simple start class
TRANSCRIPT
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Simple Start to Managing
Your Business Finances
A Guide to the Essentials
QB_05/2005_01
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INSTRUCTOR
LeAnn Markowski, Certiied Qui!kBooks"roAd#isor $ %otar& "u'li!
Bi(& )ands Bookkee*in+ er#i!e
"ro#ide -nsite $ .eote er#i!es
htt*//www'i(&hands'ookkee*in+!o
0340641727 8 LEA%%9GC:%E;
http://www.bizyhandsbookkeeping.com/http://www.bizyhandsbookkeeping.com/ -
8/9/2019 Simple Start Class
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STUDNT !ANDOUTS
tudent )andouts htt*//we'ser#i!es*ls!sot!o/downloads/ai!downloads/)andouts*d
a*le
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1 :ntrodu!tion to sin+ .e*orts? Mana+in+ Essential ;asks"ra!ti!e ession
5 ;i*s and .esour!es
6 A**endi@ AdditionalCon!e*ts $ ;ers
Financial Management ssentials
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$% &'at is Financial Management(
"ro!ess o
Running yourbusiness
Recording moneycoming in and out
Using reports to
>nderstand
how &our'usiness isdoin+
Make de!isions
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Si* &a+s Financial Management
!elps Your Business Succee,
4. Compliance.
.e*ort &our!o*an&s in!oes,
e@*enses, and *a&rolla!!uratel& to the :.
5. Insight and Decision MakingMake inored de!isions and *ri!e &our *rodu!t or
ser#i!e or *roita'ilit& with inan!ial re*orts
6. Funding.
;o 'e !onsidered ora loan or in#estent,
&oull need !o*leteinan!ial stateents
. Cash Flo!.
;ra!k the one&+oin+ in and out o&our 'usiness
". Manage Customers and #ales.
now and understand &our !ustoersthrou+h !onsolidated re!ords
$. %roduction.
-'tain +oods andser#i!es A**l& or and
esta'lish !redit with&our #endors
YOUR
BUSINSS
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In.ormation is /o0er
&hat do you !ant to kno! about your businessD
)ow u!h one& a : 'rin+in+ inD
)ow u!h a : s*endin+D
:s & 'usiness akin+ an& one&D
=hats the #alue o what &'usiness ownsD
)ow u!h does & 'usiness owe toothersD
=hat is & 'usiness worthD
ales
E@*enses
ales E@*enses
Assets
Lia'ilities
Euit&
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2% Financial Accounts&'+ T'e+ Matter to Your Business
A!!urate re!ord kee*in+ lets &ou understand and useall &our inoration
Mone& in ro*a&ents re!ei#ed
Fata on !ustoersand #endors
.e!ord o &our'ank a!!ounts
Mone& out or!he!ks written,reunds and othere@*enses
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Cas' Flo0Mone+ In an, Mone+ Out
CUSTOMRS
#ales
#er'ices (
%roducts)ut
YOUR
BUSINSS 4NDORS
*+penses
#er'ices (%roducts
In
Money In Money )ut
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Ma6or Account T+pes
,ssets Current !ash, in#entor&,
a!!ounts re!ei#a'le, et!H
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Categori7e Your Transactions
&it' a C'art o. Accounts
Chart o1 ,ccounts
Master a!!ount lists a !hart o
a!!ounts are used to sort &our
transa!tions into !ate+ories
Ea!h a!!ount !ate+or& !ontains
su'4a!!ounts
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C'art o. AccountsYour Master 8ist o. Accounts an, Su9:Accounts
I2C)M* ,##*3
ales :n!oe Che!kin+ Bank
-ther in!oe -ther in!oe A!!ounts .e!ei#a'le A!!ounts .e!ei#a'le
*%*2#* >nde*osited unds -ther Current Asset
Ad#ertisin+ E@*ense Eui*ent Asset
Car and ;ru!k E@*enses E@*ense -I,I-I3
Contra!t la'or / *a&roll E@*ense Loans Lia'ilit&
Cost o +oods sold E@*ense ales ;a@ "a&a'le -ther Current Lia'ilit&
Entertainent / eals E@*ense *7UI3
-i!e e@*enses E@*ense Contri'uted Ca*ital Euit&
.e*airs and aintenan!e E@*ense -wners in#ested undsH
u**lies E@*ense .etained Earnin+s Euit&
;a@es and li!enses E@*ense Business *roitsH
>tilities E@*ense
-ther e@*enses -ther e@*enses
2,M* 3%* 2,M* 3%*
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Accounts
&'at &e;se a standard set o
a!!ounts or !ate+oriesto Iile awa&Jtransa!tionsKthere isa !oon lan+ua+e
ee* it si*lei+nii!ant a!!ountsonl&
Use Industry #peci1ic
,ccounts
Master a!!ount lists
a !hart o a!!ounts
are readil& a#aila'le orost t&*es o
'usiness Choose one
s*e!ii! to &our
industr&, and akeinor !han+es i
needed
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3% ReportsUn,erstan,ing Your Business an, Decision:Ma=ing
>se re*orts as a*lannin+ tool
Gain insi+ht into&our sales
:n!oe stateent"$LH shows &our*roita'ilit&
Balan!e sheetshows assets,
lia'ilities andeuit&
.e+ularl& onitor&our *roita'ilit& and &our !ash low
.e*orts hel* &ou understand how &our 'usiness isdoin+
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Ma=e t'e Most o. Your Reports
&hat do you !ant to kno! about your salesD=hat is sellin+D
=ho is 'u&in+D
=ho owes e one&D
Gain insi+ht into
the health o
&our 'usiness
with re*orts
ales '& ite
ales '&
!ustoer
>n*aidin#oi!es '&
!ustoer
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$)
uari(es there#enue ande@*enses o a!o*an& o#er a*eriod o tie
Also !alled a"roit $ Loss or"$L
Income Statement
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hows the assets,lia'ilities, andeuit& at a +i#enoent in tie
,ssets /-iabilities 0 *uity
Balance S'eet
*uity also re1erred to
as )!ners *uity
or Retained *uity.
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"% Manage ssential Tas=s/ractice Session Mar=;s Atomic >rap'ic Designs
Money in
A .e!ord a sale
B :n#oi!e a !ustoer
C .e!ei#e a *a&ent
F Make a de*osit
Money )ut
E =rite a !he!k / re!ord an
e@*ensese a !redit !ard / re!ord an
e@*ense
.ee'er, the 'etter
&ou understand
&our !ash low
situation, the
'etter &oull 'e*re*ared to ake
the ri+ht 'usiness
de!isions
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A% Recor, a Sale/ractice Session ? Mone+ In
Money In8 Record a #ale
Custoer'u&s
'usiness!ards
"a&s on s*otwith !ash
ou issue
salesreceipt.
$
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A% Recor, a Sale/ractice Session ? Mone+ In
Issue sales
receipt
.e!ord
1 Custoer
2 :te
Quantit&
? "a&ent t&*e
5 Fate
$
2 3
"
3rack our usiness
#
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A% Recor, a Sale/ractice Session ? Mone+ In
#ee &here our usiness #tands "roit $ Loss6 ales in!rease'& 20000
Balan!e heet
3 Assetsin!rease '&21550
7 Lia'ilitiessales ta@*a&a'leHin!rease '&
1550 Euit&
in!reases '&20000
)
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B% In
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B% In
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B% In
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C% Recei
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C% Recei
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C% Receinde*osited undsa**ear in I-therCurrent AssetsJ
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D% Ma=e a Deposit/ractice Session ? Mone+ In
Money In8 Make a Deposit
Go to 'ank tode*osit!he!k or
desi+nser#i!es and!ash or'usiness!ards
Make deposit.$
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D% Ma=e a Deposit/ractice Session ? Mone+ In
3rack our usiness
Make deposit
ele!t
1 Cash andChe!k
2 All unds tode*osit
$
2
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D% Ma=e a Deposit/ractice Session ? Mone+ In
#ee &here our usiness #tands"roit $ Loss >n!han+ed
Balan!e heet
? Che!kin+ /a#in+sin!reases
5 -ther !urrentassetsde!rease
6 Euit&un!han+ed
3#
"
>nde*osited undsa**ear in I-therCurrent AssetsJ
)
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% &rite a C'ec= @ Recor, an *pense/ractice Session ? Mone+ Out
Money )ut8 &rite a Check
"a& &ourtele*hone'ill '&
!he!k&rite check (
record
e+pense.
$
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3rack our usiness
% &rite a C'ec= @ Recor, an *pense/ractice Session ? Mone+ Out
&rite check
ele!t
1 "a&ee
2 Aount
;ransa!tiont&*eE@*ense I>tilitiesJH
$
3
2
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% &rite a C'ec= @ Recor, an *pense/ractice Session ? Mone+ Out
#ee &here our usiness #tands"roit $ Loss
? E@*ense>tilitiesHin!reases '&
?5Balan!e heet
5 Che!kin+ /a#in+sde!reases
'& ?56 Euit&
de!reases'& ?5
"
#
)
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F% Use Cre,it Car, @ Recor, an *pense/ractice Session ? Mone+ Out
Money )ut8 Use a Credit Card
Bu& oi!esu**lieswith !redit
!ardUse credit
card (
record
e+pense.
$
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3#
3rack our usiness
Update credit
card register
ele!t
1 "a&ee
2 ;ransa!tiont&*e E@*ense44 u**liesH
Aount$ 3
2
F% Use Cre,it Car, @ Recor, an *pense/ractice Session ? Mone+ Out
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3)
F% Use Cre,it Car, @ Recor, an *pense/ractice Session ? Mone+ Out
#ee &here our usiness #tands"roit $ Loss
? E@*enseu**liesHin!reases'& 5
Balan!e heet
5 Credit !ardsin!reases'& 5
6 Euit&de!reases'& 5
"
#
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>etting Starte,
. uild your toolkit Consider sotware *a!ka+es su!h
as Qui!kBooks i*le tart;rial Edition is a#aila'leH
". #tructure your accounts tart with a iniu N o a!!ounts
and add as needed
$. *stablish an accountingroutine < and stick to it
.e!on!ile a!!ounts onthl& >*date inan!ial stateents
uarterl&
*stablish 9ood
,ccounting
:abits
.e!ordtransa!tionsre+ularl&
A!!ura!& and!onsisten!& areessential
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!elp.ul ResourcesA,
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Online Resources
#mall usiness De'elopmentCenters!!!.sba.go'(sbdc(sbdcnear.html
Internal Re'enue #er'ice!!!.irs.go'(businesses(small(
U.#. Chamber o1 Commerce!!!.uschamber.com
7uickooks Financial#o1t!are!!!.uickbooks.com
Find a Certi1ied 7uickooks
%ro,d'isor!!!.useuickbooks.com(locatead'isor=
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Congratulations
ou now know
=h& inan!ial ana+eent is !riti!al to ee!ti#el&run a 'usiness
)ow to set4u* and ana+e &our a!!ounts
;he useulness o inan!ial re*orts
;ie to *ut &our knowled+e toworkO Good lu!kO
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ppen,i*3 ,,itional
Terms an, Concepts
, #imple #tart to Managing our
usiness Finances
Fi i l M t
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1 Business t&*es2 Cash or a!!rual
Fe'its and !redits
? Pournal5 Led+er
Financial Management
Terms an, Concepts
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1 ole "ro*rietorshi* -ne owner
2 "artnershi* or LiitedLia'ilit& Cor*oration
;wo or ore owners Cor*oration
all 'usiness with one orore shareholders
? C Cor*oration Lar+e 'usiness with one orore shareholders
5 %on4*roit -r+ani(ation
Determine Your Business T+pe
;here are ore than
23 illion sall'usinesses in the
>nited tates
532,00 new irs
are ounded ea!h
&ear
our!e BA, -i!e o Ad#o!a!&
Based on 200 data
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Cash or ,ccrual>,. Cash accounting
;he *ra!ti!e o re!ordin+ sales ande@*enses onl& when !ash is a!tuall&re!ei#ed or *aid out
. ,ccrual accounting ;he *ra!ti!e o re*ortin+ in!oe when
earned and e@*enses when in!urred
Businesses with in#entor& e+retailersH ust use this ethod
Most businesses opt 1or accrualmethod o1 accounting
At an& +i#en tie, +i#es a ore realisti!*i!ture o the health o the 'usiness
C'oosing an Accounting T+pe
Choose whi!he#er
a!!ountin+ ethod
works 'est or &ou
the i*ortant thin+ is
to 'e !onsistent on!e
&ou#e sele!ted an
a!!ountin+ t&*e
D 9it , C ,it
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De9its an, Cre,itsDou9le ntr+ Accounting
A!!ountants use Ide'its and!reditsJ to des!ri'e howtransa!tions are re!orded in
the +eneral led+er Ea!h transa!tion in!reasesone a!!ount and de!reasesanother
&ste 'alan!es itsel
ou dont need to 'e
too !on!erned with
the e!hani!s o
dou'le entr&
a!!ountin+, de'its
and !redits, assotware *ro+ras
handle autoati!all&
But as a 'usiness
owner, &ou i+ht run
into these ters
Mar=;s Atomic >rap'ic Design
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Mar=;s Atomic >rap'ic Design
ournal
Pournal
entries
!a*ture all
!ash in
and all!ash out
a!ti#it&
Mar=;s Atomic >rap'ic Design
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Mar= s Atomic >rap'ic Design
>eneral 8e,ger
General
led+er
GLH
shows all
a!ti#it& '&a!!ount
t&*e
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Intuit would like to thank the following advisorsfor their help developing this presentation:
%eter %appas?.e+ional Fire!tor,Conne!ti!ut all Business Fe#elo*entCenter, Groton, C;
2eal 2elson?Counselor, Mari!o*aCounit& Colle+e all BusinessFe#elo*ent Center, "hoeni@, A
Charles *ason? Fire!tor, olano Colle+eall Business Fe#elo*ent Center,
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#5
INSTRUCTOR
LeAnn Markowski, Certiied Qui!kBooks"roAd#isor $ %otar& "u'li!
Bi(& )ands Bookkee*in+ er#i!e
"ro#ide -nsite $ .eote er#i!es
htt*//www'i(&hands'ookkee*in+!o
0340641727 8 LEA%%9GC:%E;
http://www.bizyhandsbookkeeping.com/http://www.bizyhandsbookkeeping.com/