Even if they are all related to the purchase of products, they are not all recorded in the same account. The goods purchase account should be well-documented because it is crucial in your revenue statement. You are the one who decides on your profit margin.

An overview of the accounting rules to be aware of and use to complete a perfect entry and achieve top accounting!

Which account should I use for posting goods?

Account 607 is the goods purchase account.

It is a part of class 6 in the chart of accounts, which is the category of purchases. It varies from the 601 stored purchases-raw materials, which are dedicated to activities in which a transformation occurs before the final product is offered to the user.

Account 607 is linked to account 6073, which represents a change in the stock of products. The latter makes only two accounting entries per year: the closing stock at the end of the financial year and the initial stock at the start of the financial year.

Of course, if you create an intermediate situation throughout the accounting year, you must report the ending stock on the date the case is made.

What should be recorded in the purchase of goods account?

Only commodity purchases should go into the commodities buy account. Put another way, your purchase invoice must be analyzed so that the accounting records accurately reflect reality.

What is the accounting consideration for the purchase of goods?

You will pass a consideration to balance your accounting record in the purchasing diary. It is the account for 401 Suppliers. It is strongly encouraged to divide the 401 accounts into 401001, 401002, etc., to have a supplier account dedicated to each of your suppliers. Alphanumeric subdivision is possible in some accounting applications. As a result, you’ll have supplier accounts with account numbers beginning with 401SUPpliED.

Even if you pay your bill fully, the payment for items must proceed through a vendor account. This account solely contains the invoice’s total value, including VAT. It will then be settled by the cash account you used to make the payment (530000 cash or 512000 banks).

Why is entering merchandise purchases important?

The purchase of goods, like all other class 6 accounts, is one of the income statement’s parts.

This accounting document will provide you with precise and essential information about the health of your firm for year N at the end of the financial year in cost accounting. Improper account usage (e.g., an erroneous allocation) might result in inaccurate accounting data.

The cost of products is deducted from your net sales for the year, or your turnover, to determine your commercial margin. This commercial margin provides numerous important indicators and allows you to choose if you have successfully bargained with your suppliers or if your margin is adequate. It will enable you to make essential changes for the coming year.

In the same way, the 401-supplier account will increase your balance sheet debts. It will then be time to check your suppliers’ payment terms and modify your customers’ receipts for the new fiscal year. You’ll gather crucial data for controlling your cash flow once more here.

As you can see, keeping track of item purchases is a serious undertaking. The company’s good management conducts an analysis. It has a significant impact on the income statement and the tax return, which provides a wealth of accounting data. Therefore it’s critical to keep track of all of your purchase invoices.

How do we adapt the recording of several different products?

If you sell various products in the same store, you’ll want to know which ones work, which ones cost money, and which ones don’t bring in any revenue but should be kept as a loss leader.

As a result, a “bulk” posting on a single 607 account will not give you the in-depth insight you require.

The PCG (General Chart of Accounts) allows you to create subdivisions to track each product you’re interested in. As a result, in accounting, you have the authority to construct a 607001, 607002, and so on.

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 are the different types of accounting in rental management?

The accounts of a real estate agency that works via rental management mandates can be kept in two distinct ways:

• Cash accounting
• Commitment accounting

Cash accounting allows you to keep track of your real estate agency’s expenses and revenues. As a result, it’s a question of genuine money outflows and inflows, such as collecting fees while collecting rent or purchasing office supplies.

On the other hand, Accrual accounting adds non-monetary transactions to the equation. Rent calls will display prominently among the entries, even though the renter has not yet paid them, leaving the latter with a debt to the real estate firm.

What is extra-accounting accounting?

Rents sought but not yet paid are not included in a cash accounting. However, such information is required to determine where the payments are made. This monitoring allows you to pinpoint payment delays, send out reminders, and act in the event of non-payment. Extra-accounting accounting is used in this situation. You may improve the management of your real estate agency by having a complete list of rental calls sent, their date, and their status.

It’s worth noting that accrual accounting incorporates non-accounting accounting, allowing these controls to be implemented.

How do you recover unpaid rent?

It is essential to collect outstanding rent based on commitment accounting or non-accounting documentation. The real estate agent has three years from the first day of late payment to reclaim the money owed.

The first step is to try to reach an amicable agreement. You’ll need to make contact to do so, which will lead to a written reimbursement arrangement with due dates and amounts.

The second step is to give the tenant a formal notice to pay the rent. It is done by a formal letter either mailed with an acknowledgment of receipt or delivered by hand with a signature.

Then comes activating the taken guarantees, such as a natural person’s or an organization’s security. The procedure should not take too long: specific organizations have rapid activation times, such as the Visalia guarantee, which takes only 15 days.

Finally, legal ways of collecting rents are required without outcomes or promises. It is what you should get: A command to pay: after the intervention of a bailiff, the tenant has a maximum of 2 months to pay. Beyond this period, the lease is terminated, and you can sue the tenant.

Empty slots

You must report receipts at the same time as total income. If the owner chooses the actual regime, he must also reveal his expenses so that you can calculate his net income.

It’s essential to remember that accounting must follow the cash accounting principle. Expenses and revenue are acknowledged explicitly at the time of payment. It means that work completed in late 2021 but paid for in early 2022 can only be deducted in 2022. Similarly, if a tenant paid his December 2020 rent in January 2021, you must include the rent in the revenue for 2021.

Furnished accommodation

The category changes for dwellings rented through a non-professional furnished rental firm (LMNP), as it is no longer a subject of property income but instead of industrial and commercial profits (BIC).

The owner can deduct all his expenses and even depreciate his property for tax purposes in this situation (which has the advantage of reducing or even reducing the taxable profit to zero). We are, on the other hand, a commitment accounting. The period to which the product or expense pertains, not the payment date, is essential. As a result, even if a December rent is paid late, it must be accounted for in the same month.

Finally, LMNP rental requires the development of a tax package that must be sent to the tax authorities no later than the beginning of May each year. Due to these responsibilities, an accountant is strongly recommended to accompany you.

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.

This variable is responsible for assessing the impact of public spending by the State on the country’s economy. It shows us how an increase or decrease in public spending or taxes affects the country’s total income. Next, we will see its interpretation, how to calculate it, and the abundant criticisms that economists have made about this variable.

How to interpret the tax multiplier

When trying to understand this term, whose calculation we will see a little later, it is essential to know that the fiscal multiplier can be interpreted in three ways, always depending on its value: equal to 1, less than 1, and greater than 1:

• Equal to 1. Suppose the fiscal multiplier is calculated, and the result is exactly 1. In that case, GDP increases by the same amount as public spending (if public spending increases by 1 million, GDP also increases by 1 million dollars).
• Less than 1. If the calculation is less than one unit, we will know that if public spending increases by one unit, the country’s GDP will increase by less than one unit.
• Greater than 1. Suppose the calculation of the fiscal multiplier is greater than unity. In that case, increasing public spending by one unit will increase the country’s GDP by a value greater than unity.

Evidently, in all the above cases, if what occurs is a reduction in public spending, the effect is reversed (GDP will decrease following the rules we have just seen).

Calculation of the tax multiplier

When trying to calculate the fiscal multiplier, a simple formula is used. It has its positive points (it serves as a good estimator that is simple and quick to calculate), but that does not measure the full impact of the fiscal policies carried out by a government. Something that has provoked much criticism and distrust in the economic sector. The formula to calculate the tax multiplier is as follows:

Mult. tax = 1 / 1 – c (1 – t)

• c (or MPC) = Marginal propensity to consume. It is a financial ratio, valued between 0 and 1, which indicates the part that citizens or companies dedicated to consumption when their income increases by 1 unit. If the value of this ratio is 1, it means that 100% of that amount is being used for the beneficiary’s consumption in an increase in income.
• t = Tax rate. The current percentage of taxes established by the government (that is, if you must pay 25% of the tax, we put 0.25 in the formula).

Example: Tax Multiplier Calculation

Putting into practice the calculation of the fiscal multiplier is very simple if you have the two values necessary to use the formula. Putting a case in which the current tax rate is 25%, and the marginal propensity to consume has a value of 0.66, the calculation of the fiscal multiplier of the country in question would be the following:

Tax multiplier = 1 / 1 – 0.66 (1 – 0.25) = 1.98

With this result, we can interpret that, for each unit that public spending increases, GDP will increase by 1.98 units. If the government increases public spending by 250 million euros, GDP will increase by $495 million (1.98 x 250).

Criticism of the utility of the fiscal multiplier

Although the calculation of the fiscal multiplier can become an excellent reason to apply specific fiscal policies to the economy of a country, there are indeed many doubts and criticisms when using it since, on many occasions, you can do erroneous or inaccurate calculations that seriously harm the economy of an entire nation.

We must bear in mind that, when calculating the PMC, aggregate values are used, which can complicate things and lead to the appearance of errors when obtaining the fiscal multiplier. In addition, the experience with this variable is not positive, something that we have seen after the economic crisis of 2008, where the IMF erroneously estimated the fiscal multiplier used to take the recovery measures, causing a serious paralysis in the economies, being the Greek case the most notorious and worrying.

Although many criticize the lack of reliability that governments or large economic entities have when applying the fiscal multiplier, this indicator offers an exciting representation of the variation in public spending on a country’s economic activities.

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.

Entrepreneurs are almost always passionate about what they do, developing products, innovating, making customers happy, marketing, sales, et cetera. They often find finance difficult, and they think they can get little benefit from it. The average entrepreneur has no idea how much valuable information is contained in the figures, Hogema writes. Numbers hold the only truth about their business. And knowing and understanding this truth gives them the tools to earn more, sleep better, and work less complicated. 

Using this information, the profit advisor helps the entrepreneur determine where he stands, where he wants to go, and which buttons he can turn to get there. The profit advisor helps entrepreneurs manage their money, plan profits, and make financially sound choices to build financially healthy and profitable companies.

The transformation from traditional administrator/accountant to profit advisor involves three steps:

Step 1: You help your customer do his bookkeeping 30 minutes a week

Bookkeepers are usually not happy with their bookkeeping. It costs them too much time, money, and energy. As a result, many entrepreneurs bury their heads in the sand for months and ignore accounting as best they can. The solution is as simple as it is complex. The customer needs accounting habits, processes, and systems. If bookkeeping is a daily habit, it requires hardly any time and energy, and then it is always up to date.

Your purpose is to help your client set up the routines and habits that will allow them to complete their accounting in 1 minute per day and 30 minutes per week. Three primary conditions to do this are:

1. You must do the bookkeeping entirely online.
2. Optimal use should be made of technological developments.
3. The processes must be established, set up, and implemented consistently.

When you get this done, the foundation is in place. The bookkeeping is now always in order, without too much time, money, and energy. Now you are going to help the entrepreneur make a profit. Antoine de Saint-Exupéry said it beautifully: ‘A goal without a plan is just a wish. In other words: achieving a good result first requires that there is a solid plan.

Step 2. You guide your customer in making a profit plan

Once the foundation is in place (accounting), the most enjoyable and most valuable work for the customer begins: you will help him make a profit: no taxable profit, but real money, which is leftover. One of the best tools for this is the profit plan: a translation of the company’s goals into turnover, costs, and profit. A kind of budget but profit plan has much greater appeal to entrepreneurs. A profit plan shows whether the entrepreneur is making a profit: whether he is making money from what he does. 

Reserve a part of the day to make the profit plan with your customer. It would be best if you had that time. Also, see if you can make this a memorable moment. Don’t sit in a boring office but invite your customer to a beautiful location in nature, with good coffee and tasty lunch. Give your customer an actual VIP treatment. You take him, yourself, and his plans seriously. There is a good chance that working in an inspiring environment will also positively affect your results. Finally, your customer will see you more as a profit advisor than an accountant.

Step 3. You teach your customer how to manage his finances with the help of Profit First

An essential foundation has been laid with the accounting and the profit plan. However, this is not enough for the entrepreneur to make the right (financial) choices and steer for profit. The solution is not to provide more information in financial reports. Entrepreneurs don’t look at it, and when they do, they don’t base their decisions on it. Although? With Profit First.

Profit First is a super simple and accessible method with which the entrepreneur manages his cash flow based on his bank accounts. The method is based on households’ pot system: each financial target has its pot.

Entrepreneurs who work with Profit First have five business bank accounts: one receipt account where all the money comes in and four accounts for the most critical business goals: costs, profit, tax, and salary. It is a controversial method because it does something that makes no sense from an accounting or tax point of view. It often feels nonsensical to financial experts, but it works exceptionally well.

Step 4. The old formula — revenue – costs = profit — is mathematically correct

But it doesn’t work in practice. You encourage the entrepreneur to sell more, but no matter how much income he generates, he always finds a way to spend that money. In addition, the formula allows the entrepreneur to focus on turnover and costs and not on profit. The Profit First formula is turnover – profit = costs. Mathematically nothing changes, but emotionally it does. You must pay the expenses from what is left at the bottom of the line. If the company cannot live on that, something is wrong in the revenue model, or you must do the strategy and work. Taking the profit first is not just a theoretical reversal of the formula with Profit First: it is now something entrepreneurs do literally. Often, they can’t wait to redistribute the money. It is very motivating to transfer money to the profit account and watch this amount grow!

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.

Master the 3 Cs of Lending:
Cash Flow, Character, Collateral

The 3 Cs of lending—Cash Flow, Character, and Collateral—are the three fundamental factors lenders evaluate to determine your creditworthiness and loan approval. Cash flow demonstrates your ability to repay through ongoing revenue, character reflects your track record and reliability with past obligations, and collateral provides security that protects the lender’s investment.

Did you know that 41% of small businesses were denied financing in 2024 because of excessive existing debt, compared to just 22% in 2021? As the founder of Complete Controller, I’ve spent over 20 years helping businesses across all sectors navigate the complexities of financial management and secure the funding they need to grow. Through thousands of client relationships, I’ve witnessed firsthand how mastering these three critical lending factors can transform rejection letters into approved loans with favorable terms. This article breaks down each C with real-world examples, provides actionable strategies to strengthen your lending profile, and reveals insider tips that can dramatically improve your approval odds.

What are the 3 Cs of lending and why do they matter?

• The 3 Cs of lending are Cash Flow, Character, and Collateral—the primary factors lenders use to assess creditworthiness
• Cash Flow measures your ability to generate enough revenue to cover loan payments
• Character evaluates your credit history and reputation for meeting financial obligations
• Collateral represents assets you pledge as security for the loan
• Together, these factors determine approval likelihood, loan amounts, and interest rates

Cash Flow: Your Financial Engine

Cash flow stands as the most quantifiable metric in lending decisions. Lenders scrutinize your revenue streams to verify you can comfortably service new debt while maintaining operations.

Your Debt Service Coverage Ratio (DSCR) serves as the critical benchmark. This calculation divides your net operating income by total debt obligations. Most lenders require a minimum DSCR of 1.25x, meaning your income exceeds debt payments by 25%. Different property types demand varying ratios:

• Multifamily and industrial properties: 1.25x
• Self-storage facilities: 1.40x
• Assisted living properties: 1.50x
• High-risk ventures: 2.00x-3.50x

Modern lenders go beyond basic financial statements. They analyze bank transaction patterns, seasonal revenue fluctuations, and real-time cash flow data through integrated accounting systems. This comprehensive approach reveals management habits and payment priorities that traditional reports might miss.

Strengthening your cash flow position

Start by implementing cloud-based bookkeeping systems that provide real-time visibility into your financial position. Project cash flows 12-24 months forward, factoring in seasonal variations and growth plans. Focus on accelerating receivables collection while negotiating extended payment terms with suppliers.

A local coffee shop owner improved cash flow by 30% within six months through better inventory management and streamlined operations. This improvement, combined with detailed financial projections, secured the expansion financing previously denied.

Character: Building Lender Trust

Character assessment combines your credit score with your overall reputation and business track record. While cash flow shows capacity, character demonstrates willingness to honor obligations even during challenging times.

Credit scores above 700 open doors at traditional banks, while scores between 650-700 may qualify for SBA programs with compensating factors. Scores below 650 limit conventional options but don’t eliminate all possibilities. Alternative lenders consider broader criteria including:

• Payment history on utilities and rent
• Business banking relationship duration
• Industry experience and expertise
• Transparency about past financial challenges

Small banks approve 54% of loan applications compared to lower rates at large institutions. Their relationship-based approach values local knowledge and personal connections alongside numerical metrics.

Enhancing your character profile

Maintain consistent payment patterns across all obligations. Address credit report errors immediately—even small corrections can boost scores significantly. Build relationships with community banks before needing financing. Share your business story openly, including how you’ve overcome past challenges.

A tech startup founder with imperfect credit secured funding by providing comprehensive documentation of past difficulties and concrete steps taken to rebuild. The lender valued transparency and proactive financial management over perfect history.

Collateral: Your Safety Net

Collateral provides lenders security if cash flow falters. Different assets carry varying advance rates based on liquidity and market stability.

Real estate typically allows the highest advance rates due to stable valuations and established markets. Equipment financing uses the purchased assets as inherent collateral but requires larger haircuts for depreciation. Accounts receivable and inventory serve as working capital collateral but command lower advance rates due to collection risks.

Maximizing collateral value

Document all assets thoroughly with current appraisals and clear title verification. Maintain equipment properly to preserve resale value. Diversify collateral types to provide flexibility in loan structuring.

Consider this manufacturing company that needed new machinery but lacked sufficient cash flow. By pledging existing equipment as collateral, they secured favorable loan terms. The lender’s confidence in the collateral’s value and liquidity minimized perceived risk.

Strategic collateral management

Keep detailed asset registers with serial numbers, purchase dates, and maintenance records. Update valuations annually to reflect market conditions. Clear any liens before seeking new financing.

Beyond the Basics: Advanced Strategies

Success with the 3 Cs requires integrated thinking. Strong character can partially offset weaker cash flow. Valuable collateral might compensate for shorter credit history. Understanding these relationships helps you present the strongest possible lending package.

Monitor your business metrics continuously, not just when seeking financing. Build banking relationships during strong periods when you don’t need loans. This positions you favorably when growth opportunities arise.

Final Thoughts

Mastering the 3 Cs of lending transforms financing from an obstacle into a strategic tool for growth. By strengthening your cash flow documentation, building impeccable character credentials, and maintaining valuable collateral, you position your business for approval with favorable terms.

The lending landscape continues evolving with new data sources and evaluation methods, but these three fundamentals remain constant. Focus on continuous improvement across all three dimensions rather than perfection in just one.

Ready to optimize your financial profile for lending success? The experts at Complete Controller can help you implement systems that strengthen all three Cs while positioning your business for sustainable growth. Contact us today to discover how professional financial management transforms lending outcomes.

Frequently Asked Questions About 3 Cs of lending

What minimum credit score do I need for a business loan?

Traditional banks prefer scores above 700, while SBA programs may accept 650 with strong compensating factors. Alternative lenders work with scores as low as 550 but charge higher rates.

How much collateral coverage do lenders typically require?

Requirements vary by asset type—real estate might allow 80% advance rates while inventory typically caps at 50%. Lenders want collateral value to exceed loan amounts by 20-50%.

Can strong cash flow overcome poor credit history?

Yes, exceptional cash flow with DSCR above 1.5x can compensate for credit challenges, especially with alternative lenders who emphasize current performance over historical issues.

How far back do lenders review financial history?

Most lenders examine 2-3 years of tax returns and financial statements, though some may request up to 5 years for larger loans or complex businesses.

What happens if my collateral value drops during the loan term?

Lenders may require additional collateral, partial repayment, or renegotiated terms if values decline significantly. Regular monitoring helps identify issues before they become critical.

Sources

• NerdWallet. “The 5 C’s of Credit: What They Are, How to Build Them.” 2023. https://www.nerdwallet.com/article/small-business/master-the-5-cs-of-credit
• Pathward. “The 5 C’s of Credit: What A Lender Looks For.” 2023. https://www.pathward.com/news/the-five-cs-of-credit/
• Live Oak Bank. “What is Collateral and Why Do Lenders Require It?” 2023. https://resources.liveoak.bank/blog/what-is-collateral-and-why-do-lenders-require-it
• Nortridge. “The 3 C’s of Credit: What Today’s Lenders Need to Know.” 2023. https://nortridge.com/blog/the-3-cs-of-credit-what-todays-lenders-need-to-know/
• Study.com. “Understanding the 3 C’s of Credit | Character, Capital & Capacity.” 2023. https://study.com/academy/lesson/three-cs-of-credit-character-capital-capacity.html

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. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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But how do you start with that: making money with social media? Which platforms are the easiest, what is the best strategy, and how many followers do you need? These are the things I will go over in this article.

Social media is one of the best methods to build a passive income, but how do you start? Here are five ways to monetize social media.

Make money with Affiliate marketing

No matter which niche market your social media account is in, you are sure to find a product that you can promote to your followers. You can easily do this through Affiliate marketing.

It is best only to use products or services directly linked to your niche and that you use continuously.

For example, this blog is about e-commerce, social media marketing, and other forms of making money online. For example, when I write an article about setting up a webshop, I immediately add my personalized Shopify link. Shopify is a service that I use every day to set up web shops for myself and my customers. When the reader uses this link, I get a small compensation.

It won’t make me rich right away, but it’s a nice bonus for a service that I write about continuously.

Make money with Social media promotions

Social media influencers with a high number of followers can earn a lot of money from paid promotions when a company comes to you to sponsor one of its products through a paid advertisement. Often a product is sent that you can review, promote, or wear.

This form of earning money with social media is most common on Instagram, but YouTube and TikTok are also well known.

I have worked with micro-influencers with as few as 10,000 followers on Instagram, so you certainly don’t need to have millions of followers to make money with it.

Earn money with your Webshop

Before you think I’m crazy, making money with a webshop can be easier than you might think. There are other options on the market to start a webshop cheaply and many options to find products.

Are there certain products within your niche that solve a problem, and maybe you can start selling? You can quickly get started with drop shipping.

Or maybe you are very creative and make your art? Then you can use print on demand to put your designs on t-shirts, posters, and phone cases and promote them online.

Earn money with Coaching or consulting

Do you have expertise in an area? You can earn money with this through coaching or consulting!

Do you show your singing talents on YouTube? Maybe you have an Instagram feed where you show your cooking skills? Or perhaps you have the capabilities to become a life coach?

Here too you can earn money by offering. It is consulting services on your social media channels.

Earn money with an Online video course or E-book

In addition to money with coaching or consulting, you can also start selling information within your area of expertise in an online e-book or video course.

There are many programs available that can help you:

• Udemy: With Udemy, you can upload and sell your video course
• Gumroad: On Gumroad, you can sell your E-book, music, or course.
• Amazon KDP: Through Amazon KDP, you can publish your eBook and make it available on the kindle bookstore

Conclusion

So, there are many ways to monetize social media, and you don’t need to have hundreds of thousands of followers for each one. With a small community of 10,000 followers, you can earn a lot of money in a micro-niche with paid promotions, opening a webshop, or promoting through affiliate marketing.

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.

At the beginning of the week, I participated in the Innovation seminar conference 2017. It was crowded, and time passed quickly – because it does it when you have fun. Rarely have I seen such a massive density of information delivered at such a furious pace. Not a minute passed without content. I stumbled out a few hours before closing to gather the thoughts that would become this blog post. But even before lunch, I knew what it was all about – Nathan Furr’s five ingenious ingredients that a leader should focus on to make the innovation machinery squeak. The conference’s ambition is high and goal-oriented – to be part of making the Nordic region the world’s most innovative region. It is essential to get the best there – those who, through research and experience, are at the absolute forefront.

What Will Be of Help?

Taking over from Avalon Innovation’s founder could seem like an impossible task. But my representative made it easy for me. He trusted me to lead the company in my way, with my driving forces and the freedom to do things my way. Then, of course, with a clear focus on generating innovative product and system solutions that make a difference, based on the values and vision deeply embedded in the company’s identity. Close, close together with the whole team. To work with a colleague or an entire team to create a familiar and clear goal picture with a few brilliant figures, a reasonably large stage to work on, an airy framework to write your script freely, and the freedom to choose your actors for the show to succeed to deliver magic. For me, this is precisely the key to strong leadership.

How Exactly Can You Influence the Business?

As a leader, you need to clearly describe why and how you concretely want to influence the business in the future. Then stick to the grounded plan, get things done, and dare to opt-out of the disturbing noise. Then surround yourself with people who give you the right energy, are driven, forward-leaning, relevant, and want to contribute together are essential parameters for success. Winning a hard-to-win paddle match together is more fun than the one everyone has already counted home or, even worse – alone.

The Problems That Accumulate and Twist the Time to Reach the Goals

Leadership is about juggling between goal focus, solving problems, and living with their challenges. I’m frequently asked how a manager can maintain things in order when, despite the goal focus, you are thrown between different problems to solve “all the time.” My recommendation is to pursue your planned goals and unexpected challenges in project form and prioritize those that give the best effect. These you need to get started on and enjoy having around you. And by project form, I mean to see your tasks as just different projects, with goals, schedules, and ambition levels. Thinking forward and upwards, being “finished,” and focusing on not getting stuck in the old or picking the most straightforward tasks makes all the difference.

Career – What Is It Then?

Everyone has their very own career, and it is based on you and where you are, here and now. You have a responsibility to explore your dreams, superpowers, and a little more peculiarity and create an awareness of what motivates you. Close a deal? Figure out a technical invention? Coach colleagues? Then it will be easier to find a role in the profession where you can use your personality, skills, interests, and driving forces.

My Best Tips for Leaders

• Stay close to the people who inspire you the most and grow your network with people
• Motivating your colleagues and giving concrete feedback may sound like a simple thing, but it is crucial
• Be personal in your leadership. Dare to ask honest questions and show how you feel
• See the talents who want to become stars in their niche, develop these, and create positions so that they can flourish and, in the heart, want to be part of the journey
• Change and strong results take time to create. Be patient and involve the whole company
• Feel pretty good with yourself and invest in your coworkers’ well-being. It is probably the most important of all

How To Find Innovative Talent?

Innovation is the invisible hand behind our entire economic system if you are to have a broad picture of it. Most companies have one or a few star employees who stand out differently. When competitors improve their value proposition, you must innovate yourself. Innovation is an evil force – the one who stands still ends up behind. 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.

A person’s minimum social security qualification will seldom gain the maximum social insurance payout. These requirements are that people earn enough money to acquire 40 points, with four points each year. People would have to work at least part-time for ten years at a minimum, but this would not provide them with the maximum amount of social insurance upon retirement. They’d most likely be eligible for a tiny social security payout, but it wouldn’t be enough on its own.

The Majority Adores the Administration

Because the middle class believes in the government, they also think that social security will be there for them when they retire. Otherwise, all hell will break loose, and politicians will lose their ability to win and keep power. People do not believe it is unethical for the government to hold all social security benefits in the event of a single death. We would do something about it if people thought it was wrong. My faith in the people of the United States has been restored. If you can rely on yourself, you can rely on social insurance, which is paid for by both you and your employer, to look after you in retirement.

Recommendation

Freeway to keep track of your net worth: You must first track your finances to maximize your finances. To track your net worth, review your investment portfolios for high fees, run your money through their fantastic retirement planning calculator, and sign up for Personal Capital’s free financial tools. Over time, those who design an investment model gain significantly more money than those who haven’t.

Your Isolation Is Your Only Social Insurance Risk

You are insane if you are unmarried and die before taking out social insurance. But that’s fine since you’re already dead. The government wins while you lose since you put all your money into the system only to see no returns. The social security payments are not passed down to your children until they reach the full retirement age of 67. The government will save your money indefinitely so that it can do anything it wants with it. Consider the social security advantages of marriage if you’ve ever believed there are too many financial penalties for being married, especially if both spouses are good workers. When one family member dies, the other spouse receives social security payments.

When Are Welfare Benefits Obtainable?

Another factor to consider is that early retirement reduces social security benefits. The full retirement age was once 67, but many people are now pushing it to 68. Usually, people cannot begin claiming benefits until they reach the age of 64, and the exact moment you can claim a benefit is determined by the year of birth. If you apply for benefits before this deadline, you may be able to get less than the maximum amount of social insurance benefits.

How Can You Find Welfare Benefits Information?

The US Social Security website is a fantastic location if you have more particular inquiries concerning social security. People need solid advice on how and when to retire because benefit amounts can vary. This site is for everyone in the United States who wants to plan their retirement, not simply retirees. Understanding how maximum social security works can help people figure out what they’ll need to accomplish to retire comfortably.

Social Security’s Capacity

The government defines the middle class as persons earning less than $130,000 per year and determines whether politicians have a future. Politicians cannot get elected and abuse their power in the ways they know-how without the support of the middle class. As a result, no politician will try to raise taxes on people earning less than $130,000. President Obama established a maximum of $350,000. The amount is determined by the administration’s methodology, which takes the average of the most significant three decades of earnings (together with the years they generated those earnings) and then calculates a total sum for social insurance payments. People would have to work and earn considerable money for most of their adult lives to receive the most significant amount of social security.

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

But what category does your business fall into? Should you outsource digital marketing? Or keep things at home? This question can be challenging to answer.

Usually, we like to sit down with potential clients and discuss their business ins and outs to answer this question. If outsourcing digital marketing makes sense, we’ll let them know. If not, we will explain why and try to point them in a more efficient direction.

After all, no one needs to hire an agency if it’s not right for your business.

That kind of assessment is a little tricky to do on a blog, so we’ve put together the next best thing: a quick quiz you can use to determine if you should outsource your digital marketing. This test isn’t a perfect predictor, but it’s a good and simple place to get a feel for what your business needs.

Quick self-assessment

If you’re reading this article, you’re outsourcing your digital marketing and unhappy with your results, or you’re in-house wondering if outsourcing might be the best solution.

1. How much do you want to improve your online marketing?

Whether you outsource digital marketing or manage it yourself, marketing is an investment, and not just in terms of advertising costs.

If you don’t want to find the best ways to market your business, your marketing will never reach its full potential. You can do it yourself or by hiring an agency, but it’s an investment you must make if you want to succeed.

If you can afford to spend only a few hundred dollars a month testing and refining your marketing, outsourcing probably won’t be the right move. At this price point, any agency you hire will either not put much effort into your account or will not have much experience to use.

2. What is your average gross margin per new customer?

Even if you are willing to spend heavily on improving your online marketing, you may not have the wiggle room you think. That’s why it’s essential to look at your average gross profit per new customer.

Whether it’s a direct investment in testing new campaigns or paying third-party professionals, improving your marketing takes money. This money is often not immediately translated into sales. Hiring an agency may not be the right decision if you’re not generating enough revenue to handle the extra cost of outsourcing your marketing.

Low profit per client

Let’s say you sell cell phone accessories to show you how this works. The average cost of your order is $28, and it costs $10 to complete the order, giving you about $18 in net profit per sale. Considering your current sell price is $12, you get $8 per trade.

If you are willing to invest, a good agency can do a lot for you, but it will take time to see results. You only get $6,000 a month, so outsourcing your marketing will eat up 40% of your current profits.

High profit per client

On the contrary, let’s say your business is a commercial HVAC installation instead. You charge an average of $2,700 per job and your gross margin is $1,250. The selling price is about $750, which gives you a $600 net profit per install.

These are highly simplified scenarios, but they highlight how profit per customer can affect your decision to outsource or manage business internally. Total sales and net monthly income were identical for both companies, but since gross profit per customer was much higher for the HVAC business, hiring an agency was a much more affordable option.

3. How much of your business is related to new customers versus existing ones?

The higher your turnover, the better your marketing should be.

For example, suppose you produce industrial-grade diamonds. In that case, only a few companies are willing to buy what you sell (and you probably already have established relationships with all of them). Additional marketing won’t do good at this stage, so you might not benefit much from hiring an agency.

4. How well do you know the nuances of online advertising platforms?

I mentioned that if marketing is essential to your business, then agency experience can be helpful. That is if you don’t already have that experience.

If you’re not proficient or knowledgeable about a particular platform, a good agency can make a huge difference. To make things better, outsourcing your digital marketing can be a great way to learn more about different platforms.

5. How many online advertising experts do you have?

A part of developing expertise is assembling a team of experts. Internet marketing is such a large field that it is complicated for one person to master all aspects of digital advertising.

You will likely need a team of internet marketers to succeed in today’s competitive internet marketing environment.

The presence of own specialists provides clear advantages. An agency will do its best to get to know your industry, vision, and priorities, but it can be hard to beat the knowledge that comes from within.

First, most SMBs don’t need an in-house designer, in-house paid search expert, dedicated social media manager, paid social media marketer, web developer, copywriter, email automation, or specialist. They need it all, but they can’t afford to hire someone for every one of those roles.

6. What is the conversion rate on your site?

What percentage of people visiting your site “convert” in one way or another (purchase, call, open a chat, provide contact information, fill out a form, etc.)? 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.

Of course, with an 8-year-old, you cannot get by with price/earnings ratios or cash flow analysis. Teaching kids may be very hard, but remember that they are children, and you must make investments interesting for them; or otherwise, they will soon lose motivation.

It would help if you taught your child about investing in an age-appropriate way. Make it a game for them or a responsibility like house jobs, give them little responsibilities for buying things from the market and teach them to find the cheapest and perfect quality items. This way, they will understand the difference in how the market has a similar product at many prices. At the same time, most of us don’t know of it.

Depositing some money into a brokerage account to teach your child how to invest is not such a good idea. When the child loses money, he may develop an aversion to the stock market. That might be even worse. When the child wins money, they may already think that they are a genius, and the child will start taking more risks.

4 to 9 years

Children at a young age should not yet learn about the stock market. But you can learn the principle of the stock market. Investing is investing for the long term. So, you can teach your child lessons that when you spend time and energy on something, it can yield a valuable result in the long run.

For example, your child can garden. Planting and caring for seeds will eventually produce a beautiful plant or flower. A giant puzzle or craft project can be encouraged and rewarded with a compliment that hard work can bring great results.

10 to 14 years

Kids heading into puberty are generally more interested in finances than you think. They must also be able to understand simple investment principles. You can teach them about well-known brand companies. Say, for example, that you can take some ownership of Disney when you watch a new Disney movie. Or Coca-Cola, McDonald’s, refueling at Shell.

You can also teach them about spreading. Teach your children not to put all the money in one company that anything can happen to any company. Multiple companies mean less risk. Also, teach them that “get rich quick” is an illusion. Let them enter the lotto with their own money. In this way, they will learn that the chance of winning is minimal to non-existent.

14 to 18 years

After some math knowledge, you can teach the kids about the power of compound interest. Teach them that money can make money. Teach them that the power of compound interest works faster and faster as more money makes more money.

With the rule of 72, you can learn how to double their money. Divide 72 by the return per year, and you know how many years it will take you to double your money. For example, a return of 7% per year doubles your money after ten years (72: 7 = 10).

Also, teach them that inflation works the same but makes your money worth less instead of more. This way, you can teach them that they lose purchasing power when their money yields less than inflation.

You can let them gain experience with the stock market through a virtual portfolio. It is best to start with well-known stocks from everyday life. Create one or more portfolios per theme. This way, you can show them which system works and which method works less or not.

+ 18 years

Here you can put real money to work. Start investing some of your kids’ money during the holidays or weekends. Advise in good times but especially in bad times. Explain why stocks fall or rise. Teach them that investing is more rewarding than investing a total amount at once. Make sure they don’t make the mistakes that you undoubtedly did.

Conclusion

The most important thing is to teach children about the investment from the start and know what to teach as children grow because you should change the teaching according to a child’s age.

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.