Simple Start Class

8/9/2019 Simple Start Class

1/50

Simple Start to Managing

Your Business Finances

A Guide to the Essentials

QB_05/2005_01


2/50

2

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/


3/50

3

STUDNT !ANDOUTS

tudent )andouts htt*//we'ser#i!es*ls!sot!o/downloads/ai!downloads/)andouts*d

a*le


4/50

"

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


5/50

#

$% &'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


6/50

)

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


7/50

-

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&


8/50

1

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


9/50

Cas' Flo0Mone+ In an, Mone+ Out

CUSTOMRS

#ales

#er'ices (

%roducts)ut

YOUR

BUSINSS 4NDORS

*+penses

#er'ices (%roducts

In

Money In Money )ut


10/50

$5

Ma6or Account T+pes

,ssets Current !ash, in#entor&,

a!!ounts re!ei#a'le, et!H


11/50

$$

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


12/50

$2

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%*


13/50

$3

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


14/50

$"

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+


15/50

$#

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


16/50

$)

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


17/50

$-

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.


18/50

$1

"% 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


19/50

$

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.

$


20/50

25


Issue sales

receipt

.e!ord

1 Custoer

2 :te

Quantit&

? "a&ent t&*e

5 Fate

$

2 3

"

3rack our usiness

#


21/50

2$


#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

)

-

1


22/50

22

B% In


23/50

23

B% In


24/50

2"

B% In


25/50

2#

C% Recei


26/50

2)

C% Recei


27/50

2-

C% Receinde*osited undsa**ear in I-therCurrent AssetsJ

-


28/50

21

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.$


29/50

2


3rack our usiness

Make deposit

ele!t

1 Cash andChe!k

2 All unds tode*osit

$

2


30/50

35


#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

)


31/50

3$

% &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.

$


32/50

32

3rack our usiness


&rite check

ele!t

1 "a&ee

2 Aount

;ransa!tiont&*eE@*ense I>tilitiesJH

$

3

2


33/50

33


#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

"

#

)


34/50

3"

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.

$


35/50

3#

3rack our usiness

Update credit

card register

ele!t

1 "a&ee

2 ;ransa!tiont&*e E@*ense44 u**liesH

Aount$ 3

2



36/50

3)


#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

"

#

)


37/50


38/50

31

>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


39/50

3

!elp.ul ResourcesA,


40/50

"5

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=


41/50

"$

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


42/50

ppen,i*3 ,,itional

Terms an, Concepts

, #imple #tart to Managing our

usiness Finances

Fi i l M t


43/50

"3

1 Business t&*es2 Cash or a!!rual

Fe'its and !redits

? Pournal5 Led+er

Financial Management

Terms an, Concepts


44/50

""

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


45/50

"#

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


46/50

")

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


47/50

"-


ournal

Pournal

entries

!a*ture all

!ash in

and all!ash out

a!ti#it&



48/50

"1

Mar= s Atomic >rap'ic Design

>eneral 8e,ger

General

led+er

GLH

shows all

a!ti#it& '&a!!ount

t&*e


49/50

"

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,


50/50

#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/

Documents

Simple Start Class