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Start, Run & Grow Your Business
Basic Financials
The slide decks provided to instructors as part of the Start, Run & Grow Your
Business curriculum, created by Tim Berry, are licensed under a Creative
Commons Attribution 4.0 Unported License.
This license gives instructors the right to share, remix and make commercial
use of the slide decks, with proper attribution to Tim Berry, the curriculum
author.
Start, Run & Grow Your Business
Accounting Terms: Why Bother?
Start, Run & Grow Your Business
Planning is not Accounting
Image: publicdomainpictures.net
Start, Run & Grow Your Business
Important Vocabulary
Start, Run & Grow Your Business
Income Statement
Profit and Loss
Sales
Expenses
Costs of
Sales
Profit
Direct Costs,
Costs of Goods Sold
Start, Run & Grow Your Business
Balance
Snapshot of a Single Moment
Liabilities
Assets
Capital
Profit
Start, Run & Grow Your Business
Expenses: Money Gone Away
Image: 401kcalculator.org
Start, Run & Grow Your Business
Assets vs. Expenses
Start, Run & Grow Your Business
Assets vs. Expenses:
Understanding why this matters
Start, Run & Grow Your Business
Tax Implications
Start, Run & Grow Your Business
Asset or Expense?
Start, Run & Grow Your Business
The Cash Flow
Assets
Costs of
Sales
Profit
Sales
Liabilities
CapitalExpenses
Spent
Balance
Cash
Received
Start, Run & Grow Your Business
Sales: Not Necessarily Money Received
Assets?
Costs of
Sales
Liabilities
CapitalExpenses
Received?
Spent
Cash
Sales
Start, Run & Grow Your Business
Costs: Not Necessarily Money Spent
Assets?
Costs of
Sales
Sales
Liabilities?
CapitalExpenses
Spent?
Cash
Received
Start, Run & Grow Your Business
Asset or Expense?
Image: Wikimedia Commons
Start, Run & Grow Your Business
Practical Implications
■ Deductions
■ Taxes
■ Profits
■ Cash flow

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Session 06.1 basic financials

  • 1. Start, Run & Grow Your Business Basic Financials The slide decks provided to instructors as part of the Start, Run & Grow Your Business curriculum, created by Tim Berry, are licensed under a Creative Commons Attribution 4.0 Unported License. This license gives instructors the right to share, remix and make commercial use of the slide decks, with proper attribution to Tim Berry, the curriculum author.
  • 2. Start, Run & Grow Your Business Accounting Terms: Why Bother?
  • 3. Start, Run & Grow Your Business Planning is not Accounting Image: publicdomainpictures.net
  • 4. Start, Run & Grow Your Business Important Vocabulary
  • 5. Start, Run & Grow Your Business Income Statement Profit and Loss Sales Expenses Costs of Sales Profit Direct Costs, Costs of Goods Sold
  • 6. Start, Run & Grow Your Business Balance Snapshot of a Single Moment Liabilities Assets Capital Profit
  • 7. Start, Run & Grow Your Business Expenses: Money Gone Away Image: 401kcalculator.org
  • 8. Start, Run & Grow Your Business Assets vs. Expenses
  • 9. Start, Run & Grow Your Business Assets vs. Expenses: Understanding why this matters
  • 10. Start, Run & Grow Your Business Tax Implications
  • 11. Start, Run & Grow Your Business Asset or Expense?
  • 12. Start, Run & Grow Your Business The Cash Flow Assets Costs of Sales Profit Sales Liabilities CapitalExpenses Spent Balance Cash Received
  • 13. Start, Run & Grow Your Business Sales: Not Necessarily Money Received Assets? Costs of Sales Liabilities CapitalExpenses Received? Spent Cash Sales
  • 14. Start, Run & Grow Your Business Costs: Not Necessarily Money Spent Assets? Costs of Sales Sales Liabilities? CapitalExpenses Spent? Cash Received
  • 15. Start, Run & Grow Your Business Asset or Expense? Image: Wikimedia Commons
  • 16. Start, Run & Grow Your Business Practical Implications ■ Deductions ■ Taxes ■ Profits ■ Cash flow