5. Do You Know How Much
Cash This Will Add to your
Bank Accounts?
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7. 1. How to build a scalable bookkeeping system to
produce numbers you can trust.
2. How to masterfully understand your margins and
avoid scaling losses
3. How to strategically determine a salary cap
4. How to future-proof your business by putting
numbers to your brand growth strategy
AGENDA
10. It’s not enough to use the basic accounting equation
for eCommerce - you need specificity!
Inventory Control + Marketing Efficiency + Operational Excellence
must all be clearly understood to know where your brand is
succeeding or sinking.
● Point 2
The
Accounting
Equation
15. ● Tells the story of the businesses ability or inability to
generate profit
● Summarizes the sources of income and expenses
● By understanding where you are spending the most you
are able to understand those areas your prioritizing
most in your business
Income
Statement
(Profit
&
Loss)
18. 1. Setup Cloud-Accounting Systems
2. Separate Business from Personal banking
3. Optimize Your Chart of Accounts
4. Customize Reporting to Your Needs
5. Recruit Your Accounting Team
5 Steps to A
Scalable
Bookkeeping
System
24. Build The Team
“My books were super messy. I neglected
them because I was always in sales mode.
For me, I just wanted to focus on selling
and delivering my services.” — @Jesse
Hanley, CEO of Bento.
33. 1
Determine Your Annual
Income Goals
2
Estimate Your Margins
3
Remove Your Fixed Costs
To Identify Budget for
Salary Cap
4
List Out Your Team and
Expected Earnings
4 Steps to Determine a Salary Cap
35. Cash
Confidence
How much do you need?
How much can you afford to
spend?
“A Common Error - Sellers not knowing when or having a plan to
pay for future spend. Without Cash, you cannot take action in your
business. When your not taking the actions you need to be taking
in your business you stress out. Find calm by seeing when/if you
have enough cash and tell your money where to go.”
37. 4 Step Cash
Flow Forecast
1. Dig out your statements, online
logins - list opening balances for
each of your accounts.
38. 4 Step Cash
Flow Forecast
2. List all sources of cash inflows
Ex. A/R on wholesale orders, Ave.
monthly sales by channel, etc.
39. 4 Step Cash
Flow Forecast
3. List all categories of
expenditures - outflows of cash
40. 4 Step Cash
Flow Forecast
4. Calculate the ending balance
(Opening Bal + Incoming -
Outgoing = Ending Bal)
41. Profit & Loss:
What Story It
Can’t Tell
Key Questions To Ask:
Why does my cash look
like this?
What are my biggest
risk & assumptions?
Do I like how things
look and does anything
need to change?
42. Henrique Turra
Dan the Man Cooking
"
“Our main focus before was on growth.
And after the course, it became very clear that with quite a sense of
urgency, that profitability is something that we should look into more."