1 / 12

SQ-1 Week 5--Finance

Learn about the essentials of finance including profit & loss, balance sheets, cash flows, bookkeeping, and accounting processes. Understand the importance of P&L statements, balance sheets, and how to work effectively with bookkeepers and accountants.

vanderhoff
Download Presentation

SQ-1 Week 5--Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SQ-1Week 5--Finance Judy Ballard

  2. Chart of Accounts • Income • Expense • Assets • Liabilities • Equity

  3. The Four Basic Financial Statements • Profit & Loss (Income Statement) • Balance Sheet • Statement of Cash Flows • Statement of Changes

  4. What is a P & L? • Profit & Loss (Income Statement) • Shows all revenues and expenses • Reflects a period of time

  5. What is a Balance Sheet? • Balance Sheet • Reflects Assets, Liabilities, Equity • Reflects a point in time

  6. Putting it together: • The income statement shows your income for the month and how you spent it • The balance sheet will show you the value of your bank accounts, assets and if you owe money

  7. Other Financial Statements • The Statement of Cash Flows is divided into three areas • Operating activities • Investing activities • Financing activities • Statement of Retained Earnings • Reconciles changes in the retained earnings account • Details the change in owners' equity 

  8. Bookkeeping vs Accounting • Bookkeeping is the recording of daily transactions in a consistent way • Entering & paying bills • Invoicing & recording payments • Journal entries • Payroll • Reconciling accounts • Accounting is a higher level process that uses financial information to produce financial models • Analyze costs of operations • Tax preparation • Audit • Provide advice concerning the impact of financial decisions

  9. Do I need a Bookkeeper? • Doing your books is taking away from the time you can spend on your business or you’re not keeping up to date • You are not sure you are keeping the records correctly • Your accountant is performing bookkeeping duties

  10. Do I need an Accountant? • Preparing a corporate tax return • Performing audits • Advice concerning stock issuance • Consultation concerning Licencing agreements

  11. How Do I Work With A Bookkeeper? • COMMUNICATE • Keep your receipts • Share information concerning debt and equity • Send invoices and approvals in a timely fashion

  12. Thank you! Judy Ballard info@right-on-site.com CIC@CET 20 S Sarah St. Louis, MO 63108 Tell everyone what you want to do and someone will want to help you do it. – W. Clement Stone

More Related