Bad debts and Provision for Bad debts. Bad Debts. When the firm finds that it is impossible to collect a debt, that debt should be written off as a bad debt.
Comparative balance sheets of two or more different dates can be used for comparing assets and liabilities and finding out any increase or decrease in those assets.
A comparative balance sheet has four columns:
First Column, Last year’s absolute figures.
Second Column, Current year’s absolute figures.
Third Column, increase or decrease in figures as recorded plus(+) for increase and minus(-) for decrease.
Fourth Column, percentage of increase or decrease.
Bad debt, in an accounting environment, represents revenue from sales that were purchased on credit and/or notes receivable that have proven uncollectible
Investment:
Relationship between profit and investment is shown by computing “Rate of Return ratios”.
Return on Investment (ROI)
Return on Total Resources
Return on Equity (ROE)
Earning Per Share Ratio (EPS)
Fixed Assets Turnover Ratio
Debt to Total Fund Ratio
Description about accruals and cash basis accounting at a glance, the implication of accrual basis accounting on financial statement misrepresentation, despite its common usage, and how to detect this.
CFOs expect weaker economic growth, but no recession in Switzerland. Currency concerns are once again widespread, and in response to the greater challenges they face, companies are relying heavily on digitisation.
The tenth anniversary edition of the CFO Survey is dominated by the preparations of Swiss CFOs for stormy times. Currency risks have increased in importance and companies are less willing to consider investments.
Bad debts and Provision for Bad debts. Bad Debts. When the firm finds that it is impossible to collect a debt, that debt should be written off as a bad debt.
Comparative balance sheets of two or more different dates can be used for comparing assets and liabilities and finding out any increase or decrease in those assets.
A comparative balance sheet has four columns:
First Column, Last year’s absolute figures.
Second Column, Current year’s absolute figures.
Third Column, increase or decrease in figures as recorded plus(+) for increase and minus(-) for decrease.
Fourth Column, percentage of increase or decrease.
Bad debt, in an accounting environment, represents revenue from sales that were purchased on credit and/or notes receivable that have proven uncollectible
Investment:
Relationship between profit and investment is shown by computing “Rate of Return ratios”.
Return on Investment (ROI)
Return on Total Resources
Return on Equity (ROE)
Earning Per Share Ratio (EPS)
Fixed Assets Turnover Ratio
Debt to Total Fund Ratio
Description about accruals and cash basis accounting at a glance, the implication of accrual basis accounting on financial statement misrepresentation, despite its common usage, and how to detect this.
CFOs expect weaker economic growth, but no recession in Switzerland. Currency concerns are once again widespread, and in response to the greater challenges they face, companies are relying heavily on digitisation.
The tenth anniversary edition of the CFO Survey is dominated by the preparations of Swiss CFOs for stormy times. Currency risks have increased in importance and companies are less willing to consider investments.
Presented by a member of the prestigious Society for Neuroscience, in this presentation you will discover simple but proven brain-based methods to greatly enhance your negotiation skills. You will be introduced to strategies to significantly improve your brain’s performance during negotiations and discover how to best influence the brains of the other party to get the results you really want. Neuroscience research indicates that these strategies not only greatly improve your negotiation skills, they also significantly reduce the stress normally associated with tough negotiations
Presentation on the FAB system of describing your products for successful marketing. Includes handy tools to help you develop your own powerful and punchy marketing tools.
produced under the OAS Femcidi Craft Enhancement Training; Written by Finola Jennings Clark for the Cultural Development Foundation, Saint Lucia
Discover how to leverage your existing professional skills to create a thriving and profitable coaching practice. Learn the proven 4-phase coaching process that will greatly boost your confidence to effectively coach others, and transform the lives or your clients. Walk away with numerous business and marketing strategies that you can apply immediately to attract more clients and make your practice financially sustainable. Presented by, Jonathan Jordan, a top-ranked, internationally renowned executive & business coach.
Presentacion de PNF en Administración de los Siguientes integrantes:
Carlha Fuentes C.I: 12.880.036
Juan Rodriguez C.I: 11.820.875
Leistin Figueredo C.I:12.414.485
Nelson Nuñez C.I:16.370.682
Gloris Figueredo C.I: 10.379.228
Mercado sin regulación economía en la que vale todo, legislacion laboral inexistente: desde Catwalk, Bombai - India, hasta cualquier punto del planeta gracias a las deslocalizaciones y a la globalización sin gobierno justo.
25 Blythe Road | London's Specialist Auctioneers
Harry Moore-Gwyn - BRITISH & CONTINENTAL PICTURES & PRINTS & Arnaud Delas - PHOTOGRAPHS 17 March 2016
http://25blythroad.auctioneersvault.com/catalogues/17032016/
Enquiries:
Harry Moore-Gwyn (British & Continental Pictures & Prints)
Arnaud Delas (Photographs)
E: enquiries@25blytheroad.com
T: 020 7806 5541
Viewing:
13 March 2016 12:00 to 16:00
14 March 2016 10:00 to 17:00
15 March 2016 10:00 to 20:00
16 March 2016 10:00 to 17:00
17 March 2016 10:00 to 12:00 (Limited View Only)
25 Blythe Road
London
W14 0PD
Highlights to include works by;
Jonas Plosky, Walter Sickert, Oliver Messel, James Lawrence Isherwood, Charles Cundall, Edward Ardizzone, Henri Hayden, James Jacques Joseph Tissot, Henri-Joseph Harpignies, Sir Stanley Spencer, Henry Tonks, James Gillray and a collection of works associated with the Mackinnon Clan as well as over 80 lots by the Polish photographer Edward Hartwig, a group of albums of Uganda, Japan and European views and loose photographs of India.
Strategies To Overcome Bankruptcy PowerPoint Presentation SlidesSlideTeam
Strategies To Overcome Bankruptcy PowerPoint Presentation Slides is a virtual solution for astute business professionals. Our well-structured PowerPoint theme is suitable to showcase strategies to avoid bankruptcy. Elaborate on the influence of bankruptcy on an organization and illustrate ways to settle outstanding debts. Elucidate the financial health from the last 3 years, current risk areas, and unsettled liabilities to represent the present scenario. Utilize our issues of bankruptcy PPT template deck to present a detailed financial investigation. Portray key financial ratios, income statement, balance sheet, and cash flow statement. Our challenges of insolvency PowerPoint presentation help you in consolidating the impact, and future forecast after implementing strategies on the organization. Employ tabular format to compile methods of communicating with the stakeholders. Describe bankruptcy risk identification and mitigation strategies through this PPT slideshow. Address the bankruptcy process including the filing procedures and consequences. So, hit the button and begin instant personalization. Our Strategies To Overcome Bankruptcy PowerPoint Presentation Slides are explicit and effective. They combine clarity and concise expression. https://bit.ly/386saCu
This presentation was delivered at the April 23, 2009 Smart-ups event in Eugene, OR by Dan Vishny (CFO for two start-ups companies). Dan is also known for having one of the top 10 best scores on the CPA exam - for the entire U.S.A.!
Joel Humphrey of Freelandt Caldwell Reilly LLP discusses how to create a sales forecast, developing your budgets and examples of cash flow projections.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
Dining Tables and Chairs | Furniture Store in Sarasota, Florida
Business Financials in Plain English: a Focused Overview
1. Business Financials in Plain EnglishBusiness Financials in Plain English
A Focused OverviewA Focused Overview
2. Former Executive with Fortune 500 Companies
Licensed Clinical Social Worker
Series 6 and other Financial Services Licenses
Nationwide and International Speaker,
Published Author
Member of the Society for Neuroscience
Certified Executive Business Coach
Owner of an International Coaching Business
Jonathan Jordan
Just a Little Bit About Me…
4. Why Know Your Financial Numbers?
Greater awareness of financial health of the
business
May reveal otherwise looming financial
issues
Greater day-to-day money management
Knowing what is, and what isn’t, making a
profit
Data-based decisions and accurate
projections
Easier to value the business
Increases the value
Easier to sell/exit
5.
6. 3 Basic Business Financial Reports
Balance Sheet
A financial snapshot of the business
Cash Flow Statement
The amount of money that flows into and out of the
business
Profit & Loss Statement (P&L)
The amount of money earned or lost by the business
7. Balance Sheet Definition
A financial record of a business, showing what it owns (assets),
what it owes (liabilities) and what is left over for the owners
(shareholders) after what it owes is deducted from what it owns
(the net worth or equity).
11. Cash-Flow Calculation
(Usually Monthly)
Client Fees
Product Sales
Speaking Fees
Book Royalties
Rent (paid to you)
Bank Loans
Business Mortgage/Rent
Utilities
Payroll
Supplies
12. Predictable Cash Flow is Critical
Know your average monthly in-flow, and
your average monthly out-flow
13. Cash In-Flow Tracking Example…
Year: 2011
Actual $ Received
YTD
Average $
Monthly
Yearly
Goal
Projected Yearly
$
Projected Goal
%
Service Line 1 YTD 27,000 9,125 100,000 109,501 110%
Service Line 2 YTD 11,000 3,718 53,000 44,612 84%
Product Line 1
YTD 19,000 6,421 67,000 77,056 115%
Product Line 2
YTD 34,000 11,491 130,000 137,890 106%
Grand Total YTD 91,000 30,755 350,000 369,060 105%
14. Cash Flow vs Profit & Loss
Depreciation:
An expense recorded to allocate an asset's cost over its useful
life. Because depreciation is a non-cash expense, it increases
cash flow while decreasing reported profits
15. Cash Basis vs Accrual Basis
Cash Basis: Records income when it is received, and expenses
when they are paid
Accrual Basis: Records income when it is earned and expenses
when then are incurred - regardless of when the money for the
transactions is actually received or paid
For example, this M3 event on April 4, 2011…
Under the accrual method, the expense will be recorded
today (the day of the event)
Under the cash method, the expense will be recorded on
the date that you actually paid for the event
18. The Danger of Discounting…
without knowing your profit margins
19. Presenter Contact Information
Jonathan Jordan
President, Global Change Management, Inc.
Please feel free to contact me with any
follow up questions or comments
E-mail: Jonathan@MindfullyChange.com
Editor's Notes
New pod cast
(3 mins)
Introduce self
Mention McDonald’s experience
8:44 – 8:46
So what are the benefits of knowing our numbers Trent, you might ask. Great question!
Understanding your numbers leads to;
Greater confidence in decisions – once you know the numbers, decisions are easy because you are not guessing, but knowing!
Better business decisions – you know what you want and what it is going to take, so you make it happen by taking positive action
Logic based implications of choices – it is no longer emotions deciding, it is the scorecard helping us with the choices which is great support
Greater awareness of one’s ability – it motivates you to get it and work smarter
Proper examinations of issues within the business – you see clearly the holes and gold in your business
More effective billing, collecting, tracking, and paying – you are more professional and hence reduce your debts
Ultimately the most important – improved cash flow – a great way to give you flexibility in business so you can make more PROFIT
8:50 – 8:52
There are 2 different types of accounting practices and there are 2 types of basic reports in business, does anyone know what they are? (Let them answer)........................... Balance sheet and P+L
Many business owners only look at their financial statements just once a year. They go straight to the bottom line and see whether they made a profit or not and the next question is ‘how much tax do I have to pay?’ Your financial statements actually contain a wealth of information, and with the right tools, you can quickly determine how ‘healthy’ your business is.
The Profit and Loss Statement shows a lot more than whether you made a profit or not; and the
The Balance Sheet gives you a snapshot of the businesses health
So lets look at what makes up each of these …
8:52 – 8:56 (4 Minutes)
Hand out sample balance sheet
The balance sheet is the least understood of all the financial forms but is one of the 2 most important. The balance sheet provides a snapshot of the overall health of the business. It is called a balance sheet because it balances assets with liabilities plus equity. It represents the overall financial worth of the company and shows the value of the business for that particular day it is created. This is an important point because profit and loss displays the results of a period e.g. a week, a month, etc. The balance sheet tells you the story for just that day because generally cash, inventory and supplier invoices will change on a regular basis, hence effect the balance of assets and debts.
The 3 key parts to a balance sheet:
1. Assets – these are things of value that you own (eg. plant, equipment, land, cash).
2. Liabilities – this is what you owe (eg loans, overdraft, notes).
3. Equity or Net worth – this is the owners stake in the business (eg capital shares, retained earnings).
You will notice there is current and non current assets and liabilities. The difference between current and non-current is;
Current assets are assets which are not held on a continuing basis, they are expected to be consumed within the next 12 months. Looking at the example you can see this in the form of cash and inventory which naturally follows this rule and is easy to understand.
Non current assets are held with the intention of being used to generate wealth rather than held for resale. Your equipment and furniture within your business (and in the example) will be used to generate the wealth aren’t they?
Current Liabilities represent amounts due and payable to outside parties within 12 months like your taxes, GST and supplier invoices.
Non current liabilities are not liable for repayment within 12 months after the balance sheet like business loans or shareholders loans.
You can see where all these variables fit in the balance sheet
8:46 – 8:50 (4 Minutes)
We have just been talking about the types of accountants and bookkeepers you need to have. Another aspect you need to be aware of is that there are also two types of accounting practices for businesses and they are; Cash basis accounting and accrual basis accounting! So what is the difference?
Cash basis accounting is used when income and expenses are entered into your financials at the time the money actually changes hands, so it is very easy to look at your sales and determine whether you can pay the bills or not. This type of accounting forces you to manage your money very effectively. It forces discipline. So, if you have no cash, you’re out of business! An example of this would be if you made $5000.00 of sales in January, but the payments were not received until March. You actually indicate in the book keeping that the income was in March, not January.
Accrual basis accounting, income and expenses are counted at the time they are transacted. Thus in the previous example, the $5000.00 sales would show up in January. This form of accounting is generally seen in larger businesses. Smaller businesses tend to use the cash basis accounting system. The assumption with accrual accounting is, yes you have money, but you really do not physically.
Businesses of your size generally should be on the cash system, but check this with your accountant. If you do not know which system you use for your business, this is a great opportunity to learn which your are on and if on the accrual, find out why!
When you are on a cash basis system, you can quite easily check in with your profit and loss, bank balance and budget as they will all speak the same language and be accurate. This is why small businesses use this system, because it is easier to manage your money and resources. Whereas larger businesses have their own finance departments who look after all creditors, debtors, invoicing, etc.
So make sure you know which one you are on!
9:00 – 9:02
Lets take a look at the difference between gross margins and net margins, even though I just gave you some very strong clues through that example P+L.
A gross margin is the margin between the total revenue and the cost of the goods, which is highlighted in that P+L we just looked through. You can see it actually states the gross margin or gross profit quite clearly and in March for example it is $16,000 - $9,300 = $6,700
What is the gross margin/profit for September?
A net margin is the margin between the gross margin/profit and the expenses (or many people refer to them as overheads) , which you might recall is the fixed costs.
When margin is referred to in discussion it is often expressed as a percentage. Therefore if you have a net margin of 10% and your revenue is $240,000 p/a, your net profit is $24,000.
You must have a very clear understanding of this difference especially when you are looking to have stock clearance sales or packaging your stock to increase your average dollar sale. If you do not know this, you might be cutting your nose off to spite your face. So often we hear business owners DISCOUNTING (which by the way is a swear word here in Action International), which is really a business owner giving away its profit. I will show you this difference in a couple of slides time.
8:46 – 8:50 (4 Minutes)
We have just been talking about the types of accountants and bookkeepers you need to have. Another aspect you need to be aware of is that there are also two types of accounting practices for businesses and they are; Cash basis accounting and accrual basis accounting! So what is the difference?
Cash basis accounting is used when income and expenses are entered into your financials at the time the money actually changes hands, so it is very easy to look at your sales and determine whether you can pay the bills or not. This type of accounting forces you to manage your money very effectively. It forces discipline. So, if you have no cash, you’re out of business! An example of this would be if you made $5000.00 of sales in January, but the payments were not received until March. You actually indicate in the book keeping that the income was in March, not January.
Accrual basis accounting, income and expenses are counted at the time they are transacted. Thus in the previous example, the $5000.00 sales would show up in January. This form of accounting is generally seen in larger businesses. Smaller businesses tend to use the cash basis accounting system. The assumption with accrual accounting is, yes you have money, but you really do not physically.
Businesses of your size generally should be on the cash system, but check this with your accountant. If you do not know which system you use for your business, this is a great opportunity to learn which your are on and if on the accrual, find out why!
When you are on a cash basis system, you can quite easily check in with your profit and loss, bank balance and budget as they will all speak the same language and be accurate. This is why small businesses use this system, because it is easier to manage your money and resources. Whereas larger businesses have their own finance departments who look after all creditors, debtors, invoicing, etc.
So make sure you know which one you are on!
9:00 – 9:02
Lets take a look at the difference between gross margins and net margins, even though I just gave you some very strong clues through that example P+L.
A gross margin is the margin between the total revenue and the cost of the goods, which is highlighted in that P+L we just looked through. You can see it actually states the gross margin or gross profit quite clearly and in March for example it is $16,000 - $9,300 = $6,700
What is the gross margin/profit for September?
A net margin is the margin between the gross margin/profit and the expenses (or many people refer to them as overheads) , which you might recall is the fixed costs.
When margin is referred to in discussion it is often expressed as a percentage. Therefore if you have a net margin of 10% and your revenue is $240,000 p/a, your net profit is $24,000.
You must have a very clear understanding of this difference especially when you are looking to have stock clearance sales or packaging your stock to increase your average dollar sale. If you do not know this, you might be cutting your nose off to spite your face. So often we hear business owners DISCOUNTING (which by the way is a swear word here in Action International), which is really a business owner giving away its profit. I will show you this difference in a couple of slides time.
8:58 – 9:00
This slide is an illustration of a sample of profit and loss for the XYZ company.
Lets look at this example to see in reality where the sales revenue is, variable costs, fixed costs and profit or loss are found.
Total revenue on this example is what the sales turnover is, for example in Jan it is 8000.
Variable costs on this example is the cost of goods section and it clearly demonstrates the cost of different amounts of stock that was sold. Once you take the cost of goods from the sales, you have the gross profit. In order to get the net profit we must account for our overheads. In Jan you can see it $5,000
Fixed costs is also referred to as overheads in many cases and these are clearly demonstrated in the expenses column in this example. In Jan you can see it is $1,260
Profit or Loss is demonstrated naturally at the bottom of the document as it is the result of the previous amounts and calculations. If the figure in the profit section is in red or is surrounded by brackets, it implies it is a loss rather than a profit. In Jan it is a profit of $1,740
If a loss does occur, this is when we need to refer to the Five Ways Chart for setting new profit objectives
9:06 – 9:07
Hand out the “Price Increase/Decrease” spreadsheet for other gross margins
Let me show you very clearly why we do not discount to reinforce the point of pricing on margin by using a very basic example.
In the first column on the left, the item is sold for $100 and total costs are $60, hence a mark up of $40. If you discount it 10%, your markup is now only $30, but your margin has reduced by 25%.
If you plug these numbers into the formula from the sheet we just gave you, you will come to the amount you need to increase your sales by to retain your initial margin.
Do this example on the flip chart with numbers
Markup = (100-60)/60 = 66% (remember markup is divided with the cost)
Margin = (100-60)/100 = 40% (remember markup is divided with the sales price)
With a 10% discount of selling price the figures change to;
Markup = (90-60)/60 = 50%
Margin = (90-60)/90 = 33%
The $7 drop in profit ($40-$33) is 17.5% and therefore you will need to increase your sales by 17.5% when you 10% discount to retain your 40% margin.
Explain how this works and show them this specific example. Have them look through this for homework!