PowerPoint Presentation

inancial LiteracyFOR DIGITAL MARKETING FIRMSJody Grunden, CPA | Summit CPA GroupBureau of Digital Webinar 2016F

I would like to than Carl for giving me the opportunity to reach out to so many of you with a topic that is so dear to me Financial Literacy.1

Introduction

**This presentation will be available for download**Jody Grunden, CPAVirtual CFO Summit CPA Group

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Prediction is difficult, especially when dealing with the future

Why Youre Here--- Danish Proverb

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The more prepared that you are the better your chances of getting it right.3

Chart of Accounts

4321Cash vs AccrualFinancial Statement MetricsMoney in the Bank

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Chart of Accounts

432Cash vs AccrualFinancial Statement MetricsMoney in the Bank

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Chart of Accounts24

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7Chart of Accounts

Balance Sheet

8Chart of Accounts

Profit & Loss

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Profit & Loss

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10Chart of Accounts

Profit & Loss

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Profit & Loss

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12Chart of Accounts

Profit & Loss

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13Chart of Accounts

Profit & Loss

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Profit & Loss

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15Chart of Accounts

Profit & Loss

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Profit & Loss

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17Chart of Accounts

Profit & LossWhere is OWNERS Compensation?

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Profit & Loss

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Profit & Loss

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Chart of Accounts

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Cash vs AccrualFinancial Statement MetricsMoney in the Bank

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3Cash vs Accrual

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What is Cash Basis, Accrual Basis, and Tax Basis?22

Cash BasisRecognizes Revenue & Expenses

Accrual Basis

Tax BasisWhen Cash is Received and Expenses are Paid

Recognizes Revenue & ExpensesRecognizes Revenue & ExpensesWhen Earned & IncurredCash or Accrual Adjusted for Tax Purposes

What is Cash Basis, Accrual Basis, and Tax Basis?23

Only CashOnly CashAll EarningsNot Paid$1,990 Difference

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Cash vs AccrualFinancial Statement MetricsMoney in the Bank

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1Financial Statement Metrics24

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Chart of Accounts

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Cash vs AccrualFinancial Statement MetricsMoney in the Bank

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1Money in the Bank23

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36Money in the Bank

Balance Sheet

37Money in the Bank

Balance Sheet

38Financial Statement Metrics

4,000,000X 10%

400,000Cash on Hand

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39Money in the Bank

Balance Sheet

4,000,000x 10%

400,000Cash on Hand

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4,000,000X 6%

240,000Tax Reserve

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41Money in the Bank

Balance Sheet

40,000+ 224,000

264,000Tax Reserve

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Balance Sheet

43Financial Statement Metrics

150,000/ 4,000,000

3.75%Tax Reserve

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44Money in the Bank

Balance Sheet

150,000/ 4,000,000

3.75%A/R

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Balance Sheet

Quick Ratio$638,600 / 40,00016:1

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46Money in the Bank

Balance Sheet

638,600/ 40,000

16:1Quick Ratio

47Money in the Bank

Chart of Accounts

4321Cash vs AccrualFinancial Statement MetricsMoney in the Bank

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Questions? Need more info?Feel free to get in touch!Summit CPA GroupJody Grunden, CFOjody@summitcpa.netwww.summitcpa.net