Author: Complete Controller

The article argues that the role of entrepreneurship is the establishment of tiny, micro, and small-scale enterprises. Such enterprises create employment opportunities, particularly for the youth. Precisely, it gives rise to independence through self-employment and wage–employment. Entrepreneurship up-lift the economically backward sections of the society. Also, entrepreneurship utilizes a surplus labor force in industrial activities. The introduction of innovation and entrepreneurship into the education system by making the universities the important stakeholder would bring down the unemployment and, in turn promoting entrepreneurship to the youth to find and create their employment and work towards its eradication.

Association between unemployment in the business cycle and entrepreneurship

The study collected relevant data from 1993 to 2009 and deployed seven variables; self-employment rate and proper entrepreneurship were treated as dependent variables. The independent variables were the rate of newly registered unemployed, long-term employment, sign-off unemployed and average wages, and the reference cycle. Data analysis was based on regression analysis techniques. The results of the study argued that entrepreneurial activities and the unemployment ratio are closely related. Poor labor market conditions increase unemployment,

while improved working conditions and wage rates negatively influence entrepreneurship. Cyclical changes in wages and unemployment influence levels of entrepreneurship, as these factors prove as negative motivation for entrepreneurship. The capacity of entrepreneurship influences the ratio of employment optimistically.

To detect the association between unemployment and entrepreneurship in the context of the US, data from 1972 to 2002 were collected. It includes two variables, the business ownership rate has been taken as an independent variable, and unemployment has been taken as a dependent variable. The result was based on regression analysis techniques. The study concluded that the US is a relative outlier regarding the relationship between unemployment and entrepreneurship. 

The impact of entrepreneurs on economic growth and job creation

The analysis was based on the content technique. Entrepreneurship is an important factor in the development of economies. However, it also concluded that entrepreneurs are rare, even in developed and innovation-driven economies. In societies where entrepreneurs have flexibility in operating, reaping, rewarding, and developing ideas, the economies grow more rapidly. The export trade is also growing in the US due to entrepreneurial activities. Entrepreneurial activities have a positive impact on the reduction of the unemployment rate. Higher exports have a positive impact on GDP and reduce inflation.

Many management scientists studied the relationship between the unemployment rate and entrepreneurship in an economy. Economic data from 10 years (2003 – 2013) was analyzed. Regression analysis was applied to the data. It established a significant impact of entrepreneurship on the rate of unemployment. The outcome rejected the null hypothesis. Entrepreneurial developments influenced the unemployment rate in the US. The research used a content analysis technique to extract the results from the available data. It was noted that some entrepreneurial developmental policies were designed in the US. To enhance the capacity of entrepreneurial activities, entrepreneurs were encouraged to become export agents. The study concluded that entrepreneurial developments are instrumental to the country’s economic growth and played an immense role in balancing job creation and development. The paper sheds light on the job market situation of the country and the role of entrepreneurship in generating employment opportunities. The results concluded that entrepreneurship is among the major contributors to economic growth and, therefore, unemployment reduction.

Entrepreneurship contributes to the creation of employment opportunities for the youth where they source an intrinsic outcome. Employment, in turn, stimulate spending in a country; thus, improving the country’s economy. For, the level of spending among young people with families increases dramatically when they have appropriate employment. Currency circularization increases, making the economy more dynamic. This also facilitates the strength of families among young people. Although it is a condition where young people attain employment opportunities through entrepreneurship, the US market is saturated. Differently, some of the young people become entrepreneurs; thus, employing others.

The US is a multi-resource economy with strong government controls over major economic activities. The US also encourages the growth of the private sector to diversify its economy and employ its citizens as opposed to immigrants. The current economic condition in the country is not very favorable due to the decline in oil prices in the international market. However, the government is spending a huge amount on job training and education. It is observed that the US stands 54th rank overall. Also, it is stated that it is ranked 126th in innovation efficiency or its success in transforming the innovation enablers into innovation output, which was incredibly low.

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.

With upheaval from globalization and technological advancement, it is unavoidable that we are rapidly moving towards a user-friendly digital and virtual-based economic system. Regardless of the information, everything is moving away from a paper-based environment.  Previously, the advent of Credit Cards began to replace paper monies, turning currency paperless. Bank statements, news articles, shopping, and simple transactions are becoming paperless. The concept of digital banking, digital marketing, online shopping, and e-books is now not only environmentally friendly but also efficient and a touch away. The most recent story of digital innovation is the advent of cryptocurrency, which is the most talked-about additive to the digital and virtual payment industry.

Cryptocurrency is just like any other currency, but the primary difference is that it is developed for the sole purpose of digital trading. Cryptocurrency, as mentioned above, in essence, is a substitute or alternative for real currency but represented digitally or virtually.  Cryptocurrency exploits the scientific technology of Cryptography to ensure that its blockchain data structure is secure, making it nearly impossible to counterfeit. Since it does not lie in the purview of a central regulatory framework, no country or law can regulate or deprive you of it.

In recent years, cryptocurrency has been quickly gaining the attention of the public and general market enthusiasts, and there are good reasons behind it. Some of the important features are below:

First, you cannot commit fraud until and unless you misuse the concept of crypto cloud mining. Cryptocurrency is 100% fraud-proof. Since cryptocurrency was developed, all definite market dealings are housed in a data-mining warehouse. All the characteristics of any coin owners are heavily encrypted, making security features complex and sophisticated. The sole purpose of securing the user’s identity and the transaction is to assure the genuineness of bookkeeping. Since you are the owner of the cryptocurrency, it is decentralized. No regulator, law, legislative government, or bank has any dominance over it.

Since it uses an SHA-256 algorithm, anonymity is guaranteed, so there is no chance of someone stealing the user’s identity or personal data. The data warehouse assures that all the exchanges and transactions will be operated by a key or through a digital wallet. All the transactions are examined on the backend to ensure that the current user authentically owns the coins. This public data warehouse is also referred to as a blockchain data structure for all transactions.

Blockchain Management framework offers a continued guarantee that all digital transactions taking place are secure and encrypted. Smart contracts, also known as e-contracts, are transactions between two users where the identity of the users and entities are completely anonymous. Therefore, the entire platform cannot be hacked and is void of any cyber-attacks or digital fraud. With an innovative product like cryptocurrency, security is provided by blockchain technology.

As an entity or user of cryptocurrency, you benefit from an instant settlement when closing any transaction or smart contract, thanks to the blockchain data structure.  This structure is why cryptocurrency is getting more and more attention in the market. It does not require any modification to the prevalent availability of technology and is user-friendly. You can use your personal computer or smartphone to access the cryptocurrency platform, and the only thing required is access to the internet. In essence, you become your own bank conducting all transactions, whether they are payments, transfers, or purchases.

In some countries, citizens have transferred their savings into cryptocurrencies, specifically Bitcoin. They were apprehensive of government instability, the nationalization of banks, and hyperinflation. By vesting, they have managed to hedge their assets.

As a conservative estimate, at least three billion people worldwide have access to the internet either through a desktop computer, laptop, tablet, or smartphone.  However, they do not have access to traditional exchange systems like the stock market or commodity market since initial capital is required and regulatory requirements can be strict. Nevertheless, these individuals and firms are hungry to enter the cryptocurrency market. It is estimated that the blockchain economy is about $100 billion and still not fully tapped.

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.

Most business managers should have a good accountant to help them plan and keep accounts. You must have a good accountant that you can trust. The cost sector of the company is a difficult task, especially if you do it alone. The best accountants should know how to properly perform the calculations and help you with all your financial needs.

Control is also an important task of the accountant. You are in charge of controlling financial administration and financial management. You set up provisions, analyze budgets and set new budgets.

As an accountant, you work most of the time at the office. From time to time, you go to a customer or an administrative department. Accountants have regular working hours except during certain intense periods, for example, at the time of the tax return and the end of the accounting year.
Currently, a large amount of accurate information is required, in addition to finding increasingly complex financial operations. If you add the great changes suffered in the fiscal rules to all this, we realize that there is a figure that is most essential, and this figure is none other than the counter. One of the basic principles of an accountant’s ethics is his responsibility before the company and society.

The accountant is a key in business. They know all the businesses and have a somewhat more global and strategic perspective in high competition environments. The public accountant is in charge of gathering, analyzing, and interpreting the information of the company and trying to give a certain sense to the numbers as well. These figures provide information that is important for decision-making while transmitting transparency and soundness.

Functions of an accountant:

• Preparation, analysis, and interpretation of financial statements.
• Implementation of the most suitable accounting system for the company.
• Monitor adequate compliance with tax obligations.
• Provide reliable information for decision making
• Establish an optimal procedure for the registration of operations in the company.
• Verify the accuracy of the information recorded in the books and the auxiliaries.
• Apply internal audits to verify that there are no leaks in the company.

You need to know how to choose the right counter for your financial needs. You will find many accountants who currently offer services to all companies that need help in their financial reports and other matters. Any person can be an accountant, as long as they can learn everything related to the accounting part of the company. You should take into account that there are accountants who work online and offer their services from the comfort of your home.

You will surely find a large number of professionals in the Internet world who are offering services available in accounting. But before you get to that point, you must first make sure that the company you are asking for these services is the right company. The professionals related to this field take care of the financial costs of your company and provide you with accounting assistance, take care of your company’s financial situation, and take care of all the necessary actions that your company needs.

If you want to be sure of the accountant you will hire, you should choose an authorized accountant (CA) because they have the training and the necessary educational programs to manage your company financially. With the services already acquired from the accountant in your company, you can be sure that all documents will be made according to all financial needs. However, it is important that each company or business has a personal accountant. This is the only way in which you can be sure that your company is functioning well financially.

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.

Effective leadership is an important element for every organization. Every company requires efficient leaders who have the skills to guide the organization in the desired direction while accomplishing the objectives of the company. According to studies, there are various management or leadership theories which include: transactional theory, transformational theory, behavioral theory, contingency theory, tri-dimensional theory, and situational theory.  Brakes Company has adopted behavioral theory for leadership management in their organization with positive outcomes.  Their implementation and results will be further discussed and reviewed.

Behavioral theory

According to behavioral theory, there are certain behaviors that a leader should adopt, such as:

• Consideration of the task: leaders should know how to divide the task among their employees to maintain their productivity and meet the company’s objectives.
• Consideration for employees: it is the responsibility of every leader to consider their employee’s interests, values, concerns, and problems rather than treating them only as sources of production.
• Directional leadership: leaders should provide a direction for their employees to follow. They should take responsibility and make the final decision that will ultimately allow a progression towards business objectives or away from them.
• Active participation: leaders should actively participate in the decision-making process and not rely on employees to take all the responsibility for their decision. /li>

Leadership strategy and organizational direction

When creating any strategy, the company should always focus on making plans long-term, knowing the competition and rivalry they may face in the future. Considering these factors, the company needs an efficient and effective leadership plan for its organization. This leadership strategy includes setting workshops, training, developing professionalism, and developing trust, belief and respect, and emotional intelligence.

Developing professionalism

The progress of every organization lies in the professional attitude of its management, leaders, and employees. Implementation of a positive and professional environment needs the active participation of leaders who can guide their employees to follow the rules and regulations of the company.

Developing trust and belief

Developing trust and belief among employees is also a major component of an effective leadership plan. The management system should properly plan to develop trust and belief among their employees, provide them with a healthy working environment, solve escalated problems, and take care to avoid discrimination.  It has been seen time and again that discrimination and favoritism among employees have a negative impact on the efficiency, morale, and overall effectiveness of the company.

Training programs and workshop

The introduction of workshops and training programs for employees is helpful; this will guide them on best practices and industry innovations, provide them a direction to work towards and help the company accomplish its objective. Brakes Group is already working on this perspective. They have arranged different workshops for their employees to understand the method for implementing plans that favor growth in the company.

Emotional intelligence

Emotional intelligence is a term that means the ability for people to understand the emotions of others, and it is a common trait in good leaders.  Emotionally intelligent leaders support their team in a stressful situation, peacefully evaluates the situation, and finds the resolution to the problem. Goleman has presented a theory in this respect, which includes few features: motivation, empathy, self-awareness, self-regulation, social skills, and encouragement.  By actively practicing or honing these traits, leaders can successfully implement changes and bring quality intervention into workplace policies.

Application of Goleman theory

Brakes Group has adopted the Goleman theory described above to guide their leaders. This theory has helped the organization achieve its objectives, helped the company increase effectiveness, reliability, and capability, and empowered them to increase their resources. This theory is a proper guide for a new entrepreneur or the CEO of an established organization.

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 do not have a social security number for some reason, the IRS does not want this to stop you from reporting the taxes you earned during the year. This IRS Taxpayer Identification Number or ITIN program allows people who do not have a social security number to declare income. The IRS does not separate declared income; it only wants all the people who have to do it by law. 

Here are eight of the most frequently asked questions about the IRS Taxpayer Identification Number and their answers according to the latest IRS information available on their website. These questions and answers about the ITIN will help those who need to use it to file taxes using the IRS Taxpayer Identification Number.

What is the ITIN used for?

ITINs are for tax reports only and are not intended to serve any other purpose. The IRS grants ITINs to help individuals comply with the tax laws of the United States. An ITIN does not grant the right to work in the United States, nor does it grant the possessor social security benefits or the Earned Income Credit (EITC).

Can I work with an ITIN?

No, it’s just a number to declare your taxes.

How do I apply for an ITIN?

Use the   Form W-7SP, Individual Taxpayer Identification Number Application, to request the ITIN. Attach a valid federal declaration unless you qualify for an exception and include your original documents or certified documents proving your identity and documents proving your alien identity.

Can I present a copy of a notarized passport to apply for an ITIN?

No, the new changes to the rules to apply for the ITIN do not allow the document to be issued with a notarized copy. Only original documents or certified copies are accepted by the government agency that issued them.

Why should I not receive US benefits as undocumented should I declare my taxes?

One of the reasons why you should do it is because this is the tax law. If you earn money in the United States, you have to declare your income and pay taxes. The second reason that much is talked about is possible immigration reform. Nobody knows if this will happen or not, or when, but you have an idea that the requirement to prove that people were in the United States for a certain amount of time will be the tax return. At least they will ask the question: are you up to date with all your tax obligations?

Do I qualify for a tax credit with the ITIN?

The ITIN automatically disqualifies the taxpayer from being eligible for the earned income credit or earned income tax credit. However, if your child has an ITIN number, you may qualify for the child tax credit or the American Opportunity Tax Credit post-secondary school credit.

How do I report my income with an ITIN and a fake SSN?

A tax preparer or the program you use to fill out your return will allow you to adjust, reflect that this income, even if declared with a false SSN, is the income you earned. Check with your tax preparer to help you through the process.

How do I report my income if I work on my own?

If you work on your own, you are considered a small business. To be able to declare your taxes, you should take information about your income and expenses. Income and expenses should be accompanied by evidence and receipts if the IRS is urged to audit your return. You do not have to have anything fancy; you can have a notebook or record to keep track of your expenses and income. Better yet, if you could open a bank account specifically for your business transactions. Many banks allow people with ITIN to open a bank account.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-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.

Cryptocurrency is a digital currency backed by strong algorithms and independent of any governmental control. The major difference between cryptocurrency and digital money is its decentralization. No one can regulate its movement or obtain all of it. This is made possible because of the operational idea dependent on blockchain innovation permitting step-by-step cryptograph-led exchanges. There are millions of cryptocurrencies out there, but Bitcoin is the most prominent. Bitcoin is beneficial when compared to the other conventional paper or plastic currencies in the market. Here are some of its benefits:

• All transactions are saved on the blockchain when a variety of users connect their computers to the internet. It gives the users the authority to hold the currency as much as they like, and everyone has equal rights and status on it. The best part of cryptocurrency is that it keeps the anonymity of the user.
• Digital currency can be received and sent anywhere in the world without the hassle of being verified by intermediaries. You can hold and purchase Bitcoin if you have a stable internet connection.

How to Buy It?

There are no specific stores or a central point where you can buy Bitcoin. There is a famous quote that “everyone owns it, yet no one does.” This explains how Bitcoin is meant to be owned by everyone, not just the government or the wealthy, and the full expanse of Bitcoin has not yet been mined. However, there are several platforms where people who already have Bitcoin and those who want to purchase it can gather. You can access platforms like Localbitcoin, Kraken, and Coinmama and buy Bitcoin online by paying for it. You can receive some amount of Bitcoin in your wallets and use it either as an investment or currency wherever it is accepted. You can also utilize mining machines to mine the currency saving you the effort of going online, finding a reliable person, and purchase from him. There is a one-time cost when you can purchase the machine, but then you can connect it to the internet and earn bitcoin from it.

The Main Purpose of Cryptocurrency:

Cryptocurrency is the result of a major economic depression and is the best solution to a failing economy. Zimbabwe proved the currency to be a savior when the major currency devalued, creating an economic depression. Many people in that country moved to cryptocurrency, saving themselves from any major crisis. However, a failed state is not the reason for the success, or use of Bitcoin, as seen with the Russian Ruble. It climbed to $64 from $58 in one day. Yet, Bitcoin kept on climbing, proving itself to be the major constant solution.

Bitcoin is also used to free people from the unnecessary obligations of paying heavy fees to intermediaries to get their money transferred from one place to another. Many people argue that investing in oil is as good as investing in cryptocurrency. However, they cannot pick up the barrels of oil and move to another country which they can do with cryptocurrency. Education institutions and hospitals are integrating blockchain and cryptocurrency as payment methods into their system. This allows people to make payments and complete transactions easily using their cellphones. They do not have to carry a wallet to buy something. They can easily move their money from one country to another without waiting in line at a bank and filling out the applications or required documents for the transfer. Apart from pulling people out from the economic crisis, cryptocurrency has proven itself to be the best invention of the 21^st century. It has allowed individuals to invest in a currency outside of their geographic location, creating a global currency accessible with just an internet connection.

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.

Some countries believe that other types of economic systems would help their government manage their country. The economic systems have their own benefits and weaknesses, which are discussed in detail below.

The Traditional Economic System:

The traditional economic system is one of the oldest economic systems, usually in third-world countries. The system provides total satisfaction on the social level in such an economic system. However, the system is usually behind in technology and advancement. The main concerns in such an economy are agriculture and fulfilling their physiological needs.

The Command Economy:

In a command economy, the decisions are made by a single authority. The command economy believes in equality and it has been promoted in the theories of communism. The government plays the role of the main decision-making authority. This includes planning and the distribution of resources. The government ensures that all the parties receive an equal amount of resources whenever necessary and ensures the continuous supply of them. Theories believe that the command economies are powerful enough to create enough jobs in order to drop down the inflationary rate of the economy. However, the main focus of the command economies in practical life is oil. The government owns all the resources in this economy.

The advantages of such an economy include the creation of jobs if this economic scenario is applied correctly. Moreover, the government can focus on maintaining the lives of the public instead of an individual. However, the disadvantages include the lack of innovation as the individuals don’t feel the need to take risks or put more effort into their job. It also makes the job hard for the government while rationing the supplies as the demand is difficult to realize.

The Market Economic System:

This is known as a disliked economic system. It is called the free-market economy or the laissez-faire economy. A market economy is the opposite of a command economy. In such an economy, the government doesn’t interfere in the market. The market prices are decided by the interaction of supply and demand where bargaining prevails. The households and the firms decide the supply of goods. Nowhere in the world does a true free-market economy exists .

The benefits of this economy are numerous. All the companies compete to gain more profit, giving rise to innovation in the market. Companies invest heavily in the Research & Development department. New businesses get introduced, and people work hard to achieve a luxurious life. The biggest disadvantage of such an economy is the existence of a monopoly. Moreover, the market stops including the elderly and disadvantaged people to increase the productivity of the company. Hence the income inequality exists greatly in such an economy. Moreover, the companies don’t consider human health and needs while introducing their products as the government is not involved.

The Mixed Economy:

This is the ideal form of economy and exists worldwide. All the countries are incorporating such type of economy one way or another. It promotes the free market economy but with a minor interference of the government. The government does not own the resources, but to protect the sovereignty of the consumers, it introduces laws and rules. The government also protects both the buyer and the seller by setting up the ceiling and the floor prices of the products. It promotes a healthy environment where the companies are conditioned to develop a CSR department and help the community while maintaining the acceleration into the development of innovative ideas. Such an economy operates at the peak and provides society with a huge benefit.

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 money supply is considered an important component in the business industry. The circulation of money describes the financial standing of a company. The flow of money tells whether there is a need for money injection in the market or a need to reduce the money in circulation. Talking about the relation between stock prices and money supply, both carry a positive relation. The higher the money supply is in the market, the higher the prices of the stock move. With a lot of money being circulated in the market, the money becomes easy to access. There is extra money available to spend on stocks to make further investments in other instruments and projects, like bonds, which are less attractive.

Money circulation and interest rates are closely related to each other. As the interest rate decreases in any economy, the process of lending and borrowing increases. This process snatches the interest of investors towards borrowing money more. At the same time, the case is opposite when interest rate rises as borrowers decrease, so the investors are attracted towards investing in stocks. Such actions stunt the growth of individuals with an increase in the growth of the stock market.

How Does It Affect the Economy?

The sum of money present in the economy is referred to as the money supply. This money circulation is not something that can be ignored. Instead, it has more importance in the economy than the coins and bills. It is a fact that the physical money circulating in a developed economy is less than one-tenth of the money present in the whole economy.

The remaining percentage of the money in circulation is purely virtual. This money supply includes the unused line of credit in any credit card account or the amount existing in the commercial bank accounts of huge industries.

Economists keep a close eye on the money that is being circulated in any economy as it tells about the purchasing power of an economy. The purchasing power is the quality or value of goods and services that can be bought with a currency’s unit. This unit explains the possible demand for products and services.

How Federal Reserve Board Controls the Interest Rates?

The Federal Reserve Board of economy maintains the money supply in the economy by taking different measures. The most common way to control the money circulation is through buying and selling treasury bills.

How do treasury bills work?

 Treasury bills work in a way that once a treasury bill is brought, business is actually lending money to the government. The term security is to invest in any medium like bonds, bills, or stocks. There is a certain face value of treasury bills when it comes to an economy, which tells its actual worth. However, they are sold below their real worth. This money helps the government in building the economy and working on the infrastructure of the country.

The outcome of this selling and buying results in the injection or withdrawal of money into the economy. The quickest way to control the money supply is by adjusting the interest rates. With a lot of money being circulated in the economy, borrowing becomes much cheaper. However, when the money supply is low, a lot of institutes and individuals will be short on cash to lend it out. In this case, borrowers must provide higher interest rates in order to borrow. The interest rates are usually mentioned as the cost of money in the market.

Relationship Between the Interest Rates and Stock Prices:

A rise in the money supply and a drop in the interest rates make stocks a lot more attractive to invest in. When investors can get a low level of return by lending money, even if to a bank, corporation, or by buying treasury bills, such investors change their direction and start to lean towards the stock. Such actions of an individual or investor are called chasing yield.

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.

Investing in real estate seems easy, but there are many challenges you will face. The idea is to buy and maintain the asset over an extended period of time because the property will revalue. Investing in real estate requires analyzing different market types and classes to determine if the portfolio should be maintained, bought, or sold. You will need to measure how much the long-term property will yield as well as inflation. It is essential to understand the mistakes that can be made while investing.

Believe that pre-construction – buying well – is necessarily a good business

Pre-construction depends on the market and the phase of the cycle it will go through. An example of this is the current market in Miami. Given the lack of knowledge of the foreign investor and the strong incentive in commissions from the developers to the brokers, pre-construction assets are sold – up to 40% above the same finished asset brand new.

Believe that the same recent history can be repeated

Sometimes investors will enter the market at an opportune moment and leave halfway through the cycle with an attractive profit. This is not common. After several years of strong appreciation in a certain market, the evaluations begin to reduce. To sustain these returns, it is required to move from the type of asset or market if there are no opportunities.

To think that buying real estate from a bank, at auctions, or from developers always means doing a good business

Acquiring assets through these means will require expertise even greater than that required in a traditional purchase. Many investors feel that they are buying below market value but often end up buying above.

Believe that Premium properties are the most attractive and safe

Premium assets are the fastest way to recover in a crisis, but the risk may be higher. The asset’s value may have devalued over time. Therefore, it depends on the moment of the cycle. Just ask who bought in Brickell in 2014. For four years, your property lost value, and rental income was minimal in that period, compared to the business of buying assets class B with a strong revaluation in that period and a high income. 

Lack of measurement and belief that the performance is based only on rental income

The performance is built with three variables. The first is the discount on the purchase, which requires a scale and is only accessible to professional and sophisticated investors. The second is the appreciation, where, from active management, it is possible to overcome inflation and appreciate at rates of more than 10% per annum, only in short periods of the recovery and expansion phase of each type/class of assets in a market. This requires thinking and operating globally. And the third is income, which is the only variable that an “investor” generally has access to.

To evaluate the annual performance of the real estate asset, it is important to bear in mind the total cost (purchase value plus expenses associated with the purchase, remodeling, etc.), plus all the income and expenses generated during the exploitation period (after the purchase) ) and this is subtracted from the sale or appraisal value, minus sales expenses. In this way, we can have a precise performance. In general, the analysis is simplified and what seems to be a great result is just a performance higher than inflation.

Buy a property and never sell it

The returns obtained by acquiring an asset and keeping it in the long-term portfolio are usually very low, given that all markets go through different cycles, and by keeping the asset permanently, profitability is punished when the market falls. In their recovery and expansion phase, the markets have a window of approximately 4 to 6 years, and you should always take advantage of this period and then leave. The best performance by appreciation is obtained by taking advantage of the steeper curves of the assets and when they begin to sell them to take advantage of another market in better conditions.

Believe that capital investment never loses capital

It is proven that, at times, assets can generate sharp drops in values. If you choose to divest, you must be willing to assume strong losses or wait a long time to recover the value. This has a strong impact on average long-term yields, which, in general, in passive portfolios, historical appreciation levels barely reach inflation. It is demonstrated that investing actively in real estate allows achieving high returns. To achieve high returns, the key is to enter the market indicated at the right time with an active and professional strategy.

To help you grow as an investor, make sure you learn from these mistakes! 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.

In most states in the US, it is illegal to drive a vehicle without car insurance. However, there is some confusion regarding who and what is covered by the insurance policy a car owner purchases. Here is all you need to know about car insurance and who or what is covered by your policy.

Automobile insurance commonly follows the vehicle, not the driver. If you let another person drive your vehicle and get in an accident, your insurance agency would probably be liable for paying the case, contingent upon the inclusions in your approach. The case would go on your protection record and could influence your vehicle protection rates later on.

However, various variables may become possibly the most important factor while deciding whose vehicle protection applies on the off chance that another person drives your vehicle and gets in a mishap. Your vehicle protection will be viewed as essential protection in numerous states if another person wrecks your vehicle. That implies the inclusion you’ve picked on your arrangement would help spread the wounds or vehicle harm the driver caused.

Surely you have ever wondered if anyone can drive your vehicle because it has car insurance, thinking that it covers everything, whatever the situation. Well, there are some things you should keep in mind before leaving your car in the hands of anyone. If you want to know the answer to this question, I’m sure you’ve done more than once in your life, read on.

It is usual for our car to be driven by other people, by a friend when we make a trip, by our children or other family members. When the question arises, our car can be driven by anyone whenever. With this article, we will try to shed some light on this topic.

If my car is insured, who can drive it?

Many people think that only those declared in the policy as the main, secondary, occasional, or authorized driver can drive the insured car. At the same time, other people believe that anyone can drive it as long as the car has insurance. Well, although none of these statements is entirely true, there is something you should know. Any person who meets the age and age requirements of the card will, in principle, be covered by accident. Of course, these variables will depend on the company.

It also includes that if your car is driven by someone not declared in the policy, under 25 years of age, and has had a card for less than three years and has an accident, the insurance could be disregarded.

Who does my car insurance cover?

But then, who will be able to drive my car without problems? Well, as we said, it will depend on several factors such as the age and age of the card. But obviously, whoever appears as a driver will be the most relevant. Those of which the company has proof will be those that are protected by the vehicle policy. These may be the main, secondary, or occasional driver, and the choice of one or the other will depend on the frequency of use they make of the vehicle.

Depending on the insurer carrying your insurance, those sporadic drivers who are at least 25 years old and have the card for three years will also be covered. In any case, insurers always have to cover damages to third parties. Therefore the problem itself would arise in full-risk insurance.

Most companies state that you should never leave the car to a driver under 25 who is not enrolled in the policy since, in these cases, they do not assume the responsibility of repairing the damages suffered by the vehicle of the usual driver.

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.