Sankofa Financial Group LLC and Island Flavors Restaurant Present

1. Sankofa Financial Group LLC and Island Flavors Restaurant Present Accounting and Record Keeping For Small Businesses Securities offered through J W Cole Financial Inc., member FINRA/SIPC

2. About Sankofa Financial Group • Virginia Jackson – President • CPA • Registered Representative, JW Cole Financial Inc • Tax, Investment, Business Management services • Small business owner Securities offered through J W Cole Financial Inc., member FINRA/SIPC

3. Elements of Sound Accounting & Record Keeping Notes • Corporate Structure • Record Keeping • Balance Sheet • Income Statement • Cash Flow • Budgets • Payroll and Income Taxes • Hiring an accountant • Ways to Improve Cash Flow Securities offered through J W Cole Financial Inc., member FINRA/SIPC

4. Corporate Structure Notes • Sole Proprietorship • Partnership • Corporation • LLC • Corporate structure impacts • Record keeping needs • Cash flow needs • Taxation Securities offered through J W Cole Financial Inc., member FINRA/SIPC

5. Record Keeping Notes • Accounting records should be kept separate from personal records (no commingling) • Establish separate bank accounts • Complete reconciliations monthly • Setting your fiscal year end • Most companies use calendar year end – December 31 • Cash vs accrual basis • Software • Quicken • Microsoft Money • QuickBooks • How to choose • Ease of use • Particular feature needed/industry supported • Likelihood that vendor will be around to support product • Provides a good audit trail Securities offered through J W Cole Financial Inc., member FINRA/SIPC

6. Balance Sheet Notes • Listing of your • Assets • Liabilities (debts) • Equity (investment) • Exhibit A • Fixed as of a point in time • Cumulative • Usually prepared at the end of a month/quarter • Must be in sync with income statement • Used to judge solvency Securities offered through J W Cole Financial Inc., member FINRA/SIPC

7. Income Statement Notes • Summary of your profit and losses • Income • Expenses • Exhibit B • Covers a financial period • Monthly • Quarterly • Annually • Start over at start of the fiscal period (not cumulative) • Must be in sync with balance sheet • What is the bottom line – income or loss Securities offered through J W Cole Financial Inc., member FINRA/SIPC

8. Cash Flow Notes • Net income/lost does not equal cash flow • Use a budget to estimate cash flow needs • Include taxes in cash flow projections • Sources of cash • Savings • Credit cards • Personal loan • SBA loan • Venture capital • Investments from family/friends Securities offered through J W Cole Financial Inc., member FINRA/SIPC

9. Budgets Notes • Know your income and outflow • Fixed vs variable expenses • Expenses cannot exceed income • Earn more income • Decrease outflow • Write it on paper • Track spending monthly • Adjust periodically as circumstance change Securities offered through J W Cole Financial Inc., member FINRA/SIPC

10. Hiring an Accountant Notes • CPA vs bookkeeper • College degree • CPA examination (state licensing requirements) • Continuing education and ethics requirements Securities offered through J W Cole Financial Inc., member FINRA/SIPC

11. Payroll and Income Taxes Notes • Paid from business cash flow • Corporate form effects taxes • Sole proprietorship, partnership and LLC taxes at personal income tax rate using Schedule C • Corporation files separate business tax return (double taxation) • File quarterly returns with estimated tax payments • Self employment taxes • Consider outsourcing payroll if more than a few employees Securities offered through J W Cole Financial Inc., member FINRA/SIPC

12. Sharing office space or sublet unused space Set up a home office Buy secondhand furniture and equipment Make sure prices are competitive Review business insurance coverage Print on both sides of paper for internal documents Solicit bids from new vendors/suppliers Take advantage of early bird discounts Buy airline tickets online Pay bills when due Follow up on past due receivables Work with accountants to discuss income/expense shifting Buy office supplies during back to school sales or at bulk warehouses Don’t overstock inventory Buy equipment instead of leasing Decrease advertising costs Barter Use a virtual support Use VOIP service Use interns Print your own business cards Advertise on social networking sites Use free website hosting (officelive.com) Build a referral network Go paperless Upgrade computer memory instead of buying new OpenOffice.org – free word processing, spreadsheets, presentations Ways to Improve Cash Flow Securities offered through J W Cole Financial Inc., member FINRA/SIPC

13. Online Resources • 360financialliteracy.org • Annualcreditreport.com – must pay for FICO score • Dummies.com • Money.cnn.com • Credit.com • FTC.gov (Federal Trade Commission) • Feedthepig.com Securities offered through J W Cole Financial Inc., member FINRA/SIPC

14. Island Flavors Restaurant Securities offered through J W Cole Financial Inc., member FINRA/SIPC

15. Free Financial Check Up Schedule an appointment today for your free financial review Securities offered through J W Cole Financial Inc., member FINRA/SIPC

16. Virginia Frazier Jackson, CPA • www.sankofafinancial.net • Virginia.Jackson@jwcmail.com • 202-213-2116 Upcoming Seminars • Investing for College Education • Investing for Retirement • Charitable Contributions and Gift Giving • Tax Returns for Small Businesses: Schedule C Securities offered through J W Cole Financial Inc., member FINRA/SIPC