Category: Content

What is Bankruptcy?

Bankruptcy is a legal process that allows a person to “clean the slate” and encourages them to work again. Bankruptcy laws are intended to protect debtors so that their creditors do not seize their income and property in their entirety.

In some cases, Bankruptcy erases or discharges debts; in others, filing for bankruptcy results in a payment plan.

Experts explain that the reasons are related to the decline in living standards and incomes of the population due to the pandemic crisis; if there is no way to pay off debts, there are several ways to solve the problem.

• This year, the country approved a law protecting the living wages on debtors’ accounts. Is it possible to write off all debts and not pay?
• The law is such that up to half of the salary or pension can be withheld for debts. It led to the fact that pensioners and the disabled were at risk of being left without the necessary means of subsistence. Now they have an actual threshold. Some people believe they have a loophole, and now they can’t pay their bills. But, alas, debts remain “hanging” for life and even pass by inheritance.

Looking a little into the long term, we understand that no one is going to forgive debts, and bailiffs will begin to more effectively use other enforcement tools contained in the Federal Law of October 2, 2007, No. 229 “On Enforcement Proceedings”

Is it safe Bankruptcy?

Bankruptcy is a fundamental tool for financial recovery. The MFC can be issued by a citizen whose total debt is from 50,000 to 500,000 rubles. If the amount is more significant, this is done only in court.

There are two ways to solve the problem:

• Debt restructuring. A person should have money “for life”: based on the cost of living for a citizen and his minor children. You can use it with a good “white” income, enough to return to the payment schedule for three years.
• Sale of property. “Write-off” of debts is preceded by the sale of various valuables: jewelry, luxury items; cars; real estate. You will not take your only housing, clothes, and household items away.

However, you should note that all situations are individual, and it is necessary to analyze all problems in detail. In our practice, ways have already been developed to minimize financial and property losses and avoid them.

Cons and pros of Bankruptcy

Pros:

• You are no longer charged interest, penalties, and fines.
• Creditors and collectors do not call.
• You can count on “payment” holidays – from 4 to 12 months.

Cons:

• Lenders learn about valuable property and transactions made in recent years.
• If you want to take a loan within five years after completing the procedures, you will have to report that you went through the bankruptcy procedure.
• You cannot spend more than 50,000 rubles without the consent of your financial manager.
  • Can travel abroad be closed while paying off debts?
  • The court may impose a travel ban for the duration of the property sale (from 3 to 6 months). In other cases, the debtor enjoys the right to free movement.

All enforcement proceedings have been completed, and travel abroad has been opened. At the same time, one should not forget that, by Art. 67 of the Federal Law of 02.10.2007 No. 229 “On Enforcement Proceedings,” the bailiff has the right to issue a ruling on a temporary restriction on the debtor’s departure from the country. In practice, it is removed only at the end of enforcement proceedings. When a citizen is declared bankrupt by a court, all enforcement proceedings are subject to termination. Thus, if the court has not issued a judicial act restricting the right to travel abroad, you see a favorable scenario.

Can failure hide your career?

An insolvent citizen for five years does not have the right to occupy leadership positions “with the right of the first signature.” Otherwise, there are no restrictions.

Why is it better to hire a lawyer?

Obtaining insolvent status is a lengthy process consisting of several stages. Not all citizens know the laws and legal nuances thoroughly, and the expert will take care of himself and represent your side in all disputes.

How can Bankruptcy help me?

Bankruptcy can erase or “discharge” the consumer of most of their debts. The legal obligation to pay such debts disappears, and creditors no longer file lawsuits or demand payment. Bankruptcy can even prevent wage garnishment.

What debts can I discharge?

Bankruptcy can discharge most debts, such as credit cards, phone or utility bills, and medical bills.

However, Bankruptcy may not discharge all debts.

The following debts CAN NOT be discharged in Bankruptcy:

• Student loans
• Children’s pensions
• Alimony
• Most taxes
• Debts resulting from fraud (for example, if you were untrue on your credit card application)   
• Debts resulting from “willful or malicious perjury” (for example, a drunk driving ticket)

 Will I have to sell my property to pay my debts?

Most persons who file for Bankruptcy can keep most, if not all, of their personal property, except if they own something precious, like a diamond ring or a high-priced fur coat.

If you live in DC, your home is protected if you’re current on your mortgage payments, even if you haven’t filed for Bankruptcy.

Most people can keep their car if they are current on the vehicle account.

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

If you run a firm that sells items, you need to know your cost of goods sold (COGS). One of the essential accounting concepts and small business accounting principles that every business owner should understand is the cost of goods sold. The cost of products sold is a significant factor in setting product prices.

Understanding COGS and how to manage its various components might be the difference between a profitable and a non-profitable business.

The explanation of Cost of Goods Sold (COGS), why you should know your COGS, four inventory cost techniques for the cost of goods sold, the COGS formula and sample calculations, and how to calculate COGS in six easy stages are all covered in this article. COGS stages and restrictions.

Let’s get this party started.

What is the cost of goods sold?

The cost of providing the products or services you sell is the cost of goods sold (COGS). The cost of purchasing and transforming products or services to a saleable state is COGS. It covers the cost of any direct materials or services used to create the final product supplied to customers.

The cost of products you don’t sell and overhead is not included in the price of goods sold (COGS). Adding overhead to COGS is a common blunder.

Overheads are direct or indirect expenses required to run a firm but are not included in COGS. Utility bills, employee salaries, marketing costs, and transportation rates, among other things, are not included in COGS but are considered overhead.

The price of the foam, sheets, and threads used to construct a mattress is its COGS if you own a mattress manufacturing business. It does not include the expense of marketing the goods and shipping them to your customer’s location.

In addition, there is a distinction to be made between COGS and inventory cost. Only inventory costs cover only the cost of things that have not yet been sold but are ready to be sold. COGS refers to the cost of items that have already been sold. Cost of goods (COGS) is sometimes known as “cost of sales” or “cost of services.”

Cost of Goods Sold & Cost of Goods Manufactured is not the same (COGM). Creating the cost of goods sold (COGS) refers to production costs. COGM stands for “cost of goods manufactured” and includes all expenses associated with turning inventory into a finished product, such as direct labor, direct materials, factory overhead, and other related costs.

Why you need to know your COGS

When running a business, you must be aware of your COGS. It is critical to determine the various components that make up your company’s financial aspect. The following are a few reasons for this:

COGS helps you choose the right price

Costing a product can be a difficult task. It is especially suitable if you are the manufacturer of a product that does not have universal pricing.

It would help if you made profits, and the number of money customers pay for your items determine how much profit you make. Knowing your COGS supports you in choosing the right price that gives you a healthy profit margin. You don’t want to set a cost that is less than the cost of production. You will undoubtedly lose money.

You can tell when you must raise a product’s price, and you can even establish competitive prices to entice more buyers.

For example, if the cost of goods sold (COGS) is $100, you know that the product’s price must be higher than $100 to profit.

You can quickly determine your overall profitability.

Your gross profit is your company’s money from selling its products or services before taxes and other costs are deducted. Your net profit is the amount left over after all taxes, and additional charges have been removed.

Knowing your company’s cost of goods sold is crucial to estimating your overall earnings. Why do you need to know your company’s overall profits? You have the option to inquire.

You can determine your profitability and financial performance by knowing your gross and net income. It assists you in making better financial decisions and identifying areas for improvement.

Companies have a general concept of production costs and can assess if they are excessively high or deficient. Then they can improve the overall profitability of the company’s 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.

What does your accounting look like? Do you work with simple invoices, or do you have special arrangements? For example: include making price agreements with customers, working with subscriptions, or trading in second-hand goods. It would help if you had a more extensive accounting package for these last three options instead of a simple invoicing program. In this article, we explain which extra options there are in the accounting program

1. Send monthly subscription invoices quickly and easily

Your business is growing, and so is your customer base. Previously you could easily send every customer his invoice manually, periodically. Now that you are growing, you would like to have this automated. You can send all invoices for the coming period at the click of a button. You set the billing information once per customer. Is the billing period the same for multiple customers? Then you can set it to be taken over automatically. You select the relevant customers for each period, and you can send the invoices in one batch. This way, you will never forget to invoice a customer, and you will never accidentally send the same invoice twice.

Payments are immediately processed in your bookkeeping when you link your business bank account to your administration. You can see whether payment has already been made in a clear overview on the Web. Isn’t this the case? Then you can immediately manually send a reminder. You can enter this according to your wishes from the package. Here you indicate, among other things, when you must send a first and second reminder or reminder and how much reminder costs are involved. With a large customer base, you save time using a dunning process.

2. This is how you process second-hand goods in the administration

Do you own a vintage clothing store? Do you trade in used car parts? Do you sell antiques, or are you in the breeding business? Then you are dealing with margin items. These are items for which you do not pay VAT on the total amount. You only calculate VAT on the difference between the purchase and sales amount: the profit margin.

How do you process the margin scheme on the invoice and in your administration?

If you purchase goods from private individuals and sell them through your company, those second-hand goods are classified as margin items. These fall under the margin scheme of the Tax Authorities. You do not have to pay VAT on the product’s value (the sales price) because VAT has already been spent on it (when someone bought the new product). You only pay VAT on your profit margin.

Calculation example

Suppose you buy a second-hand bicycle from a private individual. You pay $200 for this bike. It’s a nice bike, and you’re a handy seller, so you want to make a $100 profit on this bike. That $100 is your profit margin. You calculate 21% VAT on this (so $ 21, this is an easy calculation example). In total, your selling price will be 200 + 100 + 21 = $321. You must pay the $ 21 VAT to the tax authorities.

With a good VAT administration, you can be sure that you will not face nasty surprises when the tax authorities come to check your administration.

3. All top customers in one overview

Isn’t it time to give a discount to a loyal customer? It takes a lot of time to figure this out manually; tip: take advantage of a payment discount that ensures extra fast payments!

4. Easily process discounts

Do you want to give a gift to loyal customers because they have been customers for a while? You can offer them a discount. You can process this in the administration by setting price agreements. It is possible to give a discount on the invoice, for example, with an individual appointment after the quotation has been drawn up. You can also set promotional prices, volume discounts, discounts per group of customers, or a group of items in advance and give payment discounts when customers pay within a certain period.

5. Easy to find old price agreements

All posted purchase and sales invoices (per supplier or from customers) are in a row in one overview. Handy because you can quickly gain insight into old agreements. You can find this information in the Billing history overview.

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 procedure for confirming that the balance in the checkbook corresponds to the corresponding bank statement is usually done by preparing a bank reconciliation report and ensuring the reliability of the company’s accounting records by regular comparison [of the balance of operations]. Account reconciliations can be done daily, monthly, or yearly. It is allowed to keep records of contributions from shareholders, deposits of individuals, settlements with employees of a credit institution, accounting for fixed assets, inventories, and other operations for individual programs with the total amounts reflected in the corresponding accounts in the balance sheet. Accounting Principles are a set of accounting principles, methods, and standards used by businesses to prepare financial statements. It states that account reconciliation aims to ensure that financial accounts are accurate and consistent.

You must perform account reconciliations to ensure that all cash expenditures and contributions are consistent on the cash flow and income statements. Reconciliation is a process that can benefit businesses as it can help avoid balancing errors that could lead to detrimental consequences; In addition, reconciliation can help fight fraud and strengthen financial integrity. Accounting software is one of several tools organizations use to carry out this process, thus eliminating errors and making accurate decisions based on financial information. Account reconciliation determines whether transactions are in the correct location or should be transferred to another account. Accounting reconciliation is vital for corporations, but it can also be helpful for families and individuals. For example, it’s wise to reconcile credit card and checkbook accounts regularly. By comparing debit card receipts or check copies to bank statements, you can accomplish this.

Personal Accounts

Personal accounts show the date of the previous operation on the report, the incoming balance at the beginning of the day, the debit and credit turnovers reflected for each document (consolidated document), and the balance after each operation is reflected (at the discretion of the credit institution) and at the end of the day. Personal accounts are maintained on separate sheets (cards), in journals, or in the form of electronic databases (files, catalogs) generated using computer technology. The details of personal accounts reflect the date of the transaction, the document number, the type (code) of the transaction, the number of the corresponding account, the amounts – separately for debit and credit, the balance, and other details.

Methods

A robust reconciliation process improves the accuracy of the financial reporting function and allows the finance department to publish financial statements with confidence. Therefore, to ensure the reliability of financial statements, it is necessary to carry out reconciliation for the entire balance sheet of accounts on a regular and ongoing basis. There are two ways to agree:

1. Document review is a formalized data collection method involving examining existing records or documents when using documentation review. This method is carried out using accounting software. It is the most common approach to account reconciliation.
2. The second method used is the analytical review. Any process by which a person or company reviews an account or financial statement and attempts to identify any irregularities. It may include comparing financial and non-financial information. Account reconciliation using this method is done by evaluating the accounts’ transactions, usually based on other data such as historical activity.

When errors are identified because of reconciliation, an adjustment must be made to ensure that the account balance matches the supporting information. There are currently no specific accounting standards for account reconciliation per se. However, there are different balancing rules for many types of accounts.

Manual Alignment

They passed the law to protect shareholders and the public from enterprise accounting errors and fraud and improve the accuracy of corporate disclosures. Other similar organizations worldwide are increasing the burden on organizations requiring compliance. As a result, the accounting industry has been looking for ways to automate a previously tedious manual process. The pressure coupled with the constant need to mitigate mismatches in the process by using accessible information technology, organizations can more easily automate reconciliation, and less manual labor is required for each financial closing cycle. 85% of companies perform manual reconciliations using Microsoft Excel spreadsheets. This process is complex, given the other human error. Reconciliation automation can significantly reduce errors and improve efficiency. Other benefits of automatic reconciliation include centralized management, improved monitoring, reduced operating costs, increased productivity and efficiency, improved access, improved data security, and reduced risk and audit costs.

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 balance sheet and profit and loss statement are used to calculate indicators. You can do the calculation of indicators in two ways. There is a temporary one when calculating the mean values across the examined period using balance sheet data after the period. For example, the second approach is preferred if a corporation makes significant payments at the end of the month. Using an average for the settlement account’s values over time eliminates the resulting distortion in the liquidity indicator—the technological mode of production changes based on the widespread introduction of computer technology and informatization. The increasing role of science and scientific and technical progress as a factor in economic growth, the strengthening of the social orientation of production activities, the implementation of privatization, and the development of entrepreneurship, including medium and small businesses, led to the evolution of property relations and types of management in the direction of the diversity and multiplicity of their forms, the relationship between the employer and the employee, the activation of their participation in equity capital and management, the development of collective-contractual relations. In auditing, you can also use bookkeeping to find out the numbers.

Principles of Financial Accounting

Accounting is a method of generating relevant financial data by applying fundamental concepts. The basic principles of accounting are rules, concepts, and definitions that enable the clear, consistent, timely, and understandable identification, estimation, accounting, creation, and transfer of financial information. Financial statements are designed to offer information about a bank’s financial situation, activities, and changes in a financial position that might be valuable to various users when making crucial economic decisions. It is vital to evaluate the requirements to provide financial information to interested parties to perform this process effectively. The needs of internal users (management of banks) and external consumers of financial information are usually separated into two categories. Internal users are interested in the financial statements’ information. Still, they also have access to extra management and financial data that assists them in fulfilling their planning, decision-making, and control tasks. External users are interested in details about the bank’s actions, indications, and financial situation changes, which can help various users make economic decisions. Financial reports meet most users’ basic requirements.

Financial Strategy

The financial strategy encompasses all areas of a company’s operations, such as asset optimization, profit distribution, non-cash settlements, tax and pricing policies, and security measures. It is created as part of a company’s strategic financial planning. It aims to reach a certain level of performance in the major characteristics of its operations: cost price, profitability, sales volume, financial stability, price competitiveness, and payments.

Financial Ratios and Indicators

The essential requirement for the break-even operation of the enterprise in the conditions of market relations is economic and other activities that ensure profitability. The financial measures aim to reimburse expenses by the received income profit reception to satisfy economic and social requirements of members of the collective and material interests of the proprietor. Engineers and architects can use a variety of metrics to characterize their work, including gross revenue, turnover, profit, costs, taxes, and other factors. Financial stability, liquidity, profitability, and business activity are the major economic indicators for engineers and architects of the organization and their operations for all types of businesses.

The indicator dynamics are considered while determining the genuine liquidity index, which allows to choose the firm’s financial strength or bankruptcy and to indicate the critical status of the organization’s finances due to rising demand for the industry’s products. Because its capital comprises cash and short-term loans, such an entity has a high degree of solvency. The dynamics of the leading financial indicators demonstrate that the situation looks worse if the organization has working capital only in the form of many stock products, which are current assets. Their money conversion necessitates a period of implementation and the presence of a consumer base. The creditworthiness status is determined by the enterprise’s primary financial indicators, including liquidity. The company’s current assets must be sufficient to repay existing short-term debts. These values are roughly at the same level in the optimum position. If the company’s circulating assets are worth substantially more than its short-term debts, this implies that it is investing money in current assets inefficiently. If the working capital is less than the value of short-term loans, the company goes bankrupt.

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 costs of day-to-day business upkeep and management are known as operating expenses. These expenditures are commonly referred to as operating expenses, operations expenses, or OPEX by businesses. The cost of things sold (COGS), a direct cost linked with creating a product, is essential for operational expenses. The cost of goods sold includes prices for raw materials, consumables, manufactured parts, and shipping. Other types of running expenses include the following.

• Wages and labor costs
• Costs of maintenance and utilities
• Pensions, health insurance, disability insurance, and other rewards for employees
• Create a commission
• Assets that depreciate
• Depreciation

One technique for increasing productivity and thus your bottom line is to reduce the cost of various spending items in your firm. “This is vital because resources are limited, especially in small and medium-sized firms, and you must unlock their full potential, whether human, financial, material or technical,” Mr. Trudeau said. Expense elimination is a more drastic move that entails examining your numerous expenses and removing some of them. The true goal of this move is to boost earnings.

Here is how to save money on your business’s operational costs.

1. Make use of technology.

There are numerous business systems and software platforms to choose from in today’s digital age. Specific processes, including payroll, inventory tracking, and supply chain management, are automated and simplified using these solutions. These technologies will boost productivity and allow businesses to operate more efficiently with fewer human errors. As a result, firms can save money on labor and avoid delays caused by mistakes.

The following questions should be considered while selecting a business system or program.

• Which of your company’s functions is performing well?
• What tasks need to be improved? What are the company’s most time-consuming processes?

2. Look for service suppliers.

Businesses that rely on material and finished product providers must conduct significant research to identify a source that fits their budget. It is crucial to think about their wholesale rates, minimum order quantities, delivery timetables, and shipping expenses. Small firms, for example, should seek suppliers with smaller MOQs because they have fewer consumers and demand.

3. Responsibilities beyond the company

Outsourcing is another cost-effective strategy to boost performance. If a retailer, for example, does not have substantial accounting skills, he may delegate this work to a tax professional or accountant. This ensures accuracy and frees up time for organizations to focus on other essential tasks.

4. Encourage people to work from home.

Working from home is getting increasingly popular. According to statistics, 4.3 million people in the United States work at least half of the time remotely. Furthermore, Upwork estimates that 22% of its staff will be working remotely by 2025. Companies do not have to rent office space or pay for services when they work remotely. It also eliminates the need for office equipment like printers and desktop computers.

5. Payment to suppliers on time

Paying all payments on time is also part of cutting operating costs. Supplier invoices must be paid in advance or on time by businesses. This will save late fees, interest, and other costly penalties. Furthermore, some providers provide discounts to consumers who pay their payments in advance.

6. Keep an eye out for inefficiencies.

Processes and procedures that are ineffective waste money and resources. If a retailer’s demand forecasting method is useless, he will waste money on things his consumers do not require. Business owners should examine their operations regularly to detect inefficiencies early and keep expenses low. Collecting feedback and suggestions from employees can also be beneficial. They better understand what works and what does not when they collaborate directly with customers and procedures.

7. Unsubscribe

Business owners and managers should check their subscriptions to numerous services regularly. If you have not used the platform in a while, you might be considering canceling it or switching to a lower plan.

8. Sustainable

Purchasing environmentally friendly items such as recycled paper, intelligent thermostats, and energy-saving light bulbs can help you save money. There are also environmentally friendly air conditioning and heating alternatives. This allows businesses to save money while maintaining a pleasant and welcoming workplace. Many firms may get closer to reducing selling expenditures, increasing earnings, and improving cash flow by following these cost-cutting recommendations. 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.

We are all distinct culturally, socially, and psychologically. Everyone brings their own set of experiences, ideas, beliefs, and values to the workplace and how he interacts with others. When you work alone, it is OK. When it comes to keeping a project on track or building a business, though, team cohesion becomes a full responsibility.

Here are some tools to help us interact with teams more effectively, including team-building exercises and personal reflections.

The concept of 3C

Gene frequently employs the three C’s when engaging with management teams, but this concept can be used in any workgroup. It is built on three pillars:

1. Cohesion

The management team’s ultimate goal is to achieve this. After all, how can we expect other employees to follow suit if the unit is not cohesive? And in which direction are you going? A team’s ultimate goal is cohesion. Two pillars support this coherence. Trust and conflict, respect, transparency, efficiency, and greater production are core ideals.

2. Have faith in

There can be no unity without trust. There can be no cohesion without agreement. Trust, on the other hand, cannot be purchased. She is progressing. In this case, bringing the team together and inviting everyone to share their tales is a good exercise. Team members might tell their colleagues who is behind the employee by narrating anecdotes. Of course, he is a strong man. However, there are flaws and gaps. Jin then encourages the attendees to share what they know about their colleagues and have a discussion following this exchange. What is the point of all of this? Create a trusting environment in which you may disclose your faults and flaws. Apologize. Seek assistance. What kind of cooperation is this?

3. Disputes

Centralized conflict is healthy and constructive. They make sure that all viewpoints are heard. Leadership meetings are frequently charged. They are the root of tensions, problems, doubts, and disagreements. Catch! These confrontations often extend beyond the topics at hand, and they should always be centered on issues rather than people. Organizations can benefit from encouraging these favorable dynamics because focus and disagreement are healthy and productive. They ensure that all viewpoints are heard and that all points of view are considered. They make it possible to make more informed selections. To avoid a stale meeting environment, Jean Mongo advises that everyone agree to a set of rules that they must follow. This includes the boss!

Are you a judge or a learner?

Who hasn’t been to a brainstorming session when one or two persons oversee the gathering, assessing the ideas’ relevancy and timeliness? Doesn’t it frequently tell ourselves, “We don’t judge” in the preamble? We believe it, and our perception of others reflects this. As a result, our experts recommend that you read Marilee Adams’ book Change Your Problems, Change Your Life.

What are the judge and learner?

He is a guy who prefers to communicate protectively. She attacks to defend herself. He had no idea that his replies were mechanical and that they were usually focused on the charge. She prefers the security of her assurance since she “knows” the other person (concept or person) will fail. The win/loss relationship is the foundation of the model. One must die for the other to succeed.

On the other hand, learners are always in open mode when they focus on openness. He is interested, attentive, and makes no assumptions. His decision is based on objectives and facts rather than strict convictions. As a result, he promotes a cooperative approach centered on the ongoing pursuit of win-win outcomes. I do not need you to lose for me to “win.” You and I both came out on top.

Learn how to become the “learner”?

Many authors explain how to do it straightforwardly. Form learning groups.

• Understand the distinction between assessment and teaching methods while speaking with the team.
• Have each person in the group share their learning or evaluation experience. We are not hunting for the bad guys; we are just trying to figure out what is happening.
• Form a coalition in which everyone on the team is committed to assisting one another in keeping the student on track.

Create interaction specifications to help your team collaborate and communicate more effectively. Including the boss! 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.

We can attest that those devoted consumers are a goldmine in a digital marketing business. According to one study, a company’s profits improve by 25-95% for every 5% increase in client retention. On the other hand, recruiting new consumers can be expensive, costing anywhere from 5 to 25 times more than keeping existing clients.

You can lower your costs with a single marketing plan while increasing your earnings. Customer retention doesn’t have to be difficult, especially if your business is well-established. Spend less time acquiring new customers and more time boosting the frequency with which existing customers purchase and spend. Here are five suggestions for increasing customer retention and increasing revenue.

Keep your SME up to date regularly

Even when funds are tight, new technologies allow you various options for keeping your consumers visible. For example, you can maintain your online presence by being constant in your posts and reaching out to your clients on social media frequently (but not abusively).

Share a blog entry or make a Facebook post with your weekly recommendations. Tweet links to relevant publications in your field. On Interest, save a nice photo. Attempt to engage the audience with a call to action in each piece.

Reward customers who refer new customers to you

When recruiting new consumers, word of mouth is always a viable option. Who better than a friend or relative to persuade us to buy a product or service? This is especially true when you consider that social proof can help you convert more potential customers. Why not reward customers who refer new customers to you if your firm fits this description?

Fitness centers, for example, frequently give a month of free gym access to users who suggest a friend. This strategy helps you grow your customer base by persuading your current customers to stick with you.

React to consumer feedback

According to the Business Development Bank of Canada, 7 out of 10 internet users rely on online reviews to make purchasing decisions, so don’t underestimate the significance of this!

Leave no doubt whether your clients are complaining about their online experience. Contact them. You’ll “improve the problem” by proposing a solution and demonstrating that you’re satisfied with it.

Thank your customers and start a dialogue when the evaluations are positive. Others may appear, and those glowing testimonials will contribute to your online reputation.

Make special offers public

Offering discounts is a terrific way to attract new consumers. And keep them coming back. Regularly offering offers is an excellent approach to keep them in mind. Especially if your request is well-worded and relevant if coffee drinkers learn that you provide a $2 unique “Latte des Broken” every Tuesday, they’ll remember it on their way to work. Customers will become attached to your recurrent offer, which will become part of your logo.

Offer individualized service

Why not utilize the customer’s name when sending a newsletter or invoice with a package? Directly address him: Create a bond with your SMB’s personality. Immerse yourself as much as possible in your clients’ ideas and ask yourself how you might improve the service you deliver. What small gestures can you make to make their life a bit easier? Can you, for example, provide free shipping or a flexible return policy? There aren’t any tiny enhancements. Every step toward improved customer service leads to increased loyalty. 

It would help if you designed a complete hiring policy and meticulously prepared for interviews to ensure internal harmony in the organization. At the same time, make sure your expectations are clear and that roles and duties are defined. Allow new employees to learn more and advance their careers as soon as they join the company. You can track this learning by directly linking your HR tools/database software with your feedback management platform. Encourage them to share their knowledge on social media or through blog articles. As a result, the input can be considered automatically at various employee training and development phases.

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.

Tax season has begun, and millions of Americans collect their records to prepare for their tax refunds. The Internal Revenue Service (IRS) encourages taxpayers to file as soon as possible, preferably electronically. Due to laws and official orders, several tax changes will take effect on January 1, 2022. From declining balance depreciation to pension provisions and VAT, an overview of taxes is new for 2022. Below you’ll find new tax rules coming into force in 2022.

The basic allowance has been increased

In 2022, only taxable income above the basic allowance of $11,000/$22,000 (single/joint assessment) will be subject to income tax. However, it estimated the basic allocation for 2021 to be $10,600/$20,200.

Employees can earn up to 48 dollars per month of tax-exempt benefits, with higher benefits in kind so far. By 2022, the monthly tax exemption ceiling will increase to 55 dollars. However, if the benefits in kind are provided via vouchers or payment cards, the requirements of § 2 paragraph 1 no. 10 of the Payment Services must fulfill the Supervision Act (ZAG). If these criteria are not met, the controllers of social charges will withdraw the exemption in 2022. By January 1, 2022. (BMF letter of April 13, 2021).

Rich tax 2022

Income tax is usually levied at a rate of up to 42%. Only the top earners must reckon with a tax increase of 3%. Income in 2022 above USD 30,500/USD 610,000 (single/contributory) will be taxed 45%.

Corporate tax option

According to section 1a, anyone filing in 2021 will benefit from the new option model for the first time in 2022. Under the new rules, craft businesses operating in partnership can now be taxed like LLCs or joint-stock companies.

Lower interest rates

It must now reform the new federal government after the Federal Constitutional Court declared default interest by the tax authorities illegal during the interest calculation period from January 1, 2019. From the old rate of 6% per annum, it will approve a substantial reduction in interest rates at the end of July 2022.

Retirement Plan

From 2022, entrepreneurs can deduct 94% of their contributions to the Rürup pension scheme as a particular tax expense. However, when deducting extraordinary costs, you must observe several restrictions. In 2022, the deduction for single people must not exceed $26,500 (maximum contribution of $28,100, i.e., 94%), and the deduction for married couples contributing must not exceed $53,000(maximum contribution of $56,200, or 94%). 

Travel Expenses Abroad

If your employees travel abroad, you can pay them a particular one-time, non-taxable cost of room and board. A letter from the Federal Treasury established its amount. Overseas travel food and overnight allowance in 2021 will continue in 2022. (BMF letter dated December 3, 2020).

Tax-free Corona bonus

By section 3 of the Income Tax Act, you can offer incentive bonuses of up to €1,500 per employee tax-free. Payments are due March 31, 2022. After that, starting today, these payments are no longer tax-exempt.

Company pension plan

Employees who pay part of their Christmas or vacation pay into a company pension plan in direct insurance, pension funds, or pension funds are tax-exempt in 2022 up to a maximum of 6,768 euros.

Flat Rate for Home Office

Home office flat rate of $5 per day, up to a maximum of $660 per year, is deductible as income tax savings for employees and operating expenses due to reduced benefits, only for 2020 and 2021. However, you could extend the tax exemption to many people working from home again.

Pension amount

For the first time in 2022, everyone who turns 64 in 2021 will receive so-called pension benefits. In 2022, the Treasury will reduce the income of the self-employed or non-self-employed by 14.5%, but only by a maximum of 684 euros.

Age relief amount

The so-called old-age benefit will be offered for the first time in 2022 to those who turn 64 in 2021. In 2022, the tax authority reduced self-employed or non-self-employed income by 14.5%, but only 750 dollars.

In the culinary industry, Value Added Tax (VAT) is charged

Bakers and butchers who sell products in their restaurants will not see a change in their reduced VAT rate for ready meals in 2022. Food will continue to be taxed at 7% until the end of 2022, whether consumed on-site or away from home.

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 Makes a Great Manager? A Guide for Small Business Owners

Being a small business owner is no walk in the park. You juggle budgets, wear multiple hats, and often double as the HR department and chief coffee officer. But as your business grows, one of the most impactful decisions you can make is hiring (or becoming) a great manager. Why? Because a great manager doesn’t just keep the wheels turning—they energize the entire engine.

So, what exactly makes a manager not just good, but great? Let’s break it down.

They lead with empathy, no ego

Empathy isn’t just a warm and fuzzy buzzword. It’s the ability to understand, care about, and respond to your team’s needs, perspectives, and experiences. Great managers lead with empathy because they understand that people aren’t cogs in a machine—they’re the engine.

Example: Imagine two bakery managers. One barks orders during the morning rush, dismisses employee concerns, and rarely checks in. The other listens when a team member shares they’re overwhelmed, adjusts the schedule, and provides backup. Guess whose team stays longer and delivers better service? Yep—Empathy wins every time.

Pro Tip: Use regular 1-on-1s to check in on team members, not just about tasks, but how they’re feeling.

They communicate clearly and often

You know what employees dislike even more than low pay? Unclear expectations. A great manager sets the tone with open, transparent communication.

Specifics That Work:

• Weekly team meetings with agenda and follow-up

• Clear KPIs (Key Performance Indicators) for each role

• Regular updates on business goals, wins, and areas for improvement

Example: At a small marketing firm, the manager starts every Monday with a short stand-up meeting: what’s happening this week, any changes in client needs, and goals for the week. It takes 15 minutes and prevents hours of confusion.

Pro Tip: Be consistent in your communication and choose the right format—some things belong in email, others are better face-to-face.

They cultivate a culture of accountability

Great managers hold people (including themselves) accountable without blame or shame. It’s about making sure everyone owns their results and learns from missteps.

How to Build Accountability:

• Set clear goals and deadlines

• Address missed targets promptly and constructively

• Celebrate wins, both big and small

Example: A salon manager noticed that appointment bookings were being missed. Instead of pointing fingers, she introduced a simple double-check system and retrained the front desk team. Result: no more missed bookings and a team that felt supported, not attacked.

Pro Tip: Use mistakes as learning moments. Ask, “What happened? What can we do better next time?”

They develop their people

Training isn’t a cost—it’s an investment. Great managers know that when their team grows, the business grows.

Ways to Develop Your Team:

• Offer cross-training opportunities

• Send employees to workshops or online courses

• Encourage team members to set personal and professional growth goals

Example: In a small auto repair shop, the manager noticed one of the techs had a knack for customer service. Instead of keeping him in the garage full-time, she trained him for a hybrid role, eventually promoting him to a service manager position.

Pro Tip: Ask your team, “Where do you want to grow this year?” Then help them get there.

They set the example

You can’t expect punctuality, professionalism, or positivity if you don’t model it. Great managers walk the walk.

What It Looks Like:

• Arriving on time and prepared

• Admitting when they make a mistake

• Treating everyone with respect, from interns to vendors

Example: In a local boutique, the owner-turned-manager always greets every employee by name, pitches in during inventory days, and thanks the team after busy weekends. That tone of mutual respect trickles down into customer service, too.

Pro Tip: What you model, you multiply. Make sure your actions reflect your expectations.

They recognize and reward

It doesn’t take a six-figure bonus to make someone feel valued. A handwritten note, a surprise coffee, or a shoutout in a team meeting can go a long way.

Recognition Ideas:

• Weekly MVP shoutouts

• Peer-to-peer recognition programs

• Celebrating work anniversaries and birthdays

Example: At a dog grooming business, the manager keeps a whiteboard of weekly wins. Every Friday, the team gathers to celebrate moments like happy customer reviews or mastering a new grooming skill.

Pro Tip: Make recognition timely and specific. “Great job on that client presentation yesterday” hits harder than “You’re doing great.”

They manage conflict with confidence

No team is free from tension. But great managers don’t sweep it under the rug. They address issues head-on, with fairness and clarity.

Conflict-Resolution Formula:

• Don’t delay: address issues quickly

• Stay objective: focus on behavior, not personality

• Facilitate resolution: allow both sides to share their perspective

Example: When two baristas at a coffee shop clashed over shift responsibilities, the manager brought them together, clarified expectations, and created a shared task list to avoid confusion. Peace restored, espresso shots flowing.

Pro Tip: Your job isn’t to be everyone’s best friend, but to ensure a healthy and productive team environment.

They understand the business

You don’t need an MBA to be a great manager, but you do need to understand the nuts and bolts of how your business runs.

Business-Savvy Skills:

• Reading basic financials

• Understanding customer needs

• Aligning team efforts with business goals

Example: A restaurant manager who notices ingredient costs rising adjusts the menu, trains staff to reduce waste, and communicates changes clearly. The result? Higher margins and a stronger bottom line.

Pro Tip: Give your managers visibility into key metrics. It helps them make smarter decisions and align their team’s efforts with business success.

Final Thoughts: Your Role as Owner

Whether you’re managing people directly or hiring someone to do it for you, remember: Great management isn’t about barking orders. It’s about building relationships, solving problems, and lifting others up so your business can thrive.

You don’t need a corporate playbook. You just need heart, hustle, and a commitment to helping your team shine.

Because at the end of the day, a great manager doesn’t just make work better—they make businesses stronger.

Ready to level up your leadership game? Start small. Pick one trait to focus on this week. Whether it’s giving more feedback, improving your communication, or just listening more—those little changes make big waves.

Because when your team thrives, your business thrives.

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.