Finance 101 - Outright.com
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Finance 101 - Outright.com

on

  • 1,021 views

This presentation covers the basics of finance and is geared towards online sellers. It was presented by Outright.com at the HelloEtsy Conference.

This presentation covers the basics of finance and is geared towards online sellers. It was presented by Outright.com at the HelloEtsy Conference.

Statistics

Views

Total Views
1,021
Views on SlideShare
1,021
Embed Views
0

Actions

Likes
0
Downloads
7
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Finance 101 - Outright.com Presentation Transcript

  • 1. Finance 101 What small businesses owners need to know about their finances
  • 2. What we will (and won’t) discuss THE GOOD Keeping track of your income and expenses Knowing how your business is doing Staying organized for taxes THE BAD AND UGLY Chart of Accounts, GAAP, Accruals Balance Sheets, Trial Balances, Inventory Turnover Ratios IRS Jargon, Audits, Tax Schedules
  • 3. Sample Income Statement
  • 4. Know Your Bottom Line SALES
    • Cost of Goods Sold
    • Other Expenses
    = PROFIT
    • Taxes
    = “BOTTOM LINE”
    • Why you should care about this simple math:
    • Know how your business doing
    • Stay organized for tax-time
  • 5. SALES SALES = Items you sell x Price The easiest Finance 101 concept to learn; not so easy to understand
    • Do you know your customers?
    • Repeat buyers?
    • What are they buying?
    • When? Where?
    • Have you tested pricing?
  • 6. Cost of Goods Sold Cost of Goods Sold (COGS) is the money you spend to make the products you sell
    • Estimate your COGS by product
    • Know your biggest vendors
    • In most cases, it’s physical stuff, not the time you “spend”
    • COGS is often tracked by a pile of receipts or credit card statements
  • 7. Other Expenses Other Expenses are … well… other expenses associated with running your business
    • Use categories that make sense to you
    • Know what expenses are directly associated with sales
    • What are assets and depreciation?
    • Etsy and PayPal Fees
    • Shipping Fees
    • Supplies
    • Website and marketing expenses
  • 8. PROFIT
    • Profit should tie closely to changes in your bank account
    • We’re not done yet!
    Profit is what’s left when you subtract your COGS and Other Expenses from your sales.
    • Profitability by product
    • Profit is what you pay yourself, value of your time
  • 9. TAXES Annual Income Taxes Every year Uncle Sam requires you to file & pay taxes on your small business profits (or losses) Quarterly Estimated Taxes Pay-as-you-go income taxes Jan, Apr, Jun, Sept 15 “quarterly” deadlines Sales Tax Your state requires you to collect sales tax from in-state customers, and pass it along
  • 10. Annual Income Tax 24% of all small business expenses are categorized as “other expenses” for taxes
    • You pay taxes on your profit, not your sales
    • Don’t worry too much about categorization… but keep track of income & expenses
    • Deductions are good!
    • If you owe estimated taxes, pay them to avoid penalties
  • 11. BOTTOM LINE A few reminders & tips to wrap up Finance 101
    • Keep up with your finances
    • Spend time getting to know your key business insights
    • Don’t stress about tax categories, but keep track
    • Cash is king
  • 12.
    • Outright helps more than 100,000 small businesses (and more than 6,000 Etsy sellers) keep track of their finances online
    • Automatically gets your transactions from various sources like Etsy, PayPal, banks, credit cards, and more
    • Automatically categorizes transactions
    • Always up to date, easy to understand reports and charts
    • Keeps you organized for taxes
    • Special deal for HelloEtsy: Outright is FREE through 2011 http://outright.com/helloetsy