Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories...

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Transcript of Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories...

Page 1: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,
Page 2: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

KnowYourNumbersPresentedby:ShawndelSpaderSpaderGroup,LLC

Page 3: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

ImportanceofBookkeeping

• Bookkeepingisthelanguageofbusiness• Astandardsetofrulesmeasuringafirm’sfinancialhealth• Requiredforallactivitiesandorganizationswhichutilizemoney

• Assessingacompany’sfinancialstatusiscriticalformakingdecisions• Whatproducts/servicesaretopperformers• Whatexpensesarenecessary/unnecessary• Whatexpensescouldbenegotiatedforalowercost• Setstructuredfinancialgoalsbasedonwhathashappenedhistorically• Setarealisticbudgetbasedonactualincome/spending

Page 4: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

AccountingvsBookkeeping

Accounting:Referstothecomprehensiverecordingoffinancialtransactions,aswellasanalyzingandreportingthesetransactionstothetaxentities.

Bookkeeping:Referstotheday-to-dayactionsthatarenecessarytorecordthefinancialtransactionsforacompany.- Invoicing - AccountReconciliations- AccountsReceivables - MonthlyFinancialReporting- AccountsPayables - Budgeting

Page 5: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

CashvsAccrualAccounting

CashBasisAccounting• Recordingincomeandexpensesasyoureceiveorpaythecash.

AccrualBasisAccounting• Recordingtheincomeandexpenseswhenaccrued.Basedontransactiondateinsteadofdatepaid.

Page 6: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

WhatisaChartofAccounts?

• TypesofAccountsyou’llseeinyourChartofAccounts

- Assets - Liabilities - Equity- Income - CostofGoodsSold- Expenses/OverheadCosts

• AccountExamples

- IncomeCategories - Bank/CCAccounts - Loans- OwnersEquity - ExpenseCategories

Page 7: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

Assets

AssetsincludebothCurrentandLong-TermAssets

• CurrentAssets:• Cash,CheckingAccounts,AccountsReceivables,Inventory

• Long-TermAssets:• NotesReceivables,Tools,Equipment,Land,Buildings

Page 8: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

Liabilities

LiabilitiesincludebothShort-TermandLong-TermLiabilities

• Short-TermLiabilities:(Amountsthataredueinwithinoneyear)• AccountsPayable,PayrollTaxLiabilities,PortionofLong-TermDebtforthatyear

• Long-TermLiabilities:• Notes/BondsPayables,Loans

Page 9: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

Equity

• Equityaccountsrepresentwhathasbeenputinbytheowneraswellasnetearnings

• Owner’sEquityismadeupofbothOwner’sContributionsandOwner’sDraw

• Retainedearningsincludeswhatthecompanyhasearnedovertheyears

Page 10: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

IncomeandCostofGoodsSold

Income:• Listeachofthewaysyouearnincome

- AdministrativeServices - BookkeepingServices- PayrollServices - ITServices

CostofGoodsSold:• Purchasesthataredirectlyconnectedtoprovidingyourservice/product

- ProductPurchases - FreightIn/OutCosts- ShippingtoClients - SubcontractorLabor- ReferralFees - PurchaseDiscounts

Page 11: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

ExpensesandOverheadCosts

Expenses:• Variablepurchases

- Advertising - CharitableContributions - Dues&Subscriptions- Maintenance&Repairs - Meals&Entertainment - OfficeExpenses- TravelExpenses

OverheadCosts:• Fixedcoststhathappeneverymonthregardlessofyourincome

- Insurance - Mortgage/Rent- Phone - Utilities

Page 12: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

FinancialReports

• ThetwomostcommonlyusedreportstoassessabusinessesfinancialstatusaretheProfit&LossStatement(P&L)andtheBalanceSheet

• Profit&LossStatement• Summarizestherevenues,costsandexpensesincurredduringaspecificperiodoftime.Providesinformationregardingacompany’sability(ornot)togenerateprofit.Oftenreviewedmonthly,quarterly,andannually.

• BalanceSheet• Reflectsaspecificpointintimeanddisplaysthevalueofassets,liabilities,andequityofabusiness.Theaccountslistedinabalancesheetareconsidered“permanent”accounts

Page 13: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

FinancialReports– Profit&Loss

Page 14: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

FinancialReports– Profit&Losscont.

Page 15: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

FinancialReports– Profit&Losscont.

Page 16: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

10StepsforBookkeepingSuccess

1) Makebookkeepingapriorityandscheduleitintoyourweek/month(Non-Negotiable)2) Useanaccountingsystemfromtheverybeginning(QuickbooksOnlineRecommended)3) Stayorganizedwithasystemthateasilyworksforyou4) Simplifyyourchartofaccountsasmuchaspossible5) ALWAYS keepbusinessandpersonalexpensesseparate6) Reconcilebankandcreditcardstatementsmonthly7) Establishyourcashflowbyenteringinvoices/billsandpayingaccordingtotheduedate

• Negotiatewithyourvendorstoestablishfavorablepaymentterms

8) Digitizeyourrecords• Saveyourbank/creditcardstatementselectronicallywithallcorrespondingtransactions(Ex.MayBankStatement,savedwithall

receipts/depositsthatarelistedonthatstatementinonefolder)

9) Subcontractors– ObtainFormW9assoonastherelationshipisestablished.FormW9mustbeinhandbeforeanypaymentsaremade.

10) Whenyougettoapointthatyoucannolongermanageyourbooksefficiently,ASKFORHELP!

Asking for help is a sign of strength. Accepting help is a sign of growth.

Page 17: Know Your Numbers...-Income Categories-Bank/CC Accounts-Loans-Owners Equity -Expense Categories Assets Assets include both Current and Long-Term Assets •Current Assets: •Cash,

Non-current Assets Held For Sale and Discontinued Operations · Non-current Assets Held For Sale and Discontinued Operations ... publishing this guide Non-current Assets Held for

Non-current Assets Held For Sale and Discontinued Operations · Non-current Assets Held For Sale and Discontinued Operations ... publishing this guide Non-current Assets Held for

Chapter 2: The Balance Sheet - WordPress.com€¦ · Classified Balance Sheet a balance sheet organized based on categories. Page 36 Current assets assets that will be used up or

Chapter 2: The Balance Sheet - WordPress.com€¦ · Classified Balance Sheet a balance sheet organized based on categories. Page 36 Current assets assets that will be used up or

adtechindia.com · ASSETS Non Current Assets (a) Property, Plant and Equipment (b) Capital Work in Progress Total non-current assets Current Assets (a) Inventories

adtechindia.com · ASSETS Non Current Assets (a) Property, Plant and Equipment (b) Capital Work in Progress Total non-current assets Current Assets (a) Inventories

Fast Retailing Co., Ltd. Consolidated Financial Statements ... · 2014 2015 2015 ASSETS Current assets: ... Other intangible assets 46,968 40,991 338,266 Non-current financial assets

Fast Retailing Co., Ltd. Consolidated Financial Statements ... · 2014 2015 2015 ASSETS Current assets: ... Other intangible assets 46,968 40,991 338,266 Non-current financial assets

ANNUAL REPORT 2018/2019 - oic.wa.gov.au · Receivables 5.1 16,454 17,143 Other current assets 5.3 31,356 44,238 Total Current Assets 896,474 742,354 Non-Current Assets Restricted

ANNUAL REPORT 2018/2019 - oic.wa.gov.au · Receivables 5.1 16,454 17,143 Other current assets 5.3 31,356 44,238 Total Current Assets 896,474 742,354 Non-Current Assets Restricted

INTERNATIONAL ANALYSIS · 2.2. Current and Non-Current Classifi cation 197 2.3. Liquidity-Based Presentation 198 3. Current Assets and Current Liabilities 199 3.1. Current Assets

INTERNATIONAL ANALYSIS · 2.2. Current and Non-Current Classifi cation 197 2.3. Liquidity-Based Presentation 198 3. Current Assets and Current Liabilities 199 3.1. Current Assets

CURRENT ASSETS

CURRENT ASSETS

(IST) 8 18 (IST)...v) Other financial assets 4,926 6,330 (b) Other current assets 6,560 6,273 Total - Current assets 160,247 150,878

(IST) 8 18 (IST)...v) Other financial assets 4,926 6,330 (b) Other current assets 6,560 6,273 Total - Current assets 160,247 150,878

Lecture Six Financing Current Assets

Lecture Six Financing Current Assets

Assets, Owners’ equity, Liabilities, Revenues, Expenses · current Assets Current Assets if the period is more than 1 year if the period is less than 1 year. Assets Assets Non-current

Assets, Owners’ equity, Liabilities, Revenues, Expenses · current Assets Current Assets if the period is more than 1 year if the period is less than 1 year. Assets Assets Non-current

Current Assets .

Current Assets .

nit.ac.in · CURRENT ASSETS, LOANS & ADVANCES FEES RECEIVABLE CASH & BANK BALANCE LOANS & ADVANCE LESS : CURRENT LIABILITIES CURRENT LIABILITIES CAUTION MONEY NET CURRENT ASSETS Notes

nit.ac.in · CURRENT ASSETS, LOANS & ADVANCES FEES RECEIVABLE CASH & BANK BALANCE LOANS & ADVANCE LESS : CURRENT LIABILITIES CURRENT LIABILITIES CAUTION MONEY NET CURRENT ASSETS Notes

Current Assets Fm

Current Assets Fm

Managing Current Assets (Gitman)

Managing Current Assets (Gitman)

Current Association Assets InventoryINVENTORY: CURRENT ASSOCIATION ASSETS | EVENT GARDE & SCOTT OSER ASSOCIATES 1 INVENTORY: CURRENT ASSOCIATION ASSETS EDUCATION _____ Credentialing

Current Association Assets InventoryINVENTORY: CURRENT ASSOCIATION ASSETS | EVENT GARDE & SCOTT OSER ASSOCIATES 1 INVENTORY: CURRENT ASSOCIATION ASSETS EDUCATION _____ Credentialing

WordPress.com...Current assets Working capital leverage Total assets - Changes in level of Current assets For example: M/S X has Total assets including Current assets as Rs. 14 lakh,

WordPress.com...Current assets Working capital leverage Total assets - Changes in level of Current assets For example: M/S X has Total assets including Current assets as Rs. 14 lakh,

 · (c) Other current liabilities (d) Short-term provisions Sub total Current Liabilities Total E ui and Liabilities ASSETS NON-CURRENT ASSETS Statement of Assets and Liabilities

 · (c) Other current liabilities (d) Short-term provisions Sub total Current Liabilities Total E ui and Liabilities ASSETS NON-CURRENT ASSETS Statement of Assets and Liabilities

TB Chapter16 Financing Current Assets

TB Chapter16 Financing Current Assets

HOME ABOUT LOGIN REGISTER CATEGORIES SEARCH CURRENT ...

HOME ABOUT LOGIN REGISTER CATEGORIES SEARCH CURRENT ...

Defining and Putting Things into Categories - …ngl.cengage.com/assets/downloads/lns_pro0000000329/listening_note... · Defining and Putting Things into Categories ... hurricane,

Defining and Putting Things into Categories - …ngl.cengage.com/assets/downloads/lns_pro0000000329/listening_note... · Defining and Putting Things into Categories ... hurricane,