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Unfortunately, films, media and unscrupulous people in the industry have vitiated and damaged the image of investments and especially of the stock market. In this article I will cover the 6 main myths around the bag, hoping to clarify them.

 

  1. Investing is difficult and complicated

Many think that to invest you have to be an expert, or that it is so complicated that we cannot do it. Some even believe that this perception has been deliberately created by those who work in the stock market in order to justify its existence and the collection of brokerage commissions.

Actually, the stock market is as simple or as complex as we want. Certainly there are quite complex products, but at the same time there are many instruments quite simple to understand, to buy and sell.

 

 

  1. Investing in the stock market is very risky

Many times I have heard friends say: “The stock exchange is like going to a casino”, no less true. Although it is important to know that any investments involve assuming a certain level of risk, it can be controlled and determined by you.

Many investments that we make, outside the stock market, are more risky than many of the strategies that are regularly used to invest in the stock market. In fact, I know of no other tool that allows greater flexibility to manage, diversify and reduce the risk of our investments. 

An example of investments that I consider more risky than investing in the stock market is to put all our money in a single financial institution, in savings accounts and long-term certificates in local currency, something quite common.

Country risk (risk of a crisis in the country’s economy), the risk of inflation, the risk of devaluation of the local currency, the risk of non-diversification (having all the eggs in one basket) far exceeds having a adequate portfolio (combination of different products and investments) in the stock exchange divided in local and foreign currency.

 

 

 

  1. You have to have a lot of money to be able to invest

This is another myth where one hears that investing is only for people with money, and that a large amount is required to be able to do so.

Some of this was true years ago, since many products were not available to individual and small investors like you and me.

 

 

 

  1. You have to be stuck to a computer all day

This is another myth fueled by movies, television series and the media, where they always present the stock market as a means to speculation, where it is only possible to earn money by buying and selling shares, determining when a company’s stock will rise or they will go down

It is important to understand that one thing is speculation and another is investment. If you are looking to invest, it will not be necessary to be stuck in a computer. With good planning and clear objectives you will hardly need to spend a few minutes monthly to color the money you want to invest.

 

 

  1. If you know how to do it, you will become rich in a short time

Another great myth, related to the previous one, is that the stock market is a means to get rich in a short time, no less true. As many authors say “easy and fast money does not exist” . Any person selling you the idea that it will make you rich in a short time with the stock market, or any other type of investment or business, is lying to you.

Many believe that they can be smarter and manage to make a lot of money in a short time, regularly these are the ones that feed the myth that the stock market is like a casino, because in the end they end up losing their money. The reality is that this happens through the greed and the high risk assumed, betting (literally) to achieve big profits and get rich easily and quickly. Do not fall into that trap.

 

 

  1. My broker watches over my interests

This myth is one of the most dangerous. Many people fearful for their inexperience in the investments request the help of a broker to be able to carry out their transactions, and in the end they think that this person is advising them and will watch over their interests and their money, or else they will prevent them from making mistakes.

Unfortunately this is not the case, I do not say that many do not have good intentions, but even these can be vitiated by only knowing the products they represent, and by those who commission, or simply in other cases they are not able to advise correctly their “customers”.

 

 

In this sense, it is important that you investigate on your own and educate yourself on how to invest, and if you have an advisor you should ask specific questions about whether you receive a direct commission for the products offered, as well as what strategy and products uses in their own investments.

 

 

 

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. 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.

You do not have to borrow. Buying a house implies asking for a mortgage. Investing in the stock market, however, you can do it for a lot less money. Debt to invest is very risky, and if it goes well it is great, but it can also go very wrong.

 

Diversification in assets

If you invest in real estate you can buy one or two floors, nothing more. If you want more, you will need millions of dollars.

If you invest in the stock market, on the other hand, you can buy shares for thousands of companies, or better, investment funds that invest worldwide with just one click.

 

Diversification over time

Buying shares allows you to apply the DCA. If you buy an apartment, you will have to risk buying at a bad time without knowing it, something you can avoid by investing in the stock market.

 

Dividends vs. Rental

Buying an apartment to rent is very good and you get a decent interest (approximately 4-5%), and when the floors went up you could always sell more expensive for each day that passed. The problem comes when the tenants do not pay you, the floor is empty for a while, a pipe breaks…etc.

Not all shares give dividends, but you can choose from those that give (there are those that have been given for uninterrupted decades) and you will charge it even if you don’t know the delivery date exactly on the stipulated day year after year.

 

Liquidity

The average waiting time to sell a house is 1 year, while the average time to sell shares is seconds.

If you need money urgently, the shares will be much easier to sell than the floors.

 

Expenses, taxes and commissions

To maintain a house you have to make periodic reforms, pay the IBI, the community, spills, insurance …, amounts that accumulate potentially can become a lot of money.

The actions, depending on your broker or depository, can involve $0 in maintenance costs, having to pay a small amount only when buying and selling them.

 

Cost effectiveness

The profitability of the stock market is higher than that of real estate, with an average of around 7-8% per year during the last 200 years. If your barrier is that you don’t know how to start investing, I recommend you take a look at my course to start step by step and from 0.

Investment in the stock market is much more profitable, and in my opinion also much simpler. It takes less time and implies less headaches.

 

 

Why do people prefer real estate investments to the stock market?

People continue to invest in real estate, and move completely from the stock market.

 

Why?

The real estate can be touched

Although it seems silly, people like to see their things. One of the biggest barriers when investing in the stock market is that the shares and investment funds cannot be seen or touched.

Actually, they are equally safe, but the fact of not being able to see them pulls people back a lot.

 

The bag is like a casino

Another excuse that people who do not invest in the stock market puts is the fact that money can be lost. True, you can lose money, but only if you are not sure what you are doing.

If you go long term, you understand that fear and greed are your biggest enemies, you make temporary purchases, you invest following a clear strategy and you also do it only with money that you will not need in the near future, really losing money in the stock market is very difficult.

 

The floors always go up

Directly, lie. In 2007 they fell approximately 50%. You simply do not have an app on your mobile that tells you the price of your home every day. Forget about looking at short-term stock quotes, as that is irrelevant.

 

I don’t have time to invest in the stock market

Fortunately, there are very good ways to invest your money without spending more than 5 minutes. I, without any doubt, prefer to invest in the stock market than to invest in real estate.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. 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 simplest definition is: passive income is income that you generate without actively taking care of it. This means that you make money by doing nothing or very little to generate that income. Most of the time when a person wants to increase his income, he is offered to find a job or to work overtime. No question of that with passive income. Anyway, do you have the time and / or energy to do a job in addition to yours? I did it and I know that is not the right solution. I exchanged my time for money. It is not as interesting as making money by doing nothing or almost nothing! It takes a little time and investment.

Here are some ideas that I hope will inspire you. These passive income ideas will help you save money while you sleep.

Invest in crowdfunding

There is probably no safer investment than placing your money on a Livret A and touching the interest. Unfortunately, the interest rates are so low that it is only worth it for your precautionary savings. Touching 0.75% a year will not make you richer.  Obviously at this rate there are risks.

What risks?

Risks of bankruptcy concerning the companies to which you lend your money. Most loans are covered by insurance but there is always a risk. To smooth this risk, you need to invest small amounts on several medias. If you have $1,000 to place, do not invest it all on a single company but rather $50 on 20 companies. So you do not risk losing everything on a single investment. Despite the risk of default, it is very likely that you will earn more than putting your money on a booklet. Even life insurance. I have a gross return of 9.53% currently thanks to crowd funding organizations. I lend essentially through the pretup platform. If you invest $200 in less than 3 months on one or more projects you will earn $15 and me too!

Try index funds

An index fund is a fund that replicates a stock market index, for example the CAC40. Passive fund management leads to lower fees than traditional funds. Trackers are called trackers in English. Warren Buffet said trackers were the best stock market for beginners. The CAC40 has gained more than 10% since January 1st! It’s a very simple investment. You have nothing to manage, buy, sell, choose your funds, or rebalance your portfolio. Everything is managed by the index fund.

With any broker, you are free to choose a fund that is based on any index. For example, there are index funds created for almost all market sectors – energy, precious metals, banks, emerging markets, and so on. All you have to do is decide which one you want to buy, then invest money and relax. Your stock portfolio will then be on autopilot.

Binck.fr is an online broker that will allow you to invest in a tracker. $0 account keeping, $0 custody fee. I recommend investing 5regularly in a tracker reflecting a fund such as the CAC40 or the S & P 500. For example, put $50 every month in the tracker lyxor cac40 and you will be long-term winner. To compare online brokers, use Online Broker Comparison software. 

Invest in real estate

Real estate is an easy way to create wealth. Everything may seem difficult when you are not used to it but there is no magic. You have to train, read, listen and learn. Once you have bought one or more apartments or buildings, you repay the loans and collect the rents. This gives you an interesting passive income. You still need to manage your property.

If you want to be quiet, you can delegate management work to a real estate agency. Obviously, you will lose profitability. Or invest in real estate crowdfunding through Homunity . You have nothing to manage except to select your project and collect between 8 and 10% yield. In addition, it is practical for the small budgets, you can begin to invest in the real estate from $1,000.

Write a book and earn royalties

As for writing an ebook, a lot of work upstream is mandatory. But once the book is written and marketed, it becomes a totally passive source of income. If you manage to sell your book to a publisher, it will pay you a percentage on each sale and if the book sells well the pay could be substantial!

There are still many other passive income ideas to put in place. Before you become passive income, you will have to build these revenues with work upstream. Believe in yourself and try. Thousands of people have sources of passive income. 

 

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

When it comes to building equity and generating income, investments soon come to mind, right? But how do you know if investing in real estate really is worth it? Is it really that ideal? Especially if you are a novice investor, it is more than common to have doubts whether this type of investment is, in fact, the best alternative. Ready to draw your own conclusions if real estate is (or is not) good investments? Then follow:

 

Why invest in real estate?

Before marking visits, probing consortium or doing financing simulations, anyone who still has doubts about investing in real estate should start to better understand why these are good investments, do not you agree? Among these reasons are questions such as:

 

They are very versatile goods

By purchasing a property as an investment, you become the owner of a fixed asset of high value. This means that it is possible to generate income through the rent, as well as reform it to resell at a more appropriate time, when there is an increase in demand, and so on. More than that, you obviously can enjoy the property, since it’s yours! All this makes it a very flexible investment and adaptable to your needs, as well as the state of the market as a whole.

 

They have good profitability

Taking into account several variables, ranging from location to footage, one can observe a very attractive advantage: profitability. Ever thought renting a seasonal property in a prime area of ​​the city or even leasing a commercial room in a prime location can deliver much higher profits than most other investments? This not only causes you to recover the money invested faster but also ensures a monthly income over the time the property remains under your property.

 

They are safe options

In the investment market in general, it is often necessary to take risks that are not always desirable to obtain profitability. As a consequence, investors are often forced to choose between profitability and security. Already with the investment in real estate, this dilemma simply does not exist. The logic could not be more simple and direct: having acquired the property, the property is yours. And while it is necessary to take certain precautions regarding depreciation, the investment is not lost. This allows you to get the best of both worlds in order to ensure a good structure for your budget.

 

They have good valuation power

Most traditional investments depend on economic indicators (such as interest rates and inflation) to undergo valuation or devaluation. And while the value of real estate is also affected by the state of the economy, they generally hold great valuation power – better than other investments. Imagine, for example, a neutral economic situation with moderate growth and an expected credit supply.

In this scenario, the majority of the investments have appreciation of average to low due to the stagnation of the main economic indicators. The property, on the other hand, can be valued! For this, it is enough to have an improvement of infrastructure in the place or a heating in the offer of credit, for example.

Also worth it in times of instability?

It is very common to hear that investing in real estate during periods of uncertainty is not a good idea, right? And of course, just like virtually every other sector of the economy, the real estate market also tends to suffer from economic stagnation. This does not mean, however, that investment in real estate is no longer a good opportunity. In fact, what happens is just the opposite! Investing in real estate even during these contexts can be beneficial because:

 

The properties are standing in the market

As the supply of credit falls and the financial situation of families becomes more complicated, it is more than natural that the demand for real estate also suffer a decrease. Because it is a more value-added asset, it is no longer a priority (or even a possibility) for buyers in times of instability. As a result, the properties that are on the market are stuck: launches run aground and used properties tend to take longer to find buyers.

But how does this favor your investment? Simple: when you want to buy a property, you become a great business opportunity for those who sell, and hold the power in a possible negotiation. As a result, it is easier to buy the property with facilitated conditions, which would probably not be found out of this situation.

 

Prices are lower than normal

The deterioration of the economy and the delay in real estate have a direct impact on prices, which tend to fall. In this scenario, the price of a property put up for sale may suffer a significant reduction. And even if it is valued, it is necessary to keep up with the demand – which, at the moment, is much lower. When leaving to invest in real estate in that period, therefore, you can acquire a unit with extremely advantageous discounts, making the return on investment soaring.

 

Rental search increases

It’s okay that people buy less real estate in difficult times, but that’s not why they neglect the need for housing. It is natural, therefore, that there is an increase in the demand for real estate leasing. When acquiring a unit at such a delicate time, resale is actually more difficult. On the other hand, you can rent the property, especially if it offers a more inviting price. As a result, the asset can start generating income almost immediately, allowing you to recover the investment early.

 

Other investments become more risky

It is common that general instability is accompanied by economic stumbling. And that is not good for investments. As a result, making other investments becomes considerably more risky than buying a property, which will continue to be your property.

An investment that depends on inflation, for example, can quickly lose profitability when the economic situation returns to healthy levels. The property, on the other hand, only tends to become an increasingly profitable investment for your pocket.


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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. 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.

Empty storage unit with opened door. 3d rendering
Self-storage has gained much acclaim as a valuable commercial real estate investment in recent times.  This is partly due to the increasing storage and warehousing needs of individuals and businesses. Let us briefly explain what self-storage means in the world of real estate. Self-storage deals with renting out storage space to individuals or businesses, usually on a short-term basis. The storage facility can uphold household goods and equipment as well as inventory and archived records. If you are looking for a self-storage facility to purchase, it is essential to evaluate its gross potential or the value that it is likely to be worth in the market. Here, we list a few ways to calculate gross potential in a self-storage investment.

Get The Actual Figures

Here, the emphasis will be upon assessing the actual figures; figures relate to payment made for self-storage regarding utilities, maintenance, advertising and the actual revenue generated regarding rent from this real estate property.  Once you have the actual numbers, you can make the necessary calculations. Using estimates will not allow you to calculate gross potential in a self-storage on an accurate and factual basis. Once the various cost heads have been identified and actual figures have been acquired, you can calculate the gross and net profits that may be generated from the self-storage investment. This is one method to calculate gross potential in a self-storage, with help from the property owner. Property owners that fail to disclose such information make valuing a self-storage property a tedious job. However, you can get your hands on the information needed through industry journals and published annual reports of real estate companies.

Determine a Capitalization Rate

To calculate gross potential in a self-storage, identifying the capitalization rate is another significant step. Cap rate is a must in order to estimate a return on investment (ROI) and it may be lower in popular areas and locations where strong-profile tenants are common. For areas that are low in popularity, comprising mostly of older buildings and weak-profiled tenants, a higher cap rate may be fixed in order to cover for maintenance and repair services, as and when required. These factors can help you with deciding a cap rate in any given area; however, since the emphasis has been on actual figures and not forecasted ones, you may inquire a property owner for cap rate prevalent in a given area where the self-storage is located. Cap rate can also be calculated by using the net operating incomes and recent sale prices of comparable properties. The determined rate may then be used to calculate the current market value of the self-storage facility. The value calculation, in this case, is essentially how we can calculate gross potential in a self-storage property.

Now that you have both the operating income and cap rate, the value of the self-storage property may be calculated by putting the figures in the valuation formula. A few of the important aspects to keep in mind comprise of monthly cash flows, value appreciation over time,  tax advantages, tax breaks from depreciation and any and all significant expenses that are usually involved in a business. These expenses span from mortgage interest, insurance, advertising, bookkeeping, and management all the way to repairs and maintenance.

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About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Man uses a paper fortune teller to make multiple decisions for his own portfolio, allocating assets and diversifying in a portfolio to minimize risk for optimal profits. Financial investment concept.
The straight path towards financial stability begins with you developing a budget and paying off high-interest debt along with sustaining emergency funds. Even when you set aside money from your monthly paycheck to go into a savings account which is going to earn interest, nevertheless, a piece of the monetary puzzle is still going to be missing. Real money is made when you invest it, however, the complexity can be highly intimidating. The following 6 tips for beginners can help you invest your money correctly and wisely.

1.  Set Specific Goals

If you want to make money in the long term, it is important that you set specific goals for yourself. For beginners, it is important that you think about the bigger picture rather than just making fast cash. For this purpose, it is important that you think about the volatile industries such as the stock market.

2.  Invest in a Financial Advisor

Even with huge resources like Google’s search engine and Amazon’s digital library, you might need extra coaching. Monetary advisors are not simply a superfluous expense. They may be able to help you in differentiating a sound investment option from simply a fad and they can give you personalized advice as well. Financial strategists, which are recommended, are avoiding TV for their stock market advice as most television critics offer only short-term information.

3.  Keep Costs Low

Even when you only have a small amount of money to begin with, there are numerous small investments which can build into a significant payoff. Whenever you are new to the field of investing, you should avoid spending large sums of money, even if it is available to you. When you keep your costs lows, you will have more funds later when you want to invest in a bigger opportunity.

4.  Diversify Your Portfolio

Investment portfolios may include real estate stocks as well. Along with this, mutual funds and retirement accounts are included as well. Every industry has its own beats which actually means that you are supposed to thoroughly investigate the housing markets and stock prices before you actually dip your toe in the water.  

5.  Do In-Depth Research

It is an understatement when we say that knowledge is power, especially when it comes to investments. Nevertheless, the complex financial jargon can sometimes be very overwhelming and complex. Therefore, it is important that you conduct in-depth research before deciding to invest somewhere. This research can make or break your investment, not to mention your bank account. Most of the time, investments lead to loss only because the investor had not really paid attention to completing their research.

6.  Consider Automation

There are numerous types of investments that can be done with automatic contributions. For instance, a 401(k) plan or even an IRA is a great way to investment your money. Low-cost finds are considered to be the best for automatic deposits.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Financial Growth, Plant on pile coins with cityscape background
Businesspersons and entrepreneurs have invested in properties in order to gain profits for a very long time. Properties that entrepreneurs invest in most often are residential plots, shopping malls, theme parks, and entertainment resorts.

In the millennial era, going to the mall is one of the most common activities enjoyed by people worldwide but, alongside, everyone needs a home to live in. Seen from a business perspective, there are many alternatives when investing in a property. The following is an introduction and a slight comparison between investing in small apartments and small strip malls. 

Investing in an Apartment Building

Investing in smaller apartments has many advantages attached to it. Primarily, it is a cheap thing to own as apartments have lower down payment rates and the ongoing costs are low. Smaller apartments, when compared to larger ones, are easy to manage and have a healthier rate as more rent can be derived from each unit.

A property that consists of more than four units requires a commercial loan when financing. Usually, a down payment of 25% is required. Although, if the investor is lucky, they may find various deals in which owners are privately selling a property and they hold onto the mortgage and take smaller down payments. However, a due payment attached to owner financing is due within a time limit of 10 years. Therefore, refinancing is required with a down payment of 25%.

The maintenance costs are another important aspect that must be considered when investing in a small apartment building. Small apartments usually do not require on-site repair employees compared to larger apartments that usually do.

The final things to consider when investing in small apartments are:

  • Decide whether the tenants will be affiliated to Section-8 or whether they will be non-Section
  • The location of the building

Investing in a Small Strip Mall

As long as people have to eat, they will head to the grocery store or the mall with food outlets. Therefore, investing in a small strip mall is still as valuable as ever before. Although a costly investment, the returns and popularity an investor gets is satisfactorily appealing.

The retail plazas that are found locally offer investment perks in the field of commercial property and real estate. There are advantages related to tax, mortar, brick, and land security. Retail stands out because it can possibly deliver both, the building of wealth and passive income, simultaneously. It is recommended that investors collect monthly payments of rent and wait for the value to increase.

Alongside, the latest research and forecasts show that the future is even brighter for the commercial real estate market in the US. For pessimistic investors, it is better to know that local retail properties are often the last things that become damaged or outdated. 

Wheter it is Uber, Airbnb or strategies related to city planning, everything is about local shopping these days. Therefore, it easily foreshadows the ever-increasing performance and returns of these properties.

Which is Better?

Whether you are investing in a small strip mall or a residential property, you need to take into account the amount of money that you are putting in. While investing in a small strip mall, you need to consider that you have to do more work comparatively in order to get sponsors and deal with organizations providing products. However, when investing in an apartment building, you will mostly get a fixed amount of money according to the residential value of that place. No matter what you invest in, make sure that you consider the following things:

  1. The location of the property
  2. The legal paperwork of the property
  3. The average rental value of the area
  4. Maintaining all the financial transactions in bookkeeping

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.


 

Large group of people in the shape of an arrow pointing up symbolizing direction , progress or growth.
Public investment is among the most important factors affecting economy, national progress, and living standards. It is ideally done by the government which includes both the federal state governments and local governments. Resources in the state are allocated to basic infrastructures like building roads, bridges, railway lines, airports, electricity provision to all near and far areas, investments in the health sector, provision of clean water pipelines, waste and garbage disposal units, and other such services.

Public investment is also made into other beneficial and productive investments and investment incentives. Basic and advanced research is supported and steps to minimize environmental hazards are taken publicly. Public investments are made in the education sector. Primary schools and higher education sectors are supported, scholarships are granted both to national and international students for higher studies and for research purposes. Not only is primary schooling and higher studies considered, job training is also given to produce individuals with higher efficiency thus leading to higher productivity.

Private organizations also take part in the provision of these services and physical infrastructure. However, the investments made by the private sector is much lower than by the States. A major reason for this is that the profits (both monetary and intangible) accessed from the public investments capital is not added just to those undertaking investments but also to a broad range of folks and businesses.

Measures for Attracting Public Investment

States and governments can follow the following principles in order to attract public investments both at the national and international level.

  1. Endorse learning about public investment at all levels of government.
  2. Reinforce capacities for public investment.
  3. Assess long-term effects of public investment. Risks of public investments should also be kept in mind. Monitor investments and their impacts that yield positive results as desired.
  4. Activate private sectors to expand sources of funding. It will also strengthen the capacities. Strengthening capacities mean more gains in the long run.
  5. Emphasize the proficiency of public officials and institutions who are designated in public investments sectors.
  6. Attention on consequences and promote wisdom from experiences. For this, there should be a vigilant check and balance on bookkeeping, records, and policies. Experiences in forms of gains, risks, or losses must be documented and evaluated for further strengthening of the system.
  7. Thorough and demanding framework conditions should be kept at all levels of government.
  8. Cultivate a monetary framework adjusted to the goals chased.
  9. Entail thorough and transparent fiscal management at all levels of government. Bookkeeping records must be thoroughly evaluated and followed up.
  10. Encourage clearness and strategically usage of the public procurement at all levels.
  11. Ensure quality and uniformity in controlling systems at all levels of government.
  12. Implement effective tools for co-ordination among national and sub-national levels of government.

Research in Public Investment

This is a very effective tool in finding the role and impact of public investment in long-term gains. There is economic growth, no doubt, but the actual measurement of how much efforts is needed in the public investment that can boost economic growth in a decade can be done through thorough research. Investments in public capital have weighty positive influences on private-sector output. When there is a constant result in a continuous research carried on public investment, it means that public capital suggests an upper rate of return than most systems of private capital.

Foreign Direct Investors

This should be encouraged to promote public investment capital. Investment incentives are given to private actors for investment in the public sector. For this, foreign investors can also be given incentives. It will attract foreign investors to act more in public investment that will eventually improve the economic growth of a nation/country in the long run.

Conclusion

Keeping your business planning, bookkeeping, and research up to date will allow you to compete with foreign investors for public investment on the national level.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Notebook with Toolls and Notes about Audit

What does it mean for a business to be “Audit-Ready”?

  • Financial reports and other reports are prepared
  • Files for audit work papers are prepared
  • Models for unit pricing are developed and reviewed
  • Establishment of  process for risk management and already conducting risk assessment
  • Issues of accounting, audit, and taxation strategies are prepared
  • Provision of values for financial reports
  • Provision of technical opinions for new standards and changes in accounting and financial reporting

AUDIT-READY BOOKKEEPING DEFINED:

Being ready for an audit requires skills and knowledge. A mixture of tax laws, accounting values, understanding of requirements for CRA audit, and an understanding of best categorization for an expense is required for bookkeeping to be audit-ready.

WHY IS IT NECESSARY TO HAVE AUDIT-READYBOOKKEEPING? 

GAAP (Generally Accepted Accounting Principle) is followed in a conventional system of accounting. The major drawback of this system is that it is not audit ready. Businesses are placed into an end turn at audit time. This is actually a crazy approach. CRA has an engraved and dehydrated audit process. Accounting should be done in a suitable mode which is audit ready. We have acknowledged that a restriction of bookkeeping software and simply the training of accountants is not how to have the books ready for an audit.

The most sensible method of bookkeeping is to make it ready for audit.  When bookkeeping reflects the exact figure of tax return which is under stable, justified by an auditor and owner, it shows that each and every step is transparent. A company that is not afraid of audit, because they are always ready for one, is known to be an honest and transparent organization. 

If records are well maintained and organized, then bookkeeping is simplier and is ready for an audit, tax time, and to provide feedback information to it’s owner.

STEPS IN AUDITING

Categorization of expenses:

The key step in audit ready bookkeeping is the categorization of expenses.

  • Direct expenses
  • Capital expenses which have lasting benefits

Organized documentations:

All source documents, slips, deposits, invoices, and records are well organized. Documents of all business dealings and transactions are gathered. This data provides justification to an auditor. All kinds of business events affect a business financially. A bookkeeper knows the relevant information and its financial effect on business transactions. A business is either worse off or better off as the result of its dealings. The bookkeeping procedures identify the financial and business aspect of the relevant information regarding each transaction.

Tracking number:

A tracking or item number is assigned to all financial transactions. This number is critical for an audit as it is used to trace the trail of all transactions.

Financial statements:

Business statements should justify expenses. At times, all expenses are not justifiable.  A few can actually be inappropriate and not allocated properly. These expenses results in loss and huge costs for the business. Auditors make assumptions of expenses and critically evaluate them. All of these steps are critical in maintaining up to date records, preparation, and management of accounting reports, government audits, tax returns, and audit ready bookkeeping.

Poor bookkeeping results in loss of money for the business and it’s owners.

An audit-ready business:

  • Enhances the  compliance of the business with internal revenue service regulations.
  • Enhances the credibility of company on public, investors, and other stockholders.
  • Prevents fraudulent cases and business losses by detecting discrepancies in early stages.
  • Improves accounting processes and internal controls.
  • All above advantages guarantee high-level investments to audit-ready businesses because it declares that it is transparent and safe for investment.
  • Investors know that they will not face losses or fraud in an audit-ready business.

Conclusion:

An audit-ready business attracts investors to make high-level investments because of the guaranteed profits and the minimized chance of loss and risk to their money.

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.