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Financial Statements Basics and Applications to Your Composting Operations

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6th National Cultivating Community Composting Forum
Panel 4: The Business of Community Composting
Michael Robinson
Rust Belt Riders
Cleveland

Published in: Business
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Financial Statements Basics and Applications to Your Composting Operations

  1. 1. Financial Statements ● For accounting purposes, there is a right way, but for your decision making purposes it’s important to organize your finance reports so that they help you understand what’s going on with your operation in order to make wise decisions informed by accurate data. ● “Financial Intelligence” by Karen Berman, John Case, and Joe Knight. ● Find a finance mentor.
  2. 2. Balance Sheet ● Provides a financial snapshot of the firm at a specific moment in time. ● Details the assets and liabilities of the firm. ● Assets ○ Liquid capital (cash in the bank ○ Accounts Receivable (cash owed to you by you your customers/clients) ○ Equipment (Trucks, Tractors, Bikes, Containers) ● Liabilities ○ Credit Balance ○ Bills Owed ○ Long Term Loans
  3. 3. Income Statement (Profit and Loss Statement) ● Provides a financial picture of the operation over a period of time. ● Basic Components ○ Revenue ○ Costs of Goods Sold ■ Direct Shop Materials Costs ■ Direct Shop People Costs ■ Overhead ○ Sales, General, and Administrative

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