Author: Complete Controller

Embarking on the entrepreneurship journey is thrilling but can also be overwhelming, especially without proper preparation. Starting your own business demands careful planning and a wealth of knowledge to navigate its challenges. Managing finances and accounting poses a significant hurdle, especially for unfamiliar ones. Fortunately, numerous resources can help you overcome startup accounting challenges.

In this article, we’re thrilled to introduce the top seven accounting websites tailored to entrepreneurs like you. Each website is detailed to provide a clear understanding of how it can assist you. With these resources, you can confidently tackle any accounting challenge and thrive in your entrepreneurial journey.

QuickBooks Online

Are you a small business owner in search of reliable accounting software? If so, QuickBooks Online might be the perfect solution for you! This highly acclaimed software offers many features that cater to the unique needs of small businesses, such as invoice and expense tracking, tax preparation, and payroll management. With QuickBooks Online’s user-friendly interface and mobile app, you can easily take control of your finances from anywhere, at any time. Whether you’re a newbie to accounting or a seasoned pro, QuickBooks Online can help you streamline your financial management with confidence and ease.

FreshBooks

Are you looking for top-notch accounting software for your small business? Look no further than FreshBooks! FreshBooks is the ultimate solution for all your financial needs and Boasts various must-have features, including invoicing, expense tracking, time tracking, and project management. Therefore, with its intuitive user interface and convenient mobile app, you can stay on top of your finances no matter where you are. Trust us, you won’t be disappointed!

Xero

Xero is a cloud-based accounting software that caters to small business owners who are always on the go. It offers a range of features, including invoicing, expense tracking, payroll management, and bank reconciliation. Furthermore, Xero is user-friendly and has a mobile app that enables you to manage your finances from anywhere.

Wave

Wave is a free accounting software that’s perfect for small business owners who are just starting. It offers a range of features, including invoicing, expense tracking, and accounting reports. Moreover, the Wave is user-friendly and has a mobile app that allows you to manage your finances anywhere.

Zoho Books

Zoho Books offers comprehensive and user-friendly financial management solutions for small businesses. It simplifies accounting processes with features like invoicing, expense tracking, and automated workflows. Its intuitive interface and mobile app enable easy navigation and financial management.

Moreover, integrations with payment gateways, project management tools, and inventory management solutions allow customization to meet specific business needs. Overall, Zoho Books is an excellent cloud-based accounting software for small businesses seeking feature-rich and accessible financial management tools.

KashFlow

KashFlow is a cloud-based accounting software that caters to small business owners who are always on the go. It offers a range of features, including invoicing, expense tracking, and accounting reports. Overall, KashFlow is user-friendly and has a mobile app that allows you to manage your finances from anywhere.

AccountEdge

AccountEdge is a comprehensive desktop accounting software designed for small business owners who prefer desktop applications. It offers features for invoicing, expense tracking, and detailed accounting reports. Its user-friendly interface allows non-experts to easily navigate and manage accounts, transactions, and bank statements.

You can create custom invoices and quotes and send them to clients directly. Its mobile app allows you to manage finances anywhere, anytime, with features like viewing balances, entering transactions, and capturing receipt photos for easy expense tracking. Overall, AccountEdge simplifies accounting for small business owners, providing efficiency and convenience.

In Conclusion

Overall, starting a new business venture can be exciting, but it can also be overwhelming, especially when managing your finances and accounting. However, you don’t have to go it alone! With the help of the accounting websites we’ve listed, you can streamline your financial management, freeing up your time to focus on growing your business. Lastly, these invaluable resources will empower you to stay on top of your financial records, ensure sound financial practices, and keep your business running like a well-oiled machine. Let’s embark on this journey together with confidence and optimism!

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.

Most businesses have to pay 19.8% of the average tax rate. Small businesses pay a 13.3% tax rate on average, and those with more than one owner pay 23.6%. This may not seem significant, but it is a lot for small business owners who are always trying to find strategies to cut down their costs and expenses.

Businesses have to pay taxes to the government as the government needs funds and resources to increase economic growth. The five types of business taxes are gross receipts, corporate franchise, employment withholding, excise, and value-added taxes (VAT). Businesses pay income tax, property tax, and sales tax, but these aren’t explicitly considered business taxes.

A simple way to calculate business tax is by dividing the income tax expenses by the earnings (before taxes. Each year, the IRS releases new rules and laws regarding taxes which can be very difficult for small business owners to handle and plan.

Many small business owners work hard to achieve positive revenue, only to give a large portion of it in taxes. To save or use more of your income for yourself, your business should find strategies to decrease your taxable income and keep more revenue. Here are five strategies to save you on taxes for your business.

Change the structure of your business

Owning and operating a small business, you can indicate yourself as the employer and the employee in the business and show that you pay yourself a salary in the business books. This way of structuring the business will eliminate the employer half of taxes owed as you now have an employer. This bookkeeping is an intelligent way to reduce taxes and tax responsibilities.

Start creating a retirement plan for yourself

Find retirement plans which offer financial security to save yourself from stress. Even if your business is running successfully, it is essential to find efficient retirement plans. It is better that you consult a financial professional to draw out the best suiting plan for you. The most popular plan is the 401(k) plan. With the one participant 401(k) plan, the IRS allows you to put away up to $57,000 in total contributions for retirement.

Use your home office deductions

Claiming home office deductions is an efficient way of saving money on your taxes, which many small business owners forget to use. The IRS allows both homeowners and renters to claim a home office deduction, which many people are confused about as they think leased places can’t be utilized for tax reductions.

Your home office should be regular and in an “all-time” used to claim these reductions. The home office should also be your primary place for running the business. This is useful for service businesses or online businesses.

Hire a family member in your business

This is the best way to save your funds as it is also allowed by the IRS, and you are allowed to hire your children in your business. By hiring family members, you can eliminate the tax on the income paid to your children. The IRS also allows small business owners the benefit of reducing their taxes by hiring a spouse, and that can be deferred to your 401(k) plan.

Conclusion

For small business owners, it is hard to cut down expenses, especially those involved in legalities. Other expenses such as credit card dues or unimportant advertisements can be cut off relatively easily but saving money over taxes can be challenging.

Expenses like taxes are in massive amounts, so small businesses have to find strategies to reduce these expenses. Some other practical ways are planning your incomes and expenses before the end of the business years to plan the taxes correctly. You can also take the help of a tax professional to figure out the best suitable way for your business to reduce taxable income. 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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The cost of goods sold is calculated by deducting purchases and closing inventory from the opening inventory. The cost of goods sold is usually subtracted from net sales to form a gross profit. Gross profit refers to the profit made by a business after the direct costs are deducted from sales. A gross profit is used in an income statement to estimate the net profit. A business should keep all of its statements and records safe for further use.

The Internal Revenue Service (IRS) allows for the cost of goods sold to be included in tax returns and can reduce your business’s taxable income. Calculating the cost of goods sold is important as it includes production costs that are not included anywhere else, and these costs reduce a business’ taxable income.

How is the cost of goods sold for tax returns calculated?

While it is recommended that you use a tax professional or a lawyer’s help to calculate the cost of goods sold for tax returns, the formula to calculate the cost of goods sold is: Starting inventory + purchases – ending inventory = cost of goods sold. There are also other methods to calculate it, but this is a basic formula.

What is included in the cost of goods sold?

Direct expenses such as purchases are included when calculating the cost of goods sold. The other direct costs include the cost of products for sale or raw materials, including freight, transportation expenses. It also includes costs of storage of products, raw materials, or parts used in production, direct labor costs for workers involved in producing the goods, and factory overhead and warehouse costs.

It does not include indirect expenses related to production and other overhead costs associated with managers and administrative employees.

What are the necessary needs to calculate the cost of goods sold for tax returns?

The first step to calculate the cost of goods sold is to determine the inventory value at the beginning of your fiscal year, the total inventory purchased for the year, and the value of inventory at the end of your business year. The next step is to differentiate between direct and indirect costs to make sure you only include direct expenses in the calculation.

Is an accountant necessary to calculate the cost of goods sold?

An accountant is helpful to calculate the cost of goods sold for tax returns as it includes complicated calculations. The inventory valuation method can also be difficult, and people with no accounting experience may find it hard to calculate it. Usually, the tax preparer is involved in inventory valuation.

What are the LIFO and FIFO methods?

LIFO (Last-In, First-Out) and FIFO (First-In, First-Out) are inventory valuation methods. The IRS keeps track of what method you are using to evaluate taxes accordingly.  LIFO assumes that only the recent inventory is being sold instead of the outdated or obsolete inventory. And FIFO assumes that the remaining inventory consists of items purchased last. LIFO is not as accurate as FIFO because it only includes new inventory. FIFO is more practical, and the valuation is performed according to the date of purchase.

Most business taxes include the cost of goods sold as businesses sell their products. The basic calculation of tax returns is the same for all corporate structures, including Corporations, S-corporations, partnerships, and LLCs (Limited Liability Company). Calculating the cost of goods sold is very important in a business as it determines the cost of manufacturing a good or service for sale to a client. The IRS asks businesses to keep a record of their cost of goods sold as it impacts calculating the tax returns. This specific rule by the IRS must be followed by all types of businesses.

Calculating the cost of goods sold is not only important for a business’s financial needs but is also used in the calculations of taxes and tax returns. Therefore, a business must calculate an accurate evaluation of the cost of goods sold.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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 the Equipment Leasing and Financing Association (ELFA), around 78% of American businesses purchases equipment through loans, leases, and lines of credit.

Businesses often rely on financing equipment to avoiding disruptions in operations, so a business equipment loan is not used to earn more profit but to maintain business continuity. Often, a business equipment loan is obtained when the company’s old equipment demands repair or replacement. They need to fix this issue quickly as business disruption can greatly impact business revenue or caused its decline. Similarly, businesses leverage such loans to improve return on investment, enhance client satisfaction, and scale upwards.

Below are details about how an equipment loan works, how you can apply for it, how it helps to grow your business, and available equipment financing resources.

How Do Equipment Loans Work?

Banks lend 80% to 100% to businesses to purchase quality equipment, and the average term loan is three to seven years. Equipment loans are based on the life of the equipment and rely on its quality. Because there are several variables, the bank will help you with which repayment term is suitable for you and your equipment needs.

How Can You Apply for an Equipment Loan?

You can apply or obtain lender approval for the equipment loan based on the following basic requirements: 

• Loan amount – equal to 80% of the equipment’s price or $61,500
• Loan to value rate – up to 100%
• Fixed interest amount – 4.00% to 12.75%
• Funding duration – a minimum of two business days
• Credit score –at least 650 or higher
• Your work experience in business – a minimum of 12 months
• Annual revenue – $50,000 or more

American Express reports that banks often offer flexible financing terms and approve loans without asking for down payments or good credit scores. Instead, the lender can claim ownership of your equipment if you fail to repay your debt.  Remember, lenders will decide the debt payment terms and interest costs of the equipment loan. These terms may vary according to your personal and business credit scores, the length of time you have been in business, the annual return on investment, and the requested loan amount. 

Resources for Business Equipment Funds:

Frequently, equipment sellers and contractors offer private in-house equipment funding. However, business owners tend to look for a separate lender that lends them money or equipment. Business or commercial lenders that offer equipment funds have procedures and terms as listed below.

The Small Business Administration (SBA):

The SBA 7 (a) or CDC/504 loan has the best rate for business equipment funding if you have an excellent credit score for costly expenses. You can apply for it if you claim a number of funds that is around $5.5 million. For smaller expenses, the SBA microloan program lends a $50,000 equipment loan.  Qualifying applicants will get suitable interest rates and time frames for debt repayment, such as six years. If you want to reach SBA-approved lenders for business equipment funds, visit SBA’s Lender Match Page.

Banks:

Banks offer conventional loans for business equipment or funds. But it is important to remember that there is a lengthy approval procedure with stringent financial requirements and terms.

Online Equipment Fund Providers:

Online business equipment providers are best for borrowers who are looking for quick funding with minimal terms. The alternative options for such equipment financers are:

• Balboa Capital
• Crest Capital
• Express Finance By currency
• eLease
• Street Shares

Benefits of Getting Business Equipment Loan:

Applying for a business equipment loan may be the most beneficial decision for you. Business owners who are approved for an equipment loan receive borrowed amount or equipment as fast as they want, which allows them to maintain operations with little disruption and leverage fast business growth and profit.  A business equipment loan often has flexible terms and conditions.  Likewise, when you repay your loan on time, it ultimately boosts your business credit score, which will make future loan applications easier to approve.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Filing business taxes can be a daunting task, significantly if your accounting functions are not streamlined and your financial statements are not updated in a timely fashion. It can be quite a hassle to gather all those relevant tax documents, account for all that income and expense, and still file the taxes in time without having any penalties imposed.

Most small business owners fail to understand the importance of efficient bookkeeping practice until the tax season hits. They find themselves at odd ends trying to get all the necessary documentation and paperwork done in time to file the taxes. 

If you were among the business owner running around last minute or ended up paying penalties in the previous tax filing season, make it different this time around and plan things. While you can conveniently hire a tax lawyer to file the taxes for you, even for that, you will need to provide proper paperwork and financial statements for the lawyer to do their job. 

Here are five accounting strategies that you must implement in your business to make tax filing easier.  

Hire a professional bookkeeper: first things first, if you do not have a proper bookkeeping framework in your company, it is about time to establish one and start by hiring an adequate bookkeeper responsible for recording all your company’s financial transactions. A bookkeeper differs from an accountant chiefly because a bookkeeper performs merely a data entry function. At the same time, an accountant also conducts financial analysis and helps formulate budgets and strategies for the business. For tax filing, a bookkeeper is good enough, as they enable proper recording of all financial transactions and keeping all the financial statements updated. 

Invest in a bookkeeping and tax filing tool: If you have a bookkeeper on board, now is the time that you also invest in proper bookkeeping software. There are countless software available online offering specialized functionalities. Get advice from your bookkeeper and choose the one that suits your business needs best. It is best to choose software that offers detailed accounting functionalities as it may come in handy in the future. In addition to bookkeeping software, also get a tax filing application that will help you integrate your financial statements easily, helping you prepare tax documents quickly. 

Emphasize regular bookkeeping practices: Just having the right software and the right person for the job will not cut it. To avoid last-minute tax filing hassles, you must also introduce a stern bookkeeping culture in your business. Emphasize recording all financial transactions in real-time. Set up a work culture that directs your bookkeeper to keep financial statements regularly updated. Better schedule monthly or bi-monthly presentations to study the company’s financial standings. This practice will ensure that your bookkeeper periodically updates all financial records and that no financial transactions go unnoticed. This also minimizes the risk of error in financial statements and allows you ample time to review transactions. 

Maintain a record of invoices and receipts: In addition to the timely recording of data, maintain a record of invoices and receipts in a well-organized file. Know what passes essential and what documents can be trashed. Get a proper date-wise organizer to fetch files conveniently. As a bookkeeper, one of the key responsibilities is to make sure all receipts, payment slips, and transactions are recorded, and the proof is also held within files. These can be used as evidence in legal proceedings and can also come in very handy at tax filing. 

Start the tax filing process early: Don’t waste the last week to start your tax filing preparations. Start the tax filing process earlier than you usually do, and if needed, hire a tax lawyer to help you file your business taxes easily. 

In addition to all of this, make sure that you keep track of all the deductible and home office expenses so that you do not end up over or under filing your taxes. 

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

To emphasize the importance of an effective lead generation strategy, we must first go back a little. Are you aware of the teacher’s analogy who challenged his pupils to fill a pot of stones, pebbles, sand, and water as efficiently as possible?

By prioritizing the larger elements and placing them first in the pot, the teacher could optimize its volume. Your company needs a similar mindset when having lead generation tactics implemented in its inbound marketing strategy.

An inbound marketing strategy consists of stones, pebbles, and sand. Which big stones are the most indispensable to your strategy? What pebbles are secondary tools that support your business? And what small elements or distractions represent the sand? All of these come down to defining a successful strategy. And companies who fail to develop a successful strategy do so because they fail to recognize five crucial elements. And neglecting these elements turn into mistakes that lead to failure. Here are five lead generation mistakes made by small businesses and how to avoid them.

Neglecting the Importance of Good Content

Strong content plays a significant role in lead generation. It includes the tools used to drive traffic, like your blog, SEO strategy, the PPC, and social networks. Creating compelling content is the key to help you emerge as the leading informational leader in the industry.

As the saying goes, it’s easier to catch flies with honey. Honey is the content, and it is even better when the honey is fresh; that is when the content is new and topical. Businesses neglect the importance of good content and start applying unnecessary SEO techniques beforehand.

Not Capitalizing on All Leads

If information about your website’s visitors isn’t properly captured likely, almost half of them will never come back to your site. A valid e-mail address is the best thing a marketer can expect, but visitors are not always inclined to share this type of personal information. Call-to-action buttons such as “Sign Up Here” have almost become synonymous with “We’re going to spam you,” and that’s what most companies adopt as a strategy that leads to failure.

Not Using the Right Lead Generation Tools

A successful customer lifecycle requires optimizing the process to convert visitors into leads. Unfortunately, there is a gap between the traffic generation and lead generation phases, which often gives rise to unique visitors who neglect attempts to obtain their information and will never hear from you again.

Lead generation tools like free trials, webinars, video tutorials, etc., fill this gap and provide value to visitors in exchange for their contact information. Most companies today ignore the importance of using the right tools and fail to deliver to their clients.

Not Using the Landing Page Effectively

Landing pages are another important asset that converts visitors to leads. This can be any page an individual reaches after clicking on an ad or other online marketing item. 

Note that landing pages are independent of the company’s website and are typically used as a single marketing campaign tool. Landing pages serve two purposes: capturing leads and attracting potential buyers and taking essential steps before moving a customer into your sales funnel. Using false information on the landing page’s advertising source leads to disasters in the marketing campaigns and tends to cause a poor lead conversion.

Not Prioritizing the Leads

It’s also important to prioritize leads based on how engaged they are with the inbound marketing content and ready to make a purchase. Well-defined lead scoring helps in identifying the interests of your leads. This technique quantifies prospects’ interactions with your content by assigning points to different engagement types. If leads are prioritized correctly, it becomes easier to differentiate those ready to make the purchase.

Conclusion

All of these mistakes can be overcome if you add a little effort and be smarter. And the smartest choice is to outsource your lead generation activities to a qualified online marketing service that can make you a strategy that fits all your needs. Good luck!

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

If you are purchasing a home, you should put at least 20% of the value down, or the mortgage lender may require you to carry private mortgage insurance. Most lenders will require this on a private mortgage because it is considered a higher risk.

The loan/ value ratio of the mortgage exceeds 80% (the greater the LTV ratio), the higher the risk of the mortgage). Private mortgage loans allow borrowers to obtain financing if they can only pay (or prefer) to pay only 5 to 19.99 percent of the cost of the residence but have extra monthly costs.

Private mortgage loan costs can range between 0.25% and 2% (but usually between 0.5% and 1%) of the loan balance each year. This depends on the size of the mortgage and the down payment—the term of the loan and your credit score.

The higher the risk factors, the greater the rate you pay. Also, since the Private mortgage loan is only a percentage of the loan amount, the more borrowed, the more PMI will pay. There are six essential PMI companies in the US. These companies charge similar rates, which are adjusted annually.

Once the LTV of the mortgage falls to 78%, your initial payment plus the capital of the loan paid is equal to 22% of the house’s purchase price. The lender must cancel PMI automatically as required by Law federal homeowner’s protection, even if the market value of your home has decreased if you are not defaulted or late on your mortgage.

Private Mortgage Insurance Types

There are three basic types of private mortgage insurance mentioned below:

• PMI Paid by the Borrower (BPMI): You pay a premium each month until your Private Mortgage Insurance is terminated (when your LTV balance is scheduled to reach 78% of the original value of your home) or when it is canceled at your request. When a borrower has achieved 20% equity in the home, he can notify the lender in writing that it is time to discontinue PMI premiums.

The lenders must present the buyer with a written statement at the close notifying how many years and months it will take them to pay 20% of the capital of the mortgage. Still, it could happen earlier, due to the appreciation of the price of the home (verified by an appraisal) or because you have made additional payments on the principal.

The lender has to comply as long as the value of your house has not decreased, you have a history of timely payments, and you certify that you do not have a second mortgage or subordinate lien on the property. You can also request cancellation or when you reach the midpoint of the repayment period (a 30-year loan, for example, would reach the midpoint after 15 years).

• Premium Single PMI: You pay mortgage insurance in advance in one lump sum, eliminating the need for a monthly PMI payment. The single premium can be paid in full at closing or financed on the mortgage. While it requires more than one initial outlay, this option can save money for long-term owners.
• PMI paid by the lender (LPMI): the lender pays the private mortgage insurance on behalf of the borrower. This may result in a lower monthly payment of the mortgage but may end up paying more in interest over the life of the loan, especially since the rates are generally higher for this type of PMI. Mortgage for the life of the loan). Unlike BPMI, you cannot cancel LPMI because it is a permanent part of the loan.

Cancellation of PMI

With BPMI, it is essential to track your mortgage payments and your capital accumulation. That 78% threshold for automatic termination is based on the date that the LTV is programmed to reach 78%, according to its amortization schedule, not on its actual payments.

That means that if you made additional payments and reached the 78% threshold earlier than expected, your lender does not have to complete the PMI until the initially scheduled date, which could leave months, or even years, of unnecessary PMI payments.

 

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

Owning and operating any business can be a challenge. This challenge is especially true for small business entrepreneurs. Because most small business owners are either sole-proprietors or have a small staff, most of the operations will fall on the owner’s shoulders.

There are many experts on running a business. However, though you can receive excellent business advice from other business owners, consultants, or business articles, it is often trial and error once you start the business. Before you start your business, here are ten steps that will help you to run a successful small business.

Find Your Inner Entrepreneur

A successful entrepreneur is, above all, a dreamer, a person who awakens energy in themself and takes the necessary work to win in the market in which they will compete. When you head into the business, you need to let your entrepreneurial side come to the surface.

You are responsible for the company, and you need to assume the position with all your burdens and burden. Have a broad, holistic view and no preconceived concepts. Read a lot, look for good blogs about your industry. Magazines and books are great too! The great advantage of blogging is to always keep up to date with market trends.

In addition to following blogs specific to your industry, follow blogs about business management. They tend to give you tips on financial management, inventory management, sales, HR, etc. The entrepreneur should know a little of each thing because often, in small businesses, he performs several functions at the same time.

Plan your business strategically and set goals

It is indispensable to do strategic planning for any business to succeed. Through it, you will achieve the purpose or goal that you have determined over a certain period, aiming for the best outcomes.

They must come from the analysis of opportunities and resources made in a focused and realistic way, avoiding unattainable desires or numbers. They should derive from the organization’s mission and vision for more specific purposes and character and then guide actions more accurately.

Set the goals you want to achieve this year and divide them into smaller goals. For example, if you want to sell $500,000 this year, you should sell $42,000 per month. To accomplish this goal, you will need to make $1,900 in profit daily.

Is it an achievable goal? How many salespeople do you have in your business today? Everything influences when it comes to setting goals—your average ticket, the number of sellers, etc. If you have a medium high ticket and ten sellers, it is quite possible to reach a sale of $1,900 daily, already, in most small businesses, a goal of this would be very bold.

Adopt a management system

Technology is a reality in our world, and using it to your advantage is a brilliant attitude. Developing a management system is essential to put your planning into practice and get the best results on the hard way of knowing how to run a small business.

Among its various functionalities, some allow the user to perfect payments and receipts, CRM (Customer Relationship Management), the registry with general information of the client, extracts and movements, the issuance of invoices, and stock control.

Look for a simple-to-use system that has been made to facilitate the work of entrepreneurs by integrating financial, inventory, sales, and purchasing systems. It will be a tremendous differential in your business. How about trying the How Much?

Create an internal communication plan

Your business does not work by itself. It needs effective integration and communication between employers and employees. There are many levels as this can be elaborated, but the essential thing is to have clarity in this process to have no flaws.

And that goes for both large and small businesses. Much of the problem occurs because people cannot tell what they want. It is necessary to adopt the proper methods for whom messages arrive safely to the right person.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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 it comes to taxes, taxpayers can take advantage of many deductions that will lower what they owe, getting them a higher refund or reducing how much they will have to pay additionally. While there are multiple areas an individual or household can make deductions, here are three areas where tax deductions can be significant.

Housing Account Tax Deductions

A Housing Account is a deposit where regular contributions are made that are deductible if it is specified that its goal is to acquire the habitual residence, which must be purchased within four years of the formation of the account. Otherwise, the IRS will demand the return of the tax benefits plus their related interest.

One way to maximize your capital would be to invest the money in another financial product with greater interest than the Housing Account and at the end of the year, before December 31, enter the amount in the Housing Account, since the deductions are calculated on balance to the end of December.

Therefore, the fact that it is a deposit to acquire the habitual residence makes this product usually suitable for young people who plan to become independent. It is also often used by couples starting.

Mortgage Tax Deductions

Once the home is acquired, it is usually mortgaged to guarantee payment of the credit contracted with the entity to meet the purchase. All the expenses for purchasing the house, such as Notary, Land Registry, and other fees included in the closing, are eligible to be counted towards the deductions. Also included is the amount of principal and interest payment for the period. Consult a professional tax preparer or the IRS to determine other deductions with the mortgage.

Pension Plan Tax Deductions

The most significant amount of tax deductions is found in an individual’s pension plan. A Pension Plan is a contribution that the management entity typically makes in an investment fund to dispose of the capital invested with its revaluation at the time of retirement. If there is a disability, a severe illness, or unemployment dragged on.

In case of death, it will be the beneficiary chosen by the owner who pays it. That capital will vary in value daily, according to the evolution of the fund, and its value is calculated by dividing the total value of that fund among the existing shares.

When the time to recover the investment, it can be made in the form of an immediate income from a single payment, deferred income from monthly or quarterly payments, or a mixed-income of an initial payment followed by periodic payments.

The most significant advantage of pension plans is their fiscal reduction. They allow a fiscal saving of up to 43%. Up to 50 years, the limit of annual contribution to the plan is $10,000. After 50 years, the contribution limit is $12,500.

Therefore, the tax benefits are those that favor that we have a pension plan. Another option is to find financial investment products that, although they do not deduct, offer some returns, discounted taxes, higher than the tax deduction of the plan plus the expected value of its revaluation.

Conclusion

The three products that we have analyzed are not mutually exclusive. You could take the maximum fiscal advantage by making a housing account, acquiring the house through a mortgage, and developing a pension plan.

Taxpayers are not limited to one kind of deduction. The smartest taxpayers will pay the minimum and get the maximum return by taking advantage of every possible tax deduction. These three deductions are the most profitable to the taxpayer. However, you should hire a tax professional or research every possible tax deduction you can take.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.

There is no doubt that one of the most important decisions of our finances is to decide how we manage savings for retirement. Investment funds represent one of the many financial products that help those building their retirement savings account.

There are as many types of investment funds as there are investment strategies. When considering savings for your retirement, you risk your retirement fund when you choose to invest as a savings strategy. Here is how to choose an investment fund that is right for you.

Determine Retirement Savings Goals

The purpose of all investments is to increase wealth. We must keep in mind what sense is given to both saving and investment. Associating these concepts with your retirement goals will help motivate you to choose the best investment fund.

Your retirement savings objectives need to be concrete and obtainable. You will have to decide what you want to do in your retirement years when setting goals and making them happen. The investment term is an essential factor in selecting the type of investment fund most adapted to our financial needs. Both the objective and the deadline are two critical aspects of any investment.

Set the maximum risk to assume

Establishing the risk profile involves introspective work since it depends mainly on a psychological factor inherent to each saver.

Concepts such as age, income, family situation, and other personal issues influence when defining our profile as an investor. But in short, every saver knows where he has their psychological cap. If not, there is a trick that works very well:

When we are clear about the maximum level of risk, we can assume without suffering severe economic and emotional damage. We can choose the objective of profitability.

Profitability and risk are two concepts that are intimately and related. The higher the return, the greater the risk. There will always be the case in the investment world. Beware of those who promise high profitability with little risk.

Therefore, the level of risk is established first, and then the best return adapted to that level will be sought. Doing it in reverse is a severe mistake.

Pre-select investment funds related to you

After the introspection work, we will have to carry out the research work. Luckily, some fundraisers make their tasks much more accessible. In addition, as soon as the saver is clear about the objective, the time horizon, and the risk, it will be much easier to find the ideal savings product.

Now is when the star question comes, fixed income, equities, or a mixed fund?

Neither fixed income, nor variable income, nor the combination of both types is good or bad by themselves; everything depends on the economic situation and our profitability and risk objectives.

We must inform ourselves how much the fixed income performs in general terms and if their profitability is consistent with our objective. That being the case, we would not have to assume a more significant risk unnecessarily.

Unfortunately, the fixed income in recent times is not giving a good return, thus being necessary to include a percentage of variable income to the portfolio to achieve the monetary objectives in the marked horizon.

One thing that should be clear, the variable income is not suitable for short-term objectives. Due to the volatility it presents, it can ruin our investment strategy. As we get closer to the end of the savings period, we must choose a more conservative investment philosophy.

If the variable income can lose 10% in a year and our time horizon is two years, will there be material time for the investment to recover? It is unlikely. Their type of asset works very well for longer horizons; however, you can incorporate a percentage into any portfolio to give it an extra return without losing sight of the risk profile.

In short, we must inform ourselves of the risk and profitability of each category of investment funds. In their way, we can limit the universe of these products to the preselection of funds related to our strategy.

Read the DFI of the pre-selected fund carefully

The Document of Fundamental Data for the Investor (DFI), formerly called a simplified informative brochure of the fund, is mandatory delivery to the investor before subscribing to the investment fund’s participation.

Their document summarizes all the relevant background information, which the saver must know to make an informed investment decision. Once an investment fund has been pre-selected, it is necessary to make sure that it fits our needs through their document.

When the saver has their information in their knowledge, they can decide to manage their savings and choose the right investment fund. The next step is to execute the subscription of shares in the selected investment fund.

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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.