Creating an LLC

Creating a Limited Liability Company

 

Do you want to put a business idea into practice and set up a Limited Liability Company? You may already have basic knowledge on LLCs, but do you know the process of starting one, how much it costs, and how long it will take? We list the steps to take and provide with a checklist...

 

Types of taxes in the US: an overview

Types of taxes in the United States

 

Keeping track of taxes in the US isn’t exactly a piece of cake. There are so many types of taxes that it’s difficult to know which ones apply to you and your business. If you don’t file your taxes correctly with the IRS, it could result in penalties, which could cost your...

 

CRM tools: customer care made easy

CRM tools: software for customer care

 

Customer care is one of the corner stones of a successful company – whether you are running an online store or offering bank accounts. Even smaller companies can benefit from the use of CRM tools, which help to organize customer- or buyer data. These software systems automate and...

 

Business plan creation

Writing a business plan: here’s how to plan your venture

 

Before a business idea can be implemented, it is necessary to create a business plan. This serves as the founder’s roadmap, and summarizes all necessary information about planning and finances. However, the business plan is also highly relevant for investors as well as potential...

 

What is a small business?

Small businesses, explained

 

According to the US Small Business Association (SBA), a small business is a privately-owned and operated business with a small scale of trade and a small number of employees, depending on the industry. A small business can be an LLC, partnership, or sole proprietorship. There are...

 

Guidelines for a proper balance sheet, clearly explained

Anyone who is required to prepare accounts needs to pay attention to the guidelines and principles that come with it, especially when it comes to balance sheets. We expect the data to be reliable, verifiable, and objective, as well as consistent and compatible. Knowing these objectives helps you to prepare accurate annual financial statement for your company. We explain what is meant by the...

Lean startup: reasons without risk?

Dropbox, Airbnb, Twitter – all these succesful companies have one thing in common: they became successful using the lean startup model. This method questions traditional business concepts and procedures, and instead promises greater flexibility and innovation. But what do lean startups mean for product development and company culture, and how can you benefit from these new ideas?

Earn-out when purchasing a company: guaranteed success or cause for conflict?

Buying a company is costly and risky. An earn-out clause in the contract reduces the risk for the buyer and creates a monetary incentive for the seller to support the new direction. This is because the earn-out promises a fluid, profit-oriented adjustment to the purchasing price in addition to the basic amount. However, this option has its pitfalls. If you want to use the earn-out model properly,...

What is inventory?

For many businesses, inventory management is their lifeblood; regular stocktaking is essential in order to ensure that you’re working with the correct figures for your accounts. We explain the subtleties of inventory counts, which inventory types and inventory procedures there are, and how to carry out the complex process as quickly as possible without encountering any problems.

Successful project management: proven methods

A colorful bar chart or a wide network that correlates different project tasks: there are several diagrams that show different methods of project management. Many processes are similar because certain problems occur in almost all projects. But you don’t have to reinvent the wheel: methodologies provide you with formalized approaches that have already proven successful many times over. With the...

Writing a quote: what you should consider when creating a quote

The profitability of many companies and freelancers depends primarily on the order situation. If you attract a customer’s attention with your products or services, and they send you a request, you should try to create a quote as quickly as possible and send it back to them. We explain what you need to include when writing a quote and the correct way to structure it.

Three examples for calculating depreciation

For every entrepreneur, calculating depreciation is an important task. But we must ask ourselves how the calculation of depreciation actually works, and what to look out for during the calculation process. These and many other questions will be answered with the aid of three examples, which will also clarify various depreciation methods and delineate the difference between imputed costs and other...

Overhead costs

Would you like to judge the price of a product or service appropriately, but you don’t know its corresponding overhead costs? In contrast to direct costs, overheads such as factory rental costs cannot be directly assigned to a product or service. Instead, you must calculate the overhead rate to determine the appropriate percentage of overhead costs and, subsequently, the total expenses which...

Easy steps to close a P&L account

Merchants pursuing trade activities are legally obliged to prepare annual accounts based on double-entry bookkeeping. The profit and loss account is an integral part of this, as it demonstrates just how successful a company was during a given financial year. When you close your nominal accounts, it is important that the structure and sequence of your profit-and-loss accounts abide by various...

What is a cash discount and how is it calculated?

The option to make use of a cash discount is an incentive for both customers as well as sellers to promptly pay an invoice. Offering a cash discount is not a requirement, but rather an act of goodwill on the part of the supplier or seller. The size of the cash discount and its deadline varies. In order to make use of a cash discount, it’s sometimes even advisable to take on credit with a bank...