SlideShare a Scribd company logo
ACCOUNTING 101
Specially for Startups!
Objective
 To understand what financial statements are.
 To understand what accounting really means.
 How to tackle certain situations which you will certainly face.
Jaydeep S. Halbe
Disclaimer: This slide deck will not teach you to do accounting. You don’t need to know
how to do it.
The Accounting Pillars
All the transactions of a business can be broken down
into 4 major categories / pillars:
 Assets
 Liabilities
 Expenditure
 Income
Whether you’re Apple Inc., Google or Facebook or
running a tea stall, all your transactions come under one
of the 4 categories above!
Assets
Those items which you paid for which will give you
benefit for more than 1 year are called assets. Simple!
 You buy a laptop, that’s an asset. Will last 2 years.
 You buy a car, that’s an asset. Will last 3/4 years.
 You buy a pen, that’s not an asset. Will not last > 1 year.
 You buy a meal, that’s not an asset. Will last 30 mins!
Expenditure
Items which you paid money for, which are NOT assets is
expenditure
 The laptop you bought is not expenditure. It’s an asset.
 The car you bought is not expenditure. It’s an asset.
 The pen you bought is expenditure. It’s an not asset.
 The meal you bought is expenditure. It’s an not asset.
Liabilities
Money that you received which you need to pay back
to someone at a future point in time is a liability
 Your dad lends you Rs. 100,000 to help you. That’s a liability. You
owe your dad the money.
 You purchased items from a vendor on credit. That’s a liability. After
the credit period, you need to pay the vendor.
 You received Rs. 150,000 from a customer. That’s not a liability.
 You received Rs. 5,000 from the bank as interest. That’s not a liability.
Income
Money that you received which you need NOT pay
back to someone is income. You receive income for
services / products you provide.
 You received Rs. 150,000 from a customer. That’s an income. The
money is paid to you for a service / product you provided.You don’t
need to give it back to the customer. You’ve earned it!
 You received Rs. 5,000 from the bank as interest. That’s not a liability.
The money is paid to you for depositing money in a bank. You don’t
need to give it back to the bank. You’ve earned it!
Financial Statements
Statement where you summarize amounts for Assets,
Liabilities, Income and Expenditure is called Financial
Statement.
Consists of:
1) Balance Sheet : Summary of Asset & Liability
2) Profit & Loss Account : Summary of Income & Expenditure
3) Cash Flow Statement : Summary of Cash Inflow & Outflow
Accounting
Now that we’ve seen the end-result of the process,
which is Financial Statements, it’s easy to explain
Accounting.
It’s just recording of transactions to create books of
account (contains details of transactions).
Books of account are summarized to prepare Financial
Statements.
What you need to do?
To your service provider, provide the following things:
 Bank Statement of the company(current) account.
 File containing invoices raised on customers.
 File containing bills received from suppliers / vendors.
 Details of employees and their salaries.
 Details of loans received / given to people.
Paid using personal Credit Card?
Did you pay your office expense using your personal
credit card? No worries. Do one or the other:
 Save the bill and ask for it to be treated as official
expense paid by employee
(or)
 Out of your total credit card amount due, pay the
official expense by cutting a cheque from your
company bank account.
Lost a Bill / Invoice?
Did you lose, misplace or forget to get an bill for a legit
expenditure that you incurred? No worries. Do one or the
other:
 If the bill was paid for by company cheque or
company debit card, it’ll be in the bank statement.
Locate it in the bank statement.
(or)
 If bill was paid in cash, make a note somewhere
about it. You might forget to include it later in the
accounts. Your service provider will take care.
Incur frequent cash expenditure?
Do you frequently have the need to incur cash
expenditure where the amount is small and the nature of
transaction doesn’t let you get a bill? No worries. Do the
following:
 From your company bank account withdraw money
once a month in cash and spend from that.
 At the end of the month, give an expense claim to the
company detailing how much advance you took and
how you spent the money.
That’ll do!
This whole accounting thing for your business
doesn’t seem like a big thing after all, does it?
For any queries, you can contact me:
E-mail: jay@kenspire.com
Twitter: @jayhalbe

More Related Content

What's hot

Webcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGER
Webcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGERWebcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGER
Webcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGER
iWare Logic Technologies Pvt. Ltd.
 
Oracle gl consolidations
Oracle gl consolidationsOracle gl consolidations
Oracle gl consolidations
Baker Khader Abdallah, PMP
 
Oracle Advanced Procurement Training@ERP OCEAN
Oracle Advanced Procurement Training@ERP OCEANOracle Advanced Procurement Training@ERP OCEAN
Oracle Advanced Procurement Training@ERP OCEAN
ERP OCEAN Infotech Pvt Ltd
 
Ar implementing lockbox
Ar implementing lockboxAr implementing lockbox
Ar implementing lockbox
Wissam7777777
 
Oracle cash management_Anne
Oracle cash management_AnneOracle cash management_Anne
Oracle cash management_Anne
anuraj-sandhu
 
FINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERSFINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERS
Pedzis
 
Chapter 01 - Principal Accounting (Warren Reeve Fess)
Chapter 01 - Principal Accounting (Warren Reeve Fess)Chapter 01 - Principal Accounting (Warren Reeve Fess)
Chapter 01 - Principal Accounting (Warren Reeve Fess)
Arfan Fahmi
 
Rapid implementation Spreadsheets in Oracle ERP Cloud
Rapid implementation Spreadsheets in Oracle ERP CloudRapid implementation Spreadsheets in Oracle ERP Cloud
Rapid implementation Spreadsheets in Oracle ERP Cloud
Prithis Das, PMP, OCS ☁️
 
Financial planning and analysis (FP&A)
Financial planning and analysis (FP&A)Financial planning and analysis (FP&A)
Financial planning and analysis (FP&A)
Manish Prasad Gupta
 
Finance for the non finance
Finance for the non financeFinance for the non finance
Finance for the non finance
Saurabh Srivastava
 
The Road to Modernization: From EBS to Oracle ERP Cloud
The Road to Modernization: From EBS to Oracle ERP CloudThe Road to Modernization: From EBS to Oracle ERP Cloud
The Road to Modernization: From EBS to Oracle ERP Cloud
Perficient, Inc.
 
Non Finance Mgrs Seminar
Non Finance Mgrs SeminarNon Finance Mgrs Seminar
Non Finance Mgrs Seminar
Hezekiah Oyeyemi BSc, AAT, ACA
 
Presentation oracle ebs r12
Presentation oracle ebs r12Presentation oracle ebs r12
Presentation oracle ebs r12
Feras Ahmad
 
Financial Acumen for Non Finance professionals
Financial Acumen for Non Finance professionalsFinancial Acumen for Non Finance professionals
Financial Acumen for Non Finance professionals
CA Harsh Surana
 
Erpnext accounting module
Erpnext accounting module Erpnext accounting module
Erpnext accounting module
AnasMuhsen1
 
λατινοκρατια - ελληνικα κρατη
λατινοκρατια -  ελληνικα κρατηλατινοκρατια -  ελληνικα κρατη
λατινοκρατια - ελληνικα κρατη
giangrez54
 
Η ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣ
Η ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣΗ ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣ
Η ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣ
Petros Frantzeskos
 
Basic Bookkeeping
Basic BookkeepingBasic Bookkeeping
Basic Bookkeeping
mdesmond
 
επαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗ
επαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗεπαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗ
επαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗ
teaghet
 
How to Generate FSG Reports - Part I
How to Generate FSG Reports - Part IHow to Generate FSG Reports - Part I
How to Generate FSG Reports - Part I
eprentise
 

What's hot (20)

Webcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGER
Webcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGERWebcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGER
Webcast: BUDGETING - R12.1.3 ORACLE GENERAL LEDGER
 
Oracle gl consolidations
Oracle gl consolidationsOracle gl consolidations
Oracle gl consolidations
 
Oracle Advanced Procurement Training@ERP OCEAN
Oracle Advanced Procurement Training@ERP OCEANOracle Advanced Procurement Training@ERP OCEAN
Oracle Advanced Procurement Training@ERP OCEAN
 
Ar implementing lockbox
Ar implementing lockboxAr implementing lockbox
Ar implementing lockbox
 
Oracle cash management_Anne
Oracle cash management_AnneOracle cash management_Anne
Oracle cash management_Anne
 
FINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERSFINANCE FOR NON-FINANCIAL MANAGERS
FINANCE FOR NON-FINANCIAL MANAGERS
 
Chapter 01 - Principal Accounting (Warren Reeve Fess)
Chapter 01 - Principal Accounting (Warren Reeve Fess)Chapter 01 - Principal Accounting (Warren Reeve Fess)
Chapter 01 - Principal Accounting (Warren Reeve Fess)
 
Rapid implementation Spreadsheets in Oracle ERP Cloud
Rapid implementation Spreadsheets in Oracle ERP CloudRapid implementation Spreadsheets in Oracle ERP Cloud
Rapid implementation Spreadsheets in Oracle ERP Cloud
 
Financial planning and analysis (FP&A)
Financial planning and analysis (FP&A)Financial planning and analysis (FP&A)
Financial planning and analysis (FP&A)
 
Finance for the non finance
Finance for the non financeFinance for the non finance
Finance for the non finance
 
The Road to Modernization: From EBS to Oracle ERP Cloud
The Road to Modernization: From EBS to Oracle ERP CloudThe Road to Modernization: From EBS to Oracle ERP Cloud
The Road to Modernization: From EBS to Oracle ERP Cloud
 
Non Finance Mgrs Seminar
Non Finance Mgrs SeminarNon Finance Mgrs Seminar
Non Finance Mgrs Seminar
 
Presentation oracle ebs r12
Presentation oracle ebs r12Presentation oracle ebs r12
Presentation oracle ebs r12
 
Financial Acumen for Non Finance professionals
Financial Acumen for Non Finance professionalsFinancial Acumen for Non Finance professionals
Financial Acumen for Non Finance professionals
 
Erpnext accounting module
Erpnext accounting module Erpnext accounting module
Erpnext accounting module
 
λατινοκρατια - ελληνικα κρατη
λατινοκρατια -  ελληνικα κρατηλατινοκρατια -  ελληνικα κρατη
λατινοκρατια - ελληνικα κρατη
 
Η ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣ
Η ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣΗ ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣ
Η ΑΓΙΑ ΣΟΦΙΑ ΚΩΝΣΤΑΝΤΙΝΟΥΠΟΛΗΣ
 
Basic Bookkeeping
Basic BookkeepingBasic Bookkeeping
Basic Bookkeeping
 
επαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗ
επαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗεπαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗ
επαναληπτικό 5, ΒΙΒΛΙΟ ΜΑΘΗΤΗ
 
How to Generate FSG Reports - Part I
How to Generate FSG Reports - Part IHow to Generate FSG Reports - Part I
How to Generate FSG Reports - Part I
 

Viewers also liked

Accounting for Entrepreneurs
Accounting for EntrepreneursAccounting for Entrepreneurs
Accounting for Entrepreneurs
GOL_Academic
 
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Peter Kos, Jr.
 
Startup Accounting Essentials
Startup Accounting EssentialsStartup Accounting Essentials
Startup Accounting Essentials
David Ehrenberg
 
How to Set Up Your Startup Accounting
How to Set Up Your Startup AccountingHow to Set Up Your Startup Accounting
How to Set Up Your Startup Accounting
David Ehrenberg
 
Startup Accounting and Financial Forecasting
Startup Accounting and Financial ForecastingStartup Accounting and Financial Forecasting
Startup Accounting and Financial Forecasting
David Ehrenberg
 
Chapter 3 quiz
Chapter 3 quizChapter 3 quiz
Chapter 3 quiz
cmallan
 
Ch01
Ch01Ch01
Chapter 2 quiz
Chapter 2 quizChapter 2 quiz
Chapter 2 quiz
cmallan
 
Questions and answers
Questions and answersQuestions and answers
Questions and answers
Stephen Kanini
 
Introduction to Accounting ch03
Introduction to Accounting ch03Introduction to Accounting ch03
Introduction to Accounting ch03
Raed Felfel
 
Chapter 1 Quiz
Chapter 1 QuizChapter 1 Quiz
Chapter 1 Quiz
cmallan
 
principles of accounting-Chapter 01
principles of accounting-Chapter 01principles of accounting-Chapter 01
principles of accounting-Chapter 01
Fahad Aziz
 
Ch03 the matching concept and the adjusting process, intro accounting, 21st...
Ch03   the matching concept and the adjusting process, intro accounting, 21st...Ch03   the matching concept and the adjusting process, intro accounting, 21st...
Ch03 the matching concept and the adjusting process, intro accounting, 21st...
Trisdarisa Soedarto, MPM, MQM
 
AWSome Day | Tech Track
AWSome Day | Tech TrackAWSome Day | Tech Track
AWSome Day | Tech Track
Amazon Web Services
 
Chapter 2: The Recording Process
Chapter 2: The Recording ProcessChapter 2: The Recording Process
Chapter 2: The Recording Process
tepsokha
 
AWSome Day Intro
AWSome Day IntroAWSome Day Intro
AWSome Day Intro
Amazon Web Services
 
Chapter 1: Accounting in Action
Chapter 1: Accounting in ActionChapter 1: Accounting in Action
Chapter 1: Accounting in Action
tepsokha
 
Ch2
Ch2Ch2
Chapter 3 Answers
Chapter 3 Answers Chapter 3 Answers
Chapter 3 Answers
cwood
 
Accounting principles weygandt 11th edition solutions manual
Accounting principles weygandt 11th edition solutions manual Accounting principles weygandt 11th edition solutions manual
Accounting principles weygandt 11th edition solutions manual
abb183n
 

Viewers also liked (20)

Accounting for Entrepreneurs
Accounting for EntrepreneursAccounting for Entrepreneurs
Accounting for Entrepreneurs
 
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
 
Startup Accounting Essentials
Startup Accounting EssentialsStartup Accounting Essentials
Startup Accounting Essentials
 
How to Set Up Your Startup Accounting
How to Set Up Your Startup AccountingHow to Set Up Your Startup Accounting
How to Set Up Your Startup Accounting
 
Startup Accounting and Financial Forecasting
Startup Accounting and Financial ForecastingStartup Accounting and Financial Forecasting
Startup Accounting and Financial Forecasting
 
Chapter 3 quiz
Chapter 3 quizChapter 3 quiz
Chapter 3 quiz
 
Ch01
Ch01Ch01
Ch01
 
Chapter 2 quiz
Chapter 2 quizChapter 2 quiz
Chapter 2 quiz
 
Questions and answers
Questions and answersQuestions and answers
Questions and answers
 
Introduction to Accounting ch03
Introduction to Accounting ch03Introduction to Accounting ch03
Introduction to Accounting ch03
 
Chapter 1 Quiz
Chapter 1 QuizChapter 1 Quiz
Chapter 1 Quiz
 
principles of accounting-Chapter 01
principles of accounting-Chapter 01principles of accounting-Chapter 01
principles of accounting-Chapter 01
 
Ch03 the matching concept and the adjusting process, intro accounting, 21st...
Ch03   the matching concept and the adjusting process, intro accounting, 21st...Ch03   the matching concept and the adjusting process, intro accounting, 21st...
Ch03 the matching concept and the adjusting process, intro accounting, 21st...
 
AWSome Day | Tech Track
AWSome Day | Tech TrackAWSome Day | Tech Track
AWSome Day | Tech Track
 
Chapter 2: The Recording Process
Chapter 2: The Recording ProcessChapter 2: The Recording Process
Chapter 2: The Recording Process
 
AWSome Day Intro
AWSome Day IntroAWSome Day Intro
AWSome Day Intro
 
Chapter 1: Accounting in Action
Chapter 1: Accounting in ActionChapter 1: Accounting in Action
Chapter 1: Accounting in Action
 
Ch2
Ch2Ch2
Ch2
 
Chapter 3 Answers
Chapter 3 Answers Chapter 3 Answers
Chapter 3 Answers
 
Accounting principles weygandt 11th edition solutions manual
Accounting principles weygandt 11th edition solutions manual Accounting principles weygandt 11th edition solutions manual
Accounting principles weygandt 11th edition solutions manual
 

Similar to Accounting 101 for Start-ups

Bookkeeping 101 For Small Businesses
Bookkeeping 101 For Small BusinessesBookkeeping 101 For Small Businesses
Bookkeeping 101 For Small Businesses
Samuel Albert
 
Double entry systme
Double entry systmeDouble entry systme
Accounting for entrepreneurs
Accounting for entrepreneurs Accounting for entrepreneurs
Accounting for entrepreneurs
Dr. Trilok Kumar Jain
 
Book Keeping and Accounting (Basic Level)
Book Keeping and Accounting (Basic Level)Book Keeping and Accounting (Basic Level)
Book Keeping and Accounting (Basic Level)
Yogesh Mangalekar
 
Financial literacy content for business people
Financial literacy content for business peopleFinancial literacy content for business people
Financial literacy content for business people
Laja Shoniran
 
Finance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptx
Finance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptxFinance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptx
Finance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
How To Solve Difficult Adjustments And Journal Entries In Financial Accounts
How To Solve Difficult Adjustments  And Journal Entries In Financial AccountsHow To Solve Difficult Adjustments  And Journal Entries In Financial Accounts
How To Solve Difficult Adjustments And Journal Entries In Financial Accounts
Augustin Bangalore
 
Business Startup Services new jersey
Business Startup Services new jerseyBusiness Startup Services new jersey
Business Startup Services new jersey
tim100anderson
 
Stofr module 4
Stofr module 4Stofr module 4
Stofr module 4
caniceconsulting
 
Find out the difference between invoice and credit memo
Find out the difference between invoice and credit memoFind out the difference between invoice and credit memo
Find out the difference between invoice and credit memo
Invoicera Tondon
 
Personal Finance
Personal FinancePersonal Finance
Personal Finance
mscuttle
 
Information For Business Buyers
Information For Business BuyersInformation For Business Buyers
Information For Business Buyers
WilliamBruce
 
A Simple Start to Managing Your Business Finances
A Simple Start to Managing Your Business FinancesA Simple Start to Managing Your Business Finances
A Simple Start to Managing Your Business Finances
HostPaul
 
Financial accounting mgt101 power point slides lecture 03
Financial accounting   mgt101 power point slides lecture 03Financial accounting   mgt101 power point slides lecture 03
Financial accounting mgt101 power point slides lecture 03
Abdul Wadood Ansary
 
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
A N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T SA N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T S
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
Dr. Trilok Kumar Jain
 
Accounting For Entrepreneurs
Accounting For EntrepreneursAccounting For Entrepreneurs
Accounting For Entrepreneurs
Dr. Trilok Kumar Jain
 
Creating a Budget for Your Business
Creating a Budget for Your BusinessCreating a Budget for Your Business
Creating a Budget for Your Business
SimonAllsop3
 
Basics of accounts
Basics of accountsBasics of accounts
Basics of accounts
Anup Suchak
 
A Simple Start to Managing Your Finances
A Simple Start to Managing Your FinancesA Simple Start to Managing Your Finances
A Simple Start to Managing Your Finances
quailrunventures
 
allyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptxallyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptx
JigneshTrivedi33
 

Similar to Accounting 101 for Start-ups (20)

Bookkeeping 101 For Small Businesses
Bookkeeping 101 For Small BusinessesBookkeeping 101 For Small Businesses
Bookkeeping 101 For Small Businesses
 
Double entry systme
Double entry systmeDouble entry systme
Double entry systme
 
Accounting for entrepreneurs
Accounting for entrepreneurs Accounting for entrepreneurs
Accounting for entrepreneurs
 
Book Keeping and Accounting (Basic Level)
Book Keeping and Accounting (Basic Level)Book Keeping and Accounting (Basic Level)
Book Keeping and Accounting (Basic Level)
 
Financial literacy content for business people
Financial literacy content for business peopleFinancial literacy content for business people
Financial literacy content for business people
 
Finance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptx
Finance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptxFinance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptx
Finance and Cash Flow Management Covenant Capital Business Prof Oyedokun.pptx
 
How To Solve Difficult Adjustments And Journal Entries In Financial Accounts
How To Solve Difficult Adjustments  And Journal Entries In Financial AccountsHow To Solve Difficult Adjustments  And Journal Entries In Financial Accounts
How To Solve Difficult Adjustments And Journal Entries In Financial Accounts
 
Business Startup Services new jersey
Business Startup Services new jerseyBusiness Startup Services new jersey
Business Startup Services new jersey
 
Stofr module 4
Stofr module 4Stofr module 4
Stofr module 4
 
Find out the difference between invoice and credit memo
Find out the difference between invoice and credit memoFind out the difference between invoice and credit memo
Find out the difference between invoice and credit memo
 
Personal Finance
Personal FinancePersonal Finance
Personal Finance
 
Information For Business Buyers
Information For Business BuyersInformation For Business Buyers
Information For Business Buyers
 
A Simple Start to Managing Your Business Finances
A Simple Start to Managing Your Business FinancesA Simple Start to Managing Your Business Finances
A Simple Start to Managing Your Business Finances
 
Financial accounting mgt101 power point slides lecture 03
Financial accounting   mgt101 power point slides lecture 03Financial accounting   mgt101 power point slides lecture 03
Financial accounting mgt101 power point slides lecture 03
 
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
A N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T SA N N U I T Y  Q U E S T I O N S  F O R  A P T I T U D E  T E S T S
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T S
 
Accounting For Entrepreneurs
Accounting For EntrepreneursAccounting For Entrepreneurs
Accounting For Entrepreneurs
 
Creating a Budget for Your Business
Creating a Budget for Your BusinessCreating a Budget for Your Business
Creating a Budget for Your Business
 
Basics of accounts
Basics of accountsBasics of accounts
Basics of accounts
 
A Simple Start to Managing Your Finances
A Simple Start to Managing Your FinancesA Simple Start to Managing Your Finances
A Simple Start to Managing Your Finances
 
allyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptxallyEssential%20Level%201%20Certification.pptx
allyEssential%20Level%201%20Certification.pptx
 

Recently uploaded

foodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docxfoodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docx
PraghyaBhandari
 
Data Analytics and AI Strategy Toolkit, Playbook and Templates
Data Analytics and AI Strategy Toolkit, Playbook and TemplatesData Analytics and AI Strategy Toolkit, Playbook and Templates
Data Analytics and AI Strategy Toolkit, Playbook and Templates
Aurelien Domont, MBA
 
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
emmanuelpulido003
 
A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024
Dubiz
 
Unveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdf
Unveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdfUnveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdf
Unveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdf
Xtreame HDTV
 
Mandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your roleMandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your role
khidalgo2
 
Growth Buyouts - The Dawn of the GBO (Slow Ventures)
Growth Buyouts - The  Dawn of the GBO (Slow Ventures)Growth Buyouts - The  Dawn of the GBO (Slow Ventures)
Growth Buyouts - The Dawn of the GBO (Slow Ventures)
Razin Mustafiz
 
Family/Indoor Entertainment Centers Market: Regulation and Compliance Updates
Family/Indoor Entertainment Centers Market: Regulation and Compliance UpdatesFamily/Indoor Entertainment Centers Market: Regulation and Compliance Updates
Family/Indoor Entertainment Centers Market: Regulation and Compliance Updates
AishwaryaDoiphode3
 
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
Newman George Leech
 
Retail Store Scavenger Hunt powerpoint slides
Retail Store Scavenger Hunt powerpoint slidesRetail Store Scavenger Hunt powerpoint slides
Retail Store Scavenger Hunt powerpoint slides
JairSemexant
 
Top Digital Marketing Strategy in 2024.pdf
Top Digital Marketing Strategy in 2024.pdfTop Digital Marketing Strategy in 2024.pdf
Top Digital Marketing Strategy in 2024.pdf
Top IT Marketing
 
Restaurant Chiraz Sindbad Hotel Hammamet
Restaurant Chiraz Sindbad Hotel HammametRestaurant Chiraz Sindbad Hotel Hammamet
Restaurant Chiraz Sindbad Hotel Hammamet
rihabkorbi24
 
Best Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management StudentsBest Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management Students
zoyaws1
 
The Most Innovative Blockchain Company to Follow in 2024 (5).pdf
The Most Innovative Blockchain Company to Follow in 2024 (5).pdfThe Most Innovative Blockchain Company to Follow in 2024 (5).pdf
The Most Innovative Blockchain Company to Follow in 2024 (5).pdf
analyticsinsightmaga
 
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAAPETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
lawrenceads01
 
Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...
Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...
Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...
itnewsafrica
 
PETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAA
PETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAAPETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAA
PETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAA
lawrenceads01
 
MEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final PresentationMEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final Presentation
PhysicsUtu
 
1234567891011121314151617181920212223242
12345678910111213141516171819202122232421234567891011121314151617181920212223242
1234567891011121314151617181920212223242
fauzanal343
 
Satta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatkaSatta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatka
➑➌➋➑➒➎➑➑➊➍
 

Recently uploaded (20)

foodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docxfoodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docx
 
Data Analytics and AI Strategy Toolkit, Playbook and Templates
Data Analytics and AI Strategy Toolkit, Playbook and TemplatesData Analytics and AI Strategy Toolkit, Playbook and Templates
Data Analytics and AI Strategy Toolkit, Playbook and Templates
 
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
 
A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024
 
Unveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdf
Unveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdfUnveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdf
Unveiling the Latest Eternal IPTV Features for Seamless Streaming in 2024.pdf
 
Mandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your roleMandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your role
 
Growth Buyouts - The Dawn of the GBO (Slow Ventures)
Growth Buyouts - The  Dawn of the GBO (Slow Ventures)Growth Buyouts - The  Dawn of the GBO (Slow Ventures)
Growth Buyouts - The Dawn of the GBO (Slow Ventures)
 
Family/Indoor Entertainment Centers Market: Regulation and Compliance Updates
Family/Indoor Entertainment Centers Market: Regulation and Compliance UpdatesFamily/Indoor Entertainment Centers Market: Regulation and Compliance Updates
Family/Indoor Entertainment Centers Market: Regulation and Compliance Updates
 
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
 
Retail Store Scavenger Hunt powerpoint slides
Retail Store Scavenger Hunt powerpoint slidesRetail Store Scavenger Hunt powerpoint slides
Retail Store Scavenger Hunt powerpoint slides
 
Top Digital Marketing Strategy in 2024.pdf
Top Digital Marketing Strategy in 2024.pdfTop Digital Marketing Strategy in 2024.pdf
Top Digital Marketing Strategy in 2024.pdf
 
Restaurant Chiraz Sindbad Hotel Hammamet
Restaurant Chiraz Sindbad Hotel HammametRestaurant Chiraz Sindbad Hotel Hammamet
Restaurant Chiraz Sindbad Hotel Hammamet
 
Best Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management StudentsBest Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management Students
 
The Most Innovative Blockchain Company to Follow in 2024 (5).pdf
The Most Innovative Blockchain Company to Follow in 2024 (5).pdfThe Most Innovative Blockchain Company to Follow in 2024 (5).pdf
The Most Innovative Blockchain Company to Follow in 2024 (5).pdf
 
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAAPETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
 
Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...
Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...
Andrew Wilmot- Ecentric Payment Systems: Macro Trends Shaping Payments in Afr...
 
PETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAA
PETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAAPETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAA
PETAVIT MICHAEL TAY.pdfAAAAAAAAAAAAAAAAAAAA
 
MEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final PresentationMEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final Presentation
 
1234567891011121314151617181920212223242
12345678910111213141516171819202122232421234567891011121314151617181920212223242
1234567891011121314151617181920212223242
 
Satta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatkaSatta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatka
 

Accounting 101 for Start-ups

  • 1. ACCOUNTING 101 Specially for Startups! Objective  To understand what financial statements are.  To understand what accounting really means.  How to tackle certain situations which you will certainly face. Jaydeep S. Halbe Disclaimer: This slide deck will not teach you to do accounting. You don’t need to know how to do it.
  • 2. The Accounting Pillars All the transactions of a business can be broken down into 4 major categories / pillars:  Assets  Liabilities  Expenditure  Income Whether you’re Apple Inc., Google or Facebook or running a tea stall, all your transactions come under one of the 4 categories above!
  • 3. Assets Those items which you paid for which will give you benefit for more than 1 year are called assets. Simple!  You buy a laptop, that’s an asset. Will last 2 years.  You buy a car, that’s an asset. Will last 3/4 years.  You buy a pen, that’s not an asset. Will not last > 1 year.  You buy a meal, that’s not an asset. Will last 30 mins!
  • 4. Expenditure Items which you paid money for, which are NOT assets is expenditure  The laptop you bought is not expenditure. It’s an asset.  The car you bought is not expenditure. It’s an asset.  The pen you bought is expenditure. It’s an not asset.  The meal you bought is expenditure. It’s an not asset.
  • 5. Liabilities Money that you received which you need to pay back to someone at a future point in time is a liability  Your dad lends you Rs. 100,000 to help you. That’s a liability. You owe your dad the money.  You purchased items from a vendor on credit. That’s a liability. After the credit period, you need to pay the vendor.  You received Rs. 150,000 from a customer. That’s not a liability.  You received Rs. 5,000 from the bank as interest. That’s not a liability.
  • 6. Income Money that you received which you need NOT pay back to someone is income. You receive income for services / products you provide.  You received Rs. 150,000 from a customer. That’s an income. The money is paid to you for a service / product you provided.You don’t need to give it back to the customer. You’ve earned it!  You received Rs. 5,000 from the bank as interest. That’s not a liability. The money is paid to you for depositing money in a bank. You don’t need to give it back to the bank. You’ve earned it!
  • 7. Financial Statements Statement where you summarize amounts for Assets, Liabilities, Income and Expenditure is called Financial Statement. Consists of: 1) Balance Sheet : Summary of Asset & Liability 2) Profit & Loss Account : Summary of Income & Expenditure 3) Cash Flow Statement : Summary of Cash Inflow & Outflow
  • 8. Accounting Now that we’ve seen the end-result of the process, which is Financial Statements, it’s easy to explain Accounting. It’s just recording of transactions to create books of account (contains details of transactions). Books of account are summarized to prepare Financial Statements.
  • 9. What you need to do? To your service provider, provide the following things:  Bank Statement of the company(current) account.  File containing invoices raised on customers.  File containing bills received from suppliers / vendors.  Details of employees and their salaries.  Details of loans received / given to people.
  • 10. Paid using personal Credit Card? Did you pay your office expense using your personal credit card? No worries. Do one or the other:  Save the bill and ask for it to be treated as official expense paid by employee (or)  Out of your total credit card amount due, pay the official expense by cutting a cheque from your company bank account.
  • 11. Lost a Bill / Invoice? Did you lose, misplace or forget to get an bill for a legit expenditure that you incurred? No worries. Do one or the other:  If the bill was paid for by company cheque or company debit card, it’ll be in the bank statement. Locate it in the bank statement. (or)  If bill was paid in cash, make a note somewhere about it. You might forget to include it later in the accounts. Your service provider will take care.
  • 12. Incur frequent cash expenditure? Do you frequently have the need to incur cash expenditure where the amount is small and the nature of transaction doesn’t let you get a bill? No worries. Do the following:  From your company bank account withdraw money once a month in cash and spend from that.  At the end of the month, give an expense claim to the company detailing how much advance you took and how you spent the money. That’ll do!
  • 13. This whole accounting thing for your business doesn’t seem like a big thing after all, does it? For any queries, you can contact me: E-mail: jay@kenspire.com Twitter: @jayhalbe