New Mexico Broadband Program Internet Tools for Small Business Success

New Mexico Broadband Program

Internet Tools for Small Business Success

Module 3Accounting and Finance

New Mexico Broadband Program in partnership with Fast Forward New Mexico

Internet Tools for Small Business Success Class Series

1. Terminology & Planning

2. Communication & Collaboration

3. Accounting & Finance4. Intro to Online

Marketing5. E-Newsletters6. Websites & Blogs

7. Search Engine Optimization

8. E-Commerce9. Intro to Social Media

Marketing10.Facebook & Twitter11.Social Media

Administration12.Linked In

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Primary Business Components

• Planning • Operations• Accounting & Finance• Sales & Marketing • Hiring

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Planning

Accounting & Finance

Operations

Marketing & Sales

Management & Hiring


How This Class Works

Discussion & Demonstrations

Hands-on Exercises

Terminology


Class FrameworkDivided into Core Business Elements• Internet Tools for each Element

TerminologyRealm of toolsChoosing the right tool for your businessGetting Started

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Today’s Class Goals

• Understand the terms bookkeeping, accounting, and finance• Learn ways to finance your business• Understand the benefits using online accounting tools• Explore local resources for financing

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Accounting

The systematic recording, reporting, and analysis of financial transactions of a business.

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Terminology


Bookkeeping

Keeping records of what is bought, sold, owed, and owned; what money comes in, what goes

out, and what is left.

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Terminology


Bookkeeping versus Accounting

• Bookkeeping - systematic recording of the amounts, dates and sources of each revenue and expense transaction

• Accounting - the bigger picture. It is the system that tracks data, including people, and records the transaction's history. It also uses bookkeeping information to analyze the business’s financial circumstances.

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Other Terminology

• Start-up capital – resources needed to launch a business

• Break-even – when revenues equal costs

• Cash flow – the movement of money in and out of your business.

• Profit and Loss Statement – adds the revenues and subtracts the operating expenses, leaving the profits. A profit and loss statement measures the results of operations over a given period of time.

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Why use Online Accounting Tools?

• The software is always current• No need for IT support• Data automatically backed up • Ability to access from numerous

locations • Ability to access from any computer,

Smartphone, or iPad


Types of Online Accounting Software• Simple

Electronic check book www.quicken.com , www.outright.com http://www.youtube.com/watch?v=By6Zhk5IGoA

• BasicPayroll, receivables, basic inventory system www.quickbooksonline.com

• StandardAudit trail, multiple users www.Peachtree.com, www.quickbooksonline.com (Quick Books Pro)

• AdvancedPurchased in modules, financial reporting, job costing www.greatplains.com

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http://www.quicken.com/

http://www.outright.com/

http://www.youtube.com/watch?v=By6Zhk5IGoA

http://www.quickbooksonline.com/

http://www.peachtree.com/

http://www.quickbooksonline.com/

http://www.greatplains.com/

New Mexico Broadband Program in partnership with Fast Forward New Mexico 13

Types of Online Accounting Software

http://www.youtube.com/watch?v=By6Zhk5IGoA


How do I choose the right one?• Determine your needs• Be financially literate• Talk to your accountant or CPA• Know your Budget• Talk to your IT Department• Find out what similar businesses

are using• Determine your projected growth• Create a wish list of features


Finance

A discipline concerned with determining value and making decisions.

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Terminology


Financial InformationHelps you to:

Price your product Know if you are making or losing money Know your cash flowWork with bankers and investorsMake informed business decisions

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Resources for Financing your Business

• Personal savings

• Family and Friends

• Bank line of credit

• Commercial loan / Small Business loan

• Strategic Partners and Customers


Resources for Financing your Business

Local and Regional organizations that can help:

o www.accionnm.orgo www.wesst.org

o www.financenewmexico.orgo www.nmsbdc.org

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www.accionnm.org

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www.wesst.org

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www.financenewmexico.org

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www.nmsbdc.org

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Financing Planning

To start a business you need to understand what your business’s initial cash requirements will be. Calculate:• one-time start-up costs• working capital 12-24 months• a reserve

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Initial Cash Needs


Calculate Start-Up Costs

Use your handout and follow the directions to begin calculating the initial start up costs of your small business.


Today’s Class Goals

• Understand bookkeeping, accounting, and finance• Financing your business

• Benefits of using online accounting tools

• Local resources for financing

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We appreciate the time you spent with us.We hope to see you at the next training!

These materials were created collaboratively by the New Mexico Department of Information Technology, Fast Forward New

Mexico, and the New Mexico State Library, under grants provided by theNational Telecommunications and Information Administration.

These materials are not to be used for profit.

Connecting you to a world of opportunities

New Mexico Broadband Program Internet Tools for Small Business Success

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