The document provides information and guidance for youth entrepreneurs on topics such as the role of accountants, bookkeeping technologies, financial accounting, cash flow forecasting, cost accounting, pricing, taxes, and more. It also includes an introduction to the author and his experience as an accountant and mentor for youth entrepreneurs. The goal is to help youth starting, expanding, or purchasing a business with relevant financial information and advice.
Learn about recording expenses and income, hodge-podge and basic QuickBooks reporting. Additionally you will get an insight into eighteen common QuickBooks errrors.
Book-keeping is important for all businesses for several reasons: to understand financial performance, meet legal requirements, and make informed decisions. Records of income, expenses, assets and liabilities like accounts receivable, accounts payable, and tax documents allow owners to track cash flow, profitability, and ensure compliance. While software can automate book-keeping, basic spreadsheets or paper-based systems also work for some small businesses.
This document provides an introduction to financial management for small businesses. It discusses the importance of financial accounts, tracking money in and out, and using reports to understand business performance and make decisions. The document also provides a practice session walking through common financial tasks like recording a sale, invoicing a customer, receiving a payment, and writing a check. It concludes by offering tips on getting started with financial management and helpful resources.
- Receivables are claims against other entities that are usually settled in cash, including trade receivables from normal operations and non-trade receivables from other activities.
- Accounts receivable must be adjusted on the balance sheet to reflect their net realizable value by creating an allowance for doubtful accounts to account for expected uncollectible amounts.
- There are two main methods for accounting for uncollectible receivables - the direct write-off method and estimated bad debts method.
Cloud based <a>Online Accounting Software</a> for day to day needs of accountants and sme's, allows you to manage payroll, bookkeeping for free.
Learn More :- https://www.capium.com
The document provides an overview of basic accounting concepts, including:
- Accounting is the process of recording, classifying, and summarizing financial transactions to prepare financial statements.
- Key accounting concepts include business entity, money measurement, dual aspect, cost, accounting period, conservatism, realization, and matching.
- Accounting conventions include going concern, consistency, and accrual.
- The document also discusses classifying accounting events as capital, revenue, or deferred revenue expenditures.
Learn about recording expenses and income, hodge-podge and basic QuickBooks reporting. Additionally you will get an insight into eighteen common QuickBooks errrors.
Book-keeping is important for all businesses for several reasons: to understand financial performance, meet legal requirements, and make informed decisions. Records of income, expenses, assets and liabilities like accounts receivable, accounts payable, and tax documents allow owners to track cash flow, profitability, and ensure compliance. While software can automate book-keeping, basic spreadsheets or paper-based systems also work for some small businesses.
This document provides an introduction to financial management for small businesses. It discusses the importance of financial accounts, tracking money in and out, and using reports to understand business performance and make decisions. The document also provides a practice session walking through common financial tasks like recording a sale, invoicing a customer, receiving a payment, and writing a check. It concludes by offering tips on getting started with financial management and helpful resources.
- Receivables are claims against other entities that are usually settled in cash, including trade receivables from normal operations and non-trade receivables from other activities.
- Accounts receivable must be adjusted on the balance sheet to reflect their net realizable value by creating an allowance for doubtful accounts to account for expected uncollectible amounts.
- There are two main methods for accounting for uncollectible receivables - the direct write-off method and estimated bad debts method.
Cloud based <a>Online Accounting Software</a> for day to day needs of accountants and sme's, allows you to manage payroll, bookkeeping for free.
Learn More :- https://www.capium.com
The document provides an overview of basic accounting concepts, including:
- Accounting is the process of recording, classifying, and summarizing financial transactions to prepare financial statements.
- Key accounting concepts include business entity, money measurement, dual aspect, cost, accounting period, conservatism, realization, and matching.
- Accounting conventions include going concern, consistency, and accrual.
- The document also discusses classifying accounting events as capital, revenue, or deferred revenue expenditures.
This document provides an overview of basic bookkeeping concepts including debits and credits, cash vs. accrual accounting, T-accounts, the chart of accounts, income and expense accounts, and how to set up journals, income statements, and a balance sheet. It discusses the importance of keeping accurate financial records for a business and introduces key accounting principles and terminology.
Depending on the books at hand, a bookkeeper is basically a person who is responsible for the processing of paperwork for the business transactions of a company. These transactions are then recorded into accounts that make up the general ledger for the company.
Cambridge O level
National O Level
Edexcel O Level
7707
Prime Entry books
Books of Original Entry
Accounting
Introduction to Accounting
Accounting process
QuickBooks is accounting software that combines various accounting processes into one system. It is used by over 4.5 million businesses worldwide. This document provides 25 tips for effectively using QuickBooks, such as choosing the appropriate version for your business needs, customizing preferences and reports, using keyboard shortcuts to save time, and backing up data to avoid loss. Following these tips can help users get the most out of QuickBooks.
This document provides an overview of general ledger concepts, including:
- Accounting periods can follow a natural calendar of 12 months or use other calendars like a fiscal year or 4-4-5 calendar. Adjustment periods are also defined to clear balances from the prior year and make adjustments for the current year.
- Currencies can be defined as functional or foreign in a general ledger system.
- A chart of accounts structures the accounts used in a general ledger.
- Journals, posting, balances, reviews, accruals and reversals are key processes in a general ledger.
- A trial balance is prepared to check the equality of debits and credits across accounts.
Objectives of the study :
1. To study the meaning, definition, and advantages of computerized accounting.
2. To study the comparison between Manual Accounting & Computerized Accounting System.
3. To know the accounting software Tally, it’s features and different versions.
4. To study the preparation of vouchers, steps, selections, types, altering, deleting of vouchers.
5. To understand the feeding of data and generation of report.
Financial management in emergencies involves planning, organizing, controlling, and reporting on an organization's financial resources to achieve its goals. It helps manage risks and resources strategically. Key challenges include maintaining accounting records and cash flow in difficult environments, following procurement procedures when markets are devastated, exercising budgetary control when pressures to spend are high and situations change rapidly, and satisfying the different requirements of multiple donors funding one project. Achieving good practice requires robust yet practical financial systems, accountability, transparency, and skilled staff that integrate financial management into program delivery.
Accounts payable notes provide definitions and explanations of key concepts related to vendor invoice processing and payment in SAP. This includes defining accounts payable, purchase orders, vendor master data, invoice posting, payment methods, and the automatic payment program (APP). The APP allows for automated multiple vendor payments and printing of remittance documents. Maintaining accurate vendor records and timely payments are important parts of managing cash flow and vendor relationships in SAP.
The document discusses key accounting principles including the four main financial statements, the basic accounting equation, and different types of accounts. It also covers topics like accrual versus cash accounting, depreciation, financial analysis methods, and financial ratios used to evaluate business performance and health. The document is intended to provide an overview of basic accounting concepts.
Bookkeeping is important for a business for several key reasons. It allows a business owner to monitor the progress of their business by seeing what products are selling and where improvements can be made. It also enables accurate preparation of important financial statements like income statements and balance sheets to assess performance and secure financing. Good records identify sources of income, track deductible expenses for tax purposes, and keep track of the basis in property owned. Finally, bookkeeping provides the necessary documentation to properly prepare tax returns and support any items reported should the IRS audit returns.
Fundamentals of Accounting / Introduction of AccountingAfzalur Rahman
1.01 Meaning and Definition of Accounting
1.02 Attributes (Characteristics) of Accounting
1.03 Functions of Accounting
1.04 Accounting Process
1.05 Book Keeping
1.06 Objectives of Accounting
1.07 Advantages of Accounting
1.08 Limitations of Accounting
1.09 Users of Accounting Information
1.10 Systems of Accounting
1.11 Basis of Accounting
This document discusses petty cash, including:
- Petty cash refers to small, regular business expenses like stationery, cleaning supplies, and refreshments that are paid in cash.
- Petty cash payments are recorded in a petty cash book to track spending.
- A petty cash voucher is used to document each expense and must be attached to receipts.
- The imprest system provides an initial fixed amount (the "float") in the petty cash fund, which is replenished after expenses are deducted to restore the original amount.
Keeping accurate financial records is essential for running a successful small business. Good records allow business owners to monitor the financial performance and profitability of the business, make informed decisions, obtain financing, prepare tax filings, comply with payroll regulations, and determine distributions to owners. Without proper record keeping, business owners risk making poor decisions, paying unnecessary taxes and penalties, and not having the financial information needed to expand or obtain capital. It is recommended that small business owners hire an accountant or bookkeeping service to properly maintain their financial records.
This document outlines objectives and procedures for manual and computerized payroll and fixed asset accounting systems. For payroll, it describes processing steps from timekeeping and payroll preparation to general ledger posting. Key controls are transaction authorization, segregation of duties, and independent verification. For fixed assets, it outlines the asset lifecycle from acquisition to disposal and depreciation calculation. Computerized systems automate many tasks but still require authorization and verification controls.
Here are the key steps involved in payroll calculations:
1. Calculate basic salary as per employment terms
2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules
3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay
4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules
5. Calculate other benefits like leave encashment, bonuses, incentives if any
6. Generate payslip showing calculations of gross pay, deductions and net pay
7. Process payment to employees and file statutory returns
The payroll software automates these calculations to ensure accuracy as per rules. It is important to
This document provides information about economics and accounting coaching classes offered by Khalid Aziz. It lists the subjects covered such as microeconomics, macroeconomics, statistics, financial accounting, and cost accounting. Contact details are provided at the end.
The document discusses the purpose of a trial balance and types of accounting errors. It provides examples of correcting different types of errors, including errors of omission, commission, principle, and complete reversal. It explains that correcting entries are made by entering amounts on the opposite side of accounts to reduce balances or the same side to increase balances. Errors can affect the net profit and items in the balance sheet, so corrections may require restating accounts.
Double entry bookkeeping is a method of recording accounting transactions where every transaction has two equal and opposite accounting entries. The key principle is that for every debit, there must be an equal and opposite credit. Luca Pacioli introduced this system in 1494. It provides more accurate, complete recording of transactions compared to conventional single-entry bookkeeping systems. Accounts are classified as personal, real, or nominal depending on what type of asset, person, or expense/income they represent. Debits and credits follow set rules according to these account types.
Accounting is the process of measuring and recording financial transactions and preparing financial statements. The document outlines the key foundations of accounting including the accounting cycle, financial statements, ratio analysis, budgets, and international accounting standards. It describes the roles of various accounting professionals and how accounting supports decision making.
Financial Statements Overview with 2-Hour Financial ModelJeff LeBrun
Two Hour Financial Model is an excel-based template and series of videos that will help you learn to create a financial model quickly. For students, entrepreneurs, CFOs, and business owners. Checkout our website and Udemy video series.
This document provides an overview of basic bookkeeping concepts including debits and credits, cash vs. accrual accounting, T-accounts, the chart of accounts, income and expense accounts, and how to set up journals, income statements, and a balance sheet. It discusses the importance of keeping accurate financial records for a business and introduces key accounting principles and terminology.
Depending on the books at hand, a bookkeeper is basically a person who is responsible for the processing of paperwork for the business transactions of a company. These transactions are then recorded into accounts that make up the general ledger for the company.
Cambridge O level
National O Level
Edexcel O Level
7707
Prime Entry books
Books of Original Entry
Accounting
Introduction to Accounting
Accounting process
QuickBooks is accounting software that combines various accounting processes into one system. It is used by over 4.5 million businesses worldwide. This document provides 25 tips for effectively using QuickBooks, such as choosing the appropriate version for your business needs, customizing preferences and reports, using keyboard shortcuts to save time, and backing up data to avoid loss. Following these tips can help users get the most out of QuickBooks.
This document provides an overview of general ledger concepts, including:
- Accounting periods can follow a natural calendar of 12 months or use other calendars like a fiscal year or 4-4-5 calendar. Adjustment periods are also defined to clear balances from the prior year and make adjustments for the current year.
- Currencies can be defined as functional or foreign in a general ledger system.
- A chart of accounts structures the accounts used in a general ledger.
- Journals, posting, balances, reviews, accruals and reversals are key processes in a general ledger.
- A trial balance is prepared to check the equality of debits and credits across accounts.
Objectives of the study :
1. To study the meaning, definition, and advantages of computerized accounting.
2. To study the comparison between Manual Accounting & Computerized Accounting System.
3. To know the accounting software Tally, it’s features and different versions.
4. To study the preparation of vouchers, steps, selections, types, altering, deleting of vouchers.
5. To understand the feeding of data and generation of report.
Financial management in emergencies involves planning, organizing, controlling, and reporting on an organization's financial resources to achieve its goals. It helps manage risks and resources strategically. Key challenges include maintaining accounting records and cash flow in difficult environments, following procurement procedures when markets are devastated, exercising budgetary control when pressures to spend are high and situations change rapidly, and satisfying the different requirements of multiple donors funding one project. Achieving good practice requires robust yet practical financial systems, accountability, transparency, and skilled staff that integrate financial management into program delivery.
Accounts payable notes provide definitions and explanations of key concepts related to vendor invoice processing and payment in SAP. This includes defining accounts payable, purchase orders, vendor master data, invoice posting, payment methods, and the automatic payment program (APP). The APP allows for automated multiple vendor payments and printing of remittance documents. Maintaining accurate vendor records and timely payments are important parts of managing cash flow and vendor relationships in SAP.
The document discusses key accounting principles including the four main financial statements, the basic accounting equation, and different types of accounts. It also covers topics like accrual versus cash accounting, depreciation, financial analysis methods, and financial ratios used to evaluate business performance and health. The document is intended to provide an overview of basic accounting concepts.
Bookkeeping is important for a business for several key reasons. It allows a business owner to monitor the progress of their business by seeing what products are selling and where improvements can be made. It also enables accurate preparation of important financial statements like income statements and balance sheets to assess performance and secure financing. Good records identify sources of income, track deductible expenses for tax purposes, and keep track of the basis in property owned. Finally, bookkeeping provides the necessary documentation to properly prepare tax returns and support any items reported should the IRS audit returns.
Fundamentals of Accounting / Introduction of AccountingAfzalur Rahman
1.01 Meaning and Definition of Accounting
1.02 Attributes (Characteristics) of Accounting
1.03 Functions of Accounting
1.04 Accounting Process
1.05 Book Keeping
1.06 Objectives of Accounting
1.07 Advantages of Accounting
1.08 Limitations of Accounting
1.09 Users of Accounting Information
1.10 Systems of Accounting
1.11 Basis of Accounting
This document discusses petty cash, including:
- Petty cash refers to small, regular business expenses like stationery, cleaning supplies, and refreshments that are paid in cash.
- Petty cash payments are recorded in a petty cash book to track spending.
- A petty cash voucher is used to document each expense and must be attached to receipts.
- The imprest system provides an initial fixed amount (the "float") in the petty cash fund, which is replenished after expenses are deducted to restore the original amount.
Keeping accurate financial records is essential for running a successful small business. Good records allow business owners to monitor the financial performance and profitability of the business, make informed decisions, obtain financing, prepare tax filings, comply with payroll regulations, and determine distributions to owners. Without proper record keeping, business owners risk making poor decisions, paying unnecessary taxes and penalties, and not having the financial information needed to expand or obtain capital. It is recommended that small business owners hire an accountant or bookkeeping service to properly maintain their financial records.
This document outlines objectives and procedures for manual and computerized payroll and fixed asset accounting systems. For payroll, it describes processing steps from timekeeping and payroll preparation to general ledger posting. Key controls are transaction authorization, segregation of duties, and independent verification. For fixed assets, it outlines the asset lifecycle from acquisition to disposal and depreciation calculation. Computerized systems automate many tasks but still require authorization and verification controls.
Here are the key steps involved in payroll calculations:
1. Calculate basic salary as per employment terms
2. Calculate allowances like HRA, travel allowance, LTA as per company policy and income tax rules
3. Calculate statutory deductions like PF, ESI as prescribed percentages of basic pay
4. Calculate non-statutory deductions like income tax as per applicable tax slabs and rules
5. Calculate other benefits like leave encashment, bonuses, incentives if any
6. Generate payslip showing calculations of gross pay, deductions and net pay
7. Process payment to employees and file statutory returns
The payroll software automates these calculations to ensure accuracy as per rules. It is important to
This document provides information about economics and accounting coaching classes offered by Khalid Aziz. It lists the subjects covered such as microeconomics, macroeconomics, statistics, financial accounting, and cost accounting. Contact details are provided at the end.
The document discusses the purpose of a trial balance and types of accounting errors. It provides examples of correcting different types of errors, including errors of omission, commission, principle, and complete reversal. It explains that correcting entries are made by entering amounts on the opposite side of accounts to reduce balances or the same side to increase balances. Errors can affect the net profit and items in the balance sheet, so corrections may require restating accounts.
Double entry bookkeeping is a method of recording accounting transactions where every transaction has two equal and opposite accounting entries. The key principle is that for every debit, there must be an equal and opposite credit. Luca Pacioli introduced this system in 1494. It provides more accurate, complete recording of transactions compared to conventional single-entry bookkeeping systems. Accounts are classified as personal, real, or nominal depending on what type of asset, person, or expense/income they represent. Debits and credits follow set rules according to these account types.
Accounting is the process of measuring and recording financial transactions and preparing financial statements. The document outlines the key foundations of accounting including the accounting cycle, financial statements, ratio analysis, budgets, and international accounting standards. It describes the roles of various accounting professionals and how accounting supports decision making.
Financial Statements Overview with 2-Hour Financial ModelJeff LeBrun
Two Hour Financial Model is an excel-based template and series of videos that will help you learn to create a financial model quickly. For students, entrepreneurs, CFOs, and business owners. Checkout our website and Udemy video series.
Understand the difference between bookkeeping and accounting
Understand why business need to keep accounting records
Understand the meaning of of the terms assets, liabilities and capital
Understand and apply the accounting equation
Prepare a simple Balance Sheet.
Earnings management occurs when managers use judgment in financial reporting and structuring transactions to influence reported accounting numbers and mislead stakeholders about economic performance. While some earnings management may help address incomplete contracts, abusive earnings management obscures actual financial volatility and management decisions. Earnings management can be detected by analyzing discretionary accruals, which are the portion of total accruals not explained by normal business factors. The case of PT Indofarma found earnings overstatement through inaccurate production stock data, overstated work-in-process, and unrealistic profit margin assumptions, leading to penalties for the company and its auditors.
Earnings management refers to reasonable accounting practices used to achieve stable financial results, as opposed to illegal manipulation. It can involve choosing accounting methods, estimates, transactions timing, or disclosures to manage earnings. Reasons include income smoothing, meeting forecasts, or maintaining share prices. Earnings management is detected by analyzing revenue recognition policies, accounts receivable, asset capacity, and comparing income to cash flows. While it can conceal information, some argue it provides a "smooth ride" for shareholders. Surveys found tolerance for creative accounting varies internationally. Accountants must be aware of potential abuse or manipulation.
The document discusses the concept of earnings management and whether it is good or bad. It defines earnings management as when managers manipulate financial statements to present a more favorable view of company performance rather than the actual results. Managers have incentives like bonus plans, debt covenants, and avoiding losses to engage in earnings management. While it allows some flexibility, earnings management can mislead investors and hinder resource allocation if overused. The document reviews literature on identifying earnings management and calls for stronger auditing standards to improve detection of fraudulent financial reporting.
The document provides a basic primer on understanding financial statements for beginners. It explains the two key financial statements - the balance sheet and income statement. The balance sheet reflects a company's financial makeup and standing at a point in time, showing assets, liabilities, and net worth. The income statement reflects revenues and expenses for the current year to show net profit or loss. Net profit on the income statement flows to net worth on the balance sheet.
This course is designed to teach you the “language of business” to create a better understand of the terms and concepts used in business decisions. The course Introduction to Accounting prepares entrepreneurs to manage the financial aspects of their businesses. In order for any entrepreneurship business to be successful there should be proper financial recording and management of the business finances. During this course you will be exposed to financial terms and concepts to proper financial control of your business. The Introduction to Business Accounting course will provide future entrepreneurs with basic skills and knowledge required to establish and maintain business accounts, read and interprets financial reports and returns. You will explore the process and procedures of business accounting and its role in establishing and managing a successful business venture. You will also analyse and interpret final accounts of different forms of business.
Analysis of financial statements & earnings quality: Textiles IndustryPip Freixas
This study is done on secondary data primarily published Annual Reports of companies of Textile industries of Bangladesh. Mainly various types of ration analysis has been conducted and finally which company could be the prospective company for investment has been identified. Earning quality and Z-score have also been considered.
Accounting cycle in service company/ Cambodian Mekong University/Chhan RathanaRathana Rathanakraksmey
The document outlines the accounting cycle for a service company. It begins with an introduction that defines accounting and explains its importance. It then reviews the relevant literature, including the five main types of accounts (assets, liabilities, equity, revenues, expenses), chart of accounts, and the nine steps of the accounting cycle. The nine steps are analyzed in transactions, journalizing, posting to ledgers, preparing trial balances, adjusting entries, adjusted trial balances, financial statements, closing entries, and post-closing trial balances. The document provides an example of journalizing transactions, posting to accounts, and working through the full accounting cycle for a sample company. It concludes with the key role of accounting in classifying and managing financial information for organizations
Basic Financial Management for Small BusinessesBizcentralUSA
In this 1 hour webinar hosted by BizCentral USA, we discuss the basic financial management, bookkeeping and accounting methods to keep your small business on the right track! For more information, please visit: http://bizcentralusa.com/accounting_cpa_bookkeeping.php
(1) The document provides an overview of key financial concepts for startups, including profit and loss statements, balance sheets, and cash flow statements. (2) It notes that while established businesses have stable finances, startups have unstable business activities that require significant investment and negative cash flows in the early stages. (3) The document emphasizes that startups need to track metrics like cash burn rate, customer acquisition cost, and conversion rates to measure progress and attract investors.
Bootstrap Business Seminars: Making Sense of the NumbersCityStarters
This document summarizes a seminar on financial planning and management for startups. It discusses building financial forecasts, including developing sales forecasts and estimating costs. It explains key financial concepts like gross profit, break-even analysis, and cash flow. It emphasizes the importance of financial planning to ensure business viability and support fundraising. The document provides guidance on managing cash flow in startups, financial controls, making use of small investments, R&D tax credits, and setting up a limited company.
The document provides an overview of a workshop on finance for non-finance professionals. It discusses several key topics: (1) distinguishing accounts from finance and various finance roles, (2) how all departments can contribute to working capital management by improving collection and payment cycles, and (3) how ratio analysis and budgeting can help monitor costs and measure business performance. The goal is for all employees to better understand basic financial concepts so they can make decisions that improve the bottom line and overall business growth.
The document provides an overview of a workshop on finance for non-finance professionals. It discusses several key topics: (1) distinguishing accounts from finance and various finance roles, (2) how all departments can contribute to working capital management by improving collection and payment cycles, and (3) how ratio analysis and budgeting can help monitor costs and measure business performance. The goal is for all employees to better understand basic financial concepts so they can make decisions that improve the bottom line and overall business growth.
This document discusses accounting principles and practices. It defines key accounting concepts like generally accepted accounting principles (GAAP), assets, liabilities, and equity. It explains that GAAP are established by the Financial Accounting Standards Board and aim to standardize accounting practices. The document also outlines the basic accounting equation of assets = liabilities + equity and provides examples of common accounts for assets, liabilities, revenues, and expenses.
Vacation rental management budgeting and financial management 401Amy Hinote
Budgeting and managing finances for vacation rental managers: An in-depth four hour boot camp incorporating more hands-on knowledge of how to manage the financial landscape and use budgeting as a foundational tool to grow the business and meet future goals.
This document discusses corporate and functional objectives and strategies. It explains that corporate objectives guide the goals of the whole organization, while functional objectives guide each business area based on corporate objectives. Several financial objectives are then outlined, including cash flow targets and cost minimization. Common financial statements like the balance sheet and income statement are explained. Ratio analysis is introduced as a way to measure business performance through ratios like profitability, liquidity, efficiency, gearing, and shareholder returns. The document concludes with a discussion of investment appraisal techniques like payback period, average rate of return, and net present value.
The document provides an overview of a module on financial planning and management. It introduces various financial concepts that will be covered, including financial planning, financial statements, costing techniques, budgeting, and investment appraisal methods. The module aims to develop skills in financial planning and reporting to help businesses achieve sustainability through tight financial controls.
The Secret to Scaling: How to Build & Implement a Fixed Fee Pricing PlanHubdoc
Time-consuming tasks – like chasing down source documents and data entry – are being completed quicker and quicker thanks to cloud accounting apps and automation.
Now, accountants and bookkeepers are able to provide increased levels of value in the form of financial and business advice. So, it’s time to separate time from revenue, move away from hourly billing, assign a $ amount to the value that you provide and introduce a fixed monthly billing structure.
To help accountants and bookkeepers make the transition from hourly billing to fixed fees, we’re teaming up with Practice Ignition (https://www.practiceignition.com) and QuickBooks (https://quickbooks.intuit.ca) for a live webinar to outline all of the steps required to prepare, build and implement a fixed fee pricing model.
We cover:
-The cloud accounting/bookkeeping business model
-How to bundle recurring and nonrecurring services
-Determining a time/cost baseline of each service + pricing
-How to have the “value” conversation with clients before and during implementation
-The scale and profitability that fixed fees open up for your practice
If you’re still debating whether fixed fees make sense for your firm, take our quiz to find out: https://hubdoc.typeform.com/to/GmDZGz
This document provides an overview of management accounting concepts and techniques. It discusses key terms like prime cost, factory cost, overhead costs, and various costing methods. It also outlines the structure of a management accounting course, covering topics like financial accounting, cost accounting, budgeting, and ratio analysis. Flowcharts are presented showing the flow of cash and information in a business. Finally, it compares the differences between financial accounting, cost accounting and management accounting.
We know you’re a genius. You’re building a phenomenal company, one that may change the world, but you never took or don’t remember what you learned in that Accounting Class.
Often entrepreneurs drown in paperwork and receipts as they try to flush our their business plan. It’s important to keep your books straight from the beginning and keep track of the most important thing: the money. In this hands on workshop, we will take you back to basics, covering the fundamental metrics and financial accounting principles that will make or break your startup.
Expert:
Dan Allred – Silicon Valley Bank
www.thecapitalnetwork.org
Accounting is the system that records and reports financial information about a business. It identifies, records, and communicates economic events to users. The chapter outlines key accounting concepts like the accounting equation, direct and indirect costs, fixed and variable costs, and the difference between inventoriable and period costs. It explains the four main financial statements - income statement, balance sheet, statement of owner's equity, and statement of cash flows - and how they are used to report on a business's financial performance and position.
The document discusses key financial statements and concepts:
- The income statement measures performance over a period by comparing revenues to expenses, yielding net income. It uses accrual accounting to match revenues with the expenses to generate those revenues.
- The balance sheet shows a company's financial position at a point in time by listing its assets, liabilities, and equity. The cash flow statement explains changes in cash from operating, investing, and financing activities.
- Key income statement components include revenues, expenses, and net income. Revenue is recognized following certain criteria and on an accrual basis, as is the recording of expenses according to the matching principle.
The document discusses key financial statements and concepts:
- The income statement measures performance over a period by comparing revenues to expenses, yielding net income. It uses accrual accounting to match revenues with the expenses to generate those revenues.
- The balance sheet shows a company's financial position at a point in time by listing its assets, liabilities, and equity. The cash flow statement explains changes in cash from operating, investing, and financing activities.
- Key income statement components include revenues, expenses, and net income. Revenue is recognized following certain criteria and on an accrual basis, as is the recording of expenses according to the matching principle.
Construction Training Program LFUCG, Bluegrass Airport January 25 2011Irma_Miller_11344
The document discusses accounting methods for construction company revenue recognition and costs. It provides an overview of the percentage of completion and completed contract methods for recognizing construction revenue. It also discusses direct and indirect construction costs, including labor, materials, and overhead costs. The document emphasizes the importance of accurate budgeting and financial record keeping for construction companies.
This document provides an overview of management accounting concepts and techniques. It discusses key topics like cost accounting, financial accounting, cost concepts, differences between cost accounting and financial accounting, techniques used in management accounting like budgeting and costing. It also outlines the structure and contents of management accounting syllabus covering concepts of financial accounting, cost accounting, ratios, budgeting and other techniques.
This document provides an introduction to basic accounting concepts. It discusses key terms like assets, liabilities, capital/owners equity, revenues and expenses. It also explains the accounting process and accounting cycle, which involves analyzing transactions, recording them in journals, posting to ledger accounts, preparing financial statements and closing temporary accounts. The document aims to provide a foundational understanding of accounting fundamentals and how they are used in business and personal finance.
The document provides an introduction to basic accounting concepts including:
1) Accounting is the universal language of business and finance. It tracks assets, liabilities, and owner's equity through journal entries, ledger accounts, and financial statements.
2) The key financial statements are the balance sheet and income statement. The balance sheet provides a snapshot of financial position on a given date, showing assets, liabilities, and owner's equity. The income statement shows revenues and expenses over a period of time.
3) Accounts are classified as assets, liabilities, owner's equity, revenues, or expenses. The accounting equation states that assets always equal liabilities plus owner's equity. Proper record keeping and financial analysis
Similar to Small Business Accounting and Financial Reporting_StarterCompanyRevised (20)
Small Business Accounting and Financial Reporting_StarterCompanyRevised
1. By: Jayson Bastien, Client Service Accountant
Mentor: Summer/Starter Company Program
2. Main goal is to provide relevant and useful
information to youth entrepreneurs starting,
expanding or purchasing a business
Provide guidance, answer questions and
become a contact for future inquiries
3. Topics:
1) Introduction
2) Role of the accountant
3) Types of services
4) Accrual vs. cash
5) Bookkeeping technologies
6) Financial Accounting
7) Cash flow forecasting
8) Cost Accounting & Pricing
9) Income taxes & HST
4. Current
Mentor: Summer Company
Staff Accountant at Roth
Mosey & Partners LLP
◦ Provide accounting, assurance
and tax services
◦ Act as advisors to our ongoing
client needs
◦ http://www.roth-mosey.com/
Previous
◦ Summer Company 2008
participant
◦ OSB graduate
5. To measure the success of your business
To help you make better business decisions
To anticipate cash flow / financing needs
Comply with income and other tax laws
6. • Act as an advisor
• A second set of eyes
• Risk management
• Strategic planning
• Key contact to connect you with other
professionals
• Bankers
• Lawyers
7. Financial statement compilation (NTR)
Assurance services (review vs. audit)
Tax compliance and planning
Cash flow projections (create/revise)
Evaluating financing alternatives
Starting a business
◦ Business plan development
◦ Shareholder agreements
Purchasing a business
◦ Due diligence
8. Accrual accounting is recording transactions
and events when they “occur or expected to
occur”
Cash accounting is recording transactions
and events when “cash” is paid or received
Accrual accounting is the required method
and provides the most realistic representation
of the underlying business transactions
9. • You do not need to be an accountant to
perform bookkeeping
• There are simple and effective bookkeeping
technology available at affordable prices for
all sizes of business
10. Software Learning
curve
Customizable Notes Cost
Sage
Accounting
-Low to
medium
4 editions More checks
and balances
than other
software
Recommende
d by
accountants
$100 -
thousands
Quick-books -Low to
medium
Multiple editions Easier to use $100 -
thousands
Excel -Flat to
low
Yes – pivot
tables, etc.
Highly prone
to human
error
$0 to $100
11. Software Learning
Curve
Notes Cost
Xero Accounting Low - Electronic
transmission of
invoicing
- Easy bank reconciling
- Access anywhere
- Accountant has access
$20-$50/month
Fresh Books Low -Time keeping and
expense tracking
- automatic payment
for recurring
- PayPal integration
$20-$50/month
12. The process of collecting and reporting financial
information.
Financial Statements consist of the following:
• Balance Sheet
• Income Statement
• Cash Flow Statement
• Notes to the Financial Statements
13. Date
Pa
ge
13
Liabilities
Current and future
obligations
Examples:
- Accounts Payable
- Loans
Assets = Liabilities + Equity
or
Assets – Liabilities = Equity
Assets
Items of value and
future benefit
Examples:
- Accounts receivable
- Prepaid Expenses
- Inventory
- Fixed Assets
Equity
What you own/what
you have earned
Examples:
- Owner Contributions
- Retained Earnings
14. Date<footer>
Pa
ge
14
Important concepts:
• Revenue Recognition
- when it is earned (i.e. goods are delivered or
services rendered) which is not necessarily when
you receive the cash
• The Matching Principle
- match your expenses to your revenue
Revenue – Expenses = Net Income
15. Purpose:
To explain the difference between Net Income (accrual
accounting) and change in the cash balance.
Date<footer>
Pa
ge
15
Add Back:
- Non – Cash Expenses
(i.e. Amortization)
Adjust For:
- Changes in working capital (A/R,
A/P, Inventory)
- Purchases of Fixed assets
- Proceeds from debt
-Repayment of Debt
- Owner’s drawings/injections
16. Questions you are asking yourself:
Where to begin?
What should I include?
Am I on the right track?
How often do I revise my forecast?
17. At first it will feel like a guessing game
Plan out operations using a timeline
Mark each point in which costs will be
incurred and when you expect to receive your
first sales
Do this for each month up until you have 6 to
12 months
Input the information into the cash flow
projection template
See whether you have a shortfall in cash
18. Add in any financing obtained and forecast
out payments (including principal and
interest)
Revise cash flow forecast each period (weekly,
monthly, etc.)
Run an actual and forecasted cash flow
Determine where and why there were
variances immediately!
19. Be realistic about your forecast... you are only
hurting yourself if you are not
Continuously revise your forecast and
determine explanations for variances
Ensure you have valid supported reasons for
each number
You should be able to explain every
assumption made
20. Enables you to determine how much products
cost in each stage of production
Provides a base and a key ingredient in
determining price!
The Basics:
- Variable vs. Fixed Costs
- Contribution Margin
- Direct vs. Indirect
21. Variable Costs
Costs that vary in direct
proportion to the
changes in the level of
activity.
Examples may include:
- The cost of paint per sq. ft. of
house
- The cost of strawberries per
basket
Fixed Costs
A cost that remains
constant, regardless of the
changes in the level of
activity.
Examples may include:
- Rent
- Employee wages
- Advertising
22. Important ! - a $10 sale of apples does not equal a $10 sale
of oranges
Consider your Contribution Margin when determining your
sales mix!
Selling Price - Variable Costs= Contribution
Margin
Contribution Margin (CM) contributes toward covering fixed
expenses and profit.
(CM x # of units sold) – Fixed Costs = Profit
Looking at your costs in terms of variable and fixed helps you
identify inefficient product lines, establish your minimum selling
price and hopefully, maximize profits.
24. Cost plus markup (15%)
◦ Process
◦ Job-order
◦ Activity based
Competitor
Customer willingness to pay
Remember the pricing quadrants and where
your business is at/where you want it to be!
25. 3 key pricing metrics
◦ Gross margin
Sales – direct costs (variable and fixed)
◦ Break even
Fixed costs/(price per unit – variable cost)
◦ Target profit
(Fixed costs + desired profit)/(price per unit – variable
costs)
http://www.readyratios.com/reference/analysis/break_even_point.html
26. Process
◦ Manufacturing costs are tracked by process (sum all
costs in process and divide by # of units produced)
◦ Complete for each separate process
Job-costing
◦ All costs are tracked to specific jobs (ie. Hours,
materials used)
◦ Good for any custom work (ie. Custom home,
special consulting project)
Activity costing
◦ Costs are tracked based on activity (ie. Machining,
quality inspections)
27. Overhead costs are grouped in cost pools (ie.
machining, service department, warehouse)
Total overhead costs per pool divided by cost
driver (ie. labour hours, square footage)
equals overhead costs per unit produced
28. Charge your customers based on
competitors’ prices...
◦ Reduce prices to obtain greater market share
Focus:
◦ Increase volume to generate greater income
◦ Reduce costs to increase margins
Where do you want
to be relative to the
pack?
29. Charge customers the highest price they are
willing to pay
Focus
◦ Technological advances
◦ First to market
◦ Creating trends
Examples:
◦ Apple Inc.
30. What is a deductible expense?
Basically it is any expense incurred to earn income. Expenses
incurred for personal benefit are not tax deductible.
It’s a write-off!..... does not mean it’s free! You still
have to pay the expense!
As a business owner, you pay tax on
your net income, not your revenue…
……..so keep track of your expenses!
31. Whether income is earned personally or
through a corporation, the amount of income
tax payable is virtually the same.
The most significant tax benefits of
incorporating are due to “tax deferral”
Sole Proprietorship Corporation
All income earned through the
business is taxed at personal tax
rates
Two-tier – income is first taxed at
the corporate level and then
personally once money is taken out
Personal assets exposed to creditors Owner removes money from
corporation by way of:
-Salary or bonus (deductible)
-Dividend (not deductible)
Each has its own advantages and
disadvantages
Less expensive to setup and maintain Easier to transfer ownership
Can set their own year-end
32. Sole Proprietorship Corporation
Tax rate Personal marginal tax
bracket (see next slide)
15.5% on first $500k of
active taxable income
Advantages - Losses can be used
against other personal
income
-Defer income tax by
leaving money in
company to grow
- Shelter income from
creditors
- Can pay combination
of salary and dividends
for optimal tax strategy
-Utilize capital gains
exemption upon sale of
business
Disadvantages - All income is taxed at
marginal tax bracket
- Losses cannot be used
against other personal
income
33. What you should know:
HST of 13% applies to most goods or services sold in Ontario
Generally, all HST “Registrants” have to collect and remit HST on all
taxable goods and services
You do not have to register if your rolling four quarter sales are less
than $30,000.
Unfortunately, if you do not register, you can not claim a refund on
the HST you paid for previously purchased supplies, therefore it
may be beneficial to register early on to obtain the ITCs
Taxable Supplies Remitting Frequency
< $1.5M Annual
$1.5M to $6M Quarterly
> $6M Monthly
34. Keep documents going back 6 years plus the
current year you are in
Keep all receipts, invoices, deposit slips, bank
statements, letters, etc.
Store hard files in a dry and
fireproof container
Ensure backup copies exist for
any electronic files
35. Email for inquiries and to sign-up for
newsletter: jbastien@roth-mosey.com
LinkedIN to connect professionally:
http://ca.linkedin.com/in/jaysonbastien
Website to learn more Roth-Mosey & Partners
LLP: http://www.roth-mosey.com/
Editor's Notes
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A second set of eyes – we are removed from the emotions of the business and can provide objective advice and point out things you were perhaps not aware of
Risk management – we see many industries and deal with many other professionals which allows us to see current and upcoming risks that you may have overlooked or underestimated
Strategic planning – a summation of the above
We deal with other professionals on a daily basis in which we develop strong relationships with. We put our clients in contact with other reputable and highly qualified professionals to meet our clients’ needs
We offer a magnitude of services in which some of the more common ones are listed here. We also can help recruit finance personnel to your team.
This is on topic that many people do not understand however it is one the foundation stones to financial performance analysis and financial accounting. A simple example is if I sell you an product today and you take it home with you I have earned myself a sale however because I told you, you can pay me back in December I have not yet received the cash and therefore will have to record an accounts receivable from you in the amount of the sale
We will be going over which bookkeeping technology is the most appropriate to use and then will be going over a specific example I have created on how to use Excel to perform bookkeeping
For business with up to $5M in sales these are the three most significant pieces of technology to use to perform bookkeeping and financial performance analysis. Discuss that the majority of the clients we see use Sage and Quickbooks though Sage is the preferred accounting software however there is an on-going debate. Discuss that there are multiple editions of each of Sage’s and Quickbooks software in order to meet the needs of each business. Sage and Quickbooks are good for small to medium size businesses. These types of software are good for companies with up to $5M in revenue. There is no need to get something more sophisticated as it will only waste a lot of your time trying to learn the system and it costs tens of thousands of dollars to purchase and maintain the system. Both Sage and Intuit (the makers of Quickbooks) provide online support for a limited time which allows you to obtain assistance when it is most needed in the beginning stages. Most accountants are familiar with these types of technology and will be able to assist you. There are trial’s you can obtain of the different types of software so that you can try which one is right for your and your business before you make the purchase. You will be looking at anywhere from $100 to $1200 depending on which edition you purchase and how many users you have which would be usually up to 5 for the price ran
Mention that we will not be covering notes to the FS however they provide relevant information – such as adding depth and break downs of information so that the readers of the FS have a greater understanding of the underlying business transactions.
Refer the participants to the Balance Sheet Example of Starter company and go over that the statements balance. Go over current assets – items that will be turned into cash within the next year – capital assets are long-term in nature – w/p 44-1 & 44-2
Gross margin is 9% - can use this as an evaluation tool of whether Starter Company is meeting its target. Did not book tax to keep it simple at this point. The participants should be told that this statement is the starting point for the cash flow and that they will see the changes between the net loss and the change in cash which will further illustrate the accrual vs. cash methodology of accounting – w/p 44-3
Refer participants to the CF statement. Show them that the start to the CF statement is the IS. Inform them that in the next slide they will see how the changes in working capital and cash flows are related. – w/p 44-5
These are common questions you are or will be asking yourself
Inform participants that they may need to forecast their cash flows on a weekly or even daily basis in order to keep their business running. Therefore they will need to put more effort in determining the timing of the cash flows – from when they will need to pay suppliers to when customers will be pay you!
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Go over CF forecast example – go over each line and explain each assumption made
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This methodology works in $ only. You must be aware that if you discontinue selling one product sales of another may decrease because they are complimentary sales. An example would be the sale of hot dog buns and hot dogs. The money isn’t made on the bread however without selling hot dog buns customers will go elsewhere in order to be able to purchase both the buns and hot dogs for convenience purposes.
Pricing plays a vital and perhaps one of the most important roles in your business. Having the correct price could mean the difference between earning a profit or incurring a loss. Pricing affects the value proposition as customers will perceive the quality of your product or service based on your price comparing it to competitors.
There are four broad categories of pricing – go over each category. Walmart would be an example of Economy, Apple would be considered Premium. When you are first starting your business many of the participants will be in the market penetration category having a high quality however charging less than they should in order to obtain market share. This is very common practice.
The category of your business will point you in the direction of where your pricing will be – are you surrounded by many competitors? If so market penetration however if you have a unique value proposition and your customers recognize this than perhaps you’ll be in the Premium category.
At a high level there are 3 pricing strategies; we will be going to each in a few minutes and I will explain how to determine your costs!– keep to slide
It is important to know all three of the metrics in order to assess how financially you and your company is performing. It is equally important to know when you will be breaking even and when you will reach your desired profit target – this helps in the assessment of your performance
Keep to slide – add in that it is very important to understand your business operations in order to determine what processes and activity exists and how you should be organizing your operations. This helps in determining where costs are incurred, what type of costs they are and what drives them!
Overhead costs include plant supervisor, manufacturing plant utility costs, etc.
Very important to know what your competitors are doing regardless of which quadrant the participants are in.
This is the Premium quadrant – not everyone can succeed in this category
Sole proprietorship – separate form your accountant will fill out with business activities
Corporation – less than $500k of TI – 3 months to pay taxes and 6 months to remit return after date of corporate YE which was set on the date of incorporation. It’s important to have a good bookkeeping and record keeping system due to the legality of paying taxes
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LCGE – on QSBC shares – obtain $800k capital gains exemption/$400k off of TCG
Inform participants that there are different rates for goods sold in other provinces therefore need to look into before selling there
Inform participants that if they will be incurring many costs upfront that it would be more beneficial to register for HST claim the ITCs which are 100% refundable instead of not registering, including the HST portion paid as an expense and only getting the tax payable reduction of the HST paid times the tax rate.