How To Protect A Business From Accidental Loss Of Money?

Financial risk insurance protects the business from unforeseen damage. For example, when a transaction for a real estate purchase was declared invalid by the court due to a notary’s mistake. Or, by their actions, a company or a private entrepreneur unintentionally harmed customers, the state, or others.

In this case, the insurance company will undertake compensation for damage, the enterprise or individual entrepreneur will not have to spend their money.

To get this protection, it is enough to choose a policy and conclude an agreement. We will tell you how to choose the right insurance program for you.

Financial risk is the likelihood of loss of enterprise funds.

Any insurance is protection against financial risks and not any other. For example, comprehensive insurance does not guarantee that a car will not be damaged in a road accident. After an accident, the car will still have to be restored, and if people are injured through the driver’s fault, they will have to pay for treatment. And the insurance company assumes these risks.

Property and financial protection are separated into a separate product pool. Business always runs the risk of losing money. For example, partners and counterparties may not fulfill their obligations, the market situation will change, the office will be robbed, and the specialist who draws up the deal will make a mistake – insurance of financial risks is just about such situations.

The product is used by legal entities: manufacturing and trade enterprises, service sector representatives, and financial organizations.

Voluntary types of financial risk insurance are selected individually.

It is worth choosing the type of voluntary insurance depending on the scope of work and the company’s current needs. For example, this risk can be insured if an organization starts working with a new counterparty and fears that it will not fulfill obligations.

Insurance of transactions (contracts)

One of the most popular types of financial risk insurance for small businesses. An enterprise can protect itself from losses as a result of:

  • the bankruptcy of the counterparty;
  • failure to fulfill obligations under the contract.

The first risk is triggered if the counterparty has not fulfilled its obligations and the court declares it bankrupt. The insured amount is indicated in the contract, which corresponds to the obligations of the counterparty.

Lost profits insurance

This type of insurance protects against financial losses associated with temporary interruption of work due to an accident, fire, interruptions in the supply of raw materials, and other circumstances.

A fire has occurred in the production area, and the flames damage the equipment. The company will have to spend money on repairing the workshop and purchasing new machines. During the renovation, the company suffers losses due to production interruptions.

Partial financial protection is provided by lost profits insurance. It is important to know the features:

  • Usually, the lost profits are formalized within the framework of comprehensive insurance. That is, the company needs to insure property, liability, and other risks. The amount of such an agreement is quite high;
  • insurance rates for lost profits are several times or even an order of magnitude higher than rates for property insurance;
  • The insurance company will pay compensation if the profit is lost due to reasons beyond the company’s control.

In the event of an insured event, you will have to document the amount of damage. If the company did not produce products for 10 days due to repairs after the accident, you would have to provide accounting documents that will help to calculate the lost profit for this period.

The amount of the payment cannot exceed the amount of the actual damage. For example, if a company has moved the surviving machines to a reserve workshop and partially started production, this will be considered when calculating the payment.

Six Tips On How to Find The Right Insurance Agent For Your Needs

Insurance coverage is an essential part of life whether it’s related to your car, house, and/or life. You want to find a good fit that’s well-established, easy to trust, and is going to come in at a fair price.

For those on the fence about who to go with, it’s time to take a step back and compare different insurance agents.

The right mindset will make sure you end up with a good professional that is going to take care of your requirements. Here are the most important tips to focus on when comparing insurance agents on the open market.

1) Start with the Agent’s Reputation

It all starts with the agent’s reputation in the industry.

Do they have a good track record? Do they have up-to-date credentials? Are they professional when it comes to managing multiple clients and making sure your needs are met?

It’s these details that matter at the end of the day. If the agent doesn’t have a good reputation, how are you going to rely on them in your time of need? Instead, you are going to be worried the agent is going to let you down and you are going to end up with no protection in sight!

This is why taking the time to analyze an agency’s reputation is critical. You have to make sure whether it’s an independent agent or a large-sized agency that the results aren’t going to disappoint. It’s these hurdles that can get in the way of a straightforward experience when it’s time to put in a new claim. Working in the insurance industry and one of the top insurance brokers Melbourne has to offer comes from Fundamental insurance brokers, they also have an Adelaide insurance brokerage company that is growing very rapidly.

Remember, when under duress, you don’t want the insurance agency to get in your way. This is why taking the time to assess your options right now without stress is the way to go.

 2) Understand Your Insurance Requirements

What are your requirements when it comes to the new policy? Do you want specific features that are going to play a role in providing peace of mind or are you willing to accept anything as long as it’s affordable?

As you can see, it’s these details that can change a person’s perspective as they go into the process.

In general, you want to account for requirements such as:

* Budget

* Coverage Options

* Location

* Online Setup

These are the foundational requirements that are going to make your life easier as long as they are all perfectly organized and maintained. If not, you are going to see numerous hurdles pop up and that’s the last thing any client wants when dealing with their insurance agent.

3) Set a Budget

The amount of money you are going to spend monthly is what it all comes down to for clients. You are going to want to reduce the bill as much as possible while still receiving good coverage.

When finding the right insurance agent, don’t be afraid to look at what is out there and how it’s going to impact your finances.

Certain insurance agents are going to sneak hidden fees into the contract and/or are going to force unnecessary policy features under your name. These are the ones you want to avoid. Only go with those who are upfront about everything and list it clearly in the agreement.

4) Compare Insurers Discounts

Are there discounts available when it comes to dealing with the insurance agent?

The best agencies in the world take the time to flesh out proper discounts for each type of client. For example, if you are getting auto insurance, you might be able to claim discounts as a student or someone that went to driving school beforehand.

These are plus points when it is time to compare discounts and make sure you are getting a fair deal. Remember, this is going to add up and you will save quite a bit over the long haul with a good discount or two.

5) Discuss Customized Coverage Options

It’s one thing to go ahead with a cookie-cutter policy and another to customize everything down to the last detail.

The leading insurance agents on the market are going to lend you a willing ear when it comes to customization. This includes focusing on what’s being protected, how much it’s going to cost, and how detailed the coverage is going to be.

The right insurance agent is the one that is willing to customize and isn’t going to force an unwanted policy onto your shoulders.

This happens when the insurance agent is looking to make a quick buck and doesn’t care about you as a client.

6) Consider Ease of Doing Business

There are several variables at play when it comes to finding the right insurance agent.

A good example of this would be locating a professional agent, trusted, and offers a good selection of coverage options. However, they may not be easy to work with when it comes to 24/7 customer service or something as simple as online billing.

These nuances do play a role when it comes to your monthly interactions with the agent.

Additional factors include:

* Online Claim Reporting

* Social Media Presence and Engagement

* Billing Process

* Policy Changes

You should always work with an agent that has all of these details set up like a well-oiled machine. If there are hitches in the process, it can make interacting with the agency a nightmarish process! It’s better to take a step back and always consider ease of doing business during the assessment phase.

If the agent can’t provide access to an online account or a straightforward billing process, they might not be the right fit for your needs.

Final Thoughts

These are the most important tips on how to find the right insurance agent for your needs.

The process may seem daunting at first and it can be overwhelming due to the number of options. However, as long as you are willing to put in the hard work and compare agents, you will end up with the real deal. It’s all about remaining selective and understanding what your needs are.

This is the foundation of making sure you find a high-quality insurance agent that’s perfect for your short and long-term requirements.

The Importance of Accounting in a Business

The term accounting is not uncommon, especially when it comes to the tax season. However, before delving into the importance of accounting when running a business, let us look into the basics.

What is accounting?

Accounting simply refers to the work or process of keeping financial records. It entails the systematic & detailed recording of a business’ financial transactions. There are various types of accounting, including accounting for small businesses, forensic, government to accounting for corporations, and even management accounting.

Why Accounting is Important

Accounting plays a crucial role in running a business or company as it helps you track expenditures and income, ascertain statutory compliance, and provide the government, management, and investors with quantitative financial information that can be used in making important business decisions.

3 primary financial statements are derived from your records:

1. The Income Statement- this provides you with information regarding profit and loss.

2. The Balance Sheet- this lends a clear picture of a company’s financial state at a given date.

3. The Cash Flow Statement- This acts as a bridge between the balance sheet and the income statement and shows the money spent and generated during a particular period of time.

It’s imperative to keep your financial records up to date and clean if you want your company to succeed. That being said, here are some of the reasons accounting is vital for your business, regardless of the size.

1. Helps in Assessing a Business’ Performance

Financial records show the operations’ results of your business and also its financial position at a given date. Simply put, they help you comprehend what is going on with your company, financial wise. Clean and up to date financial records will not only help you keep track of expenses, possible debt, and gross margin but also help with the comparison of current data with the past accounting records. Ideally, it helps allocate your budget accordingly. Your Accountant or Tax agent should be able to assist with this

2. Ascertains Statutory Compliance

Laws and regulations vary from place to place, but ideal accounting processes and systems help ascertain statutory compliance when it comes to your business. Proper accounting will make sure liabilities like VAT, income tax, sales tax, pension funds, etc., are well addressed.

3. Helps in Filing Financial Statements

Every business is expected to file its financial statements with the Registrar of Companies. As for listed entities, they need to file them with the stock exchange and for direct and indirect tax filing reasons as well. Simply put, accounting plays a vital role in these situations.

4. Helps Create Budget & Future Projections

Future projections and budgeting can make or break your venture, and your accounting process and systems will play a vital role when it comes to it.

Business projections and trends are often based on previous financial data to keep your ventures profitable. However, this data is only usable when provided by proper accounting processes.


As you can see, many aspects make accounting absolutely crucial for a business. As such, it is important to ensure you have the right accountant and well-structured accounting systems/processes.

Learning Smart Property Investing

There’s no question that real estate is the best way to wealth that is available to a wide number of individuals. However, not every property is going to bring the returns that you want and that’s where learning smart property investing comes into play. There are many options out there, and understanding the options will help you figure out which types of property you are most comfortable with investing in.

2-Bedroom Family Homes

Families are getting smaller and smaller in many places, with many couples even choosing not to have children. This has made smaller family homes more popular than ever. There is an increasing demand for smaller family homes and this can be a relatively inexpensive investment in a group of properties that are in higher demand than ever.

Larger Single Family Homes

Single-family homes can be 2 or 3 bedrooms or they can be 4 or 5 or even more in some rare cases. While these might not be the first thing you think of when it comes to property investing, buying a single-family home can often allow you to get a large series of great tax breaks or special loan conditions. Move into the house, improve it, then find another, move into the new one and rent the old. This is a great way to build equity while picking up properties.


Apartments can seem appealing as an investment property option, but it is often a very competitive market for them. If you’re relatively new then you may want to consider another property type, or at the very least look smaller complexes to get used to what you need to do to effectively run one before going for an especially large unit where the responsibilities and headaches will be multiplied.

Duplexes & Tri-Plexes

This is a great way to get into property investing as you can own one of the living areas and rent the others to help pay for it or rent them all out as a precursor to see if you could hack it buying apartments or other similar properties. Many people have found success living in one half of a duplex and renting the other one as an Air B&B property.

Commercial (laundry mats, storage, parking, etc)

Small commercial buildings (especially in smaller towns or cities) can be a surprisingly affordable option. While things like laundry mats, storage lots, parking lots, or warehouses do have their special challenges, there is almost always a need for these types of buildings making them a great investment.
Do your homework, look at what strikes your fancy and start your property investment journey!

Property Investing Tips

People are always looking out for investments that have a high return and low risk. There is no guarantee when it comes to investments, but there are some forms of investment that tend to offer good returns without exposing you to a lot of risks. Property investing is regarded as one of the safest investments, especially when you are in it for the long-term.

It is important to do a lot of research before you can start investing in property. One common mistake people make is hearing what other people are saying and following it without doing their research. Many different factors need. Many different factors need to be considered when it comes to property investments you should always consult one of your local property investment companies before making that big decision. Below are some tips that will go a long way in helping you with property investment.

Know your budget

Cash flow is very important when investing in property. It is important to have a deep understanding of cash flow because it can mean the success or failure of your property investments. If you will be using an investment loan to buy a property, make sure you ask the bank for a pre-approval. This is going to let you know how much you are going to get, which will determine the value of properties you can afford.

Always remember ongoing costs

Many smaller expenses are going to add up, which can easily leave you broke if you don’t plan properly. Some investors have ended up regretting it because they underestimated ongoing costs. The rates, insurance, and general repairs might not seem like a lot of money, but it adds up. When you purchase a property, try your best to avoid costly maintenance issues by taking preventive measures like replacing aging taps.

Buying in a growth area

You should look at areas that have a high demand for rental accommodation. Location is one of the most important things when it comes to real estate. Properties close to universities and schools, and transport tend to be more attractive.

Be realistic

You should have goals in place because they will determine the decisions you make concerning the properties you buy. Are you interested in holding the property in the long term or are you looking for fast capital growth? When the property market is in a boom, it is easier to renovate the property then sell it for a quick profit. If the economy is slow, then it might take years to get the same growth.

Go for a liveable property instead of a luxury one

You should not be tempted to buy a property because you like the stylish interior. You should look at the property and see if it is clean and functional. You will have an easier time finding buyers or renters for a simple property compared to a luxury one.

Buying with your head and not your heart

It is common for people to get caught up in emotions when house hunting. While you might love a property on a steep block because of the view, you might have a hard time when it comes to renovating because of the retaining or excavation costs. It is important to use your head because it allows you to look at the pros and cons before deciding to purchase a given property.

Think carefully if you are considering negative gearing

If the rent of the property doesn’t cover the repayment on the loan, then the property is said to be negatively geared. While this can have tax benefits, it can leave you financially strained if you don’t have enough cash flow to cover the payments, body corporate fees, or rates. When considering negative gearing, make sure you are in a position to cover the deficit.

Building inspection

Before you sign a purchase contract, have a building inspection done because it can save you a lot of problems. A building inspection will give you a good understanding of the building and whether any expensive repairs might be needed. One common problem many buyers usually notice is termites.

Investing in property will involve a lot of research and number. Whether you are investing in the long term or short term, it is important to know as much as possible about a given property and the local real estate market before investing your money.

8 Property Investing Tips

Interested in property investing? Property investing increases your passive income. And it can make you rich because it increases your net worth in the long run. Unfortunately, it will not make you rich overnight. Before you buy your first property, you need to learn about property investing.

Here are 8 property investing tips you should know.

1. See the Property in Person

See the investment property in person before buying it. Some new real estate investors buy the wrong property. Why? They buy the property without touring it. Pictures and videos are deceiving because they hide extensive damage to the property. So, tour the property before buying it.

2. Leverage Your Current Property

Want to buy a second investment property? Then, leverage your first property when buying it. New real estate investor? If yes, find out how you can leverage your current property when buying a new property. If you are renting out the property, it should pay for itself.

3. Down Payment

Investment properties are expensive. They require a huge down payment. Additionally, the approval process takes a long time. How do you afford the down payment? Save up the down payment. It takes time to save a lot of money. But you will be able to invest in the best investment properties when you have enough down payment.


4. Find the Right Location

Finding the right location is important. You are not only looking for an affordable investment property. You are also looking for a profitable property.

Investing in rental properties? Choose a location with low crime rates and that is in an excellent school district, a flourishing job market, and plenty of cultural and outdoor places to visit like museums, theaters, restaurants, and parks.

5. Eliminate Your Debt

Most people have debts such as student loans, credit card bills, car payments, etc. Have debt? Clear your debt quickly. It is easy to get into debt when investing in real estate. In fact, some successful real estate investors have huge debts, but they know how to manage their debts. Therefore, successful real estate investors can teach you how to manage your debt.

6. Tour Affordable Properties

Expensive properties are flawless and move-in ready. It is easy to drool over expensive properties. However, their prices are high and you are competing with successful real estate investors for these properties. To avoid wasting your time on expensive properties, do not visit them. Visit cheap and affordable properties. They may be drab and unappealing, but you will never a problem buying and selling them.

7. Talk to Actual Experts

Where do you get your advice? Do you talk to your mortgage brokers, real estate agents, friends, or even your parents? If they are not successful at property investing, they will never offer sound advice. Want to get the best advice? Talk to financial planners. They can look at your financials and recommend the best properties.

8. Study Real Estate Market

You want to enter the most competitive market in the world. And a lot of new real estate investors have lost their money. Therefore, it is important to have a complete and total understanding of the real estate market. It is hard to succeed if you do not know the real estate market.
These are top property investing tips.

Getting Started With Property Investing

Investing in properties to be sold or rented is a worthwhile endeavor. Many people see property investing as a good way to make money, and it is, but only when you know what you’re doing. The wrong investment moves can result in frustration and financial loss. Here are a few tips to consider when you want to start property investing.

Before starting any investment into properties, potential investors should eliminate any debt they have. Someone who is skilled at the art of investing may be able to manage any debt they have while they’re dealing with properties, but a regular person without much experience shouldn’t try it. This can leave you without any funds to make any debt payments. Things like college costs, medical bills, and loans are all forms of debt that will be difficult to juggle with property costs. It is possible to invest with debt if real estate returns are greater than the debt, but this may not always be the case.

Many properties will require a down payment, but there is a difference in the down payment that you will have to make for an investment property versus an occupied property. A figure like 3% is common for occupied properties, but with investment properties, 20% is usually the starting point. These properties have approval requirements that are a bit more strict, and rental properties don’t have any mortgage insurance.

High-interest rates are a factor that all property investors should watch out for when looking around. Borrowing costs may be low enough at the moment, but when it comes to investment properties, interest rates can be high, exceeding the interest rates found on traditional mortgages. A mortgage with a low payment that won’t cut too far into the money that you get each month is ideal.

Always have a property inspected before purchasing it. Many properties have problems that can take a lot of work, money, and time to fix, and if you can’t dedicate any of these things to making the property usable, then you’ll be left with a bad investment. Structural problems, plumbing, and electrical issues, and even pests should be checked.

Some people like to go with a home that can be fixed when they invest, but these options should be avoided. A fixer-upper home can look like quite a bargain because many of them can be obtained for low costs and turned into rental properties that generate profit. For first time investors, it’s not a good idea to look for these properties because of renovation costs. If you can find a cheap, good quality contractor, or do all of the large scale work yourself, you’ll be in luck, otherwise, it will simply cost too much to get one of the properties to their best quality.

When an investment property is to be rented, the operating expenses should be determined beforehand. The range of 35 to 80 percent of the gross operating income is where the operating expenses will fall. The rule of using 50% is generally an easier way of figuring out expected operating expenses.

Anyone can get into property investing, in order to do it successfully, you have to be prepared. By following these tips, you can be on the path to investing in properties and reaping the benefits of them.

Welcome To The Black Sheep

Hey guys & girls out there. I hope you’re ready to get the know-how on the latest residential and commercial property trends. Property is the best source of investment there is, period. Continual growth for the long term investors is what we here at the Black sheep are all about. Hot cities like Melbourne and Sydney are constantly increasing in value and we want to help you get a piece of that large pie. So follow us when you can and feel free to leave a comment as we love to engage our users