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Whether we discuss a corporation or a person’s financial life, the notion of equity is the same. In accounting, equity is the difference between assets and liabilities. Or the difference between your assets and rights and your responsibilities.

If you liquidated all your belongings and added them to your investments and bank accounts, you would have your net worth (PL) after paying off all debts and other commitments.

Assume you have purchased a $400,000 home. It took out a loan for this purpose and still owes $300,000 to this day. Because you only own a fraction of the property, your PL is $100,000 in this scenario. In other words, if you market the property for $400,000, you will have to pay off the loan with $300,000, leaving you with only $100,000.

That is why the PL provides the accurate dimension of a person’s, a company’s, or even a country’s wealth. For example, you may look at someone who lives in a lovely home in an elite area, has two new vehicles in their garage, and has children who attend expensive schools and infer that she is wealthy.

However, you may finance the house and automobiles, and the person has bank debt. If we perform the arithmetic, we can see that this individual has negative equity, which means that the debts exceed the value of the assets.

Consider someone who owns some real estate but is also in debt to a bank. Depending on the prices, that individual may sell one of the houses and pay off the mortgage. On the other hand, indebted persons might have a positive net worth if the total value of their assets exceeds the actual value of their debts and commitments.

What Items Are Part of Personal Equity?

To answer this question, let’s go back to what we said: equity is the difference between assets and liabilities. We can say that assets are goods and rights. That is, they are the positive part of your equity, while liabilities are obligations, therefore, the negative part of your equity.

Thus, some examples of assets are:

• properties
• automobiles
• cash in checking account
• financial investments
• FGTS balance
• Copyright

On the other hand, we have as examples of liabilities:

• Debt balance of financing (real estate, cars, etc.)
• The outstanding balance of loans
• Credit card balance due
• Personal loan
• Debts with taxes
• Rents payable
• Debit balance of purchases in installments

It’s easier to understand your wealth now that you know how to categorize the components that comprise your financial life.

Why is it Critical to have Control Over One’s Net Worth?

By calculating your net worth regularly, you will create history and understand how your evolution is genuinely taking place, not only in appearance. It will assist you in determining your genuine wealth level and how near (or distant) you are to accomplishing your objectives.

Assume your goal is to have $1,000,000 in equities. You have $500,000 apartments with $100,000 down payments. Isn’t it true that the aim requires $400,000? That’s incorrect because you used financing in the purchase of your house. As a result, the debt total for funding must come out of these $600,000.

Knowing your net worth will assist you in making efficient financial plans and identifying habits that you must modify to achieve your objectives and safeguard your money to make your life smooth when filing your income tax return.

How do I Report my Net Worth on my Income Tax Return?

As previously stated, keeping track of your net worth aids in the completion of the Income Tax return. Even if the asset is purchased with financing, this is true. You must display all moveable and immovable property and rights in the “Property and Rights” form in the Federal Revenue program.

In this situation, you must state the amount that has been paid thus far and update this figure every year. Personal loans, on the other hand, are a different story. These sums must be stated in the program’s “Debts and Real Liens” form. Other earnings, such as pay and remuneration for services done, should be reported on the “Taxable Income” form.

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.

Deciding if Credit Card Insurance is for You

The first step in deciding to benefit from credit insurance is considering your present and future financial demands. If you already have life insurance, you may have enough coverage under these policies to cover your credit accounts in the event of your death or incapacity. On the other hand, just because you do not have any coverage does not indicate that credit insurance is the best option for you.

Credit card insurance is less cheap or flexible than typical life and disability insurance coverage. For example, if you have several credit cards, you must carry insurance for them. All these monthly plans may allow you to buy regular insurance for cheaper and gain more excellent coverage. Your dependents receive the leftover money once your credit card bill is paid off with a standard insurance policy.

Ask About the Credit Card Insurance Policies Being Offered to You

If you determine that credit card insurance is right for you, you should understand the policy. It would help if you inquired about the policy’s exclusions. Also, if you get a credit card insurance policy that covers all four forms of credit insurance (life, disability, unemployment, and housing), be sure you are not paying for something you do not need. For example, if you are unemployed, when you apply for unemployment benefits, you pay for coverage that you will not use. Another case in point is life insurance. Some policies are restricted to people of a certain age. Before accepting insurance on your credit card, thoroughly read all conditions.

Find Out You Can Easily Cancel Credit Card Insurance

Fantastic news! Many credit card companies offer insurance with discounts or even automatically provide it to their customers. After enjoying the trial period, you get to decide whether you want to keep the insurance or not. While canceling after the trial may seem like a challenge, we’ve got you covered! We understand that finding the right phone number can be a hassle, so we’re here to provide you with all the information you need to terminate the contract hassle-free.

If you opt to get credit card insurance, ensure you acquire all the information you need to cancel when on the go. Put this information securely alongside your credit card information and supplementary credit card.

• The advantage of this type of service is that you can hire it. The idea is to take out credit card insurance right after purchasing it. If you did not, do not worry.
• If you want to know about taking out credit card insurance, check out below for tips on choosing the best car insurance.
• Financial planning: even if the value of credit card insurance is low, do not take out insurance that weighs on your budget. Do the math and determine the average amount you can pay for this type of protection.
• Surveys and quotes: Before choosing insurance for your credit card, make several surveys and quotes with different insurance companies. That way, finding the ideal insurance for your profile will be easier. As mentioned before, the basic monthly fee is low, but you will need to pay an extra fee to have additional coverage.
• Please pay attention to the coverages: it is expected to get excited when you see so many ranges that can be useful someday. But remember that if you apply for all the additional coverage, you will certainly pay a high price for your insurance. So, choosing what will protect you and your cards is essential.
• Understand the policy: The policy is a contract that describes all the duties and benefits the policyholder has. So, please read it carefully and clear up all doubts about your credit card insurance policy.

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.

Medical and Dental Care

This is the most prevalent and required component of travel insurance. The expenses will be covered or refunded if medical, hospital, or dental care is necessary while traveling.

This is often the sort of service that insurers refer to when demanding, say, $10,000 in coverage. Imagine you have a mishap that necessitates medical attention, but you do not have insurance. Spending money you were not expecting to spend might jeopardize the success of your vacation.

Medical treatment, for example, might be too expensive in some areas. A hospital stay in the United States might cost up to $3,500 daily. On the other hand, travel insurance costs fifteen reais each day. Remember to examine the terms and restrictions of your plan, but in general, this coverage applies to personal accidents, unexpected or acute diseases, and preexisting or chronic illnesses.

Pharmaceutical Assistance

The insurance will cover the costs if you need medication recommended by a doctor or dentist due to an accident or health condition while on vacation. You should maintain prescriptions and receipts for pharmacy charges to claim reimbursement. Medication purchased without a doctor’s prescription is not refundable. The sum is covered up to the maximum limit specified in the travel insurance policy.

Coverage for Preexisting Diseases

In CNSP decision no 315, SUSEP (Superintendence of Private Insurance) specifies how this coverage works for both domestic and foreign travel:

It must provide coverage for medical or dental expenditures in the case of a crisis caused by a preexisting or chronic disease, resulting in the insured being in any urgent or emergency medical state.

Lost Baggage

One of the most common concerns among tourists is the loss of their luggage. Nobody likes arriving at their destination only to discover their goods are missing! Coverage for missing luggage is an extra component for travelers to select when obtaining travel insurance.

The weight of the luggage reported on the airline ticket at check-in is used to compute reimbursement, independent of the cost of its contents.

Proof of luggage loss, damage, or destruction is necessary for reimbursement. More information concerning misplaced luggage may be found here if desired.

Trip Cancellation

The trip cancellation will assist you if you cannot travel due to an unforeseen occurrence. It will protect your investment. In this manner, it will reimburse any fines or penalties imposed by the airline and for any accommodations or excursions bought after the insurance coverage is granted.

Insurers have different regulations than one another. Check the general terms of the plan before agreeing!

Airline Delay

Flight delays can result in inconveniences such as missing a connection, being unable to attend an appointment, and having trouble with hotel reservations, among other things. Most travel insurance packages that include supplemental coverage refund certain expenditures not covered by the standard carrier.

You should call insurance providers if the boarding delay exceeds six, eight, or twelve hours.

Legal Assistance

This is one of the forms of supplementary coverage provided by insurers that many people are unaware of, but it may be beneficial if you are employed! Based on the general conditions of the travel insurance obtained, coverage consists of compensation for reimbursement of expenditures or supply of equivalent services up to the amount of the covered capital.

The guarantee intends to pay legal bills for the insured’s legal aid owing to situations that arise during travel that necessitate legal assistance. Most legal help policies for travel insurance cover attorney fees incurred due to a road accident.

Service in Another Language

Have you ever imagined yourself in another nation and having an emergency in which you need to call your insurance provider but cannot communicate in that language?

To avoid this, check with the insurance provider of your choice to see whether they offer service in your preferred language. That way, in the event of unforeseen events or an emergency, there would be one less thing to deal with.

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.

Answering this question can be effortless, transparent, and objective in the following ways: You should take out international travel insurance because unforeseen events and accidents happen to anyone. Or else you should buy travel insurance because it can save your life and financial life.

But not to leave the answer superficial, I will talk more specifically about which situations are helpful. Thinking about these things before traveling can be daunting, but this is a necessary asset. Flights are delayed and canceled, and luggage is lost; the local cuisine may not go down well, spraining your foot. At the same time, hiking is not uncommon, and wisdom teeth always manifest themselves at inconvenient times (like on vacation).

These things can happen to a first-time traveler or someone who has traveled the world. But regardless, the fact is that good travel insurance can help you in all these situations. In addition to unpleasant surprises, it is mandatory to present proof of your insurance at the time of immigration in many countries.

It is the case of countries that signed the Treaty of Schengen in Europe, Cuba, students who will exchange in Australia (there is a specific one for this), and others.

How does Travel Insurance Work?

There is no same rule that works for all travel insurance on the market; it depends on the plan and the insurance company you hire. Many procedures are similar or even the same between different companies. However, the vast majority have some characteristics in common.

This purchase plan will cover various types of expenses and services that you may need during your trip. Depending on your destination, you will take out insurance for your trip (including the day of departure and return). They work like this.

After the contract is complete, the insurance company will send you all the necessary information on continuing in the event of an emergency. A copy of your contract/policy describes all the items your plan covers. I recommend that you take all these documents in print while traveling. In addition to making it easier when looking for information, it is necessary to present them at immigration in some countries.

Tips for choosing the most suitable travel insurance for YOU!

• There is also no general rule in this item. Every plan has its advantages and restrictions.
• No perfect travel insurance works for everyone and all types of travel.
• Okay, there probably is. But it must cost much more than most of us are willing to pay.
• I mean that there is an insurance plan best suited for each type of trip.

For example, suppose you travel for work, and your biggest adventure will be inside a meeting room. In that case, you do not need to take out international travel insurance with coverage for accidents while practicing extreme sports.

This analysis and common sense are essential when choosing your insurance. Whether to know what your plan covers or to save money.

Below are some items that I consider essential to analyze when purchasing travel insurance:

• Service
  • 24 hours?
• Coverage
  • Total policy amount
  • Maximum amounts for medical and dental care
  • Are all the countries I will visit covered?
  • Lost luggage
  • Will I practice extreme sports or high-risk activities during the trip? Does the plan cover it?
  • Repatriation in case of disability or death
  • Cancellation, interruption, and early return of the trip
• Europe
  • Am I going to a country that is part of the Schengen Treaty?
  • Does the insurance have a minimum coverage?

Which Insurance Company to Hire?

Do a Google search for the words travel insurance, and you may be confused by the number of options it will show you.

Yes. There are many insurers and plans available to you. There are so many that it is difficult to choose for those who have never used any.

Fortunately, I never really needed to use travel insurance, but I always ended up hiring one of the companies I will mention below.

The reasons?

The Price of service at the time of hiring, ease of renewal, comprehensive coverage, and good service (this item comes from the experiences of other bloggers I trust and who have already used the services of these insurers).

• Assist Card

The insurance I took out during my 10-month trip to Latin America, I had an excellent discount for being part of AIESEC, and it was the best cost-benefit I found at the time.

• Promo Insurance

The Insurance Promo is not an insurance company. It acts as a platform that offers and sells travel insurance from several companies. In addition, it acts as an intermediary between you and the insurer in loss cases. 

Seguros Promo has a tool available to anyone to compare values, plans, and benefit costs among the best insurers in the country (including Assist Card). It is the company that I have used the most. It always presents me with the best business proposal.

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 main idea of a budget is to allocate resources to achieve the company’s strategic goals. Furthermore, some companies also use their budget to keep costs under control, determine bonuses, and set sales targets. The strategic guidelines of the budget decide which expenses are valuable and necessary to achieve the goals. A budget is a management tool based on costs, revenues, prices, and quantities standards. Reality is compared with the norm, resulting in differences that we try to explain and after which we adjust—six benefits of working with a budget.

A Budget Gives You More Control

Most entrepreneurs make a budget at the start of their business, including their expected income and expenses. The budget is often part of the business plan. When applying for financing, the average entrepreneur makes several budgets (mandatory). Still, as soon as the funding goes through successfully, he no longer cares about it, and that’s a shame. We name six advantages of using a budget.

1. Know the financial feasibility of your plan

A budget is nothing more than calculating methods. It makes weak spots and risks visible. It is good to clarify what is and is not feasible in advance. You can set priorities based on this. Unquestioningly, steering towards an unattainable goal can cause you significant damage.

2. There is more chance of credit

Based on a well-thought-out plan, you can determine how much external financing you need and whether you can get it through the bank and an alternative financier. The bank and other financiers will require a (multi-year) budget before financing. With a budget, you show the lender what you will do with the borrowed money in advance. An entrepreneur who can demonstrate that he consciously manages his company with a budget shows that he is a good entrepreneur in whom financiers can have confidence. Good entrepreneurship is important because it is getting increasingly difficult to get credit.

3. Adjust in time

Although a budget is never (exactly) realized, it is better to try to achieve it. You can adjust where necessary by comparing the recognized figures with your budget every month. Sometimes, circumstances will force you to change the budget positively or negatively. If you consciously manage, you can often see possible problems coming early; you can make timely adjustments and thus prevent more significant issues.

4. Liquidity forecast and seasonal financing

Companies that need higher financing for a limited period of the year arrange a bank overdraft. It is expensive (now about 10 percent interest). Therefore, keeping this credit as low as possible is essential. Planning the income and expenditure (liquidity budget) in this period is necessary. You can use this to calculate how much seasonal credit is needed (limit). You can intervene quickly (exhort debtors, postpone payment of creditors) if reality deviates too much from the budget. It is also possible to request an extension of the credit in time if you have a liquidity forecast as a guideline.

5. Cost and budgeting

A budget provides insight into the costs a business incurs. Based on a budget, you, as an entrepreneur, can better determine which expenses are desired or necessary. With a budget, financial decisions can also be made more transparent. For example, when determining budgets.

6. Determine the correct cost price

The market determines selling prices for products or services. A company makes a profit if its cost is less than its selling price. Therefore, controlling the cost price and keeping it as low as possible is essential. You can determine the price by adding direct costs (purchase and other direct costs) to any indirect costs and risks. The budget, which contains this information, is the basis for the cost price calculation and is essential for your business 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 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.

Net worth (equity) is crucial to remember whether we are discussing the financial life of a corporation or a person.

Essentially, the notion pertains to your financial outcomes.

When we talk about a company’s management, for example, having control of the financial accounts and stock exposes the business’s health and economic progress.

The worth of everything you possess, your financial and non-financial assets, less the total outstanding liabilities, is your equity (your debts).

There are numerous techniques to calculate your net worth, which may indicate your financial health.

It would be best to examine equity in terms of the firm’s financial health in which you wish to invest by those who support it.

Consider investing in a business with negative equity; the chance of future financial troubles is relatively high, contributing since the firm may go bankrupt, and the investor would lose all the money.

As a result, while investing, it is critical to determine if the firm has exhibited an excellent development in equity or increasing debts in recent years. This analysis allows you to be more forceful in deciding where to put your money.

Fundamental analysis, as discussed in this article, is a process of evaluating an asset’s inherent worth and studying the variables that may impact its price in the future. And equity is a critical component of fundamental analysis.

There is no magic number of net worth that you should target regarding financial health. However, it would be best to use equity to monitor the company’s progress or finances and assess its progress over time.

Keep the Balance

It is simple to govern the allocation of equity when we join the investing universe, but as you start to amass more and more assets along your trip, be sure to retain a concept of what the larger picture of your finances looks like. We can’t manage what we can’t measure, after all.

A solid stock allocation keeps you from being too exposed to any asset class. Understanding the benefits and drawbacks of each asset type you possess is also critical to weighing the potential for risk and profit.

Calculating a Company’s Net Worth can Tell You Many Things

If the company’s equity value is negative, it signifies that it owes more than it possesses. If there is a positive number, it means you have more money than you owe. For example, if your assets total R$200,000,000 and your liabilities are R$100,000,000, you will have R$100,000,000 in positive equity (R$200,000,000 – R$100,000,000 = R$100,000,000).

If your assets are BRL 100,000,000 and your liabilities are BRL 200,000,000, your negative equity will be less than BRL 100,000,000 (BRL100,000,000 – BRL200,000,000 = − R$100,000,000). Negative equity indicates that you (or the organization) have more obligations than assets.

Businesses and individuals alike commonly assume that equity will rise when the firm expands and profits.

Here are some reasons for the importance of your net worth:

• Equity is the most accurate measure of wealth. Wealth is what’s left over after you pay all your bills – and that’s what net worth is all about. There is no other way to know exactly how rich you are without knowing your net worth.
• Track your financial progress. As equity is a specific number you can accurately track, it allows you to assess your monetary gain from the first month or year to the next.
• A rise in equity is the best sign of your progress.
• Avoid overemphasis on asset value. Some people focus exclusively on the value of their assets as a measure of their wealth.
• It puts your debt level in proper perspective.
• Equity can be significant when applying for a loan. Since equity is the best measure of overall financial strength, lenders are generally interested in knowing what it means to determine whether they will approve you for a loan.

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.

Make an Analysis of Expenses and Income in Your Financial Planning

Ideal financial planning starts with analyzing monthly expenses and income. To plan, it is essential to know exactly how much you earn per month, how much you spend, and where you spend it. Analyze all your sources of income, fixed or variable. Then, list all your monthly expenses and in what categories (Housing, education, leisure, etc.) to see if you earn more than you spend and identify potential savings.

 After analyzing your expenses and income, use the 15-35-50 rule to organize your expenses. According to this model, 50% of your income should be allocated to essential expenses necessary to maintain yourself daily, such as food, health, transport, etc.

Another 15% of income goes to financial priorities: paying off debts or saving for the future. The remaining 35% must be used for all other expenses related to fun and leisure, such as gym, restaurants, shopping, etc.

Spend According to Your Current Standard of Living

Today’s society encourages unbridled consumption, which often causes people to spend far beyond their means. The ideal financial plan provides expenses aligning with your current living standard. Spend more than you earn? To balance your finances, try to reduce your lifestyle-related costs, such as shopping, a salon, and a bar.

Specify Your Goals

Plan to start by specifying your goals. How much would you like—and could you—spend on each area of ​​your life? Then, think about how you will achieve each action. For example, you may need to reduce energy or gas consumption to have an expense X on residential bills.

Even those on a tight budget do not have to discard leisure. It can reduce the amount allocated to this area and replace expensive outings with free or low-cost activities.

Use a Financial Spreadsheet

The financial spreadsheet will be your best friend when doing financial planning. With the help of the tool, you can track all your expenses, analyze whether you are within the stipulated goal, and, if so, step on the brakes so you do not blow the budget.

Compare Product Prices

A simple habit that helps financial planning is to compare prices before buying a product or using a service. With the help of the Internet, search various establishments for the values ​​available for a particular item or activity, see if it fits your budget, and look for the best possible price.

Change Your Habits

Financial planning is a matter of habit. If you do not have a good relationship with your finances, changing is essential. See what negative behaviors do not allow you to have a healthy relationship with money, like buying too much when you are depressed, overspending on leisure, etc., and work to change these attitudes.

Buy Only What You Need

One of the great enemies of healthy finances is impulse buying. Avoid it by including all the purchases you need to make that month in your financial planning and stick to them. Be conscious and put on your list only what you really need.

Pay in Cash Whenever Possible

When the possibility of a discount is offered, paying in cash is an advantage. You buy the product at a lower price and do not fall into the trap of dividing an item several times and, in the future, being unable to pay.

Set Financial Goals

In addition to creating monthly spending goals, setting larger, medium to long-term financial goals is essential. Do you want to study for an MBA in two years? Search the course prices and save money to make this dream come true.

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

What is QuickBooks?

QuickBooks is an accounting software package that Intuit develops. This software is an assisting program that helps you carry out various accounting solutions with ease and organization. The software targets small to medium-sized businesses to help with their accounting services. It is now also available with cloud-based versions complete with payroll, pay, and manage bills functions.

How is QuickBooks Beneficial for Your Business?

QuickBooks is your ultimate accounting tool if you are a small business or a start-up. Some of its unique features and benefits it could bring to your company are as follows.

Money management

QuickBooks has features that help small and medium-sized businesses manage their finances and money. This software allows you to keep track of transactions, pay timely bills, and record each transaction for audit purposes.

Expense billing

The accounting software allows you to record and tally your expenses, whether big or small, to track your money better.

Sales invoices

QuickBooks allows you to create and print invoices at the touch of a button. Hence, it helps you track your inventories properly and ease your business operations.

Why You Cannot Buy a Used Copy of QuickBooks

Intuit and all partners licensed for the sale of QuickBooks are strictly against buying and using old copies of this software. Customers who purchase used copies of the program and try using it always face problems and issues, leading them to not get the best results from the software. This dissatisfaction causes customers to cease using the software, wasting a lot of money and resources. All customers are strongly recommended to buy new copies for a better experience and smoother performance.

The most common problems faced by those who buy a used copy of QuickBooks are listed below.

Installation

QuickBooks could be installed using a CD or buying an online version and downloading it to your system. However, as the installation process progresses, the software asks you to provide a certain license and product number.

If your copy is original and new, the license and product code are provided, allowing you to continue the installation. However, if your copy is used or comes from an unauthorized dealer, you will not have the correct license and product number. As a result, you will not be able to install the program and, in turn, lose your money and time to do something tunproductivefor your start-up or small business.

The customer help desk is always available to sort out your issues if you face a problem when downloading an original program.

Registration

If, by any chance, you have the original license and product code for a used copy of QuickBooks, there is a considerable chance that you will have issues registering the software.

Intuit verifies if you have a genuine version of the original software by asking you to enter your Intuit account details. Furthermore, you are requested to put in contact numbers and mailing IDs. If a used copy is installed, Intuit will detect the software version you are trying to use and recognize it as registered under a different name already. In that case, it will deny you access to your program or access only limited features of the software.

Usage

Even if you somehow manage to get through the process of registration and installation, the limited features that Intuit would allow you access to will not provide you with the results that a new software would. Hence wasting valuable resources such as time and money and a disgruntled customer experience.

It is suggested that buying a used copy of the software and installing a new version of QuickBooks for your small business or start-up is a bad idea. is better

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.

Start-ups have been the hyped-up success story of the former decade, with a few new companies hitting it big and changing the face of business development. But for every successful start-up, countless others fail, sometimes mysteriously and often unobserved. No one goes into business expecting to fail, yet many new start-ups do. To understand what causes failures, listed below are the top five reasons why start-ups tend to fail.

Market problems primary reason new businesses fail is that they run into the issue of there being little or no market for the product they have built. Here are some typical indications:

1. There is no convincing enough value proposition to cause the buyer to commit to procuring. Good sales reps will tell you that to get an order in today’s challenging circumstances, you must find buyers with their “hair on fire” or are “in thrilling pain.” 
2. The market timing is not right. You could be ahead of your market by a few years, and the public may not be ready for your specific resolution at this step.
3. Luckily, you may have had the funding to last through the early stages, but the market size of people who need your services and have funds to come to you is not large enough.

Business Model Failure

One of the most common causes of failure in the start-up world is that entrepreneurs are too optimistic about how easy it will be to acquire customers. They assume clientele will beat a path to their door because they will build an exciting website, product, or service. That may happen with the first few customers, but it quickly becomes expensive to attract and win customers if you do not have a proper business model in place.

The capital efficiency “rule”

 If you want a capital-efficient business, it is believed to be essential to recover the cost of acquiring your customers in less than 12 months. Wireless carriers and banks break this rule but have the luxury of access to cheap capital.

Poor Management Team

A weak management team is a widespread problem that causes start-ups to fail. A good management team will be innovative enough to avoid Reasons 2, 4, and 5 in the business. Weak administration teams make errors in multiple regions:

1.  They are frequently weak on strategy, building a product that no one wants to buy, as they failed to do enough work to validate the ideas before and during development.
2.  They are usually poor at execution, leading to issues with the product not getting built correctly or on time. The go-to-market execution will be poorly instigated.

Running Out of Cash

A fourth primary reason that start-ups fail is that they run out of cash. A vital job of the CEO is to understand how much money is left and whether that will carry the company to a milestone that can lead to successful financing or cash flow favorable.

Product Problems

Another reason that new businesses fail is that they miss the mark in developing a product that meets the market’s needs. This can be due to simple execution or a far more strategic problem, a failure to achieve Product/Market fit. Most of the time, the first product a start-up brings will not meet the market need. The market needs a few revisions to fit the product/market right in the best cases. In the worst cases, the product will be way off base, and a complete re-think is obligatory.

Conclusion

Some start-ups prosper, yet so many fail. And it is failure that teaches us the best lessons. There are many other reasons start-ups fail, but these five were the most common when inquiring about the founders and team members involved in the start-up ecosystem. Should your start-up fail, it is worth trying to understand what went wrong and learn from your mistakes to make it the next time. 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.

Budding entrepreneurs are often attracted to places that offer them better infrastructure, entrepreneurial connections, and resources. Networking events, investor meetups, and demo days provide opportunities to find good advice and investment opportunities. Finding solid connections is one of the initial aims of any entrepreneur, and these valuable connections help them slowly integrate into the ecosystem of the corporate world.

Hub Culture

The idea of start-up hubs is one thing that reduces the worries of an entrepreneur by a bit. Here, you can find all sorts of resources in one place – from necessary connections to valuable information. There are a variety of hubs available depending upon the region you are willing to operate in. There are multiple start-up communities. You may also be able to find a virtual start-up hub.

However, a choice comes in deciding which hub will yield better results here. Virtual hubs are convenient and can be accessed by an entrepreneur from an area that does not have many entrepreneurial resources. However, brick-and-mortar hubs allow entrepreneurs to meet mentors and investors in person, better grasp information, and present their ideas. It is better to meet your investors in person; this will help you build stronger relationships.

Virtual vs. Brick and Mortar

The basic idea of both kinds of hubs is the same. However, there are apparent differences between the two. The number of goals you have already set and the guidance you require can be significant factors in choosing between the two. Suppose you are clear with your business plan and have specific requirements (for example, requiring a professional for accounting tasks such as bookkeeping). In that case, you may be able to go to an online or virtual hub to get a contract that will help you in fulfilling that requirement. However, if an entrepreneur needs more guidance, going to a brick-and-mortar hub is recommended to grasp information from experienced entrepreneurs quickly.

The two main reasons for entrepreneurs to opt for a virtual hub are:

1. Obstacles like geographic location hinder access to a brick-and-mortar hub.
2. The entrepreneur has a late-stage, well-settled start-up and seeks contacts to help start operations or growth.

A brick-and-mortar hub has its benefits. Interacting with investors and mentors in person can achieve a lot. Moreover, a physical hub allows the entrepreneur to join a community. Sharing knowledge can help grasp a better understanding of the entrepreneurial world.

Both types of hubs have the same aim, which is to help budding entrepreneurs. Many entrepreneurs believe the kind of hub they choose does not make a difference. Most believe their location is the only significant factor in determining the two. Most entrepreneurs say they would prefer to go to a physical hub in a big city with a lot of resources. Meanwhile, if they are in a remote location far from a big city, a virtual hub would be where they can access the resources they need.

Some entrepreneurs emphasize that both kinds of hubs have a different impact concerning the start-up’s geographical location. Meanwhile, other entrepreneurs believe both types of hubs are essential and that utilizing both is necessary for success in different start-up stages. They also believe that to build a solid company; the entrepreneur must attend a brick-and-mortar hub for guidance and mentorship while using virtual services for contacts necessary to achieve goals. Now, you can decide on virtual vs. brick-and-mortar for your start-up needs. 

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.