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As crucial as account reconciliation is in accounting, it is not given much attention in accounting classes. Many accountants can have a successful career without performing a single account reconciliation. While you can manually perform account reconciliations, you can save valuable time and energy by using accounting software tools to reconcile accounts. Using accounting software for your financial transactions will automatically record your transactions, making it easier to perform account reconciliations.

What Is Account Reconciliation?

It is the process of reconciling the receipts and expenditures of money, for example, on a bank statement or at the cash desk, with invoices from customers and suppliers. As a result of reconciliation, it is clear which invoices are paid and which are not. Suppose your company does not regularly conduct such reconciliation, or it takes too long. You will gradually sink into chaos because you will not know which supplier invoices you paid and which did not and which invoices you paid. Buyers. Account reconciliation is a crucial process. If it is performed regularly and quickly, this indicates that, most likely, your money is under control and the accounting is correct.

Less Work, More Results

Reconciliation should not be difficult; it should not take a lot of time. Anyone engaged in business should not waste time filling out plates and entering data. But most often, it is in the tablets that they keep accounts and note whether they are paid or not. It is time-consuming and inconvenient. There are programs to make this job more manageable. They help do this work; they select the appropriate payments for accounts that allow you to perform account reconciliation in a semi-automatic mode. It is easy to understand how tedious and tiring every time you get a bank statement, look in the tables for accounts and mark them as paid – you can hang yourself from such work. It is entirely different when the system collects all payments and receipts on one sheet and selects accounts for them (by dates, amounts, counterparties, and other details).

What If the Sums Don’t Add Up?

The world would be perfect if everything always converged if customers always got their account numbers right. But it’s like world peace – everyone wants it, but it doesn’t come. You should not panic if you cannot fully match payments to invoices. It can happen for several reasons, each of which has its solution. You only need to select the right one. There are five main reasons why an invoice and payment may not match:

1. You could give a discount for early payment. Or they gave it to you.
2. Bank charges may be deducted from the payment, or the exchange rate may have changed.
3. Or will you just pay the balance later, and the invoice should remain partially paid?
4. Managers may have forgotten to enter the invoice into the system.
5. Finally (and unfortunately), you understand that the invoice will not be paid in full, and you will have to write off the balance of the payment at a loss.

Of course, there may be more reasons for partial payment of bills than the five that we wrote above – these are the most common. Please take the time to write your list of possible causes for invoice and payment discrepancies specific to your business. Then determine the necessary actions for each of them – this will speed up the reconciliation work, make it easier and allow you to have constantly up-to-date data about customer debts and planned expenses of money.

A Few More Things to Know About Account Reconciliation

Account reconciliation is an essential skill that every accountant and business owner should have. Simply knowing how to reconcile an account correctly can be crucial to your financial health as it ensures that your financial records are always accurate. Regular reconciliation of reports allows you to control the most liquid asset – money better. The proper process will avoid abuse and fraud – separate those who issue invoices, conduct bank statements, and reconcile accounts – when they are different people, everything will be under control without your direct participation. Use an information system that allows for partial matching, keeps invoices partially paid, splits payments, adds required additional fields, and is easy to use.

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 security issue in the operation of banking products is always very acute. Practice shows that many bank customers do not know the elementary rules for handling details, codes, and other data. It becomes essential in the case of repayment of debt on loan. If the client has deposited an amount greater than the amount of his debt on the credit card, then the spare part is accounted for on a separate account and cannot be used to make transactions at the expense of the client. It will only go to the future repayment of the loan after its occurrence. Moreover, the loan is repaid on a specific date specified in the contract and not immediately after the event. There is a particular set of rules that help, if followed, to secure the finances contained on the card:

1. Do not share your PIN information with anyone under any circumstances. It is strictly confidential information available only to the client. Remember that even bank employees are not allowed to request a PIN code.
2. You should keep the code used to carry out specific operations separately from the card.
3. You should not temporarily give your plastic to another person. Only the person specified in the service agreement has the right to use the card.
4. Upon receipt of the payment instrument, sign on the reverse side in the field provided.
5. Remember or keep the contacts of the issuing bank with you. They are also listed on the back of the card at the top.
6. Upon receipt of a request to provide card details, the client has the right to ignore this. It is even recommended to report the fact to the bank.

Cashless Payment

Due to the popularity of non-cash payment for various goods and services, it is worth considering the rules for conducting the operation:

1. Do not use the card for purchases in stores of dubious origin.
2. Always be present at all card transactions – this will reduce the risk of unauthorized access to confidential data.
3. Keep receipts – including when the operation was not completed successfully (make sure that the receipt does not contain an operation and you made no payment).

As you can see, there are some conditions, but they are pretty necessary.

Online Payments

Online transactions are a separate topic because there is an acute security issue and many nuances. The rules for online payments are as follows:

1. You cannot use a PIN when ordering goods and services by phone, fax, or Internet.
2. Card data that are strictly confidential cannot be entered into any forms – the same applies to the account.
3. For operations on the Internet, if necessary, to purchase something, it is better to use a separate card that was issued for this.
4. Check the correctness of the entered data – for example, address, contacts, etc.
5. Perform remote operations on your device (in extreme cases, turn on incognito mode so that the entered data is not saved).

Details

Card details are highly confidential information to which only the owner should have access. Leakage of this information is fraught not only with the loss of access to the account but also with the debiting of all funds. And in the case of a credit card – also the formation of debts to the bank. Getting at least some information into the wrong hands requires blocking the card. The bank can do this independently if it detects a leak and at the client’s request.

A credit card is a different wallet. You can spend money from it at your discretion and return it without interest using the grace period. The validity period is usually limited to three to five years at the plastic itself, but then the card is reissued. It is just a key to a credit account, which can be unlimited or limited, for example, by age. A vivid example of this is youth credit cards, which are not reissued after the client reaches a certain age; terms are discussed in the contract. If you only have the card number, it will not be possible to withdraw funds from it. However, an attacker can pretend to be an employee of a banking organization to find out other, more critical information.

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.

Even if they are all related to the purchase of products, they are not all recorded in the same account. The goods purchase account should be well-documented because it is crucial in your revenue statement. You are the one who decides on your profit margin.

An overview of the accounting rules to be aware of and use to complete a perfect entry and achieve top accounting!

Which account should I use for posting goods?

Account 607 is the goods purchase account.

It is a part of class 6 in the chart of accounts, which is the category of purchases. It varies from the 601 stored purchases-raw materials, which are dedicated to activities in which a transformation occurs before the final product is offered to the user.

Account 607 is linked to account 6073, which represents a change in the stock of products. The latter makes only two accounting entries per year: the closing stock at the end of the financial year and the initial stock at the start of the financial year.

Of course, if you create an intermediate situation throughout the accounting year, you must report the ending stock on the date the case is made.

What should be recorded in the purchase of goods account?

Only commodity purchases should go into the commodities buy account. Put another way, your purchase invoice must be analyzed so that the accounting records accurately reflect reality.

What is the accounting consideration for the purchase of goods?

You will pass a consideration to balance your accounting record in the purchasing diary. It is the account for 401 Suppliers. It is strongly encouraged to divide the 401 accounts into 401001, 401002, etc., to have a supplier account dedicated to each of your suppliers. Alphanumeric subdivision is possible in some accounting applications. As a result, you’ll have supplier accounts with account numbers beginning with 401SUPpliED.

Even if you pay your bill fully, the payment for items must proceed through a vendor account. This account solely contains the invoice’s total value, including VAT. It will then be settled by the cash account you used to make the payment (530000 cash or 512000 banks).

Why is entering merchandise purchases important?

The purchase of goods, like all other class 6 accounts, is one of the income statement’s parts.

This accounting document will provide you with precise and essential information about the health of your firm for year N at the end of the financial year in cost accounting. Improper account usage (e.g., an erroneous allocation) might result in inaccurate accounting data.

The cost of products is deducted from your net sales for the year, or your turnover, to determine your commercial margin. This commercial margin provides numerous important indicators and allows you to choose if you have successfully bargained with your suppliers or if your margin is adequate. It will enable you to make essential changes for the coming year.

In the same way, the 401-supplier account will increase your balance sheet debts. It will then be time to check your suppliers’ payment terms and modify your customers’ receipts for the new fiscal year. You’ll gather crucial data for controlling your cash flow once more here.

As you can see, keeping track of item purchases is a serious undertaking. The company’s good management conducts an analysis. It has a significant impact on the income statement and the tax return, which provides a wealth of accounting data. Therefore it’s critical to keep track of all of your purchase invoices.

How do we adapt the recording of several different products?

If you sell various products in the same store, you’ll want to know which ones work, which ones cost money, and which ones don’t bring in any revenue but should be kept as a loss leader.

As a result, a “bulk” posting on a single 607 account will not give you the in-depth insight you require.

The PCG (General Chart of Accounts) allows you to create subdivisions to track each product you’re interested in. As a result, in accounting, you have the authority to construct a 607001, 607002, and so on.

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 are the different types of accounting in rental management?

The accounts of a real estate agency that works via rental management mandates can be kept in two distinct ways:

• Cash accounting
• Commitment accounting

Cash accounting allows you to keep track of your real estate agency’s expenses and revenues. As a result, it’s a question of genuine money outflows and inflows, such as collecting fees while collecting rent or purchasing office supplies.

On the other hand, Accrual accounting adds non-monetary transactions to the equation. Rent calls will display prominently among the entries, even though the renter has not yet paid them, leaving the latter with a debt to the real estate firm.

What is extra-accounting accounting?

Rents sought but not yet paid are not included in a cash accounting. However, such information is required to determine where the payments are made. This monitoring allows you to pinpoint payment delays, send out reminders, and act in the event of non-payment. Extra-accounting accounting is used in this situation. You may improve the management of your real estate agency by having a complete list of rental calls sent, their date, and their status.

It’s worth noting that accrual accounting incorporates non-accounting accounting, allowing these controls to be implemented.

How do you recover unpaid rent?

It is essential to collect outstanding rent based on commitment accounting or non-accounting documentation. The real estate agent has three years from the first day of late payment to reclaim the money owed.

The first step is to try to reach an amicable agreement. You’ll need to make contact to do so, which will lead to a written reimbursement arrangement with due dates and amounts.

The second step is to give the tenant a formal notice to pay the rent. It is done by a formal letter either mailed with an acknowledgment of receipt or delivered by hand with a signature.

Then comes activating the taken guarantees, such as a natural person’s or an organization’s security. The procedure should not take too long: specific organizations have rapid activation times, such as the Visalia guarantee, which takes only 15 days.

Finally, legal ways of collecting rents are required without outcomes or promises. It is what you should get: A command to pay: after the intervention of a bailiff, the tenant has a maximum of 2 months to pay. Beyond this period, the lease is terminated, and you can sue the tenant.

Empty slots

You must report receipts at the same time as total income. If the owner chooses the actual regime, he must also reveal his expenses so that you can calculate his net income.

It’s essential to remember that accounting must follow the cash accounting principle. Expenses and revenue are acknowledged explicitly at the time of payment. It means that work completed in late 2021 but paid for in early 2022 can only be deducted in 2022. Similarly, if a tenant paid his December 2020 rent in January 2021, you must include the rent in the revenue for 2021.

Furnished accommodation

The category changes for dwellings rented through a non-professional furnished rental firm (LMNP), as it is no longer a subject of property income but instead of industrial and commercial profits (BIC).

The owner can deduct all his expenses and even depreciate his property for tax purposes in this situation (which has the advantage of reducing or even reducing the taxable profit to zero). We are, on the other hand, a commitment accounting. The period to which the product or expense pertains, not the payment date, is essential. As a result, even if a December rent is paid late, it must be accounted for in the same month.

Finally, LMNP rental requires the development of a tax package that must be sent to the tax authorities no later than the beginning of May each year. Due to these responsibilities, an accountant is strongly recommended to accompany you.

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.

This variable is responsible for assessing the impact of public spending by the State on the country’s economy. It shows us how an increase or decrease in public spending or taxes affects the country’s total income. Next, we will see its interpretation, how to calculate it, and the abundant criticisms that economists have made about this variable.

How to interpret the tax multiplier

When trying to understand this term, whose calculation we will see a little later, it is essential to know that the fiscal multiplier can be interpreted in three ways, always depending on its value: equal to 1, less than 1, and greater than 1:

• Equal to 1. Suppose the fiscal multiplier is calculated, and the result is exactly 1. In that case, GDP increases by the same amount as public spending (if public spending increases by 1 million, GDP also increases by 1 million dollars).
• Less than 1. If the calculation is less than one unit, we will know that if public spending increases by one unit, the country’s GDP will increase by less than one unit.
• Greater than 1. Suppose the calculation of the fiscal multiplier is greater than unity. In that case, increasing public spending by one unit will increase the country’s GDP by a value greater than unity.

Evidently, in all the above cases, if what occurs is a reduction in public spending, the effect is reversed (GDP will decrease following the rules we have just seen).

Calculation of the tax multiplier

When trying to calculate the fiscal multiplier, a simple formula is used. It has its positive points (it serves as a good estimator that is simple and quick to calculate), but that does not measure the full impact of the fiscal policies carried out by a government. Something that has provoked much criticism and distrust in the economic sector. The formula to calculate the tax multiplier is as follows:

Mult. tax = 1 / 1 – c (1 – t)

• c (or MPC) = Marginal propensity to consume. It is a financial ratio, valued between 0 and 1, which indicates the part that citizens or companies dedicated to consumption when their income increases by 1 unit. If the value of this ratio is 1, it means that 100% of that amount is being used for the beneficiary’s consumption in an increase in income.
• t = Tax rate. The current percentage of taxes established by the government (that is, if you must pay 25% of the tax, we put 0.25 in the formula).

Example: Tax Multiplier Calculation

Putting into practice the calculation of the fiscal multiplier is very simple if you have the two values necessary to use the formula. Putting a case in which the current tax rate is 25%, and the marginal propensity to consume has a value of 0.66, the calculation of the fiscal multiplier of the country in question would be the following:

Tax multiplier = 1 / 1 – 0.66 (1 – 0.25) = 1.98

With this result, we can interpret that, for each unit that public spending increases, GDP will increase by 1.98 units. If the government increases public spending by 250 million euros, GDP will increase by $495 million (1.98 x 250).

Criticism of the utility of the fiscal multiplier

Although the calculation of the fiscal multiplier can become an excellent reason to apply specific fiscal policies to the economy of a country, there are indeed many doubts and criticisms when using it since, on many occasions, you can do erroneous or inaccurate calculations that seriously harm the economy of an entire nation.

We must bear in mind that, when calculating the PMC, aggregate values are used, which can complicate things and lead to the appearance of errors when obtaining the fiscal multiplier. In addition, the experience with this variable is not positive, something that we have seen after the economic crisis of 2008, where the IMF erroneously estimated the fiscal multiplier used to take the recovery measures, causing a serious paralysis in the economies, being the Greek case the most notorious and worrying.

Although many criticize the lack of reliability that governments or large economic entities have when applying the fiscal multiplier, this indicator offers an exciting representation of the variation in public spending on a country’s economic 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.

Entrepreneurs are almost always passionate about what they do, developing products, innovating, making customers happy, marketing, sales, et cetera. They often find finance difficult, and they think they can get little benefit from it. The average entrepreneur has no idea how much valuable information is contained in the figures, Hogema writes. Numbers hold the only truth about their business. And knowing and understanding this truth gives them the tools to earn more, sleep better, and work less complicated. 

Using this information, the profit advisor helps the entrepreneur determine where he stands, where he wants to go, and which buttons he can turn to get there. The profit advisor helps entrepreneurs manage their money, plan profits, and make financially sound choices to build financially healthy and profitable companies.

The transformation from traditional administrator/accountant to profit advisor involves three steps:

Step 1: You help your customer do his bookkeeping 30 minutes a week

Bookkeepers are usually not happy with their bookkeeping. It costs them too much time, money, and energy. As a result, many entrepreneurs bury their heads in the sand for months and ignore accounting as best they can. The solution is as simple as it is complex. The customer needs accounting habits, processes, and systems. If bookkeeping is a daily habit, it requires hardly any time and energy, and then it is always up to date.

Your purpose is to help your client set up the routines and habits that will allow them to complete their accounting in 1 minute per day and 30 minutes per week. Three primary conditions to do this are:

1. You must do the bookkeeping entirely online.
2. Optimal use should be made of technological developments.
3. The processes must be established, set up, and implemented consistently.

When you get this done, the foundation is in place. The bookkeeping is now always in order, without too much time, money, and energy. Now you are going to help the entrepreneur make a profit. Antoine de Saint-Exupéry said it beautifully: ‘A goal without a plan is just a wish. In other words: achieving a good result first requires that there is a solid plan.

Step 2. You guide your customer in making a profit plan

Once the foundation is in place (accounting), the most enjoyable and most valuable work for the customer begins: you will help him make a profit: no taxable profit, but real money, which is leftover. One of the best tools for this is the profit plan: a translation of the company’s goals into turnover, costs, and profit. A kind of budget but profit plan has much greater appeal to entrepreneurs. A profit plan shows whether the entrepreneur is making a profit: whether he is making money from what he does. 

Reserve a part of the day to make the profit plan with your customer. It would be best if you had that time. Also, see if you can make this a memorable moment. Don’t sit in a boring office but invite your customer to a beautiful location in nature, with good coffee and tasty lunch. Give your customer an actual VIP treatment. You take him, yourself, and his plans seriously. There is a good chance that working in an inspiring environment will also positively affect your results. Finally, your customer will see you more as a profit advisor than an accountant.

Step 3. You teach your customer how to manage his finances with the help of Profit First

An essential foundation has been laid with the accounting and the profit plan. However, this is not enough for the entrepreneur to make the right (financial) choices and steer for profit. The solution is not to provide more information in financial reports. Entrepreneurs don’t look at it, and when they do, they don’t base their decisions on it. Although? With Profit First.

Profit First is a super simple and accessible method with which the entrepreneur manages his cash flow based on his bank accounts. The method is based on households’ pot system: each financial target has its pot.

Entrepreneurs who work with Profit First have five business bank accounts: one receipt account where all the money comes in and four accounts for the most critical business goals: costs, profit, tax, and salary. It is a controversial method because it does something that makes no sense from an accounting or tax point of view. It often feels nonsensical to financial experts, but it works exceptionally well.

Step 4. The old formula — revenue – costs = profit — is mathematically correct

But it doesn’t work in practice. You encourage the entrepreneur to sell more, but no matter how much income he generates, he always finds a way to spend that money. In addition, the formula allows the entrepreneur to focus on turnover and costs and not on profit. The Profit First formula is turnover – profit = costs. Mathematically nothing changes, but emotionally it does. You must pay the expenses from what is left at the bottom of the line. If the company cannot live on that, something is wrong in the revenue model, or you must do the strategy and work. Taking the profit first is not just a theoretical reversal of the formula with Profit First: it is now something entrepreneurs do literally. Often, they can’t wait to redistribute the money. It is very motivating to transfer money to the profit account and watch this amount grow!

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 are the 3C’s of credit?

When used, this system weighs the three characteristics of a borrower and determines whether the borrower is eligible for a loan or not. The 3 Cs of credit are character, capacity, capital, collateral, and conditions. These components help the lender understand the owner and the business and determine creditworthiness. Knowing each of the 3 Cs of credit will give you a better understanding of what the borrower needs and how to prepare for the loan application process.

The lender can view a borrower’s credit reports, credit scores, income statements, and other documents relevant to the borrower’s financial situation. It allows the lender to make decisions based on the findings. In addition, they also consider information about the loan itself as it also determines the borrower’s creditworthiness. We will study these 3 Cs separately in the next section, including their role in credit analysis.

1. Character

Character is one of the 3 Cs of credit. Lenders need to know that the borrower and guarantors are trustworthy. In addition, the lender must have the assurance that the applicant is capable and has all the required education to run the business successfully. Consequently, credit institutions may require a degree of management experience. Other factors that the lenders consider include the applicant’s credit history and whether the borrower has a criminal record.

The lender is equally interested in the borrower’s record of paying debts. That is why the first C is also called a credit history. They examine the borrower’s credit reports, which contain information about how fast the borrower has been in the past with repaying debt. It helps the lender to evaluate the borrower’s credit risk.

2. Capital

It is another member of the 3 Cs of credit. It is the amount that the loan applicant is willing to invest in his business. Lenders also want to know the applicant’s investment in the proposed company. They will want to know if the applicant is willing to contribute personal assets to grow the business. It indicates the applicant’s willingness to take unique risks to ensure the company’s growth. A significant contribution from the borrower suggests the applicant’s seriousness, increasing his chances of qualifying for a loan. For example, it is relatively more straightforward for an applicant who can make a down payment on a home to obtain a mortgage. He also avoids the obligation to take out an additional private mortgage insurance (PMI).

3. Collateral

Collateral is an asset that the applicant offers to serve as a secondary payment source for a loan. They help the applicants secure loans as it assures the lender to get his loan back if the borrower defaults on his loan. In most cases, the subject of the loan application often determines what the collateral will be. For example, houses are collateral for mortgages, while cars are collateral for car loans.

Loans secured by collateral are often referred to as secured loans or secured debt. Unlike unsecured loans, they are usually issued with lower interest rates and better terms.

Why are the 3 Cs of credit important?

Lenders use 3 Cs analysis to decide whether a loan applicant qualifies for the credit and determine the related interest rates and credit limits. They also help determine a borrower’s risk or likelihood that you will repay the loan’s principal and interest in full and promptly.

Conclusion

Understanding the 3 Cs of credit is critical to your ability to access credit and do it at the lowest cost. We already know what the 3 Cs of credit are. Delinquency in just one area can dramatically affect the praise you get. If you find that your bank is denying you access to credit or only offering it to you at high rates, you can use your knowledge of the Five Cs to do something about it. Work on improving your credit score, save for a more significant down payment, or pay off some of your outstanding debt. Also, make sure you have some valuable assets that can serve as collateral, as this will also increase the chances of them approving your loan.

 We usually refer to the credit report as the 6th C. Note that banks in all parts of the world have different criteria for ranking the 3 Cs. You can find sources for PDF copies showing how foreign banks rank the 3 Cs for credit applications.

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.

But how do you start with that: making money with social media? Which platforms are the easiest, what is the best strategy, and how many followers do you need? These are the things I will go over in this article.

Social media is one of the best methods to build a passive income, but how do you start? Here are five ways to monetize social media.

Make money with Affiliate marketing

No matter which niche market your social media account is in, you are sure to find a product that you can promote to your followers. You can easily do this through Affiliate marketing.

It is best only to use products or services directly linked to your niche and that you use continuously.

For example, this blog is about e-commerce, social media marketing, and other forms of making money online. For example, when I write an article about setting up a webshop, I immediately add my personalized Shopify link. Shopify is a service that I use every day to set up web shops for myself and my customers. When the reader uses this link, I get a small compensation.

It won’t make me rich right away, but it’s a nice bonus for a service that I write about continuously.

Make money with Social media promotions

Social media influencers with a high number of followers can earn a lot of money from paid promotions when a company comes to you to sponsor one of its products through a paid advertisement. Often a product is sent that you can review, promote, or wear.

This form of earning money with social media is most common on Instagram, but YouTube and TikTok are also well known.

I have worked with micro-influencers with as few as 10,000 followers on Instagram, so you certainly don’t need to have millions of followers to make money with it.

Earn money with your Webshop

Before you think I’m crazy, making money with a webshop can be easier than you might think. There are other options on the market to start a webshop cheaply and many options to find products.

Are there certain products within your niche that solve a problem, and maybe you can start selling? You can quickly get started with drop shipping.

Or maybe you are very creative and make your art? Then you can use print on demand to put your designs on t-shirts, posters, and phone cases and promote them online.

Earn money with Coaching or consulting

Do you have expertise in an area? You can earn money with this through coaching or consulting!

Do you show your singing talents on YouTube? Maybe you have an Instagram feed where you show your cooking skills? Or perhaps you have the capabilities to become a life coach?

Here too you can earn money by offering. It is consulting services on your social media channels.

Earn money with an Online video course or E-book

In addition to money with coaching or consulting, you can also start selling information within your area of expertise in an online e-book or video course.

There are many programs available that can help you:

• Udemy: With Udemy, you can upload and sell your video course
• Gumroad: On Gumroad, you can sell your E-book, music, or course.
• Amazon KDP: Through Amazon KDP, you can publish your eBook and make it available on the kindle bookstore

Conclusion

So, there are many ways to monetize social media, and you don’t need to have hundreds of thousands of followers for each one. With a small community of 10,000 followers, you can earn a lot of money in a micro-niche with paid promotions, opening a webshop, or promoting through affiliate marketing.

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.

At the beginning of the week, I participated in the Innovation seminar conference 2017. It was crowded, and time passed quickly – because it does it when you have fun. Rarely have I seen such a massive density of information delivered at such a furious pace. Not a minute passed without content. I stumbled out a few hours before closing to gather the thoughts that would become this blog post. But even before lunch, I knew what it was all about – Nathan Furr’s five ingenious ingredients that a leader should focus on to make the innovation machinery squeak. The conference’s ambition is high and goal-oriented – to be part of making the Nordic region the world’s most innovative region. It is essential to get the best there – those who, through research and experience, are at the absolute forefront.

What Will Be of Help?

Taking over from Avalon Innovation’s founder could seem like an impossible task. But my representative made it easy for me. He trusted me to lead the company in my way, with my driving forces and the freedom to do things my way. Then, of course, with a clear focus on generating innovative product and system solutions that make a difference, based on the values and vision deeply embedded in the company’s identity. Close, close together with the whole team. To work with a colleague or an entire team to create a familiar and clear goal picture with a few brilliant figures, a reasonably large stage to work on, an airy framework to write your script freely, and the freedom to choose your actors for the show to succeed to deliver magic. For me, this is precisely the key to strong leadership.

How Exactly Can You Influence the Business?

As a leader, you need to clearly describe why and how you concretely want to influence the business in the future. Then stick to the grounded plan, get things done, and dare to opt-out of the disturbing noise. Then surround yourself with people who give you the right energy, are driven, forward-leaning, relevant, and want to contribute together are essential parameters for success. Winning a hard-to-win paddle match together is more fun than the one everyone has already counted home or, even worse – alone.

The Problems That Accumulate and Twist the Time to Reach the Goals

Leadership is about juggling between goal focus, solving problems, and living with their challenges. I’m frequently asked how a manager can maintain things in order when, despite the goal focus, you are thrown between different problems to solve “all the time.” My recommendation is to pursue your planned goals and unexpected challenges in project form and prioritize those that give the best effect. These you need to get started on and enjoy having around you. And by project form, I mean to see your tasks as just different projects, with goals, schedules, and ambition levels. Thinking forward and upwards, being “finished,” and focusing on not getting stuck in the old or picking the most straightforward tasks makes all the difference.

Career – What Is It Then?

Everyone has their very own career, and it is based on you and where you are, here and now. You have a responsibility to explore your dreams, superpowers, and a little more peculiarity and create an awareness of what motivates you. Close a deal? Figure out a technical invention? Coach colleagues? Then it will be easier to find a role in the profession where you can use your personality, skills, interests, and driving forces.

My Best Tips for Leaders

• Stay close to the people who inspire you the most and grow your network with people
• Motivating your colleagues and giving concrete feedback may sound like a simple thing, but it is crucial
• Be personal in your leadership. Dare to ask honest questions and show how you feel
• See the talents who want to become stars in their niche, develop these, and create positions so that they can flourish and, in the heart, want to be part of the journey
• Change and strong results take time to create. Be patient and involve the whole company
• Feel pretty good with yourself and invest in your coworkers’ well-being. It is probably the most important of all

How To Find Innovative Talent?

Innovation is the invisible hand behind our entire economic system if you are to have a broad picture of it. Most companies have one or a few star employees who stand out differently. When competitors improve their value proposition, you must innovate yourself. Innovation is an evil force – the one who stands still ends up behind. 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 person’s minimum social security qualification will seldom gain the maximum social insurance payout. These requirements are that people earn enough money to acquire 40 points, with four points each year. People would have to work at least part-time for ten years at a minimum, but this would not provide them with the maximum amount of social insurance upon retirement. They’d most likely be eligible for a tiny social security payout, but it wouldn’t be enough on its own.

The Majority Adores the Administration

Because the middle class believes in the government, they also think that social security will be there for them when they retire. Otherwise, all hell will break loose, and politicians will lose their ability to win and keep power. People do not believe it is unethical for the government to hold all social security benefits in the event of a single death. We would do something about it if people thought it was wrong. My faith in the people of the United States has been restored. If you can rely on yourself, you can rely on social insurance, which is paid for by both you and your employer, to look after you in retirement.

Recommendation

Freeway to keep track of your net worth: You must first track your finances to maximize your finances. To track your net worth, review your investment portfolios for high fees, run your money through their fantastic retirement planning calculator, and sign up for Personal Capital’s free financial tools. Over time, those who design an investment model gain significantly more money than those who haven’t.

Your Isolation Is Your Only Social Insurance Risk

You are insane if you are unmarried and die before taking out social insurance. But that’s fine since you’re already dead. The government wins while you lose since you put all your money into the system only to see no returns. The social security payments are not passed down to your children until they reach the full retirement age of 67. The government will save your money indefinitely so that it can do anything it wants with it. Consider the social security advantages of marriage if you’ve ever believed there are too many financial penalties for being married, especially if both spouses are good workers. When one family member dies, the other spouse receives social security payments.

When Are Welfare Benefits Obtainable?

Another factor to consider is that early retirement reduces social security benefits. The full retirement age was once 67, but many people are now pushing it to 68. Usually, people cannot begin claiming benefits until they reach the age of 64, and the exact moment you can claim a benefit is determined by the year of birth. If you apply for benefits before this deadline, you may be able to get less than the maximum amount of social insurance benefits.

How Can You Find Welfare Benefits Information?

The US Social Security website is a fantastic location if you have more particular inquiries concerning social security. People need solid advice on how and when to retire because benefit amounts can vary. This site is for everyone in the United States who wants to plan their retirement, not simply retirees. Understanding how maximum social security works can help people figure out what they’ll need to accomplish to retire comfortably.

Social Security’s Capacity

The government defines the middle class as persons earning less than $130,000 per year and determines whether politicians have a future. Politicians cannot get elected and abuse their power in the ways they know-how without the support of the middle class. As a result, no politician will try to raise taxes on people earning less than $130,000. President Obama established a maximum of $350,000. The amount is determined by the administration’s methodology, which takes the average of the most significant three decades of earnings (together with the years they generated those earnings) and then calculates a total sum for social insurance payments. People would have to work and earn considerable money for most of their adult lives to receive the most significant amount of social security.

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.