Budgets are one of the most critical planning instruments that firms use to optimize their future growth and development in the face of unpredictability. It promptly facilitates the accounting and financial implementation of action plans (usually one year). By its job of “writing the future,” the budget also serves as a stabilizing agent. It offers a framework within which operators can behave, reducing the inevitable environmental disturbances.
Budgeting is a collaborative process that encompasses all aspects of the business and serves as a coordinating factor in the annual planning process.
Budgeting also allocates corporate resources to each service or department based on the general management’s objectives. Before allocating resources, you must establish the various tasks of the multiple benefits to ensure that their separate operations are consistent.
Budget control: a unique management tool for performance reports?
Budgetary control cannot be the only method used to manage government agencies. Setting off-budget performance measures can thus balance the financial weighting in terms of service quality approach and internal and external stakeholder satisfaction. There are a few more indications that need to be set.
The general management should review the budget variance indicators and another set of external indicators every month. Combining budget targets and business results can the performance approach be fully justified.
The budget will constantly be attacked because of its divisive nature, but not on a worldwide basis. Budget control is still seen as a sign of successful management by many. Traditional and managed procedures are combined in modern budget control technologies. Performance indicators are tied to the overall budget.
Operations managers can then monitor deviations, investigate the root cause, and take immediate remedial action. Financial data visualization tools have evolved to meet this demand and match these expectations in real-time, so they are increasingly being created in French government agencies.
Budget control becomes more accessible and more dependable with software. Examine all the new generation software’s features:
The concept of the asset management plan
Municipalities are increasingly using the term “asset management,” and we haven’t heard it. It is one of the most important topics for the coming years.
A third of municipal infrastructure is in fair, poor, or deplorable condition, according to the 2016 Infrastructure Canada Report. Some infrastructure has deteriorated, such as buildings, community centers, water, sewer, pumping stations, fire stations, libraries, arenas, parks, and other infrastructure that demand significant investment. The infrastructure constructed in the 1950s and 1960s is nearing the end of its useful life. The recuperation of their loved ones is a top priority.
The Role of Asset Management plan in Performance Reporting
Asset management planning is a reliable method to manage municipal assets in an efficient, sustainable, and equitable way. It is easier to make the proper investment at the right time and for the greater good by planning the administration of these wells.
There are numerous advantages to having a solid plan. It enables:
A better understanding that poor asset condition carries a significant risk of breakage and accident, with the longer the wait for action, the higher the risk. Access to up-to-date information and data to aid decision-making and the availability of tools to prioritize projects within budget constraints while considering associated risks
Improve contact between legislators and managers, and have better tools for connecting with citizens
Have information to document investment needs, maintenance operations, and maintenance budgets
Learn about the importance of mobilizing the entire municipal team to manage assets and divide tasks according to the needs and strengths of everyone
Provide citizens with services that correspond to their ability to pay
Learn about the importance of mobilizing the entire municipal team to manage assets and divide tasks according to the needs and strengths of everyone.
We want to accomplish specific goals and achieve them successfully. We take the time to assess the situation and enlist the help of civic and municipal teams. We asked individuals to imagine themselves in Paris and used their responses. We created a strategic plan that included asset management and maintenance plans that were entirely transparent to citizens.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Mastering the Importance of Closing an Accounting Period
Closing an accounting period is the systematic process of finalizing all financial transactions, adjusting balances, and preparing accurate financial statements for a specific reporting interval—whether monthly, quarterly, or annually.
I’ve spent over 20 years as CEO of Complete Controller working with businesses across every sector imaginable. From tech startups to manufacturing firms, I’ve seen firsthand how the companies that master their accounting closes gain a massive competitive edge. According to APQC’s benchmarking data, top performers close their books in just 4.8 days while others struggle past 10 days. That speed difference translates directly into faster decisions, cleaner audits, and teams that actually enjoy month-end instead of dreading it.
What is closing an accounting period?
Closing an accounting period means verifying, adjusting, and freezing financial records to create accurate statements for decision-making and compliance
The process involves reconciling all accounts and recording necessary adjustments before the cutoff date
Temporary accounts (revenue, expenses, dividends) get zeroed out and transferred to permanent accounts
This creates a clean slate for the next period while preserving historical accuracy
Without proper closes, financial statements become unreliable and business decisions suffer
Why Closing an Accounting Period Matters More Than You Think
Most business owners treat closing as a compliance checkbox. That mindset costs them money, time, and opportunities.
When you close properly, you create a financial foundation that drives growth. Your P&L tells the truth about profitability. Your balance sheet reflects actual assets and liabilities. Your cash flow statement shows exactly where money went. This clarity enables confident decisions about hiring, inventory, expansion, and investment.
Beyond compliance, closing impacts your team’s morale and retention. FloQast’s 2024 research reveals that 60% of finance professionals cite manual close processes as their primary source of stress and overwork. Even worse, 53% say this burnout drives them to leave their roles entirely. A chaotic close doesn’t just delay reporting—it burns out your best people.
The stakes get higher when things go wrong. Take Molson Coors: their 2019 restatement due to improper acquisition accounting wiped out $400 million in reported profits and sent shares tumbling 6.4%. The lesson? Poor close discipline creates material risks, even for billion-dollar companies with experienced teams.
The Four-Step Process of Closing Your Books
Understanding these mechanics helps you spot problems and delegate effectively.
Step 1: Transfer revenue to income summary
All revenue accounts move to a temporary account called Income Summary, resetting them to zero for the next period. This prevents revenue bleeding between periods and keeps trend analysis accurate.
Step 2: Transfer expenses to income summary
Similarly, expense accounts (salaries, rent, utilities) transfer to Income Summary. The resulting balance represents your net income or loss for the period.
Step 3: Move income summary to retained earnings
Since Income Summary is temporary, its balance transfers to Retained Earnings—a permanent account tracking cumulative profits. This preserves your earnings history.
Step 4: Record dividends against retained earnings
Any owner distributions reduce Retained Earnings, showing stakeholders exactly what stayed in the business versus what got paid out.
Building Your Close Timeline That Actually Works
One of the biggest mistakes I see is companies drifting into month-end without a plan, then scrambling for days.
Pre-close (Days 1-2)
Gather all documentation: bank statements, invoices, receipts, payroll records. Assign ownership for each reconciliation task. Hold a brief kick-off meeting to align on deadlines and priorities.
Active close (Days 3-5)
Execute reconciliations, record adjustments, and close temporary accounts. Set specific deadlines like “AP reconciliation complete by end of Day 3.” Use task management software to track progress and surface blockers early.
Post-close (Days 6-7)
Prepare financial statements, conduct your review meeting, and document lessons learned. Update your general ledger and freeze the period to prevent changes.
According to APQC data from 2,300 organizations, the median close takes 6.4 days. Set your target between 3-7 days. Too aggressive leads to errors and burnout. Too relaxed signals poor internal controls and delays decision-making.
Your Complete Month-End Closing Checklist
A repeatable checklist prevents reinventing the wheel each month.
Transaction recording
Record all outstanding bank and credit card transactions
Finalize accounts receivable collections and customer payments
Complete accounts payable and ensure vendor invoices are recorded
Process payroll entries and tax withholdings
Reconciliation tasks
Match bank statements to internal records
Verify credit card statements against receipts
Confirm inventory counts and valuations (if applicable)
Review fixed asset schedules for additions or disposals
Period-end adjustments
Book accrued expenses (utilities, interest, wages)
Review statements for obvious errors or unusual variances
Lock the accounting period to prevent changes
Distribute reports to stakeholders
Clean Data: The Foundation of Fast Closes
You can’t achieve a smooth close with messy records.
Good record-keeping means bank transactions stay reconciled throughout the month, not just at close. It means processing invoices as they arrive instead of creating month-end backlogs. It means catching duplicate entries before they hit your close process.
Organizations using standardized charts of accounts close approximately two days faster than those without, according to APQC research. Why? Consistent naming and numbering eliminate confusion, reduce mapping errors, and speed up consolidation. This single change—which costs nothing—can save 24 days annually.
Some companies adopt continuous accounting practices, spreading close tasks throughout the month. AI-powered software can monitor transactions daily, flag anomalies immediately, and categorize expenses automatically. Even without fancy technology, simple habits like mid-month reconciliations cut close time by 30-40%.
Automation’s Real Impact on Your Close
Here’s where many companies leave serious money on the table.
Modern accounting software handles bank reconciliation automatically, matching hundreds of transactions in minutes instead of hours. AI categorizes expenses with 95%+ accuracy after learning your patterns. Journal entry templates eliminate repetitive manual work for depreciation and accruals.
The accuracy difference alone justifies automation. Docyt’s analysis shows automated data entry achieves 99.959% to 99.99% accuracy, while manual entry ranges from 96% to 99%. With 1,000 entries, automation produces one error while manual processes at 98% accuracy generate 20 errors.
CoreIntegrator documented how implementing AP automation dropped processing costs from $30 to $5 per invoice—an 83% reduction. For a company processing thousands of invoices annually, this delivered $250,000 in savings and paid for itself in three months.
Human judgment still matters for unusual items, policy decisions, and strategic analysis. Automation handles volume and repetition. Humans handle thinking and decision-making. Companies combining both close in 3-5 days while those relying purely on manual processes need 10-15 days.
Succeeding With Limited Resources
Running lean doesn’t mean accepting chaotic closes.
Create a clear sequence: reconcile bank first, then payroll, then AP/AR, then adjustments. This flow prevents bottlenecks and allows methodical progress without rework. When you’re the only person closing, automation becomes your virtual assistant. Bank feeds, expense categorization, and scheduled reconciliations handle heavy lifting automatically.
Cross-training provides essential backup. Teaching basic close procedures to another team member takes two hours but provides insurance when your bookkeeper gets sick. Build buffer time into your timeline—lean teams can’t absorb surprises. Target a 7-day close with 2-day buffer rather than an unrealistic 5-day target that creates panic.
How Clean Closes Transform Business Performance
This advantage separates growing companies from struggling ones.
Fast closes mean accurate financials by day 6, enabling strategic conversations while the month is still fresh. Compare that to 15-day closes where you’re making decisions on stale data. You spot revenue dips by week 2 of the following month, not week 3, allowing immediate course correction.
Clean closes reveal exactly where cash went—growth investments versus operational waste. This visibility proves critical for bootstrapped and venture-backed companies alike. Your historical data becomes reliable input for forecasting models, making projections trustworthy for both internal planning and investor discussions.
Companies closing by the 5th signal sophistication and control to stakeholders. Companies closing on the 20th signal chaos, regardless of eventual accuracy. This perception impacts funding rounds, credit applications, and strategic partnerships.
Final Thoughts
After two decades helping businesses transform their financial operations, I can say this with certainty: mastering your close process is one of the highest-return investments you’ll make. The companies thriving today aren’t just tracking numbers—they’re using clean, fast closes to outmaneuver competitors and make confident decisions.
Start with one improvement this month. Standardize your chart of accounts. Document your process. Set realistic deadlines. Small changes compound into massive efficiency gains over time. Your future self will thank you when you’re making strategic decisions on day 6 instead of still reconciling on day 15.
Ready to revolutionize your accounting close? The experts at Complete Controller have helped hundreds of businesses cut their close time in half while improving accuracy. Visit Complete Controller to discover how cloud-based financial services can transform your month-end from chaos to clarity.
Frequently Asked Questions About Closing an Accounting Period
How long should closing an accounting period take for a small business?
Small businesses should target 3-7 days for monthly closes. According to APQC benchmarking, top performers close in under 5 days while maintaining accuracy. The key is having standardized processes and avoiding month-end bottlenecks.
What happens if I don’t close my accounting periods properly?
Poor closing leads to unreliable financial statements, making business decisions risky. You’ll face audit complications, potential tax penalties, and investor confidence issues. Revenue and expenses can bleed between periods, destroying trend analysis and forecasting accuracy.
Can I close my books without an accountant?
Yes, with proper training and modern accounting software. However, complex transactions, year-end procedures, and tax implications often require professional expertise. Many businesses use bookkeepers for monthly closes and CPAs for quarterly reviews and year-end.
What’s the difference between a soft close and hard close?
A soft close involves most closing procedures but allows subsequent adjustments. A hard close locks the period completely, preventing any changes. Most businesses use soft closes monthly and hard closes quarterly or annually.
How do I know if my closing process needs improvement?
Warning signs include: taking over 10 days to close, finding frequent errors in prior periods, staff working excessive overtime during close, missing financial reporting deadlines, or stakeholders complaining about stale data. If any apply, your process needs optimization.
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.
The most important lesson I’ve learned is the difference between a leader and a manager – not all managers are leaders, and not all leaders are managers. Adopting short-term goals and systems is one thing; inspiring people to a bigger plan is entirely different. I would say that the most successful people do both.
In other words, the mark of a true leader knows when to lead and when to manage.
So, what is the distinction between leadership and management? Here are the eight most significant differences between being a leader and being a manager, so you can start using your best skills in your work.
Influence VS Power
Managers, for the most part, have titles that confer authority. However, if you’ve ever worked for a boss obsessed with results, you know what I’m talking about following the rules and controlling outcomes. You know there’s a big difference between power and influencing people. Not all managers can motivate and influence others, which is an essential hallmark of leadership.
On the other side, some of my company’s most inspiring people include junior developers who come to work every day excited about finding solutions that help our clients. They don’t have a “manager” in their name, but their great ideas and enthusiasm motivate the rest of us to keep our company’s long-term vision in mind, making them incredible leaders.
Having followers versus having subordinates
The central part of a manager’s job is to ensure that company policies and procedures are followed. While this is an important role, it does not automatically create a leader. Leadership is more about building trust and respect and, as a result, being perceived as someone worth following.
One sure way to decide if you are a leader is to count the number of people who come to you for advice (excluding your direct reports).
I worked for a software company before starting my own company. One of my coworkers constantly had Coworkers come up to him and ask him questions. He wasn’t a manager, but his work ethic and integrity were admirable. They made people see him as a leader.
Instead of focusing on the present, consider the future
I remember the fear I experienced as a child when my parents told me to clean my (reputedly very dirty) room. The only thing that is going me to keep the room tidy is the end-of-week cash payment (about $1)
As I got older, I started thinking a little more judiciously. I intended to put money down for a new bike, but I knew I would need to make a lot more than $1 a week for that to happen. So, I asked my parents to work harder, and after months of hard work doing laundry and dishes, I got home my shiny red bike.
I didn’t know it at present, but I thought as a leader. Managers manage activities to cross them off a to-do list, but leaders are motivated to complete tasks because they can see the big picture. While managers tend to focus on current tasks (cleaning the room to avoid trouble), leaders see the future.
Vision of Opportunity for Growth VS Vision of Failure
Since managers tend to obsess over-rules and results, failure tends to become blacker and whiter for them. Being politically aware can be a positive thing, but an overemphasis on right and wrong means that one “bad” move can ruin morale and motivate your team.
More far-sighted leaders may see an opportunity in perceived failures. Losing a significant client or receiving negative feedback from a team member is not a step in the wrong direction but a chance to reevaluate systems and develop creative solutions.
Empowerment vs. Efficiency
After all, managers are more focused on improving efficiency. They are looking for ways to save money and time. On the other side, leaders are willing to invest time in their employees’ development.
My basketball coach didn’t have to remain after practice for an hour to assist me in hitting my free throws, but his inefficient approach was more effective in the long run. I got more points as the season progressed because he took the time to invest in me.
The same principle applies in any organization: when we make time as leaders, we can stop thinking we have to develop our team members to delegate more significant and more critical tasks in the future.
Final Thoughts
Leadership may not always seem easy or practical, but a strategic vision (and a willingness to execute it, even if it wastes time) will generate tremendous success and motivation. It is a victory for everyone.
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.
Job costing is essential for the accounting process for companies in development, contracting, manufacturing, or consulting. It permits them to keep track of and estimate job costs, ensuring that they are profitable and delivered on time. It also facilitates effective project management, from direct new business proposals to project lifecycle management and closing.
Make Sure Your Bill of Materials is Correct
Any business’s principal purpose is to sell and win new business. While the objectives are broad, every corporation confronts difficulties in pricing its products. Companies attempt to offer things at prices that customers will accept.
Many businesses use a work order costing method. This accounting technique makes it easier to determine how much material or component was utilized to make the final report. While this may appear to be a straightforward task, risks are involved. If the project is complicated, carefully controlling these risks is the best approach to assure anticipated rates of return through cost. Using executive costing in the firm is the appropriate solution to this problem, significantly if profit margins are not projected to be significant.
Cost Accounting’s Importance in Business
Controlling business operations without competent accounting is inconvenient. More sections, ranging from work-in-progress (WIP) reports to the cost of products sold reports, are necessary to account for each company’s activity. When such cost concerns develop, it is not always evident. More than one job may be running or operating simultaneously during this time; there’s a good chance you erroneously assigned the costs and discovered no problems with the costing. Furthermore, there may be a lack of proper cost control, which increases the risk of cost overruns and extra charges, threatening the capacity to assist the company in meeting its profit goals.
Advantages of Correct Job Cost Estimation
The lack of comprehensive and precise expense reporting is why businesses abandon accounting software like QuickBooks. It can appear tedious and pointless to set up and operate a work cost system. If you use accounting software, you must complete the entire procedure correctly to obtain the desired results; otherwise, it will be useless to your company’s financial success.
Financial Stability of the Company
Businesses must maintain a particular degree of creditworthiness when it comes to financial lenders. When it comes to linking operators and customers, companies must be able to track and predict project outcomes successfully. Organizations that cannot do so with confidence will find it more challenging to perform their duties efficiently.
Workplace Administration
Using data from cost reports, business managers and executives can better track the success and effectiveness of their company operations. They can then encourage staff to decrease costs and improve profits.
Workplace Costs are Actual
As a small business owner, the essential decision you will make is how to price work and services. The job costing process keeps track of the exact cost of providing a service or task so that the company may establish the right price to meet its gross margin goals. Because they have the following features, service organizations that use their employees’ work as a product can profit the most from labor costs:
Payroll is a company’s most expensive expense.
Time is easily squandered, and services are quickly terminated.
They require real-time KPIs daily to make price decisions.
Support Your Claim
The labor cost can help with legally enforceable claims. The report must show the genuine worth of a recognized breed, and the foundation for such a claim emphasizes the need to account for business costs.
Increase the Number of Future Jobs
Cost reports can provide valuable information to appraisers preparing a bid or performing work linked to pricing. These reports separate and distinguish the variable costs that need to be paid special attention to.
Payments are Processed More Quickly
Project-specific costs must be billed at or around the end of the project. If there is a wage gap, being willing to bill now ensures speedier payments.
Improved Control of Business Operations
The company has an accurate cost plan for efficient bookkeeping using labor cost accounting. The work calculation fixes all violations and helps find promptly corrected errors. It can quickly identify inconsistencies and provide an opportunity to correct them. Each project is independent of other projects.
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.
Can leadership be learned? Since ancient times, this topic has worried people, but there is still no clear answer to this question. Not so long ago, a girl named Sarah asked this question to members of one of the international HR groups on LinkedIn. The community exploded with comments, with people from worldwide sharing their thoughts and considerations for nearly two months. I can’t remember any other topic that generated so much interest, controversy, and emotion.
Opinions were divided almost in equal proportions as follows:
Not! You cannot learn leadership; it is an innate quality. Leadership is in the DNA, in the human genes. You can see the leader in the sandbox. Leadership charisma is a gift from God, and someone who is deprived of this gift from birth will never succeed in becoming a leader.
Yes! Everyone can learn leadership. Leadership is a skill. A good mentor or the American army will teach anyone leadership. (I involuntarily remembered Verochka from “Office Romance”: “Well, you understand, you can, of course, teach a hare to smoke. In principle, nothing is impossible”).
The truth is in the middle! Leadership is not a given. If a person initially has leadership potential, it can and should be developed. The Leadership Formula is Potential x Experience x Desire.
A leader has an eye for the future, who has his idea, and the determination and will to promote it, the one who is followed by people attracted by both the idea itself and the personality of the leader.
I don’t think that every child who masterfully commands their peers in the sandbox will inevitably mature into a true leader. Not every soldier succeeds in becoming a general. And the most exemplary mentor will not be able to fashion a leader if the source material is not suitable.
Although, of course, to the passionate question of one of the supporters of the first approach, “Who, in your opinion, taught Alexander the Great?” adherents of the second point of view gave a worthy answer: “Aristotle taught Alexander.” The last issue of contention is closest to me: if a person has the correct inclinations, even if not ideal, and there is a desire to develop, then with the help of practice and training, he has a good chance of becoming a leader. Last year’s Oscar winner, The King’s Speech, is about just that.
What makes a true leader? Let’s look at the statements of famous people on this topic. “You must embody the change you want to bring about in the world” (Gandhi). “The leader sells hope” (Napoleon). “Dreamlike you will live forever” (Steve Jobs). “If you consider yourself a leader, look around and see how many people are following you” (Ambani).
One day, I came across a fascinating study on what competencies are least common in people and what competencies are critical to the success of top-level leaders. The rarest and most necessary qualities for success practically coincided. The list included vision, creativity, innovation, strategic thinking, the ability to work under uncertainty, and the ability to motivate a team.
In the 15th PwC CEO Survey of the World’s Largest Countries, two-thirds of CEOs said they intended to grow leaders within their companies rather than recruit them outside. Our company’s strategy also focuses on attracting young employees and developing future leaders from within. Most of PwC’s business partners came to our company during their student days. We build leadership qualities at all levels of the career ladder. In junior positions, leadership manifests itself in the initiative, active contribution to the team’s success, deepening expertise and sharing knowledge, and in senior positions, in creating new products and ideas and educating a new generation of “stars.” Partners often ask: “Is he a leader? And who did he raise?
Many people know the 70-20-10 development formula, according to which 10% of success comes from classical training, 20% of success depends on observation and mentoring, and the remaining 70% comes from experience and practice. When I first caught this approach, I thought the training department didn’t want to work. Then I remembered how I learned to drive a car: I took courses (10%) and rode with an instructor (20%), but the real skill appeared when I began to drive to and from work every day (70%).
When discussing leadership, the first thing that comes to mind is a strong-willed and tough authoritarian style, an “iron hand.” Pyotr Ustinov once said: “The qualities necessary for a leader … In German, a leader is a Fuhrer.” But still, I think that the Fuhrer, Stalin, and Ivan the Terrible do not correspond to the characteristics of authentic leaders of our time. Yes, they were powerful and decided the fate of countries and peoples, but what is their memory of them? What values did they profess? Would we like to live under such leaders? Do we want such a fate for our children? If not, we need to focus our efforts on developing leaders of a different quality.
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.
Debit cards are registered payment and settlement plastic cards that depositors use to make non-cash payments for goods and services with reserves from their account to withdraw cash from an ATM. This payment instrument does not allow exceeding the number of funds on the card account.
There are no significant differences between the systems. The difference lies in the settlement currency, which matters if the purchase is made abroad. For Visa cards, the currency is US dollars. For MasterCard – euros in the EU countries. Differences may affect the conditions for making payments abroad, promotions, and bonuses from payment systems.
The national payment system (BELKART cards) uses the BELKART-Maestro system to pay for purchases abroad. The BELKART debit card also has advantages: it is cheaper to issue and maintain.
Plastic cards are divided into classes according to their functionality and security. The most common gradations: Standard, Classic, Gold, Platinum. The higher the course, the safer and more functional they are, for example, the ability to make remote payments and additional services (gifts from banks and their partners, various discounts). These gradations are not noticeable when paying for goods in stores, but the Standard level is not enough for payments on the Internet.
Using debit cards
In our country, the first debit cards began to appear in the 90s. Their goal was to reduce the share of cash turnover and provide the population with a convenient tool for mutual settlements.
Today, citizens use a debit card to:
Replenish the account, withdraw, store, and accumulate cash.
Pay for goods in retail stores and on the Internet through a personal statement.
Receive wages, pension accruals, allowances, and scholarships.
Transfer funds from your account to other accounts.
Pay loans, utilities, etc.
If the card is lost, a person must contact the bank with a request to block it or do it on their own through their account. You can get a new card at the bank branch where the card account is opened. It will protect the user from attacks on his funds by scammers.
Benefits of having a debit card
Convenience – no need to carry banknotes with you, which require a separate place, and the ability to make payments outside the country.
When saving time, you don’t have to look for the right amount and wait for the change when paying for a purchase.
Efficiency – You can quickly receive money at any time.
Security – no need to worry about the safety of money. When paying through a terminal or ATM, you will need a pin code known only to the owner.
The possibility of accumulation – many banks charge% (interest) on the card account balance.
Gifts – banks offer loyalty programs to customers (a receipt of cashback, overdraft services, online services, etc.).
The dissimilarity between a debit card and a credit card
Externally, plastic carriers almost do not differ from each other. Sometimes, you can find the inscription Debit or Credit on the front side. To avoid unpleasant surprises, users need to know the difference, such as creating debt or writing off commissions.
Source of income: The debit card stores the plastic holder’s own money, which he earned or received as income. A credit card permits you to spend funds that the bank lends to the user under a signed agreement. In this case, the person must return the paid money within the prescribed period. If there is a delay, interest for use is charged at an increased rate.
Getting cards: To apply for a credit card, you need to collect a package of documents. Debit cards are issued at the client’s request, which is a private person or an employer.
Interest accrual: The credit card owner pays interest for the use of the loan provided by the bank. With a debit card, interest is accrued on the balance of money on the card account.
Limit: A credit card has a credit limit or an overdraft line. Debit cardholders are limited to the amount that is available on the 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.
According to a study by Graydon, 40% of bankruptcies can be prevented. This is a shockingly high percentage, and therefore it is worth looking at how one can avoid bankruptcy. According to the research, several reasons lead to bankruptcy. In this blog, I discuss the three leading causes, and we look at what you can do in advance to prevent them. Thousands of companies go bankrupt every year. This can result from an economic crisis or a sharp decline in the market, but often the cause of the bankruptcy lies within the company itself.
Incompetent entrepreneurship (27%)
The most significant cause of bankruptcy is incompetent entrepreneurship. Insufficient knowledge of the entrepreneur, little experience, no diplomas, no thorough preliminary work, too locally focused or uncompetitive; there are many reasons why an entrepreneur cannot keep his head above water. Without explanation, most failing companies are younger than four years old, and most entrepreneurs that go bankrupt are younger than thirty-six. A necessary precaution is to seek advice in those areas where you fall short. However, this requires some degree of self-knowledge and self-reflection. It is also wise to talk to customers, suppliers, other entrepreneurs, and specialists in your field. As an entrepreneur, it is necessary always to remain alert. Last year, a successful product or business model may now be outdated due to new developments. Therefore, keep a close eye on what is happening in your field of work and make sure you keep up with all products. By continuing to innovate, you prevent your company from becoming obsolete, and you ensure the continuity of your company.
Lack of understanding of the market is a common reason companies go bankrupt.
To keep your business running, you must understand your competitors, customers, and market trends. If you do not keep up and your competitor does, it can cost you a lot of customers and eventually even lead to bankruptcy.
The most significant cause of bankruptcy is incompetent entrepreneurship.
Business reasons (18%)
The leading cause here is poor administration and lack of effective debtor management†. In short: the customers do not pay or pay extremely late, and you do not notice it. To please customers, overdue payments are often covered with the cloak of love. However, it is essential to have a good insight into your customer’s creditworthiness and payment behavior. You can pick up signals from changes in payment behavior, which indicate that your customer is not doing well. In addition, part of the cause for this often lies with the entrepreneur himself. Send an invoice on time, charge interest on delinquent payments, and send reminders immediately when the payment term has expired; there is often still a world to win.
Many entrepreneurs know what their cost is. However, it is imperative to know that. This applies to companies that make or sell products, but certainly also to companies that provide services. If you do not see the cost price for your product or service, you also do not know to what extent your company is profitable. Without insight into your cost price, bankruptcy can happen without you noticing it.
Financing problems (15%)
Problems with financing often arise in companies that are already not doing so well. Banks have tightened the reins since the monetary crisis and want the extra security of the funding. When a company is already in trouble, not getting enough financing is often the death toll. An entrepreneur can prevent this by committing to the budget for a longer time in good times, ensuring there is always some room for setbacks, and delving into the different forms of financing. To increase as an entrepreneur, capital is needed. The bank often provides wealth in the form of a current account area. These are short-term debts. However, these debts are often used for far too long, so entrepreneurs must deal with high-interest rates and financing costs for a long time. Instead, you want to pay off your current account as quickly as possible.
Other causes of bankruptcies are still fraud (11%), personal circumstances (9%), competition (6%), and outdated business operations (5%).
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.
Starting independent entrepreneurs often have a desire to run entirely independently. This is also possible when you join a franchise organization. You are your boss. As a professional and entrepreneur, you build up your clientele and make your own choices.
So, you remain your boss and become part of a greater whole. How about that? If you join a franchise organization, you benefit from the franchise organization’s brand, knowledge, and skills. You are often asked to go along with the image of the franchise organization. The typical appearance of you and the other professionals ensures recognizability among customers.
Benefit 2: Boot support
A franchise organization has many years of experience supporting them in starting their own business. As a result, she knows exactly which steps must be taken to successfully start up her own company. As a professional, you benefit from this. You will receive comprehensive support and advice when starting up your business.
Many franchise organizations also research the feasibility of the new business before starting a new business. Based on this research, the success of your new business is predicted. That way, you know a little bit about what to expect.
Benefit 3: National brand awareness of your company
Most franchise organizations are active nationwide because the affiliated companies are located throughout the country. This gives your company national name recognition.
All affiliated professionals benefit from national brand awareness through national marketing campaigns. The customers know the national marketing brand and see your company in their area. This creates recognition and trust for many people.
Benefit 4: Business support
Both the franchise organization and the professional strive for the same goal: to make the company successful. A franchise organization relies on the success of the affiliated companies. Without excellent and successful professionals, a franchise organization cannot be successful.
Franchise organizations can provide support in several ways. Below we describe three typical examples.
Operational
management General operational management is one of how support is offered. General business operations mean everything that has to do with running a business successfully. Usually, these are things like sales and calculation. These parts of business management help you earn a good living from your work as a professional.
Marketing
Earlier in this article, it was about national marketing that you can benefit from as a professional. In addition, franchise organizations also offer support for your marketing as a professional. Usually, you get ready-to-use tools that you can use for local marketing. This is intended to promote your business locally.
Administration
An entrepreneur always has to do with keeping the administration. This while many (starting) entrepreneurs have had little experience with administration. Therefore, a franchisor can provide administrative support. This can be done, i.e., by taking care of the entire administration, a permanent partner with knowledge of the market, or by offering administrative tools suitable for you as an entrepreneur.
Benefit 5: Always be able to fall back on the bigger picture
Affiliated with a franchise organization, you are an independent entrepreneur, but not alone. You are part of a greater whole. You can use the knowledge and skills of the bigger picture. Because you are affiliated with a franchise organization, you have many fellow entrepreneurs who represent the same brand. This ensures that you can always fall back on these fellow entrepreneurs.
Extra Tips
SMS marketing
SMS is the most effective channel to employ if you are having a sale or want to update your clients about their orders. SMS ensures that your subscribers get and read your messages even when they are offline, thanks to its quick delivery and excellent engagement rates.
For your food business, SMS is an effortless way to get started. The channel is ideal for deals and discounts that you must complete within a specific time. To begin delivering SMS, install a Shopify SMS marketing tool like TxtCart.
Apart from time-sensitive offers, SMS promotions may upsell clients by suggesting things they are likely to buy based on recent purchase patterns.
Loyalty program
Loyalty programs are a tried-and-true Shopify marketing approach. Customers that remain loyal are worth ten times more than those who make their initial purchase. However, how can you persuade your clients to keep communicating with you?
Many food businesses use Shopify to set up loyalty programs to encourage customers to act and earn incentives. This immediate pleasure enables customers to keep connecting with the company to win additional incentives.
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.
Traditionally, people have misunderstandings about mortgages, which make them suspicious when it decides. There are many unknown truths about mortgages, and learning them can benefit everyone. Five benefits of a long mortgage are as follows:
Building Equity
This equity can be utilized for various purposes, such as weddings or education fees. As a result, consumers believe that a larger mortgage will reduce the equity they attempt to establish. On the other hand, a large mortgage loan can have a minor impact on a home’s overall equity. Consider a $50,000 down payment on a $400,000 property. The remaining $350,000 is the loan balance, which you must repay in 30 years at 4%. The ‘down payment’ represents the initial equity, and if the house’s value increases at 3% per year, it will be worth $722,444 in 20 years.
Even if the person can only pay $200,000 of the $350,000 initial payment, this is a significant sum. The difference of $572,444 represents the house’s overall equity. This is accomplished by subtracting the residual loan amount ($150,000) from the home’s overall value. As can be seen, the size of the mortgage has no bearing. This means that you can develop equity regardless of the size of your mortgage.
Low-Interest Rate
Mortgages are one of the cheapest loans a person can get. However, some may argue that credit cards offer 0% interest for six months. But interest rates exceeded 18% in the first six months, and if someone wanted to borrow $100,000 at that high-interest rate and if they needed to repay, they would not be able to repay. It was paid over 30 years. You are only suitable for a loan if you can prove to your bank (or mortgage company) that you can repay the loan within the allotted time. The higher the bank’s confidence in an individual’s repayment ability, the lower the interest rate. In this case, the mortgage is the type of loan that has the least risk on the part of the bank. The bank can claim a mortgage if the borrower fails to repay the loan. So, interest rates are so low that it makes sense for people to take advantage of them.
Tax-Savings
Mortgage interest is beneficial for tax filing, as mortgage interest is tax-deductible. For example, interest paid up to $1 million to buy a home is tax-deductible. If the borrower buys a 5% mortgage with a 33% tax rate, the cost of the loan will be 3.35% tax. On the other hand, if he invests 5%, the profit will be taxed at 20%, and the profit after tax will be 4%. Therefore, the investment can return less than the amount paid by the loan, increasing the profitability of the loan.
Easier EMIs in long-run
For most borrowers, it can be challenging to pay a mortgage in the initial stages of the loan being first withdrawn. However, in the case of a fixed interest rate loan, the amount will be less than the monthly income. Such loans do not increase your monthly payments, but your income grows steadily. On the other hand, the value of a home can also increase significantly over time. Borrowers who buy a home with a single down payment may be missing this vast profit.
Allows Better Investments
Consider a scenario where a person buys a second home for money he received from the sale of the first home. For example, if he gets an amount of $300,000, should he consider spending the total amount to buy a new home for $500,000, or with a down payment of $50,000 and use the rest as an investment? Is it wise to do it? Most people will argue that spending the total amount is applicable. In this case, you only must repay $200,000, and it is easy to do. However, the second option is one that individuals need to consider if they want to build wealth eventually. By investing the remaining amount at a much higher interest rate, he can get enough income from his earnings and enjoy a more significant tax credit. With the tax savings thus saved, you can repay even large loans at slightly higher interest rates. Borrowing a considerable loan and using the return on investment to pay for EMI is always better than a small mortgage with no return on investment.
These are some ingenious reasons borrowers may benefit from a large mortgage. People usually ‘pity’ someone who has a large loan because PITI (Principal, Interest, Taxes, and Insurance) characterizes mortgages. On the other hand, these advantages may function as a wake-up call.
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.
When advanced computers began to appear in the 1980s, and the prospect of the development of the Internet echoed in the air, many thought that digital technologies would make work easier, leaving more time for personal life.
After 20 years, not a single office could do without computers.
The digital technology revolution has not just happened but triumphantly marched around the world, covering all areas of activity. But the next massive leap in computer technology was yet to come. Today, a person’s life in a developed society is unthinkable without a smartphone or other portable device that provides Internet access everywhere. And this means that your work accompanies you around at any time of the day, not just in the office for 8 hours a day. As a result, technology did not make life easier but only increased work productivity, distributing it in a thin layer over a sin. Home dinner must be combined with business correspondence with the chef and walking with a girl; you suddenly remember that you must check your e-mail urgently. And so, it becomes increasingly often until your life turns into routine maintenance of your career. Subsequently, this can lead to burnout and stress. You can avoid this if you find the right balance between work and personal life.
What does work-life balance mean? The modern rhythm of life of many people looks like some interests are superimposed on the framework of other goods. You will not surprise anyone with the phrase “I’ll be late at work,” “let us meet next weekend. Otherwise, I am working this”, etc. There can be several explanations why a person imperceptibly refuses his personal life. Lack of money and career ambitions are one side of the matter, material and therefore more meaningful. But there is another – psychological. A forced workaholic can cause dissatisfaction with personal life. The cause and effect are flipped, but the negative impact on the person remains the same. Balance allows you to equally appreciate both components of life – work and pleasure, which not only do not mutually ban each other but bring additional meaning.
How important is the balance? The fact is that high professional employment in our time is no longer perceived as a forced sacrifice. Violation of the balance between work and life in favor of the first is becoming increasingly popular, turning into a fashion trend that indicates the demand or success of a person. It has gotten to the fact that many perceive the intervention of work in personal life as the only way to secure a high working status and remain competitive in the eyes of the head. This opinion is erroneous and resembles an attempt to justify the inept distribution of working time or unwillingness to do something else. We do not intend to discredit overtime work as such. You are working above the norm. For example, at the rudimentary stage of a career, the initial stage of a business, or when managing a complex project. But when it becomes an endless series of filling in the gaps, we are talking more about the wrong approach. Your productivity in the workplace is unlikely to improve if you give yourself carte blanche to fix things at home. In addition, by reducing attention to other aspects of life, at some point, you may believe in their lesser significance.
If you push into the background, say, the relationship with your girlfriend, then in return, you will receive a corresponding negative response. And this will be another erroneous argument for the importance of work over personal life.
Instead of personal life, we choose work. The catchphrase often justifies excessive devotion to one’s profession: “Choose a job you love, and you won’t have to work a day in your life.” This statement can be accepted as accurate, with the only amendment that the love of one’s work does not exclude the significance of everything else. If your favorite dish is fried chicken, then this does not mean that you should exclude all other foods from the diet.
Other parts of your life require just as much attention. It is great luck to find your favorite thing, for which, moreover, you can get good money. But think about whether you would agree to this if it deprived you of the other pleasures of life.
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.
Budgeting also allocates corporate resources to each service or department based on the general management’s objectives. Before allocating resources, you must establish the various tasks of the multiple benefits to ensure that their separate operations are consistent.
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.
