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The bubble bursting can be blamed for the global systemic crisis, but so can the classic restructuring phase of the capitalist economic cycle, the growing rejection of ethical values, and, most notably, transparency and moderation. The main body of economic activities loses its sense of responsibility because there are no external safeguards; there is too much room for abuse.

A degree in economics provides you with advanced mathematical and statistical skills and the ability to apply economic assumptions and models to problems in business, finance, and government. You can also use economic principles to comprehend the rationale behind complex data, how things fit together, and the greater context.

The following are some of the specific abilities you will learn:

• Communicate – Proficiency in conveying ideas with precision and logical rigor, underpinned by the adept utilization of sophisticated data and evidence.
• Mathematical abilities – Adeptness in intricate data processing, alongside mastery of advanced mathematical and statistical tools, facilitating data-driven decision-making.
• Problem-solving abilities – The capability to tackle complex challenges with ingenuity, creativity, and an analytical mindset, arriving at effective solutions.
• Analytical abilities – The ability to dissect complex issues, discern patterns, and extract meaningful insights from data, enabling a deeper understanding of multifaceted situations and driving informed decision-making.

Is it still possible to exercise our freedom to supervise an economy that is frequently incentivized to run the globe to the point of subjugating politics? You don’t need an environmental science course to receive a good higher education in Belgium. Isn’t it better to take Jang Ha Jun seriously and include him somewhere between algebra and history in the curriculum? The following are four compelling reasons to study economics.

The Crucial Role of Economics in Effective Management

Becoming a proficient manager demands a thorough grasp of economics. In the realm of economic policy, this proficiency is indispensable for the efficient allocation of our limited resources. It’s essential to underscore the finite nature of Earth’s resources, and yet, throughout history, human ingenuity has continually found innovative solutions to surmount these limitations.

Consequently, individuals responsible for financial matters, such as those working in banks, accounting firms, or trusts, must possess a fundamental understanding of economics, benefiting their daily professional responsibilities and ability to comprehend broader societal issues. These issues encompass pressing topics like global warming, the energy transition, and the transformative impact of the digital revolution, making them ideal subjects for discussion in the workplace with colleagues and peers.

Enhancing Decision-Making Through Economic Literacy

Develop the skill of discerning economic news through the study of economics. While it’s true that economists often grapple with incomplete information when addressing complex issues like combating global warming or estimating the resources needed to alleviate hunger, a strong foundation in economic principles equips you with analytical models and tools to enhance your comprehension of financial news. This proficiency lets you discern patterns, trends, and diverse viewpoints, resulting in a more informed and well-rounded decision-making process. Acquiring this economic knowledge enhances your ability to make balanced and less risky decisions by considering various factors and perspectives, ultimately contributing to your effectiveness as a manager.

Becoming a More Informed Citizen: The Power of Economic Education

In times of economic and social turmoil, a foundation in financial education can transform you into a more engaged and enlightened citizen. Armed with the insights gained from this knowledge, you can swiftly dissect politicians’ statements and decipher the intricate language of economists, an invaluable skill, particularly during elections or general voting periods in places like Switzerland.

Professionals and vocational students, for instance, can cultivate an economic mindset that reshapes their perspective and perception of the world. This transformation involves reconfiguring your mental model (known as “Weltanschauung” in German), which can lead to a richer and more holistic understanding of societal dynamics.

Gaining Insight into Human Behavior through Economics

A grasp of economics is instrumental in exploring and comprehending human behavior. Human actions encompass predictable responses to stimuli and the occasional irrational, unpredictable elements. Understanding these dynamics empowers us to devise methods that influence behaviors for the greater good, whether for the benefit of society, public health, or other aspects of human interaction. In essence, economics can serve as a bridge to sway specific psychological mechanisms.

From this vantage point, economics reveals itself as an interdisciplinary social science, shedding light on the nuances of human behavior while extending its reach to a wide array of domains, encompassing health, environmental concerns, individual actions, societal complexities, business tactics, national governance, and beyond.

Conclusion 

In conclusion, the global systemic crisis, symbolized by the bursting of economic bubbles, underscores the complex interplay of factors, including the cyclical nature of capitalism, ethical values, transparency, and responsibility. A degree in Economics equips individuals with advanced mathematical and statistical skills, enabling them to analyze complex data, solve problems, and make informed decisions across various domains. Moreover, studying economics enhances one’s ability to evaluate and supervise the economy critically, efficiently manage scarce resources, and address pressing global issues. It also empowers individuals to become well-informed citizens, interpret economic policies, and understand human behavior in various contexts, making economics an interdisciplinary social science that sheds light on our interconnected world. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Business banking, or corporate or commercial banking, is a specialized suite of financial services tailored to the unique needs of businesses. These services encompass many offerings, including loans, credit facilities, savings accounts, and checking accounts. Business banking acts as a strategic financial partner, providing valuable advisory services to companies.

The comprehensive array of business banking services encompasses deposit accounts, non-interest-bearing products, real estate loans, commercial loans, and credit card services. In some cases, banks may extend their support to include asset management and securities underwriting, offering holistic financial solutions to their corporate clients.

Business banks go beyond traditional services to provide essential tools for managing financial operations efficiently. It includes financing options, cash management solutions, payroll services, and robust fraud protection measures.

To make the most of business banking, consider the following tips.

Understanding Business Banking Fees

One of the initial and crucial steps in business banking is gaining a thorough understanding of the fees associated with business bank accounts. These fees can vary depending on the type of account and the financial institution you choose. It’s essential to be aware of the following types of fees that businesses may encounter when establishing a bank account:

1. Application Fee: Some banks charge an initial fee for setting up a business account.
2. Monthly Maintenance Fee: This fee is a regular charge to keep the account active and often varies based on the type of account.
3. Transaction Charges: Businesses may incur fees for each transaction, including deposits, withdrawals, and other banking activities.
4. Deposit Charges: Certain business accounts may impose charges on the amount deposited, especially for large or frequent deposits.
5. Overdraft Payments: Overdraft fees apply when a business account balance goes below zero.
6. Withdrawal Fees: Some banks charge fees for specific withdrawal methods or excessive monthly withdrawals.
7. Non-Standard Transaction Charges: Uncommon or specialized transactions may come with additional fees.

Different types of business bank accounts come with varying fee structures. To make an informed decision, carefully consider which account aligns with your business requirements. Additionally, keep an eye out for introductory offers provided by banks. These offers may include interest-free loans for an initial period, reduced interest rates for the first year, extended payment deadlines, or complimentary services like a free checkbook.

When selecting a bank and account type, assessing these fees and special offers becomes a critical factor. Choosing the right business banking solution can significantly impact the financial health and efficiency of your business.

Understanding Business Debit and Credit Cards

Distinguishing between business debit and credit cards is crucial when setting up a bank account, as each serves a distinct financial purpose. Here’s a breakdown of their differences:

1. Debit Cards: A business debit card allows you to access and use the funds already deposited into your business bank account. It acts as a convenient electronic form of your account balance. When you purchase using a debit card, the amount is deducted directly from your account. No borrowing is involved, and you can only spend what you have in your account.
2. Credit Cards: In contrast, a business credit card provides a line of credit that allows you to make purchases on credit up to a predetermined limit. When you use a credit card, you’re borrowing money from the card issuer, typically a bank, with the promise to repay it later. You’ll receive a monthly statement with the amount owed, which can be paid off in full or through minimum monthly payments. It’s important to note that any outstanding balance on a credit card accrues interest, making it a form of short-term borrowing.

The choice between a business debit or credit card may depend on the specific requirements of your business. However, the card type should not deter you from opening the bank account that best suits your needs, as both have merits and uses.

While both card types offer advantages, they also come with some considerations. Debit cards typically have no annual fees, but you may encounter other charges, and it’s essential to maintain a sufficient account balance. Credit cards can be convenient for making substantial purchases but may lead to overspending if not managed responsibly. 

Nevertheless, credit cards can be a helpful source of short-term financing without collateral, making them valuable tools for managing cash flow and handling more considerable expenses in business operations.

Overall, understanding the distinctions between business debit and credit cards allows you to make informed decisions about managing your business finances effectively, considering your cash flow needs, spending habits, and financial responsibilities.

Critical Times to Consult Your Bank Manager

Seeking assistance from a business bank manager is a wise approach in various situations, and it’s beneficial for both new and experienced business owners. Here are some scenarios when you should consider reaching out to your business bank manager for guidance and support:

1. Starting a New Business: If you are a new business owner, it’s essential to consult with your bank manager to understand the various financial services and options available. They can help you set up the proper accounts, loans, and credit lines to support your business’s unique needs.
2. Financial Decision Making: When faced with critical financial decisions, such as taking out a loan, making an investment, or restructuring your accounts, a bank manager can provide expert advice to help you make informed choices that align with your business goals.
3. Account Management: If you have questions or concerns about managing your business accounts, such as optimizing cash flow, reducing fees, or ensuring compliance with banking regulations, your bank manager can offer valuable insights and solutions.
4. Financial Troubles: In the event of financial difficulties or issues with your business accounts, such as unexpected fees, unauthorized transactions, or account discrepancies, your bank manager can help you resolve these problems efficiently.
5. Access to Additional Services: Bank managers can also introduce you to additional financial services and resources, such as investment opportunities, treasury management solutions, and business insurance.
6. Building a Relationship: A strong working relationship with your bank manager can be beneficial. Regular communication and collaboration enable them to understand your business and financial objectives better, making it easier for them to provide tailored advice and support when needed.
7. Information and Education: If you need more information about business banking, financial products, or the latest industry trends, your bank manager can be a valuable resource for education and updates.

Remember that your bank manager is there to assist you in making the most of your business banking relationship. Building a productive and communicative partnership with them can significantly enhance your financial decision-making and contribute to the success of your business.

Conclusion

Business banking is beneficial for any business as it helps your business keep track of all activities such as expenses, offers services such as debit and credit cards that make your business more efficient, and makes tax reporting and loaning money easier. Since business banking separates your business finances from your finances, your experience as an entrepreneur becomes much more accessible and hassle-free. The best part about corporate banking is that you can customize the services provided by the bank on your terms according to the needs of your business! About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A balance sheet is mainly a financial statement of a business for a particular period, mainly of a financial year and possibly for a quarter or six-month period. A balance sheet includes the business’s assets, liabilities, equity capital, and the total debt owing or owed. For a balance sheet to balance, the assets and liabilities should be of the same amount (Assets = Liabilities + Equity). 

Having a balance sheet is essential for a business. It determines how much money your company owes and if you have enough money to pay the creditors of your business. You can calculate the accounting liquidity ratios through a balance sheet, giving you even better information about a company’s liquidity position. 

Secondly, when your business needs to take a loan, the business or bank lending you money can quickly identify whether you will pay the money back if there is no risk in investing in the business through assessing your balance sheet. In short, it can help all the stakeholders of your business.

Following are the essential elements of a balance sheet you must know about before creating it.

Assets

An asset is any resource in the business owned and controlled by the business and can be converted into cash. An asset can be tangible or intangible. According to IAS (International Accounting Standards), the first thing to come in a balance sheet is the asset, divided into two parts: noncurrent assets and current assets. Noncurrent assets are long-term assets (in the business for more than one financial accounting year). Examples can include vehicles or the land. Depreciation (a method of allocating the cost of noncurrent assets over their useful life or expectancy) is charged every year or every month on noncurrent assets. The current assets are the short-term assets of a company that stays in business for less than one financial accounting year. For example, the cash in hand or the bank, the closing inventory, etc., adding up your current and noncurrent assets will give you the total assets.

Intangible assets are calculated with noncurrent liability; however, most businesses do not include them in the balance sheet.

Liabilities

After total assets, we calculate the liabilities. Liabilities are anything that your business owes to its stakeholders. Like assets, liabilities are divided into two categories: noncurrent liabilities and current liabilities. Noncurrent liabilities are the liabilities that a company owes, and the payback date is after one financial accounting year. An example can be a long-term loan taken by the bank or any other source from where you take the loan and can pay it back after a year. However, a current liability is what a business owes and must pay back within a financial accounting year. After calculating the liabilities, you do not get the total liabilities; however, the balance sheet will only balance once you add the capital. 

Equity Capital 

The last part that needs to be calculated in a balance sheet is the equity capital. Capital is the amount of money that You can return to the shareholders of a business, or if one person owns the company, then it is known to be the owner’s equity. The capital is calculated by adding the profit and deducting the drawings from the opening capital. Moving on, you add it to the liabilities and, afterward, subtract it from the total assets, and you have a complete balance sheet. The support liabilities and capital need to balance to meet the equation: assets = capital + liabilities.

Conclusion 

In summary, a balance sheet is a fundamental financial statement that provides a snapshot of a business’s financial position at a specific time. It is crucial to understand a company’s assets, liabilities, and equity capital. A balanced balance sheet is essential for assessing a company’s financial health, its ability to meet obligations, and making informed decisions for stakeholders and potential investors. By comprehending the key elements and their relationships, businesses can maintain financial stability and plan for future growth effectively. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Managing cash flow is essential as it helps businesses run more effectively because it determines how much money is coming in and going out of the company. Proper cash flow can help prevent the liquidity problems a business can face if your business is constantly spending earnings. For all businesses, but especially for small businesses, it is necessary to have enough money to pay creditors and avoid extended cash shortages, mainly caused by a vast difference between cash inflows and cash outflows.

Managing the cash flows of your business is a challenging job, and while analyzing the cash flow, many problems may occur. Still, this article will also give you the solution to help you run your business better.

High Debt Payments

Having high debts causes difficulty in managing the cash flows and is a common problem a company faces especially new and small businesses. The leading cause of this problem is usually a high-priced loan with higher interest rates taken from the bank. Because of this, the net inflows reduce, which causes you to pay the debts from your profits and retained earnings, which can further lead your business into a deficit.

 Solution

The best solution to having extensive debts can be refinancing your loans. Refinancing the loans means replacing the high-interest rate loan with another loan of a lower interest rate, reducing the payments by decreasing the interest rate. Moreover, suppose the business must make higher payments. In that case, you can also consider cutting other overhead expenses, such as finding a cheaper supplier to reduce your cost of sales. You can also increase the selling price of your products. In turn, this will increase the return on capital employed, further increasing your inflows and leading you to pay your debts relatively quickly.

Offering Too Many Credits

If you are in a wholesale business, it is pervasive that you supply goods on credit, which can be very risky and challenging to manage as you cannot trust if the business will repay you or not. Even trustworthy companies can face liquidity problems or even go bankrupt, which can reduce the chances or even make it impossible to get your money back, causing you to meet cash flow and management problems further. 

Solution

A solution can be credit insurance, as it protects the business against nonpaying firms or clients. It mainly pays you a certain amount of your loan if the debtor is not paying because they are bankrupt or facing cash flow problems and will pay you back later than the payback date. Insurance can further help you manage your cash flows easily.

Excess Inventory

Having excess inventory means that the business has either produced extra goods to sell or has stocked many products intended to sell. Excess inventory causes the company to have more current assets, i.e., the closing list, making the cash flows more challenging. The stock stays longer on the shelves, resulting in obsolete inventory. It will take up extra storage, increasing storage costs and resulting in higher expenses and high outflow.   

Solution

If you are in a manufacturing business, you could use the just-in-time method of production, which will ensure that no extra inventory will be produced, which would be wasted. This way, there would not be any additional costs, and the cash flow would be stable. If you are in a retail business, then you should only buy the amount of inventory that you are sure will be sold. The company will have fewer current assets, and the income will be higher, reducing the outflows and making it easy to analyze the cash flow position. 

Conclusion

In conclusion, effective cash flow management is crucial for the financial health of a business. It helps maintain liquidity and prevent high debt payments, excessive credits, and excess inventory. By implementing the suggested solutions, businesses can enhance their financial stability and ensure smooth operations. Managing cash flow is an ongoing process that demands attention and adaptability, but with the right strategies, businesses can navigate these challenges successfully. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Are you ready to elevate your business? It’s no secret that entrepreneurship is a relentless journey. While entrepreneurs are tirelessly busy ensuring the survival of their businesses, effective human resource management is often the linchpin for achieving corporate objectives. Outdated methods and technology won’t cut it in the 21st century. It’s imperative to embrace modern technology and practices to harness the full potential of your human resources. The following steps will guide you toward managing your human resources efficiently.

Understanding the Mission

At its core, every human resource department must grasp the company’s mission statement fully. This statement serves as the driving force behind the organization. It propels the company toward its desired objectives. Achieving this requires a comprehensive understanding of company goals by HR executives. Precision is critical because everything emanates from this foundational understanding. Human resource managers are acutely aware of the stakes involved, and they diligently work to ensure that the necessary performance levels are consistently achieved.

Focusing on Business Growth

The foremost consideration is business growth. HR must remain vigilant about the direction in which the business is progressing. If it’s on an upward trajectory, the department should anticipate the need for recruitment in the near future. HR departments play a crucial role in maintaining open lines of communication with company leadership to discern the appropriate timing for recruitment planning. Anticipated business growth typically catalyzes commencing the recruitment process.

Anticipating Future Needs

An essential role of a contemporary human resource department is proactively preparing for the needs of a growing company. It entails vigilance over the company’s expansion plans, especially during potential mergers with other businesses. Regardless of the size of the merger, it places the HR department on high alert. HR must foresee the future needs of the company and act accordingly. Moreover, HR needs to balance the company’s demands with its employees. In this dual capacity, HR’s role expands as it manages the existing workforce while anticipating selective future recruitment. It’s important to note that such hirings are typically limited and aimed at replacing departed employees.

Ensuring Employee Retention

Employees are often deemed a company’s most valuable asset, and this perspective holds. Forcing employees to leave or pushing them is detrimental and far from an ideal practice. Instead, a proficient HR team is committed to ensuring employee retention at all costs. Experienced employees possess an in-depth understanding of their roles and what the company expects from them. Over time, retaining these professional employees not only enhances profitability but also facilitates business growth without the concern of incurring losses. Therefore, the prevailing focus is on having seasoned employees while recruiting new talent when necessary.

Providing Essential Tools

What value does an employee bring if they have a target in their sights but lack the necessary tools to achieve it? This issue frequently plagues companies, leaving employees needing more essential resources for optimal performance. To address this concern, the HR department must proactively assess the workforce’s needs and promptly provide the requested tools.

Considering Employee Competence

Expecting peak performance from employees without providing the necessary tools is an exercise in futility. Additionally, HR should align employee targets with their competence and expertise. Fresh candidates may need more experience and knowledge than more seasoned employees. Therefore, HR professionals must evaluate each employee’s background and skills before task assignments.

Initiating Best Practices

To achieve optimal results without sacrificing performance, HR professionals must champion best practices. Their skills and expertise are vital in extracting superior performance from the team while preserving their confidence. While pushing employees to work late may temporarily impact their performance, it is necessary to meet monthly and quarterly goals. Balancing these demands is essential for success.

Conclusion 

In today’s dynamic business landscape, human resource management is a cornerstone of success. Modernizing HR practices and embracing technology is essential for achieving business growth. Equipping employees with the necessary tools and considering their competence is crucial. By initiating best practices and fostering a positive work environment, HR professionals can drive performance and achieve company goals effectively. In a world of constant change, staying ahead means adapting and optimizing HR strategies to meet the challenges of the 21st century. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Synonymous with the income statement, a profit and loss statement (P&L) is a complete summary of the financial standings of any business. It includes the total revenue, service and product cost, taxation, payroll, operational costs as well as the net profit of the company. Large enterprises and businesses usually compile P&L on a quarterly or bi-annual basis. Smaller enterprises maintain a monthly P&L to keep their financial standings and business trends under check.

P&L is particularly important for the filing of business tax returns. It allows business owners to calculate their net income accurately and then determine their income tax liability in a fiscal year.

P&L also plays an incredibly significant role in pitching potential investors or diving into a new business venture. Such a profit and loss statement, more aptly called a Pro-forma P&L, is a futuristic projection of estimated costs and potential revenue calculated after reviewing market trends.

It is best to use proper accounting software to create a profit and loss statement; however, if you do not have access to one, here is our 6-step guide to help you make a good profit and loss statement.

Calculating Total Revenue

It is imperative to calculate your business’s total revenue for the specified timeframe to kickstart your P&L statement. It entails not only assessing income from sales but also accounting for any additional revenue sources, such as earnings from asset sales or investments. Cross-referencing this calculated total revenue with your business account balances and financial transactions during the designated period ensures the accuracy of this crucial financial figure.

Deducting Product and Service Costs

After meticulously cross-referencing your total revenue with your bank statements, the next step involves deducting the costs associated with the products or services your business offers. These expenses encompass the amount disbursed when procuring products from external vendors, manufacturing your goods, or providing services to clients—ranging from graphic design to writing and transcribing. This process of cost deduction unveils the transparent contrast between your product and service expenses and the revenue they generate, ultimately exposing your business’s profit margin.

Calculating Gross Profit

Following the deduction of product and service costs, the subsequent step involves subtracting your company’s total operating expenses. The outcome of this calculation represents your company’s gross profit. Operating expenses encompass a broad spectrum, ranging from human resource costs and payroll to utilities, equipment, logistics, and various other expenditures directly or indirectly associated with business operations. These costs collectively underpin the financial health of your business, and understanding the gross profit is crucial in assessing your financial standing.

Adding Additional Income

Once you’ve deducted product and operational costs, the next crucial step involves adding any additional income earned by your business. This supplemental income may encompass dividends from other investments or interest income. The result of this addition is the calculation of EBIDTA (Earnings before interest, tax, depreciation, and amortization). This financial indicator provides a comprehensive snapshot of your business’s financial performance, serving as a pivotal metric for assessing profitability and financial stability.

Calculating Taxes, Depreciation, and Remunerations

Once your EBIDTA is determined, it becomes the foundation for computing your gross income. From there, you can seamlessly calculate your income tax liability. For precision in this aspect, it’s advisable to engage a taxation and asset depreciation expert to provide accurate estimations. Additionally, don’t overlook the remunerations extended to your employees or clients; ensure these are accurately calculated, considering their significance in the financial framework of your business.

Finalizing Net Profit

With your taxes and asset depreciation value accurately calculated, you can finalize your net profit. This conclusive figure represents the ultimate financial outcome of your business operations. It encapsulates the overall financial health of your company, accounting for all revenue, expenses, and tax liabilities. The net profit reveals how successful your business has been in generating income, managing costs, and complying with taxation requirements. It serves as a clear indicator of your business’s profitability and can inform critical decisions, including resource allocation, expansion plans, and investment strategies. The net profit is more than just a number; it reflects your business’s financial viability and is a critical driver in shaping its future trajectory.

Conclusion 

In conclusion, the profit and loss statement (P&L) is an indispensable tool for businesses to assess their financial health and profitability and plan for the future. Following the steps outlined in this guide, you can accurately prepare a P&L statement, enabling you to make informed decisions, understand your business’s trends, and continuously improve your products and services. This financial document not only aids in tax reporting but also serves as a valuable asset in shaping the trajectory of your business. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Has the bank rejected your financing application? Are you looking for an alternative solution to finance the development of your business? Solutions exist. You need to understand the bank’s refusal and reorient yourself.

Ask Your Banker

Is it the type of need that posed the problem, the lack of personal contribution, the absence of surety or guarantees to apprehend, or the financing file that was not complete enough? To advance in your search for financing and to target it better, you must, above all, understand this bank’s refusal.

Contact a CCI

To gather as much information as possible about existing funding, go to advisers linked to your sector, for example, a Chamber of Commerce and Industry (CCI). These public bodies help entrepreneurs identify their needs and direct them to suitable financing bodies, state aid, etc. You can ask them for more detailed and personalized support for a fee.

Hire a Broker

Don’t have the time or don’t want to do this research yourself? You can always turn to a broker who will investigate for you to determine the financing best suited to your activity, business, and need. You will be able to benefit from his expertise and especially from his network. His remuneration generally depends on the amount of credit granted for the success of his mission. Your interests go in the same direction.

Corporate Finance: What Other Solutions?

Banking competition

If your historic bank does not follow you, do not hesitate to approach others. They do not all have the same criteria. A banking player will also be ready to make concessions to attract a new client and thus recover the company’s financial flows.

The banking pools

Building a bank pool allows credit to be divided between several banks – and, therefore, the risks associated with the project. However, they will also have to share the company’s financial flows. This last element remains very disappointing for a bank. Indeed, a banking organization will prefer to keep all the flows. It will, therefore, probably choose to carry out co-financing with, for example, a crowdfunding platform. The latter does not require opening an account, and flows can be kept at 100% by the banking institution.

Crowdfunding

In recent years, crowdfunding has become a natural alternative to business bank loans. Different types of platforms exist, adapted to the diverse needs and stages of maturity of a company.

Crowdfunding or donation against donation

With collections of $5,000 on average required, crowdfunding is more suited to small needs when starting a business. This method of financing makes it possible, for example, to supplement a personal contribution (springboard to the bank loan), acquire its first stocks, or launch the manufacture of its first products.

Crowdlending or crowdfunding

Particularly suited to the development of VSEs / SMEs, crowdfunding loans can borrow between $10,000 and $2.5 million from individuals in exchange for financial interest. Generally, platforms rely more on companies’ actual reimbursement capacities than on the guarantees and guarantees they can present. Therefore, this financing solution suits intangible needs such as recruitment, work, marketing expenses, R&D costs, IT equipment, or stocks.

Crowd equity or participatory investment

Rather suited to companies in the creation or startups in the acceleration phase, crowd equity allows individuals to become micro-shareholders in exchange for financial investment. As with the loan, companies can raise funds up to 2.5 million dollars.

Business angels

Business angels choose projects that are important to them. More than a financial investment, they will offer these time-creating companies and their expertise. Indeed, they are generally former entrepreneurs or businessmen/women.

Daily factoring or financing

These solutions, which work almost the same way, are particularly suited to cash flow needs. In both cases, the debts owed by the company’s customers are advanced to it. With factoring, the factors (or factoring companies) become the owners of the company’s debt. They, therefore, reimburse the company and are responsible for monitoring the receivables. With daily financing, the company remains the debt owner, but its bank makes a cash advance.

Honor loans

Honor loans are for business startups and takeovers. Honor loans are zero-rate loans. The purpose of this credit is to be a lever for obtaining a bank loan. It generally complements a personal contribution.

Investment funds

Financial companies aim to manage and invest the funds entrusted to them by their investors (individuals, institutions, etc.). It seeks to invest in companies with promising growth opportunities and generate an attractive return on investment. Several investment funds choose to invest in companies according to maturity sector. For example, venture capital funds oriented towards creation or development capital funds concentrate on growth companies.

Leasing

When considering purchasing vehicles or machinery, leasing allows companies to spread their payments over time and not take out credit or weaken their cash flow.

Target funding adapted to their needs

For a business executive, it is imperative to learn to target the resources relevant to his project. The bank is not the solution to all funding requests. There is a solution for every need! Understanding the tools available and diversifying its funding sources have become real challenges for a business executive! Having alternatives in mind and knowing what solutions you can claim will also bring you greater bargaining power with the bank. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

According to Forbes, the success rate of global traders is around 10%. We want to perceive ourselves as winners. However, successful traders are constantly focusing on their losses. It allows them to increase their efforts. Keep a record of what you have earned and lost every day in your business. It is suitable for the company when running a business that needs growth and fame in the market.

Make a proper plan and stick to your goals with the discipline to become a successful entrepreneur. It is better to do a 9 to 5 job by locking your hands and dreams. You will have to learn how to trade for a relevant business in which you are interested in profitable investments.

It would be best to have massive financial capital with the stamina to bear risks. Suppose you want to make desirable money and become a successful trader. In that case, you will have to consider the following rules. You must know what the Financial Industry Regulatory Authority (FINRA) is and how to get it.

Every business owner needs a Financial Industry Regulatory Authority (FINRA). For this, you must have at least $25,000 equity in your account. It applies to those who sell and purchase the same security on the same day. It will be officially possible four or more times in five business days. Your day-trading operation must be six times greater than trading activity within the same five-day period.

A Plan

Trading is how you spend money and invest your life savings, time, and efforts. 80% of Americans dream of self-made business as it makes you independent financially, and you will be the only central power.

For this, you need to set your goals and rules for your business operations. Also, a proper plan with all listed requirements, budget, and overall company cost. In this way, you will know how to manage all your expenses, risks, and the return of investments. Also, it provides us with the courage to deal with every crisis and situation, like rush orders and product delivery management, with a tight budget.

Remember that you will always estimate every expense more than the actual cost. For instance, your business expense of one order is one lac so you will set aside two times extra money for that. If you can’t do this or have a limited budget, an emergency fund will be the best option. It will prevent you from capital deficiency. Also, when you miss something unintentionally, your business plan will help you and help convince your potential customer.

Track Your Regular Performance

Make your business strategy from day one of your project management. There are lots of software available on the internet. Performance monitoring is not a thing that indicates your business activity’s status. It tells you how you manage your risks, finances, and money transactions and how you overcome your crisis. Are your delivery production and money transactions free from scams and illegal basis?

You must be tech-savvy in this regard and can’t do it manually. It would be best to have a backup plan with the backup-testing system. It will record your business performance, money transactions, delivery products, and legal business operating activities.

Your corporation must have a TD Ameritrade for a practice system. Wealth-Lab Pro protects you from fidelity. Many business owners receive ten thousand fake money to check whether PaperMoney is legal. There are lots of software and platforms that offer you such services for free. Some online channels ask for extra charges, and a few offer different packages.

Get Benefit from Technology

When you deal with your business with a professional platform, including the projects of international clients, you will have to be tech-savvy. Technology does not only help you in making potential backtesting strategies. But it also provides access to those platforms that can digitalize all your business activities.

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

Today, businesses require a lot of planning to achieve the success needed and to recover the investment that is happening. Starting a business is not easy, and less if one ventures without knowing anything about it. It is not just about “losing money.” A person must do financial analysis marketing and look for sources, among many other things, to know if it is appropriate.

Being a Business Owner Requires Planning

Having a business of their own is everyone’s dream, but it can become a nightmare without proper planning. While there are too many micro-businesses or enterprises, there is no decisive reason to be part of them. While they plan their work and work with their plan, everything should go well.

An option for many people is to have an established business because there is a safe investment, which is relatively accurate. There is also the option of having a company with partners who help them get ahead and grow it.

Is Entrepreneurship for You?

For many people, starting a business is a risky adventure; it is a fact that most small businesses fail every year. There is no sure formula to eliminate this risk, but it can be reduced when planning and evaluating ideas in the industry.

A person must start evaluating themselves, determining the strengths and weaknesses, the leadership capacity, and the ability to direct and make decisions. The demand for entrepreneurs is as great as the skills are recognized. To make sure if this is the right choice or not, one can ask the following questions:

Do They Have Initiative?

Remember that the success of their business will depend only on them, their flexibility, confidence, discipline, and the ability to make quick decisions and organize their time to follow everything in detail.

Are They Ready for the Demanding Job of a Home Business?

Running a business is exhaustive; they spend 12 to 16 hours a day in it, planning and working on weekends and holidays. It also means that your family is prepared to make sacrifices since having all the responsibilities of owning a business can be heavy and stressful, and they may need help at some point.

Do They Have Business Management Skills?

Management skills, more than anything, refer to if you have any experience in management and supervision of the business. In addition to being related to the fact that it requires hiring or firing people before. It is fundamental for sales and marketing because they will also understand the accounting and financing of the business.

The Positive Side

A sad reality is that they can find many reasons not to start a business, but if they are motivated and ready to work hard, trying to take advantage, and willing to sacrifice, they can soon be their boss. Continuously, the long work hours have their benefits, and undertaking means not limiting opportunities, accepting challenges, and receiving rewards. Now, to know if their idea is feasible, I make a list of questions that will help you to understand:

• Is there enough money for the idea?
• Do they have any significant experience in the industry?
• Can they sell?
• Is their idea a new pioneer within the segment they want to serve?
• How broad is the market they choose to target?
• Does their market have a chance to grow?
• Who will be their competition?
• Are they better than the competition? How?
• What is the most significant risk in their idea?
• Can they finance this business?
• After they answer these questions, they can list things to start their plan and ideas.
• I recommend that they read the tips to start a business; there are over 60 tips.

Reasons to Seek Advice

Many business owners do not usually seek legal advice until a problem confronts them. A good entrepreneur seeks the experience of lawyers and people who help him with legal advice; a legal counselor provides guidance and essential skills for managing their team.

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

The economic changes influenced people’s consumption habits and changed how and when they decided to eat. The days of making three meals at a fixed time are already a thing of the past. Now, snacks and meals at any time appear as growth opportunities for restaurants.

In recent years, we have seen how more consumers prefer to take advantage of offers and make smaller purchases, even when it comes to food. They are asking for less at the main meals – which makes them hungrier during the day. And for all this, they spend the day pecking, they are fond of snacks and eat at different times than traditional ones.

According to the Techonomic study, snacks between meals have grown steadily in recent years. Still, since 2016, 83% of consumers have accelerated even more in 2016, compared with 76% in 2014 daily. Among the causes of this are:

• The accelerated pace of consumer lifestyles
• The increase in the number of smaller households (which allows greater flexibility around mealtimes)
• The increasingly widespread notion is that Snacks are part of a healthy diet

Several studies have shown that restaurants could attract loyal customers during low-demand hours if they offered, especially discounts.

And more so when 77% of adults – including 85% of millennials – say they would most likely go to a restaurant at low hours if they paid less.

If you want to increase sales in these periods, your goal will be to increase traffic and do so without affecting sales at peak hours, using, for example, these three slots:

1. Morning and afternoon

One selling opportunity during breakfast hours is to offer smaller foods, such as fresh fruit, some mix for the road, and bites to snack on later. Most of your customers go to lunch afterward, and having these options will make them want to take them to eat at their break time or before or after lunch.

The time between lunch and dinner also offers a new opportunity to increase daily sales. Many restaurants and coffee shops have chosen to create mid-afternoon menus and offer special promotions to attract customers at those lower hours.

2. Happy hour

It is also an excellent strategy to increase sales in the afternoon and snacks and happy hour (usually between 5:00 p.m.-7:00 p.m., although it may vary depending on the mealtimes in each country.).

This time slot allows taking something out and for a better price, which will make it more attractive to those who look closely at their budget. The star choices are special menus for happy hour, cocktails at special prices, smaller plates, and snacks.

Happy hour can also serve as a bridge for dinner. The economic change has meant that many restaurants have also become a bar. More and more consumers decide to stay in one place instead of moving, so restaurants become the chosen destination for the whole night.

3. Sunset-night

Other types of customers who are also present at the end of the afternoon can be a potential source of income for you. The key to success is to do it properly since the night customers are quite different from the rest of the day.

The people who will visit you to extend the night tend to be younger (from 18 to 24 years old) and look for a different experience or a different environment from those who dine during the typical hours. These nights, clients can come from a game, a show, or a concert, and to attract this group, you must make your restaurant fun, with a good atmosphere and economical during these hours.

We usually change to a more straightforward menu to take advantage of this segment, with sandwiches, small plates, snacks, and plates to share.

But not making mistakes that are not traditional in terms of time and way of consuming does not mean that they do not value good service. They still like to be well taken care of after and feel they care about them.

They also choose a good atmosphere, so some restaurants adjust the lighting and combine it with different music. Others offer board games to encourage customers to have fun and relax.

Suppose you choose to open now; select staff with the necessary resistance. Select a team that does not mind the time or the type of audience.

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