Author: Jennifer Brazer

The apartment is a basic need to live. Every person wants to own one. It all starts with the property, borrower, and lender. It is important to take a complete guide before you start searching for a new apartment. You must find the most suitable lender to invest your finance in an apartment. The building of the apartment is technically called a multifamily property. It is also your future investment when you buy a property for an apartment. Investing in an apartment can be powerful. 

Some key notion is mentioned below to how to finance an apartment.

Embody of an apartment building?

For apartment and multiple housing, that to construct as one to four-unit properties in that detached houses, duplexes, and triplexes. Loans of these types of apartments are very easily available, and the loan does not differ much from a loan of ditched housing.

Saving is the best option for an apartment

The best solution and the most adopted version of financing a new apartment is to use your savings. We all know how expensive apartment is now. Saving is such a game that is going to be worth it in the future.

Scrutinize your financial asset

Dragging your credit, you will not subordinate your score. Discover what the least credit score is for the loan lists you are keen on. A good credit goal is 680 and more, and most of the finest rate multifamily lend plans necessitate this. Although, at Apartment Lend Stock we have some rate programs that can receive a usual credit score as low as 660. Exceptional credit is 740 and more. Then your command is devalued, call one of our welcoming loan authorities to discover out about loans for apartment buildings with immoral credit.

Complications of renting an apartment

There are many assets to have right an apartment building. The major things are introducing to persist recurring income, expand the income, curtailed per-unit maintenance amounts, the likelihood of extra causes of income above and over the charges, financing created more on the property’s financials than your own, and the building’s worth is frequently a purpose of rents.

The four diverse categories of marketable property investments

1. Residential/housing rental possessions
2. Office and retail possessions
3. Industrial possessions
4. Multifamily possessions

Primary, let us start with observing the high quality of inhabited property investment. In assessing apartment building proprietorship and housing property ownership, the benefit of apartment building ownership is an influence. When you get a 20-unit apartment structure, then you have one loan. If you get 20 residential properties, then you have 20 loans — the reason for the savings in expense and time.

Similarly, in spread over for 20 loans, for whatever reason, the advancing institution may decline multiple loans, while with a multifamily property, there is just one loan to accept or decline. Another advantage of multifamily stuff ownership is you have large savings in outlay and suitability from having all the units in one location. That is said, the scale of the economy. In its room of overtime must replace 20 roofs, your courage just essential to swap two roofs. An additional sample is, you should have one heating system and air-conditioning system in an apartment building against having 20 heating systems, and conditioning systems to look out of for 20 residential properties. Yard conservation, maintenance, and repair, along with organization fees will be lesser one 20 residential homes and 20 units apartment complex. 

Habitual revenue from buying an apartment

One of the main details for finding apartment buildings is an ongoing salary. And then the contract is right, and the wide-ranging finance, a good apartment building will shake off periodic monthly salary, it is also called a positive cash movement.

Additional causes of income once buying an apartment

 The building is the larger, the more likely you can add supplementary causes of salary, just like selling machines, coin-operated laundry, and ATMs facilities. Letting parking seats and interplanetary for billboard publicity can also deliver extra income. One of the pro tips is to charge supplementary monthly rent for air conditioning units, advanced appliances, and elevated bathrooms and kitchens.

The apartment structure’s value is frequently a meaning of charges

If you are buying apartment buildings, the worth of the investment is tough in countless parts by the financial presentation of the building. So, when you can increase the rents, you can increase the worth of your land.

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.

A company’s breakeven point is the turnover that a company must release to be in financial equilibrium. That is, not to generate losses or profits. Beyond this threshold, it’s a good sign, below this value, is that the company is not profitable. It isn’t easy to dissociate it from the breakeven point since the two notions are related.

The dead is when a company is in equilibrium: it does not realize profits or losses. Generally, it is useful to express it over some time to know WHEN this situation will happen.

“It’s all well and good, but why would I bother to calculate these things?”

A legitimate question to which we will endeavor to answer the best.

• If you are in the creative phase or a young start-up, these indicators can be used to determine the level of activity you will have to achieve to start reaping the fruits of your hard work.
• If you are at the head of an “older” company, its calculation will allow you to highlight the objectives to be achieved and create a guideline for the year to come.
• Banks particularly appreciate the breakeven point and the breakeven point of your company when you apply. These are indeed quite concrete elements that can tip the balance in your favor if they are well documented. 

Calculate a company’s breakeven point

There are several ways to calculate a company’s breakeven point, but in this article, we will only cover the simplest of all for the sake of clarity. Be aware, however, that one of the other ways is the variable cost margin formula. It is very precise, however more complex to apprehend, and requires several calculations to be representative.

The simplest formula is:

SR = CA – (CV + CF)

SR = Break-even point

CA = Turnover (You can help your business plan if you want to calculate a breakeven point)

CV = Variable expenses (Purchase of raw materials or supplies, transport costs…)

CF = Fixed charges (Taxes, rent, taxes)

If your turnover is higher than your expenses, it means that your company is making a profit. 
If it is equal to your expenses, it is because the company has reached its breakeven point. 
However, it will give you the remaining amount to cash to reach the balance if it is below. 
But the formulas are not very digestible generally. We have therefore prepared a practical case that should allow you to understand the process better.

Example of the calculation of the breakeven point:

Mr. Dupond runs a restaurant. Its estimated turnover is $150,000.

Its fixed costs are $170,000

The variable charges of $105,000

It therefore remains for him to make the following calculation:

150,000 – (170,000 + 105,000) = – 125,000

Mr. Dupond will therefore have to earn $125,000 in additional revenue if he wants his business to break even.

Calculate a company’s breakeven

First of all, it must be remembered that calculating the breakeven point (in the form of duration) results from the breakeven result. You must therefore determine the latter before addressing the next part.

Formula to calculate the dead point (duration):

PM = SR / (CA / 360)

PM = Neutral

SR = Break-even point

CA = Turnover (annual)

Let’s continue with the scenario of Mr. Dupond’s restaurant. Now that he has calculated his breakeven point, he will proceed as follows.

Example:

125,000 / (150,000 / 360) = 300

 It will take Mr. Dupond 300 days to bring his business to breakeven.

 Limits to consider

If the breakeven calculation is something important, some disadvantages to this calculation method may tarnish the picture. Be aware of this and do not rely on this indicator, especially when it comes to the projected breakeven point.

Already, it can be difficult to determine the charges, those variables in particular: unexpected purchases cannot be anticipated in some cases, which can sometimes distort your calculation.

And it’s the same with your projected revenue: as its name suggests, you rely on estimates of events that have not yet occurred. So be careful about the results you are going to get: they are sometimes subject to change. 
Several points can help you avoid such disappointments:

• First, considering that if you project an increase in your turnover, this implies an increase of the charges by definition.
• Speaking of charges, variable ones have a degree of uncertainty, and it cannot be easy to anticipate them. Be pragmatic and apply a small margin to what you have calculated. You are never immune to an unforeseen.
• Foreseeing the future with the help of the past is also a relevant option. If you have doubts about your turnover or your projected expenses, take back your data from previous years (if you have any). For example, was your growth about 2% per year on the latest results? So, if you get 10% in your calculation, there may be a problem.

Conclusion

Break-even and breakeven calculations are, therefore, very important elements to bear in mind. The results will allow you to better visualize the state of health of your company and feed your thinking if you have to make important decisions.

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.

Sometimes you must decide to sacrifice the number of products based on a high monetary cost, but with this, look to obtain excellence and degrees of compliance with the objectives of said product, right? So, what is better? Many products combined with medium and ” low ” levels of satisfaction or high prices involve less quantity of products but greater quality satisfaction.

Observe your budget and needs regarding what is offered by the product

These questions tend to be difficult to answer, even for large business owners or frequent consumers. Quality is the principle of purchase, but you must observe your budget and understand the concept of “quality.”

Regarding this, the ISO 9001 standard establishes that: “Quality is the integration of the characteristics that determine to what degree a product meets the needs of the consumer.”

In addition, the quantification of quality is somewhat subjective in certain cases; therefore, acquiring products based on opinions or “advice from other users” is not usually as effective. To this end, different regulations have been stipulated, such as the one mentioned above from ISO and other international entities.

Research and studies have determined that products that often cost up to three times more than the competition end up not being entirely compliant. In this regard, there are also examples visible to the majority, such as the comparison between Asian and Western markets, whereby ” changing the name ” of an Asian brand by its Western counterparts, the price increases without seeing benefits or changes in the finishing of products (this covers areas of technology, textiles, and others). Thus, it is what is known as Re-branding.

In addition, low prices do not imply that the product is of poor quality. However, reducing production expenses and other processes (transport, marketing) is not subject to certification tests or standards subject to quality. Therefore, to make a purchase looking for quantity with low prices is to know that it will be a product on a tightrope, which in this sense will be the time of duration or useful life.

At a business or private level, the amount can be alleviated at certain times

In the realm of a particular buyer, acquiring a large number of products may mean that you will buy only to “use it longer” while saving to spend a sum of more than what you spend that I bought before.

The above is a widely used strategy, especially if you intend to try both products, the cheap and then the higher value. Sometimes the first mentioned is the one that pleases the public the most! From what we again indicate, quality can be subjective.

Within companies, purchasing products must be linked to economic needs, either to increase production or improve the conditions of their workforce slightly.

Businesses that are going through a production decline and merit products quickly (acquisition of inputs, processed raw materials, services) can opt for quantity before quality, but of course, always taking everything as a transitory stage, and that “quality is synonymous with customer loyalty.”

This, however, should not be taken lightly, and the CEO should evaluate all the variables at stake. The use of predictive statistics can be valuable here, and see, the behavior of a newly acquired product over the long term.

 I have spent all my money on a product, and it does not fulfill what it promises. What do I do?

What happens if buying something of high value does not cover my expectations? The products with a warranty usually give a useful lifetime or expiration (clothes, such as a finite number of washes). If not met and feel that you have been “scammed,” you can go to the services of a lawyer and make the complaint.

In addition, experience in such situations is an infallible teacher. Once you have spent large sums on products that end up not being what they claim to be, why buy again? In fact, in these situations, we apply what we mentioned before regarding the quality and loyalty of the product.

Hopefully, this article has been beneficial, and remember: first analyze the budget, needs and if you intend to use the acquired long or short term; If it is in the business world, be more careful because your company’s reputation could be put at stake, and we are not talking about external customers, but about internal ones, that is, your workforce.

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.

Usually, the human resources (HR) department serves as the backbone of companies and operates behind the scenes. It helps in streamlining all business operations, paving the way for long-lasting success. HR oversees all employee-related activities, including recruiting and training new workers, tracking employee performances, etc. A well-experienced HR manager help workers in building careers.

HR also tracks accurate time-in and time-out to mark the correct attendance of all employees as per their departments. In addition, it eradicates all communication gaps between company management and staff to establish meaningful interaction. According to HR.com, around 45% of companies with small businesses manage all tasks by themselves due to budget constraints. However, it is not always a choice – companies having as many as 14 employees need to comply with standard regulations like the Equal Pay Act, the Immigration Reform & Control Act, and Fair Labor Standards Act (FLSA). Apart from legal compliance, HR ensures compliance with workplace policies and protects your business from staff-related issues.

Many companies often resort to hiring a single person in the HR department to cater to all the needs; however, it often requires teamwork and diversified skills. Let us learn why small businesses must have HR.    

Handling compensation and benefits

Whenever new hires join the company, there are many questions regarding things like salary, benefits, and annual leaves. In addition, various companies offer numerous facilities to their employees, from insurance to security and transport. Lots of things that employees need to learn about. Here, the need for HR in businesses comes in.

Business owners cannot finalize policies with brokers/service providers, enroll employees for benefits, and decide insurance policies alone. They must handle other activities, like meeting deadlines, improving tasks as per the client’s feedback, providing quality products/services, etc. So, the addition of the HR department in the company becomes necessary.

This way, business operations would divide and manage all tasks that would no longer be difficult for small businesses. Whenever employees have any queries or issues, they will directly contact HR rather than the employer.

Manage administrative requirements

HR is primarily involved in payroll activities, recruiting operations, workplace security, onboarding, regulatory compliance, employee training, and development.

On-time salary transactions, proper employee training, and unsanitary working conditions are vital tasks that the company cannot overlook. Small businesses depend on HR for these tasks as non-compliance may cause losses and penalties. According to Inc., the Internal Revenue Service (IRS) has penalized over 33% of all business owners because of payroll errors. The automated monitoring and checking of employee-related activities pave to more recruitments. As the number of hires increases, the HR software automatically integrates them into the system. The digital record of HR will protect small businesses from the Fair Labor Standards Act (FLSA) complaints.

Effective workload management

Every small business aims to grow, and that requires endless hours of dedicated work on business development. They hardly get time to monitor each activity, including administrative tasks, HR issues, meeting deadlines, and finalizing contracts. These activities divide their attention from the matters of sales, marketing, and clients. As a result, it can drastically impact growth and success. Therefore, it is better and often more profitable to integrate HR into your business rather than avoiding sickness policies, recruitments, and daily operations. 

Maintain office environment

HR system plays a pivotal role in influencing the organizational culture. It involves merging values, company visions, beliefs, traditions, and working rules that the company has adopted with time. Apart from work and recruitment management, HR also manages the workplace environment, ethics, culture, dress code, and shift rotations.  

They help in tracking employee’s performance and maintaining discipline among the employees. For example, taking care of punctuality to improve time management skills. It may also develop other flexible HR-related policies that allow employees to manage their tasks and schedules.

Supports business growth

HR helps businesses in making strategic decisions regarding company growth.

You can grow your business when you know your employee’s capabilities, their way of respecting their jobs, challenges, and opportunities. So, HR help you in getting this knowledge to make staffing decisions. It also supports business growth.

• Making succession plans and discussing employee talent reviews.
• Using workforce planning software to develop long-range staffing and reorganization strategies.

Conclusion

Every small business must have an HR department to cater to an organization’s various administrative and compliance needs. HR professionals serve as a mediator between company management and all workers. You can improve your employees’ business efficiency and productivity by using web-based software tools to streamline HR-related tasks.

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 the different options, we have today, solving debt problems is becoming easier. The twelve most common solutions to get rid of all your debt include:

• Debt management plans
• Negotiations of debts
• Debt consolidation
• Debt consolidation loans
• Financial advice
• Refinancing
• Retirement
• Union of credits
• Home Equity Loans
• Insurance
• Credit cards
• Bankruptcy
• Debt management plan

The ideal way to start solving your debt is through a payment plan that you can make yourself.

Planning a budget and avoiding any unnecessary expense are two very important aspects of a debt management plan. If possible, consider working overtime and using that income for your plan.  Similarly, if personal discipline is a problem, you can schedule automatic payments at your bank.

Debt negotiation

Through debt negotiations, a company representing you can negotiate with your creditors to reduce the amount you owe.

Debt negotiation agencies work with your creditors to reduce the balance of your debt, sometimes up to 50-75%. Most debt negotiation companies are clear about the amount they will charge you, but there are no hidden expenses in the negotiation process.

Debt consolidation

Consolidating debt is a beneficial process to help clear numerous debts. In this process, multiple debts are consolidated into a single amount paid on through a single payment each month.

The interest on the consolidated debt is usually lower than the interest on the individual loans; however, if a person uses a home equity loan to consolidate debts, their home will be the collateral for that loan. Therefore, if they cannot pay, the lender can take the house and sell it to recover the money borrowed. Also, keep in mind that if the time to pay the consolidated debt is greater than that of an original loan, you will be paying more interest even if the interest rate is lower.

When you contact a debt consolidation company, the advisor will first analyze the amount of your current debt and then negotiate with the creditor in your favor to reduce the amount of debt.

In most cases, interest rates are reduced, and late payments and taxes are occasionally eliminated. Once the total amount of the debt is reviewed, it is divided into monthly installments that make it easier to pay off.

Debt consolidation loans

Debt consolidation loans help you combine all your outstanding debts into a single loan. For example, you can have a loan with a balance of $2,500 and interest rate of 15%), a credit card balance of $1,000 with an interest rate of 12%, and a balance on a shopping card of $500 with 10% interest. All these amounts could be consolidated in a $4,000 loan at 8% interest.

The purpose of a debt consolidation loan is to reduce the monthly payments since either the interest rates fall on the new loan or the repayment period lengthens.

Financial advice

Financial advisory companies help you eliminate your debts, but they do not consolidate them. Instead, they will develop payment plans for your outstanding debts with a lower interest rate and fees.

You will make a monthly payment to the advisory company, and the company is responsible for paying all your creditors. However, you must be extremely careful when choosing a consulting company.

Refinancing

This process consists of refinancing your home and paying your outstanding debts.

Refinancing at a lower interest rate will help you eliminate debts with higher interest rates you are currently paying. You can develop a plan with a lower cost than your current one since the loan can be extended to pay it off in a longer time.  However, if you increase the payoff period, the interest also increases. You need to clearly understand the total cost of refinancing because failing to pay means you will lose your property.

Retirement

If you have a retirement plan with your company, you may get a loan from the company equal to your retirement savings.

This type of loan is a better option than withdrawing money from retirement since it saves you from paying additional taxes and penalties of up to 10%. However, if you cannot pay the loan after a period, you will have to pay the taxes and penalties. Unfortunately, if you lose your job, you would have to repay the loan immediately and pay the taxes for the early withdrawal of the money.

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.

Project Finance or Structured Financing is a mechanism of leveraged financing with limited resources. What does this mean? That financing depends mainly on generating cash flows from the project used to repay the debt versus traditional financing. The most important thing is the value of the assets that serve as collateral.

It is used for large investment projects and is tailored to the project in terms of terms, shortfalls, amounts, and the sole guarantee of commercial operations (income) and project assets.

The financing, when Project Finance is used, does not depend so much on the value of the assets that the sponsors can place as a guarantee of the project, but rather on the capacity of the project to generate own resources that allow it to pay the contracted debt and remunerate the invested capital.

The Distinctive Features:

Among its distinctive features, we can highlight the following:

• The high amount (applies to projects from around 20M dollars but can have volumes of up to tens of billions).
• Through an independent company created for this purpose, it finances investment projects that require large disbursements and are guaranteed by the expected cash flows, that is to say, due to its economic robustness.
• Cash flows must be predictable with a high degree of certainty since they are the ones that guarantee the viability of the project.
• It is off-balance-sheet financing for the promoters of the investment, which is materialized by creating an independent company of the same, formed by industrial partners and financial partners.
• The risks are assigned to those in a better position to assume it through the adequate structuring of the main project contracts.

With Project Finance, a structure tailored to each need is designed to balance financing, cost, and associated risk. Project finance limits risks and allows companies to free up resources to allocate to other investment projects.

SPV:

The most used structure to carry out this project is to create a company dedicated exclusively to this purpose, called the Special Purpose Vehicle (SPV). In this way, it is possible to individualize the risk of the projects of the promoters avoiding the potential contagion in case of the non-viability of a certain project. 

The vehicle company is the issuer of the debt that uses the cash flows generated by the project to repay the financing. These types of projects can achieve a significant level of financial leverage (indebtedness).

Advantages:

Many advantages exist in Project Finance, but the main ones are the following:

• It is off-balance-sheet financing (the SPV assumes the debt), limiting the risks assumed by the promoters and the financial guarantees. This implies that the promoters do not see their debt ratio modified, maintain the capacity of new indebtedness, and preserve their credit rating (rating).
• The project obtains higher levels of financing and indebtedness, which will be determined by the new Independent Vehicle Company, which will be greater than that which would have to be financed directly by the sponsoring company.
• This financing formula allows for longer repayment terms of the debt and much higher financing figures than the promoter company would achieve on its own.
• One of the main advantages for banks is in the price since being a leveraged structure, the margins and commissions are higher. This also entails great requirements on their part, such as the issuance of qualified certificates and the requirement of numerous ” covenants ” to the project (conditions of mandatory compliance, such as terms, margins, revenues, risks, financial ratios, etc.).
• In addition, banks can sell their participation in the project.
• Another advantage is the “customized” design of the operations based on the intrinsic characteristics of the project.
• The partners can increase their debt capacity while maintaining their credit quality or rating despite the greater indebtedness.

But what is the difference between project finance and syndicated loans? 

The main differences are the following:

• The main difference between a Project Finance and a corporate syndicated loan is the structure of the Project Vehicle Company. In syndicated loans, the company assumes the debt at the corporate level, which entails less risk of default. In Project Finance, it is also common to organize among several banks, depending on the size of the project and the volume of the debt.
• Financing in Project Finance is related to the investment project itself and is guaranteed by the financial flows of the project itself. At the same time, the Independent Vehicle Company obtains high financing, which makes its debt ratio soar. It is an operation with high risk, but it is guaranteed with the cash flows expected from the investment, with a high degree of certainty, making late payment almost non-existent.
• In Project finance, you can use many instruments. It is not a financial instrument; it is a structure in which syndicated loans are often used, or a combination of syndicated loans, bilateral loans, share issues, bond issues, convertible bonds, depending on the market situation, project characteristics, location, etc.

Is this financing more expensive?

Generally, yes, due to more risk for creditors due to the absence of guarantee by the promoters. In addition, its complex financial, legal, technical, and fiscal structuring makes it necessary to face high costs in fees of professionals, consultants, lawyers, etc., which make operations more expensive, which is why they only apply to large-scale operations.

Thus, Project Finance is more expensive than Syndicated Corporate Credit since the repayment capacity depends directly on the project’s feasibility, and the guarantees are limited. The banks do not have access to other activities carried out by the promoters.

Therefore, at the time of its origination, Project Finance requires a more in-depth study of its viability and the cash flows it will generate, which also generates costs and the requirement of banks to receive periodically qualified reports and continuous reports monitoring of the project.

The expenses and financial costs of Project Finance are greater than in traditional financing due to greater risk and a more complex financial structure. In the case of Project

In what types of projects do you usually invest?

The projects that are likely to use this financing formula can be framed in the following:

• Energy, renewable energy, refineries, tunnels, railways, oil platforms, wind farms, solar, oil, and gas pipelines.
• Infrastructures such as highways, airports, fishing ports.
• Great civil works such as hospitals, bridges, universities, etc.
• Communications, fiber optic networks, satellites, cables, airplanes.
• Industrial, chemical, steel, and other heavy industries.
• Its use has been extended to other sectors, such as real estate or hotels, in recent years.

How do these types of projects contribute to the economy?

Project Finance constitutes financial forms or models for obtaining external resources to carry out large-scale projects. Within the Financial Economic, this financing model introduces new forms of risk assessment to realize investments, constitutes an efficient way of financial intermediation and operation of capital markets for large projects, and a new valuation model of investments and decision-making within the company.

The Public-Private Partnership is common for Project Finance (projects in which private initiative joins the public sector in different proportions).
The Administration, for the construction of public infrastructures, cedes the management of the construction and exploitation rights through the transmission of the concession rights without losing influence on the activities of the SPV. This allows you not to increase public indebtedness. At the end of the concession period, private financing and management can be reversed. Thus, society benefits from the know-how and the economies of scale that promoters have.

In short, it allows the development of large infrastructures, in many cases linked to basic services (transport, health) that otherwise would have been difficult to obtain the necessary financing to develop them. On the other hand, its complexity allows the development of innovation in the financial sector and the appearance of financial entities, consultants, advisors, and banking divisions specialized in this type of operations.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-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 facing an audit, it is important to distinguish what type of audit your company will be undergoing. It could be a tax audit, provident fund audit, or financial statement audit. Before facing the audit, you should rely on a financial consultant or an experienced audit representative to help you prepare for it.

No organization or business can survive an audit without being represented by any of the leading auditing firms, particularly in the case of IRS Audit. The key stakeholders have to rely both on internal and external auditors to represent their organization.

There have been various instances where regulators have penalized the auditing firms and executives of a large corporation for conducting accounting malpractices. A couple of examples are of Enron and WorldCom.

The aftermath of Enron and WorldCom’s scandal are considered two of the foremost case studies of the significance of Audit Quality, Corporate Governance, and the adoption of IFRS. They are the leading examples of how facing an audit without representation can destroy a company if there are improprieties found by the auditors, even if the bad actors are only one or a few.

Enron

Starting with Enron’s downfall, the CEO, the board of directors, the audit and compliance committee, finance and accounting division were indicted with fiducial guilt. Purposefully providing Enron with leverage to engross in perilous accounting procedures; granting improper inconsistencies of concern; employing deficient bungle of business dealings and incentive hegemonies; and insolvency to shield Enron owners from unreasonable transactions.

Enron emerged in 1985 after two natural gas companies merged. The objective of Enron’s CEO was to institute Enron’s supremacy in the industry through amplified financial progression. However, policies and price control were regulated. Therefore, leading to subdued pricing by selling natural gas and restricting Enron’s net revenues. The opportunity to sell natural gas at market rates exponentially increased the corporation’s revenue-making competency because it had the authority to affix higher rates.

In doing so, they manipulated two accounting practices (of which one is mentioned here), which permitted Enron to conduct business operations beyond audit ethics and legitimacy parameters. The first malpractice was mark-to-market accounting.

Enron did that when a long-term agreement was contracted, the Present Value (PV) of Future Cash Inflows was treated as profit, and PV costs were expensed. In simple terms, Enron reported the revenue at its PV on the day it agreed. This accounting methodology of mark-to-market accounting legal, but Enron mistreated this practice to display incorrectly that their agreements were of high value than their book value.

In addition to Enron’s unlawful activities, a handful of Arthur Andersen (One of the Big Five Auditing Firms) employees also indulged in illegal practices and blacklisted because they were found guilty of covering Enron’s wrongful doings.

WorldCom

In the second case study, WorldCom made an array of company acquisitions of other firms that heightened its profitability. The market dashed to construct fiber optic webs. In doing so, they resorted to debt financing, which dented their profitability.

However, the board of directors and audit committee members indulged in accounting malpractice. The company acknowledged that they reported expenses for line laying as capital expenditures instead of expensing them out. They could do so by assigning a certain portion of the cost to capital as it would be recorded as an asset and gradually depreciated over the period.

This was a clear indication that Arthur Andersen again failed to discover the misreporting. So, you see, with the above-mentioned real-life scenarios, it cannot be further stressed that how pivotal is the role of auditors’ representation, especially if the federal regulator like IRS or Stock Exchange Commission is at the forefront.

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 marketing is the driving force behind the success of all businesses. The same goes for your agriculture business. If you want to expand your customer base and improve the revenue stream of your agriculture business, you need some ideas of how to do that effectively. Here are nine effective ways to market your agriculture business.

1. Identify your market

First of all, it is crucial to pin down the target audiences for your products and services. You may think the sky is your limit and that your agriculture business provides for everyone. However, that mindset may not be super conducive to the growth of your business. Instead, creating tangible goals would help you stay focused on your customers and devise targeted marketing strategies.

2. Create a logo for your business

If you want to set your farm apart from other agribusinesses, making a farm logo would serve that purpose. Your logo must be an embodiment of the values you aim to project through your business. For instance, if your farm caters to a female clientele, your logo should contain soft, natural colors and evoke a more feminine vibe. Whatever logo you choose to design, it must be in sync with your brand image.

3. Write a catchy tagline

A tagline is a simple yet effective way of grasping customers’ attention and helping them retain critical information about your agriculture business. To promote your business, you must craft a memorable and unique tagline that communicates both your brand image and the benefits it offers. Coming up with a suitable slogan might take some brainstorming, but it is an essential element of your marketing campaign. 

4. Launch your website

In today’s tech-dominated world, every business needs a website to reach a vast number of customers. A website is cost-effective and can help you up to your marketing game without an enormous investment. You must ensure that your website is highly user-friendly and contains all essential information about your agriculture business. Also, do add a visual appeal to the website by including appealing graphics and even videos.

5. Attend agribusiness-related events

Farm-related events are an excellent way to meet your business community and acquire industry-specific knowledge. Besides, you can also connect with potential customers and market your agriculture business. If you want to make the best of such experiences, set up a stall at the event and give out free samples or souvenirs. You will surely attract people and may as well find some new customers.

6. Advertise your business

It would help if you advertised to spread the word about your business. Advertising is the only way people are going to know your farm exists. If you have a small budget, you can go for small classified ads in newspapers. It is also essential to keep in mind that you only have limited time to grasp your readers’ attention, so your headline should be very captivating. Always remember to include your farm name, phone number, and website address in all your advertising.

7. Provide stellar customer service

Customer service representatives are brand ambassadors of a business. It doesn’t cost much to establish a good customer service team. However, having a bad one can certainly cost you your business. To foster a positive image of your agriculture business, you must either hire an appropriate candidate or perform this task yourself. Amicably addressing your customers’ needs and queries can make a massive difference to your brand image.

8. Allocate a marketing budget

Establishing a marketing budget for your business is an effective way to set your goals straight and remain focused. In your business’s initial years, the marketing budget may be slightly high – 5-10% of your gross sales. But with time, it might begin to drop and even reach 2-3% of gross sales. In any case, it would be wise to craft a financial marketing plan.

9. Track your progress

Finally, it is vital to monitor your agriculture business’s success over time. Some of the pertinent questions you might want to ask yourself are as follows:

• How did I do sales-wise this month/year?
• Did I sell my products/services quickly this month/year?
• Did I lose any customers?
• Did I acquire new clients?
• Did my passion for the business increase?
• What were some of the challenges I faced?

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 you think of agriculture, what comes to mind? Farmers, dirt, cows, and working in the fields? Well, that is true to some extent. However, an agriculture business can expand well beyond farming or ranching. There is a common misperception among young people that agricultural work is merely about growing crops and looking after livestock.

Contrary to these beliefs, the modern agriculture industry is much more diverse. Today’s agriculture has far more scope and opportunities and is constantly driven by opportunities and innovation. Here are seven reasons to consider an agriculture business.

1. It offers a wide variety of jobs

The industry offers a diverse range of employment opportunities. A few work areas include plant sciences, farming technology, dairy industry, food sector, etc. Moreover, several other initiatives are directly connected to agriculture, such as machinery, crop growth, and protection materials, animal feed, etc.

The sector also requires manufacturers, distributors, researchers, and logistics personnel. In short, no matter what skills you have, there will be a job in the agriculture industry that fits you.

2. It is constantly growing

The need for agriculture will never cease as the human population is constantly rising. One of the biggest challenges the agriculture industry faces today is figuring out how to feed so many mouths. So, unlike other sectors, the agriculture industry has no downturn.

This means that the demand for professionals in this sector will only shoot up in the long term. Along with the increase in demand, jobs and wages will improve too.

3. A farming background is not mandatory

If you aspire to join the agriculture industry, you don’t necessarily need a farming background. Over the past few years, the sector has experienced a dire shortage of workers and the need to attract fresh talent. The modern agriculture sector aims to invite young and brilliant individuals to explore the vast careers available. Now they want people with farming expertise and those with diverse skill sets to drive the agriculture sector. So even if you have a degree in digital marketing, agriculture is still a significant sector to work in.

4. It offers excellent salary packages

The agriculture sector plays much better than many other industries. Besides, it has better employee retention and satisfaction rates and is more likely to provide you with perks like company-maintained cars, accommodation, and even cell phones. When compared to some other sectors, getting promotions in the agriculture industry is more effortless. Also, graduates of agriculture degrees have higher employability rates than many other sectors. In a nutshell, you’re more likely to get hired as well as paid more than any other sector.

5. It has great locations

The agriculture industry has a variety of jobs that offer paid travel opportunities to their employees. Besides, they may also provide the bonus of living in beautiful countryside areas, thereby giving you a perfect chance to explore some of the country’s most gorgeous parts.

Living in pleasant, pollution-free rural regions can benefit your health and save you from the daily grinding urban commutes. Such experiences also enable you to meet with people from rural areas and learn about their fascinating lifestyles.

6. It is a high-tech industry

Unlike popular opinion, the agriculture sector employs the latest innovations and cutting-edge technology to make food production more efficient, cost-effective, and safer. The industry has evolved rapidly over the past few decades and continues to modernize.

Furthermore, to address the emerging challenges of a rising global population and threats posed by climate change, the sector needs to improve its methods and approaches constantly. So, if you aim to work in a field that uses the most advanced engineering and science developments, agriculture will appeal to you.

7. It enables you to contribute meaningfully to society

Work in the agriculture industry is gratifying. It involves passing on something to future generations. Farmers play an instrumental role in feeding the masses, tackling food poverty, and making the world slightly better.

If you intend to work in the agriculture industry, there is a reason for you to be incredibly proud. You will become part of an industry that produces high-quality food at affordable prices and sustains the human race.

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.