major credit and debit cards. You should also check if the payment gateway accepts local credit cards in the region where you do business and if it supports Apple Pay, Android Pay, and other similar payment methods.

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 balance sheet reports an organization’s assets and liabilities at a given time—the balance sheet shows which assets are in the company and how they are financed. A balance sheet is also presented in the annual report, the income statement, the administration report, and the auditor’s report.

A balance sheet consists of the following:

• Assets
• Liabilities
• Equity

The balance sheet is usually set up in two columns, with assets on one side and liabilities and equity on the other. The balance sheet is a central part of the company’s accounts, and if you, as an entrepreneur, learn to understand, analyze, and use it, you can manage the business better and more efficiently.

The balance sheet is reported in the annual report.

A balance sheet reports the company’s assets, liabilities, and equity during the financial year. In addition to the balance sheet, one is a reported income statement, a board of directors’ report, and an annual report audit report. The balance sheet consists of the company’s assets, liabilities, and equity. A company’s assets must always be balanced against the company’s debts and those of the owner’s investments in a balance sheet.

What Does a Balance Sheet Contain?

A balance sheet has assets, liabilities, and equity. The assets are split into fixed and current assets on the balance sheet. Fixed assets like machinery and equipment are intended to be used for more than one year. Existing assets such as inventories and cash are instead designed to be traded within one year. Liabilities are divided on the balance sheet into long-term and short-term liabilities. Long-term liabilities such as bank loans are liabilities that fall due after more than one year, while short-term loans fall due within one year. Examples of current liabilities are VAT and accounts payable. Equity is the difference between the company’s assets and liabilities. Equity is a positive loss if a company’s assets are more significant than liabilities.

The Balance Sheet Reflects a Company’s Financial Condition

A balance sheet is also presented in the annual report, the income statement, the administration report, and the auditor’s report. The balance sheet consists of a company’s assets, equity, and liabilities at a specific time, which usually falls on the last day of the financial year. The two parts of the balance sheet, assets and equity, and liabilities, should be equal on the day when all accounts in the accounts are reported and closed, also called the balance sheet date. Thus, a company’s assets must be balanced by the company’s debts and the owners’ investments.

Parts of the Balance Sheet

The debit page on the balance sheet shows the company’s assets. These assets consist of fixed assets and current assets. Fixed assets are the assets that are permanently intended to be used or held. Existing assets are continuously consumed, sold, or converted into cash and cash equivalents.

The credit side of the balance sheet has the company’s equity and liabilities. Equity is the capital that the owners themselves have invested in the company and is called risk-bearing capital. Disadvantages include current liabilities that you must pay within one year and long-term liabilities that fall due after more than one year. It also includes untaxed reserves and provisions.

You can find the financial statements results from the income statement on the balance sheet. The result, therefore, affects the company’s equity by the same amount.

Budgeted Balance Sheet

The balance sheet is also used in budgeting, where the profit budget and liquidity budget form the basis. The budgeted balance sheet shows what assets, liabilities, and equity a company plans to have at a particular time and can be seen as a summation of the profit and liquidity budgets.

The Balance Sheet can Vary Depending on the Industry

A balance sheet’s content and size vary significantly between different industries. Consulting firms and service companies generally have smaller balance sheets. In contrast, banks, forestry companies, real estate companies, and other capital-intensive industries often have many items and large amounts on their balance sheets. Regardless of size, however, the balance sheet is relevant in both extremes.

Now you have gained insight into the balance sheet basics and how the report can be analyzed and used for you as an entrepreneur and external stakeholder. Understanding the balance sheet means that you better understand your company! Hopefully, the importance of its importance has been highlighted to implement different areas of use in your organization, to achieve better governance and control.

 

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.

Accounting procedures ensure accurate, reliable, and consistent accounting and financial transactions. They have something to do with accounting data processing. Accounting software can thus comprehend a company’s organizational structure in recording accounting transactions and controlling financial reporting. It all comes down to who does what, when, when, and how.

In addition to the primary organization of accounting, accounting procedures can be a tool to avoid and detect corruption when we talk about control. Their constant developments aid in speeding up computations and improving the quality of financial data produced by businesses, and each cycle (purchase/sale, cash payment, etc.) might have its own set of procedures.

Accounting procedures must evolve with time.

A key goal of accounting procedures is to provide reasonable assurance of the dependability and integrity of financial data. There are three layers of accounting and control in many businesses.

The first level is transaction entry with the first level of control, particularly auxiliary file entry.

The second level is revision. It is based on a risk-based strategy and ensures the quality of the accounting system. In the event of an emergency, corrective actions are planned.

Internal control is the third level, which assesses the effectiveness of accounting systems.

Here are the most efficient techniques to optimize a drug treatment center’s bookkeeping procedure.

Control of funds

Only specific individuals have access to and control over cash deposits, which is one of the most critical parts of internal accounting controls. It would help if you told them to make these deposits as soon as feasible and keep the books as organized as possible. All drug rehab deposit records, including internal and bank receipts, must be retained and compared to bank statements every month.

Cash must be kept in a secure location. The selected employee must approve all cash payments (including reimbursement, salaries, and so on). You must maintain pre-arranged deposits in a safe place until they are needed. To know who has used the register, you must support authentication mechanisms.

Separation of duties

Separation of duties among employees Cash and accounting responsibilities should be spread among people and departments. To avoid collusive theft, ensure that cash reporting responsibilities are handled evenly. You can accomplish this by assigning administrators the responsibility of thoroughly scrutinizing all transactions in the drug treatment center.

Documentation

Copies of all documentation recording monetary transactions must be retained and stored appropriately. Receipts, cash tapes, canceled cheques, and other papers fall. These documents are utilized as written records to investigate any form of money loss or discrepancies between internal records and bank statements.

Information Protection

You should keep essential and secret documents in filing cabinets, and only a few staff should have access to them. To maintain financial records safe, use technological and physical security methods.

Any evidence of financial management or theft can be changed, exchanged, received, or void by anybody with technological or physical access to sensitive financial data. Hiring a network of management teams can help protect financial data housed on a solid network. Another alternative is to sign a contract with a cyber-security firm.

Audit

A third-party accounting audit is sometimes required to get a fresh perspective on financial control systems. Work with independent auditors who are not affiliated with the company or the drug treatment program.

Keep in mind that auditors require the truth about the financial status, even if it is terrible. An external auditor can help a drug treatment center avoid costly lawsuits and economic instability by identifying financial misconduct.

Approval authority

They are preventing fraudulent transactions by corrupt personnel by requiring approval of hefty fees and payments. Accounting records will become more accountable by demonstrating that transactions are inspected, reviewed, and approved by competent authorities. Certain sorts of transactions require the approval of a particular manager.

Reconciliation

The intermediate accounting calculation guarantees that the balances in the accounting system match the balances in any other institution’s sector of accounts, such as vendors, credit, consumers, and bankers.

Spreadsheet

Accounting certification systems promote trustworthiness by ensuring that accounting entries are balanced. The weekly or daily balance computation offers a consistent representation of the system’s current state, allowing for promptly detecting and investigating inconsistencies as promptly as feasible. Despite this, faults can still happen, causing the authentication system to become unbalanced.

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.

Regardless of its legal standing, any business is compelled to bear some or all costs connected with day-to-day operations. These costs are commonly referred to as overhead in accounting. Calculating the overall cost of your construction business will allow you to develop financial forecasts and decide the selling price of your services.

What does the term “overhead” mean? What costs are included in this category? What’s the difference between a fixed and a variable fee? What technique can calculate the overhead rate, and how does it factor into job pricing? This page contains the solutions to these questions.

Accounting overhead

Overhead: Definition

The daily costs of running a firm are known as overhead costs. They are made up of both fixed and variable costs and should be included in the interim budget of the company. Rent, insurance, wages, and travel fees are regular expenses.

Unlike personal charges, overheads in the construction sector are expenses you cannot trace to the facility itself. They are used to compute the price of a service or a product for sale, among other things. As a result, they are critical factors in establishing a company’s break-even point.

What is the difference between variable and fixed fees?

Fixed and variable overhead costs are the two categories of overhead costs. It’s critical to distinguish between the many types.

• Fixed or structured costs relate to all costs incurred because of the company’s existence. They don’t alter much overtime or only a little, and they expire irrespective of the company’s activity or turnovers. Take, for example, the rent, which stays the same from month – to – month. Please keep in mind that your rent may rise year to year if your lease has a rent indexation clause.
• Variable expenses, often known as operating expenses, are proportional to a company’s operations volume. Travel expenses are frequently variable costs, depending on the quantity of work to be done, the distance between the worksite and the client’s home, the requirement to remain overnight on-site, etc.

Please keep in mind that some fixed costs may change or evolve. As a result, the rent subject to indexation will rise year after year. Insurance firms also use the FFB index to reevaluate house coverage every year. That’s why it’s critical to examine overhead costs regularly. It will allow you to alter the rate to match the actual prices of your business.

Overhead for a construction company

While total expenses may vary depending on the type of business, the same basic categories are frequently seen. The construction business is one of the industries with the most spending to consider. They do, however, differ depending on the body.

If a carpenter requires a workshop to create wood products, a plumber does not. A ten-person construction business will have a substantially higher overhead cost like a self-employed individual artisan.

Main costs

The following is a summary of the most significant costs faced by most construction companies:

Rent

If you have an office, workshop, or commercial space where your business operates, these costs are relevant to you. The lease may also include rental vehicles or ground equipment for professional use.

Water, gas, and electricity are all available.

Professionals who benefit from the location are always invited. These costs will differ based on the size of the facility, the number of employees that use it, and the general level of presence (heating/air conditioning, one or more computers running all day, etc.).

Professional taxes, real estate taxes, and local taxes are all types of taxes.

You should include social charges, VAT, and company taxes for managers and employees.

Salary of an executive

Only the salary of the so-called unproductive people is listed as general expenses. Includes occupations such as secretaries, assistant managers, and others not directly tied to construction site operations.

Expenditure on external service providers and education

If you engage a chartered accountant to perform your bookkeeping (which is highly advised), keep in mind their prices. The same is true if you encounter a lawyer to handle all aspects of the legal system (CGV, legal notices, contract drafting, etc.). Finally, consider the price of hiring a surveyor or a design firm.

Travel expenses

Artisans visit construction sites regularly, and this project is often quite vital. Fuel and transportation tickets, tolls, parking, meals, and potentially hotel accommodations are all included.

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.

One-way lenders examine your financial health and determine how you may improve it is to look closely at your financial ratios. These ratios compare various aspects of a firm’s performance and assess how the company performs within an industry or region. They provide crucial information, such as whether your company has taken on too much debt, built up too much inventory, or is not collecting receivables quickly enough.

How to Evaluate Your Company’s Creditworthiness

A lender could use financial ratios to analyze the stability of a business by looking at the balance sheet. Financial ratios are frequently included in commercial loan agreements by bankers. You might be required to keep your equity above a particular percentage of your debt or your current assets above a specific rate of your existing obligations.

Ratios of liquidity

Lenders assess the quantity of liquidity (cash and easily convertible assets) in a company. You must fulfill your obligations and provide an assessment of your financial situation. The general liquidity ratio assesses your firm’s ability to generate cash to pay short-term financial debts. It’s computed by dividing your current assets (such as cash, inventory, and accounts receivable) by your current obligations (such as your line of credit balance, suppliers, and the part of long-term debt).

Ratios of efficiency

These ratios are usually evaluated over 3 to 5 years and provide additional information on specific parts of your business, such as accounts receivable collection, cash flow, and operating results. Inventory turnover refers to the time it takes for inventory to be sold and replaced during the year. Total purchases divided by average inventory during a particular period yields this ratio. It can be a critical success factor for most organizations that rely on inventories. After all, the more extended inventory is kept, the higher the cost.

Ratios of profitability

These ratios are important for assessing your company’s financial viability and comparing your company to others in the same industry. By analyzing these ratios over a period, you can spot trends in your company. The net profit margin is the ratio of a company’s earnings (typically after taxes) to its sales. A company with a more considerable net profit margin than its competitors is more efficient, adaptable, and able to take advantage of new possibilities as they occur.

Debt-to-income ratios

Bankers utilize debt ratios (equity or assets) to determine how your assets are funded, whether by creditors or investment. These ratios illustrate how a company employs long-term debt to finance its activities and indicate its long-term creditworthiness. A bank usually interprets a low ratio as a good indicator of your ability to repay your obligations or take out additional loans to take advantage of new chances.

Inventory Ratios

The inventory ratio can determine a company’s production and purchasing efficiency. The inventory ratio is a good indicator of how many times a company can sell its goods. To resolve this ratio, multiply the total cost of the services or items sold by the total cost of the inventory. The better the proportion, the more efficient the company’s asset turnover ratio is. Lenders will view such enterprises as creditworthy and the most likely to be successful and productive.

Critical Points to Note for Potential Borrowers

• A low financial ratio could indicate that your company is struggling to pay its current obligations and won’t be able to take advantage of changes that require quick cash. Debt settlement can help you improve this ratio; you might choose to put off certain purchases or investigate long-term borrowing to pay off short-term debt. You might also analyze and alter your credit policies for clients to lessen the time it takes to recover accounts receivable.
• A more significant percentage may indicate that your money is underutilized, encouraging you to invest more in projects that support growth, such as innovation, product or service development, research and development, or foreign marketing.

To sum up

Financial Ratios that lenders review when deciding the creditworthiness of a Business. A solid financial analysis always includes a careful examination of the data used to establish the ratios and an appreciation of the results’ circumstances. It’s crucial to remember that ratios aren’t the only way to assess your economic wellbeing. Regional differences might influence the value and meaning of elements such as labor or shipping costs.

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 an artisan, a tradesperson, a freelancer, a doctor, a non-professional furniture rental company (LMNP), an association, a civil real estate company (SCI), or a civil real estate company (SCI)? Do you want to know more about learning the benefits of online recordkeeping? You are correct! Choosing the appropriate accountant is crucial to the success of your business.

To assist you in selecting the correct provider, we’ve compiled a list of five significant advantages that you won’t find in traditional accounting firms:

Cost reduction

With any paid service, one activity may become numerous, resulting in additional charges you weren’t aware of (or forgot about) in the first place. To avoid this, make sure your monthly relationship is clear and clarify expectations well.

The cost reductions are the most significant advantage of employing an online accounting service. You can save money on physical lockers as you do on banking, telecommunications, or another internet service. A traditional accounting firm can save you at least 30% on an annual basis.

Using outsourced accounting services is frequently less expensive and more beneficial than hiring your financial team. You don’t have any overheads, employment fees, payroll taxes, health insurance, retirement, vacation, sick leave, or other expenses when you outsource. Furthermore, having the entire team’s experience, rather than just one (or several) employees at home, reduces the danger of non-compliance and financial insecurity, which is especially important for businesses.

Save time

You don’t have to trek several kilometers to get an accountant in your area. A dedicated specialist is provided to you in online accounting. He’s the one who keeps track of your files and manages them to help you progress. It will serve as a point of contact that you may reach out to via phone or email whenever you need it.

It’s worth noting that sure chartered online accountants, like Team Exter, include the entry and assignment of your accounting documents in their quotes. You will not be required to “get your hands dirty” or have a financial surplus in this manner. It allows you to focus on your business rather than administrative accounting procedures. It is a crucial thing to check before signing the contract.

Accounting documents are transferred

There will be no more paper accounting documents to submit or hand over. You can dematerialize your accounting by using a private and secure online place like the Team Exter Box. Dematerialization directly impacts the company’s annual costs and its environmental footprint. Some online players (for example, Team Exter Mobile) allow you to send documents directly from a smartphone application by taking a picture with your phone.

Accounting documents are readily available

In many SMEs where one person oversees accounting, fraud is an unfortunate effect. Due to the ease of creating spoof accounts, fraudulent charges can go unreported for months or even years. There are numerous warning indicators of fraud, many of which are related to the challenges that employees face when they are financially strained and unsure of what to do. Put your employees in positions with no control or responsibility; this is a solid sign that you’re vulnerable to fraud.

You no longer need to entrust your accounting documents to your accountant to process. Dematerialization allows you to view your documents online 24 hours a day, seven days a week. Furthermore, if your paper files are stolen, damaged, or lost, they will always be accessible in your dedicated online location.

A stable financial situation

Clients of online accounting firms have access to a dashboard to query their firm’s financials in real-time. It will enable you to see your commissions and investments more straightforwardly and openly.

As you may be aware, online bookkeeping has clear benefits, allowing you to concentrate on your primary company. As a result, you can confidently manage and guide your firm, knowing that you have a clear picture of its financial health. To assure its quality, we also propose that you use a qualified online accountant, a member of the Institute of Chartered Accountants.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

What is Bankruptcy?

Bankruptcy is a legal process that allows a person to “clean the slate” and encourages them to work again. Bankruptcy laws are intended to protect debtors so that their creditors do not seize their income and property in their entirety.

In some cases, Bankruptcy erases or discharges debts; in others, filing for bankruptcy results in a payment plan.

Experts explain that the reasons are related to the decline in living standards and incomes of the population due to the pandemic crisis; if there is no way to pay off debts, there are several ways to solve the problem.

• This year, the country approved a law protecting the living wages on debtors’ accounts. Is it possible to write off all debts and not pay?
• The law is such that up to half of the salary or pension can be withheld for debts. It led to the fact that pensioners and the disabled were at risk of being left without the necessary means of subsistence. Now they have an actual threshold. Some people believe they have a loophole, and now they can’t pay their bills. But, alas, debts remain “hanging” for life and even pass by inheritance.

Looking a little into the long term, we understand that no one is going to forgive debts, and bailiffs will begin to more effectively use other enforcement tools contained in the Federal Law of October 2, 2007, No. 229 “On Enforcement Proceedings”

Is it safe Bankruptcy?

Bankruptcy is a fundamental tool for financial recovery. The MFC can be issued by a citizen whose total debt is from 50,000 to 500,000 rubles. If the amount is more significant, this is done only in court.

There are two ways to solve the problem:

• Debt restructuring. A person should have money “for life”: based on the cost of living for a citizen and his minor children. You can use it with a good “white” income, enough to return to the payment schedule for three years.
• Sale of property. “Write-off” of debts is preceded by the sale of various valuables: jewelry, luxury items; cars; real estate. You will not take your only housing, clothes, and household items away.

However, you should note that all situations are individual, and it is necessary to analyze all problems in detail. In our practice, ways have already been developed to minimize financial and property losses and avoid them.

Cons and pros of Bankruptcy

Pros:

• You are no longer charged interest, penalties, and fines.
• Creditors and collectors do not call.
• You can count on “payment” holidays – from 4 to 12 months.

Cons:

• Lenders learn about valuable property and transactions made in recent years.
• If you want to take a loan within five years after completing the procedures, you will have to report that you went through the bankruptcy procedure.
• You cannot spend more than 50,000 rubles without the consent of your financial manager.
  • Can travel abroad be closed while paying off debts?
  • The court may impose a travel ban for the duration of the property sale (from 3 to 6 months). In other cases, the debtor enjoys the right to free movement.

All enforcement proceedings have been completed, and travel abroad has been opened. At the same time, one should not forget that, by Art. 67 of the Federal Law of 02.10.2007 No. 229 “On Enforcement Proceedings,” the bailiff has the right to issue a ruling on a temporary restriction on the debtor’s departure from the country. In practice, it is removed only at the end of enforcement proceedings. When a citizen is declared bankrupt by a court, all enforcement proceedings are subject to termination. Thus, if the court has not issued a judicial act restricting the right to travel abroad, you see a favorable scenario.

Can failure hide your career?

An insolvent citizen for five years does not have the right to occupy leadership positions “with the right of the first signature.” Otherwise, there are no restrictions.

Why is it better to hire a lawyer?

Obtaining insolvent status is a lengthy process consisting of several stages. Not all citizens know the laws and legal nuances thoroughly, and the expert will take care of himself and represent your side in all disputes.

How can Bankruptcy help me?

Bankruptcy can erase or “discharge” the consumer of most of their debts. The legal obligation to pay such debts disappears, and creditors no longer file lawsuits or demand payment. Bankruptcy can even prevent wage garnishment.

What debts can I discharge?

Bankruptcy can discharge most debts, such as credit cards, phone or utility bills, and medical bills.

However, Bankruptcy may not discharge all debts.

The following debts CAN NOT be discharged in Bankruptcy:

• Student loans
• Children’s pensions
• Alimony
• Most taxes
• Debts resulting from fraud (for example, if you were untrue on your credit card application)   
• Debts resulting from “willful or malicious perjury” (for example, a drunk driving ticket)

 Will I have to sell my property to pay my debts?

Most persons who file for Bankruptcy can keep most, if not all, of their personal property, except if they own something precious, like a diamond ring or a high-priced fur coat.

If you live in DC, your home is protected if you’re current on your mortgage payments, even if you haven’t filed for Bankruptcy.

Most people can keep their car if they are current on the vehicle account.

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.

If you run a firm that sells items, you need to know your cost of goods sold (COGS). One of the essential accounting concepts and small business accounting principles that every business owner should understand is the cost of goods sold. The cost of products sold is a significant factor in setting product prices.

Understanding COGS and how to manage its various components might be the difference between a profitable and a non-profitable business.

The explanation of Cost of Goods Sold (COGS), why you should know your COGS, four inventory cost techniques for the cost of goods sold, the COGS formula and sample calculations, and how to calculate COGS in six easy stages are all covered in this article. COGS stages and restrictions.

Let’s get this party started.

What is the cost of goods sold?

The cost of providing the products or services you sell is the cost of goods sold (COGS). The cost of purchasing and transforming products or services to a saleable state is COGS. It covers the cost of any direct materials or services used to create the final product supplied to customers.

The cost of products you don’t sell and overhead is not included in the price of goods sold (COGS). Adding overhead to COGS is a common blunder.

Overheads are direct or indirect expenses required to run a firm but are not included in COGS. Utility bills, employee salaries, marketing costs, and transportation rates, among other things, are not included in COGS but are considered overhead.

The price of the foam, sheets, and threads used to construct a mattress is its COGS if you own a mattress manufacturing business. It does not include the expense of marketing the goods and shipping them to your customer’s location.

In addition, there is a distinction to be made between COGS and inventory cost. Only inventory costs cover only the cost of things that have not yet been sold but are ready to be sold. COGS refers to the cost of items that have already been sold. Cost of goods (COGS) is sometimes known as “cost of sales” or “cost of services.”

Cost of Goods Sold & Cost of Goods Manufactured is not the same (COGM). Creating the cost of goods sold (COGS) refers to production costs. COGM stands for “cost of goods manufactured” and includes all expenses associated with turning inventory into a finished product, such as direct labor, direct materials, factory overhead, and other related costs.

Why you need to know your COGS

When running a business, you must be aware of your COGS. It is critical to determine the various components that make up your company’s financial aspect. The following are a few reasons for this:

COGS helps you choose the right price

Costing a product can be a difficult task. It is especially suitable if you are the manufacturer of a product that does not have universal pricing.

It would help if you made profits, and the number of money customers pay for your items determine how much profit you make. Knowing your COGS supports you in choosing the right price that gives you a healthy profit margin. You don’t want to set a cost that is less than the cost of production. You will undoubtedly lose money.

You can tell when you must raise a product’s price, and you can even establish competitive prices to entice more buyers.

For example, if the cost of goods sold (COGS) is $100, you know that the product’s price must be higher than $100 to profit.

You can quickly determine your overall profitability.

Your gross profit is your company’s money from selling its products or services before taxes and other costs are deducted. Your net profit is the amount left over after all taxes, and additional charges have been removed.

Knowing your company’s cost of goods sold is crucial to estimating your overall earnings. Why do you need to know your company’s overall profits? You have the option to inquire.

You can determine your profitability and financial performance by knowing your gross and net income. It assists you in making better financial decisions and identifying areas for improvement.

Companies have a general concept of production costs and can assess if they are excessively high or deficient. Then they can improve the overall profitability of the company’s 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.

What does your accounting look like? Do you work with simple invoices, or do you have special arrangements? For example: include making price agreements with customers, working with subscriptions, or trading in second-hand goods. It would help if you had a more extensive accounting package for these last three options instead of a simple invoicing program. In this article, we explain which extra options there are in the accounting program

1. Send monthly subscription invoices quickly and easily

Your business is growing, and so is your customer base. Previously you could easily send every customer his invoice manually, periodically. Now that you are growing, you would like to have this automated. You can send all invoices for the coming period at the click of a button. You set the billing information once per customer. Is the billing period the same for multiple customers? Then you can set it to be taken over automatically. You select the relevant customers for each period, and you can send the invoices in one batch. This way, you will never forget to invoice a customer, and you will never accidentally send the same invoice twice.

Payments are immediately processed in your bookkeeping when you link your business bank account to your administration. You can see whether payment has already been made in a clear overview on the Web. Isn’t this the case? Then you can immediately manually send a reminder. You can enter this according to your wishes from the package. Here you indicate, among other things, when you must send a first and second reminder or reminder and how much reminder costs are involved. With a large customer base, you save time using a dunning process.

2. This is how you process second-hand goods in the administration

Do you own a vintage clothing store? Do you trade in used car parts? Do you sell antiques, or are you in the breeding business? Then you are dealing with margin items. These are items for which you do not pay VAT on the total amount. You only calculate VAT on the difference between the purchase and sales amount: the profit margin.

How do you process the margin scheme on the invoice and in your administration?

If you purchase goods from private individuals and sell them through your company, those second-hand goods are classified as margin items. These fall under the margin scheme of the Tax Authorities. You do not have to pay VAT on the product’s value (the sales price) because VAT has already been spent on it (when someone bought the new product). You only pay VAT on your profit margin.

Calculation example

Suppose you buy a second-hand bicycle from a private individual. You pay $200 for this bike. It’s a nice bike, and you’re a handy seller, so you want to make a $100 profit on this bike. That $100 is your profit margin. You calculate 21% VAT on this (so $ 21, this is an easy calculation example). In total, your selling price will be 200 + 100 + 21 = $321. You must pay the $ 21 VAT to the tax authorities.

With a good VAT administration, you can be sure that you will not face nasty surprises when the tax authorities come to check your administration.

3. All top customers in one overview

Isn’t it time to give a discount to a loyal customer? It takes a lot of time to figure this out manually; tip: take advantage of a payment discount that ensures extra fast payments!

4. Easily process discounts

Do you want to give a gift to loyal customers because they have been customers for a while? You can offer them a discount. You can process this in the administration by setting price agreements. It is possible to give a discount on the invoice, for example, with an individual appointment after the quotation has been drawn up. You can also set promotional prices, volume discounts, discounts per group of customers, or a group of items in advance and give payment discounts when customers pay within a certain period.

5. Easy to find old price agreements

All posted purchase and sales invoices (per supplier or from customers) are in a row in one overview. Handy because you can quickly gain insight into old agreements. You can find this information in the Billing history overview.

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 procedure for confirming that the balance in the checkbook corresponds to the corresponding bank statement is usually done by preparing a bank reconciliation report and ensuring the reliability of the company’s accounting records by regular comparison [of the balance of operations]. Account reconciliations can be done daily, monthly, or yearly. It is allowed to keep records of contributions from shareholders, deposits of individuals, settlements with employees of a credit institution, accounting for fixed assets, inventories, and other operations for individual programs with the total amounts reflected in the corresponding accounts in the balance sheet. Accounting Principles are a set of accounting principles, methods, and standards used by businesses to prepare financial statements. It states that account reconciliation aims to ensure that financial accounts are accurate and consistent.

You must perform account reconciliations to ensure that all cash expenditures and contributions are consistent on the cash flow and income statements. Reconciliation is a process that can benefit businesses as it can help avoid balancing errors that could lead to detrimental consequences; In addition, reconciliation can help fight fraud and strengthen financial integrity. Accounting software is one of several tools organizations use to carry out this process, thus eliminating errors and making accurate decisions based on financial information. Account reconciliation determines whether transactions are in the correct location or should be transferred to another account. Accounting reconciliation is vital for corporations, but it can also be helpful for families and individuals. For example, it’s wise to reconcile credit card and checkbook accounts regularly. By comparing debit card receipts or check copies to bank statements, you can accomplish this.

Personal Accounts

Personal accounts show the date of the previous operation on the report, the incoming balance at the beginning of the day, the debit and credit turnovers reflected for each document (consolidated document), and the balance after each operation is reflected (at the discretion of the credit institution) and at the end of the day. Personal accounts are maintained on separate sheets (cards), in journals, or in the form of electronic databases (files, catalogs) generated using computer technology. The details of personal accounts reflect the date of the transaction, the document number, the type (code) of the transaction, the number of the corresponding account, the amounts – separately for debit and credit, the balance, and other details.

Methods

A robust reconciliation process improves the accuracy of the financial reporting function and allows the finance department to publish financial statements with confidence. Therefore, to ensure the reliability of financial statements, it is necessary to carry out reconciliation for the entire balance sheet of accounts on a regular and ongoing basis. There are two ways to agree:

1. Document review is a formalized data collection method involving examining existing records or documents when using documentation review. This method is carried out using accounting software. It is the most common approach to account reconciliation.
2. The second method used is the analytical review. Any process by which a person or company reviews an account or financial statement and attempts to identify any irregularities. It may include comparing financial and non-financial information. Account reconciliation using this method is done by evaluating the accounts’ transactions, usually based on other data such as historical activity.

When errors are identified because of reconciliation, an adjustment must be made to ensure that the account balance matches the supporting information. There are currently no specific accounting standards for account reconciliation per se. However, there are different balancing rules for many types of accounts.

Manual Alignment

They passed the law to protect shareholders and the public from enterprise accounting errors and fraud and improve the accuracy of corporate disclosures. Other similar organizations worldwide are increasing the burden on organizations requiring compliance. As a result, the accounting industry has been looking for ways to automate a previously tedious manual process. The pressure coupled with the constant need to mitigate mismatches in the process by using accessible information technology, organizations can more easily automate reconciliation, and less manual labor is required for each financial closing cycle. 85% of companies perform manual reconciliations using Microsoft Excel spreadsheets. This process is complex, given the other human error. Reconciliation automation can significantly reduce errors and improve efficiency. Other benefits of automatic reconciliation include centralized management, improved monitoring, reduced operating costs, increased productivity and efficiency, improved access, improved data security, and reduced risk and audit costs.

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.