• HR costs (fix & variable salaries, benefits, training, time management, contributions)
• Corporation/Vat tax costs
• Intercompany billing & transfer pricing
• Commercial & marketing costs
• Industrial costs

For the first 3 of these 5 points, HTLC can supply a consistent lot of organized information, which are allowing any small and medium sized multinational company to keep a standard but detailed control of its cost structure, also without global expensive software platforms, which might be convenient only for medium/ big company sizes.

Break-even analysis

Purpose: The purpose of a break-even analysis, as one of the available predictive instruments for a business evaluation, is to determine the business revenue necessary to pay all your expenses and is a simple and powerful financial-management technique related to business profits and function:

At the break-even point, a business does not make any profit, but it also does not lose any money. In other words, a break-even model can help determine the minimum output necessary to cover all operating costs as well as predict the earnings before interests and taxes that will be achieved at various level.

Benefits: The benefits arising from a breakeven analysis are:

• Capital expenditure analysis
• Pricing policy
• Labor cost;
• Firm's cost structure;
• Financing decisions.

Elements of a break-even analysis
The process requires the study of the firm's cost structure, volume of output and profits.
To calculate the break-even point, you need to determine the total fixed costs of a business and its gross profit margin as a percentage.

Fixed costs
Fixed costs are to be intended as those expenses a business must pay regardless of the sales volume, such as:

• Salaries, contribution, mandatory increases (foreseeable or only estimable)
• Depreciation
• Insurances & benefits;
• Property;
• Rent;
• Interest charges from debt financing.

HTLC Network support

Budgeting for a complex lot of information like HR cost, means to prevent and keep under control fix and variable costs, which do make a real difference in most of organizations, together with corporate taxation and trade/ industrial costs. Forecasting next year/s cost, checking the on-going evolution of the same, auditing and reallocating the differences, grants a full control on the cost system, which might be customized depending on the level of detail the company is considering sufficient to obtain the desired results. HTLC has the availability of flexible software tools and skilled operators which are allowing any kind of customization of this service.

When opening an economic or representative entity in a new market for business or corporate image aims, HTLC can support the client to collect, organize, process and manage the content and graphic layout of the results of a break even analysis, which is usually one of the precious instruments to predict the possibility of a profitable business and important part of the business plan.

"This note was compiled on the basis of information available to HTLC Network A.G. at the time of writing (24.10.2010). It reflects our understanding of the principal issues arising from the new legislation for member companies, and any errors might be those of HTLC Network A.G.; however, this note is not intended to constitute legal advice and no business or legal decision should be taken based solely on its content. Companies concerned about the impact of legislative changes on their business should seek expert legal / specialists assistance by HTLC Network or elsewhere.

HTLC Network is available to supply specialized consulting on demand for all the items treated in this document.".