Black Ink Cashflow Secrets Your Accountant Never Shared

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Presented by Tom Shay of
Profits Plus Solutions
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tomshay@profitsplus.org

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Eliminating your accountant.
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Income Statement
Cash Sales 62,000
Cost of Goods Sold 39,370
Gross Profit 22,630
Gross Profit Percentage 36.5%
Operating Expenses:
Wages 12,000
Payroll Taxes 960
Property Taxes -
Rent 8,000
Telephone & Utilities 2,400
Repairs 150
Advertising 1,575
Accounting & Legal 200
Automobile 140
Bank Charges 210
Computer Operations 175
Dues & Subscriptions 300
Insurance - General & Workman's Compensation 800
Licenses & Taxes (not sales tax) 100
Office & Store Supplies 300
Outside Services 250
Travel 1,000
Total Operating Expenses 28,560
Operating Income (5,930)
Other Income and Expenses:
Miscellaneous Income -
Interest Income 265
Interest Expense -
Net Income Before Taxes (5,665)
Federal Income Tax -
Net Income (Loss) (5,665)www.profitsplus.org

Month YTD Month last year YTD last year Budget Variance
Sales 100% 100% 100% 100%
COGS
Gross profit % % % %
Operating expenses
Advertising expense
Advertising
E-Newsletter
Website
Advertising subtotal % % % %
Occupancy expense
Building repairs
Maintenance
Rent
Utilities and telephone
Occupancy subtotal % % % %
Payroll expense
Benefits
Owner draw
Payroll taxes
Wages and salaries
Workman's Comp and Health Insurance
Payroll subtotal % % % %
Accounting
Balancing account
Bank and merchant service fees
Depreciation
Dues and subscriptions
Freight
Business Insurance
Legal
Loss
Meals and entertainment
Miscellaneous
Office expense
Office supplies
Merchandising
Printing
Postage and shipping
Returned checks
Software support
Business & Personal Property Taxes
Travel
Total operating expenses % % % %
Net income % % % %
10

A B C D E
1 EZ Cashflow (TM) Cash Basis
2
3 For Month Ending: 1/31 2/28 3/31
4
5 Income Statement
6 Cash Sales P 62,000 65,000 70,000
7 Cost of Goods Sold C 39,370 41,275 44,450
8 Gross Profit C 22,630 23,725 25,550
9 Gross Profit Percentage P 36.5% 36.5% 36.5%
10
11 Operating Expenses:
12 Wages P 11,000 17,500 12,000
13 Payroll Taxes C 880 1,400 960
14 Property Taxes P - - -
15 Rent P 8,000 8,000 2,000
16 Telephone & Utilities P 2,400 2,400 2,200
17 Repairs P 150 150 150
18 Advertising P 1,575 1,600 1,700
19 Accounting & Legal P 200 200 200
20 Automobile P 140 140 140
21 Bank Charges P 210 210 210
22 Computer Operations P 175 175 175
23 Dues & Subscriptions P 300 - -
24 Insurance - General & Workman's Compensation P 800 800 800
25 Licenses & Taxes (not sales tax) P 100 - -
26 Office & Store Supplies P 300 300 300
27 Outside Services P 250 250 250
28 Travel P 1,000 - -
29
30 Total Operating Expenses C 27,480 33,125 21,085
31
32 Operating Income C (4,850) (9,400) 4,465
33
34 Other Income and Expenses:
35 Miscellaneous Income P - - -
36 Interest Income P 265 - -
37 Interest Expense P - - -
38
39 Net Income Before Taxes C (4,585) (9,400) 4,465
40
41 Federal Income Tax P - - -
42
43 Net Income (Loss) C (4,585) (9,400) 4,465

A B C D E
2
46 Cash Balance, Beginning of Month P/C 17,500 9,445 (14,627)
47
48 Net income (Loss) C (4,585) (9,400) 4,465
49
50 Add:
52
53 Less:
54 Inventory Purchases of Previous Month P 42,000 54,850 47,500
55 Freight In of Previous Month C 840 1,097 950
56 Principal Payments on Loans P - - -
57
58 Cash Balance, End of Month C 9,445 (14,627) (14,162)
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A B C D E
2
4
5 Income Statement
6 Cash Sales P 62,000 65,000 70,000
8 Gross Profit C 22,630 23,725 25,550
1 0
1 1 Operating Expenses:
1 2 Wages P 11,000 17,500 12,000
1 3 Payroll Taxes C 880 1,400 960
1 4 Property Taxes P - - -
1 5 Rent P 8,000 8,000 2,000
1 6 Telephone & Utilities P 2,400 2,400 2,200
1 7 Repairs P 150 150 150
1 8 Advertising P 1,575 1,600 1,700
1 9 Accounting & Legal P 200 200 200
2 0 Automobile P 140 140 140
2 1 Bank Charges P 210 210 210
2 2 Computer Operations P 175 175 175
2 3 Dues & Subscriptions P 300 - -
2 4 Insurance - General & Workman's Compensation P 800 800 800
2 5 Licenses & Taxes (not sales tax) P 100 - -
2 6 Office & Store Supplies P 300 300 300
2 7 Outside Services P 250 250 250
2 8 Travel P 1,000 - -
2 9
3 0 Total Operating Expenses C 27,480 33,125 21,085
3 1
3 2 Operating Income C (4,850) (9,400) 4,465
3 3
3 4 Other Income and Expenses:
3 5 Miscellaneous Income P - - -
3 6 Interest Income P 265 - -
3 7 Interest Expense P - - -
3 8
3 9 Net Income Before Taxes C (4,585) (9,400) 4,465
4 0
4 1 Federal Income Tax P - - -
4 2
4 3 Net Income (Loss) C (4,585) (9,400) 4,465
Column B:
C & P
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Column B: P/C
A B C D E
2
46 Cash Balance, Beginning of Month P/C 17,500 9,445 (14,627)
47
48 Net income (Loss) C (4,585) (9,400) 4,465
49
50 Add:
52
53 Less:
54 Inventory Purchases of Previous Month P 42,000 54,850 47,500
55 Freight In of Previous Month C 840 1,097 950
56 Principal Payments on Loans P - - -
57
58 Cash Balance, End of Month C 9,445 (14,627) (14,162)
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EZ Cashflow (TM) Cash Basis
For Month Ending: 1/31
Income Statement
Cash Sales P 62,000
Cost of Goods Sold C 39,370
Gross Profit C 22,630
Gross Profit Percentage P 36.5%
Operating Expenses:
Wages P 11,000
Payroll Taxes C 880
Property Taxes P -
Rent P 8,000
Telephone & Utilities P 2,400
Repairs P 150
Advertising P 1,575
Accounting & Legal P 200
Automobile P 140
Bank Charges P 210
Computer Operations P 175
Dues & Subscriptions P 300
Insurance - General & Workman's Compensation P 800
Licenses & Taxes (not sales tax) P 100
Office & Store Supplies P 300
Outside Services P 250
Travel P 1,000
Total Operating Expenses C 27,480
Operating Income C (4,850)
Miscellaneous Income P -
Interest Income P 265
Interest Expense P -
Net Income Before Taxes C (4,585)
Federal Income Tax P -
Net Income (Loss) C (4,585)
Original
Margin
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EZ Cashflow (TM) Cash Basis
For Month Ending: 1/31
Income Statement
Cash Sales P 62,000
Cost of Goods Sold C 39,184
Gross Profit C 22,816
Gross Profit Percentage P 36.8%
Operating Expenses:
Wages P 11,000
Payroll Taxes C 880
Property Taxes P -
Rent P 8,000
Telephone & Utilities P 2,400
Repairs P 150
Advertising P 1,575
Accounting & Legal P 200
Automobile P 140
Bank Charges P 210
Computer Operations P 175
Dues & Subscriptions P 300
Insurance - General & Workman's Compensation P 800
Licenses & Taxes (not sales tax) P 100
Office & Store Supplies P 300
Outside Services P 250
Travel P 1,000
Total Operating Expenses C 27,480
Operating Income C (4,664)
Miscellaneous Income P -
Interest Income P 265
Interest Expense P -
Net Income Before Taxes C (4,399)
Federal Income Tax P -
Net Income (Loss) C (4,399)
With
Increased
Margin
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For Month Ending: Totals Budget
Income Statement
Cash Sales 863,000
Cost of Goods Sold 548,005
Gross Profit 314,995
Gross Profit Percentage 36.5%
Operating Expenses:
Wages 159,200
Payroll Taxes 12,736
Property Taxes 10,500
Rent 36,000
Telephone & Utilities 25,600
Repairs 1,800
Advertising 20,875
Accounting & Legal 2,400
Automobile 1,680
Bank Charges 2,520
Computer Operations 2,100
Dues & Subscriptions 525
Insurance - General & Workman's Compensation 10,500
Licenses & Taxes (not sales tax) 1,850
Office & Store Supplies 3,600
Outside Services 3,000
Travel 3,050
Total Operating Expenses 297,936
Operating Income 17,059
Miscellaneous Income 14,400
Interest Income 265
Interest Expense -
Net Income Before Taxes 31,724
Federal Income Tax 4,200
Net Income (Loss) 27,524 3.189%
Plus $1200 3.330%
14.5 days
Dollars or
Days –
Profit
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Accrual method
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A B C D E
1 EZ Cashflow (TM) Accrual Basis
2
4 Income Statement
5
6 Gross Sales P 62,000 65,000 70,000
8 Gross Profit C 22,630 23,725 25,550
10
11 Operating Expenses:
12 Wages (Including accrued) P 12,000 12,500 13,000
13 Payroll Taxes C 960 1,000 1,040
14 Property Taxes (Accrued) P 875 875 875
15 Rent (Including accrued) P 3,000 3,000 3,000
16 Telephone & Utilities P 2,400 2,400 2,200
17 Repairs P 150 150 150
18 Advertising P 1,575 1,600 1,700
19 Accounting & Legal P 200 200 200
20 Automobile P 140 140 140
21 Accounts Receivable Written Off P 250 - -
22 Bank Charges P 210 210 210
23 Computer Operations P 175 175 175
24 Depreciation (Accrued) P 300 300 300
25 Dues & Subscriptions P 300 - -
26 Insurance - General & Workman's Compensation P 800 800 800
27 Licenses & Taxes (not sales tax) P 100 - -
28 Office & Store Supplies P 300 300 300
29 Outside Services P 250 250 250
30 Travel P 1,000 - -
31
32 Total Operating Expenses C 24,985 23,900 24,340
33
34 Operating Income C (2,355) (175) 1,210
35
36 Other Income and Expenses:
37 Accrued Income P 1,200 1,200 1,200
38 Interest Income P 265 - -
39 Interest Expense P - - -
40
41 Net Income Before Taxes C (890) 1,025 2,410
42
43 Federal Income Tax (Accrued) P 350 350 350
44
45 Net Income (Loss) C (1,240) 675 2,060
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77 Freight In C 1,097 950 840
78 Inventory Purchases, Delayed Payment C - 3,000 8,400
79 Wages P - 6,480 -
80 Property Taxes P - - -
81 Rent P 6,000 6,000 -
82 Federal Income Tax P - - -
83
84 Non-Operations Related Cash Receipts(Payments):
85 Sale of Equipment P - - -
86 Purchase of Equipment P - - -
87 Loan Principal Payments P - - -
88 Cash Infusion from Loan P - - -
89
90 Net Cash Increase(Decrease) C (18,462) (15,795) (1,975)
91
92 Cash Balance, End of Month C (962) (16,757) (18,732)
93
A B C D E
2
94 Balance Sheet
95
96 Accounts Receivable, Beginning P/C 14,000 26,150 27,370
97 Add: Credit Sales C 12,400 13,000 14,000
98 Less: Collections C - 11,780 12,350
99 Less: Write Offs C 250 - -
100 Accounts Receivable, Ending C 26,150 27,370 29,020
101
102 Inventory, Beginning P/C 300,000 316,577 323,752
103 Purchases, Cash P 40,000 42,500 40,000
104 Purchases, 30 Days P 3,000 5,000 2,000
105 Purchases, 60 Days P 3,400 - -
107 Purchases, Total C 54,850 47,500 42,000
108 Freight In C 1,097 950 840
109 Cost of Goods Available for Sale C 355,947 365,027 366,592
111 Inventory, Ending C 316,577 323,752 322,142
112
113 Inventory Payable, Beginning P/C - 14,850 16,850
114 Purchases, 30 Days C 3,000 5,000 2,000
115 Purchases, 60 Days C 3,400 - -
117 Purchases on Credit, Total C 14,850 5,000 2,000
118 Payments, 30 Days C - (3,000) (5,000)
119 Payments, 60 Days C - - (3,400)
120 Payments, 90 Days C - - -
121 Payments, Total C - (3,000) (8,400)
122 Inventory Payable, Ending C 14,850 16,850 10,450
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A B C D E
2
94 Balance Sheet
95
96 Accounts Receivable, Beginning P/C 14,000 26,150 27,370
97 Add: Credit Sales C 12,400 13,000 14,000
98 Less: Collections C - 11,780 12,350
99 Less: Write Offs C 250 - -
100 Accounts Receivable, Ending C 26,150 27,370 29,020
101
102 Inventory, Beginning P/C 300,000 316,577 323,752
103 Purchases, Cash P 40,000 42,500 40,000
104 Purchases, 30 Days P 3,000 5,000 2,000
107 Purchases, Total C 54,850 47,500 42,000
108 Freight In C 1,097 950 840
109 Cost of Goods Available for Sale C 355,947 365,027 366,592
111 Inventory, Ending C 316,577 323,752 322,142
112
113 Inventory Payable, Beginning P/C - 14,850 16,850
114 Purchases, 30 Days C 3,000 5,000 2,000
117 Purchases on Credit, Total C 14,850 5,000 2,000
118 Payments, 30 Days C - (3,000) (5,000)
119 Payments, 60 Days C - - (3,400)
120 Payments, 90 Days C - - -
121 Payments, Total C - (3,000) (8,400)
122 Inventory Payable, Ending C 14,850 16,850 10,450

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