1 Multiple Checking & Savings Accounts 1 Which Profit First accounts should be checking accounts and which ones should be savings accounts? It is important to understand the difference between a checking account and a savings account. As a general rule, savings accounts yield interest, but are limited in the number of withdrawals (usually 6) during the statement period (usually a month). A checking account typically offers an unlimited number of withdrawals and checks, but does not yield interest. Option 1: Since Profit First encourages the 10/25 rule (allocate funds and pay bills on the 10th and 25th) for most businesses, all accounts except for the Operating Expense (OpEx) account can be savings accounts. Note that a savings account can t write checks, so Owner s Pay, Tax, Profit and other accounts won t be able to issue checks. Option 2: Following the 10/25 rule, the Income account will accumulate all deposits until they are allocated to the Profit, Owner s Pay, Tax, OpEx and other accounts on the 10th and 25th at which time those funds will be used for those specific account s purpose. Therefore incoming funds sit in the Income account for approximately 28 days a month. Understanding this, the Income account can be setup as a savings account (to accumulate interest) and all the other accounts can be checking accounts. This will allow the most flexibility for withdrawals and writing checks, while accumulating the most interest. 2 More bank accounts will result in a lot more bookkeeping work. Is Profit First really worth the effort? The additional bookkeeping time required to manage and reconcile multiple accounts for Profit First is negligible, and possibly even more efficient than one using just one account. With Profit First you simply need to reconcile the deposits and periodic transfers from the Income account. All expenses and payment come from the OpEx account. And all the other accounts are typically a single transfer in on the 10th and another on the 25th, and a single transfer out at those times. It is easy to manage and reconcile. More importantly the Profit First benefits of instantly knowing what money is allocated to what purpose will have profound effects on the financial health of your business. No excuses. Set up the multiple accounts. Do it now! 3 Which banks are the best and most flexible in terms of creating multiple accounts (e.g. Income, Profit, Tax, etc.) without charging fees? Profit First readers have had great success with credit unions and community banks. Usually there are no fees and no balance requirements at credit unions, community banks and some regional banks. As you setup multiple checking or savings accounts, some bankers will look at your crossed eyed (because most businesses don't do Profit First... yet). Don't let that phase you, the banker simply doesn t understand the process. Just setup the multiple accounts and make sure that you won't incur fees as a result, even when your balance goes to zero in certain accounts at times. If the bank insists on charging fees and minimum balances, consider a different bank.
2 4 In the book, it presents both basic and advanced Profit First systems. How are they different and which method is better? The basic method of Profit First suggests establishing four accounts (Profit, Owner s Pay and Tax) in addition to keeping your current checking account for deposits and to pay bills. If three new accounts feels like too much, you can start with just two accounts: your current checking account and add a Profit account. This basic method is a good way to ease into Profit First. The advanced method of Profit First suggests establishing minimally five accounts: Income, Profit, Owner s Pay, Tax and Operating Expenses. Additional accounts are suggested for specific needs (e.g. Payroll account for employees, a Drip account for distributing income over time, etc.). The advanced method is the superior approach since it separates deposits from any outbound cash flow (writing checks, etc.) and has additional accounts, making it very clear what money is available for what purpose. The 10/25 Rule 5 Why should I allocate money from the Income account to the Profit, Tax, Owner s Pay and OpEx accounts on the 10th and 25th instead of daily or as needed? By doing the allocation process and paying bills twice a month (on the 10th and 25th) you benefit in two ways. First, doing this process every two weeks means you are doing it in a batch which means you are more efficient. Secondly it gives clarity on cash flow trends. He will see the income accumulate and disperse, like waves in the ocean. When he sees trend changes it may indicate an overall change (problem or opportunity). Just like waves indicate the tides. 6 Can I make allocations more frequently or on different days than the 10th and 25th? Yes. Profit First was designed to be flexible, yet the 10/25 rule is a best practice. The 10th and the 25th are good dates because it achieves a semi- monthly rhythm of accumulating money and then allocating (the cash flow wave). Additionally when bills are paid on the 10th and 25th they arrive at vendors by the 15th and end of month, respectively. This is when bills are typically due. But for some businesses a weekly rhythm is better. In that case, select the day of the week (e.g. Monday s) to allocate funds from the Income account to the allocation accounts. Avoid doing the allocation process more frequently than once a week or ad hoc. A highly frequent rhythm or sporadic rhythm makes it difficult to observe the cash flow waves coming and and out of the Income account.
3 Real Revenue 7 What is the difference between Total Income and Real Revenue? FREQUENTLY ASKED QUESTIONS Total Income is the top line revenue of a business. It represents all cumulative sales. Real Revenue is the Total Income minus the cost of materials and subcontractors. A business should only adjust to Real Revenue for Profit First purpose if a significant portion of the operations requires materials and subcontractors (typically more than 20% of Total Income). The rule of thumb is if you are a service based business with full time and part time employees do the Profit First process based on Total Income. If you are a manufacturer, retailer, restaurant or a service provider that delivers the significant portion of its services via subcontractors you need to do the Profit First Process based on Real Revenue. Please note that Real Revenue is similar to Gross Profit, but is not the same. 8 What does Real Revenue mean? Real Revenue is a term we use in Profit First to show an entrepreneur that their top line revenue (Total Income) is not truly representative of the size of the business. For example, a home builder may have $10M in annual revenue and to complete their projects require materials and subcontractors that cost $7M a year. That this means is that the company really has $3M of real revenue and manages another $7M of transactions (effectively moving money from the customer directly to the purchase of materials and the cost of subcontractors. This business needs to operate like a $3M company and not a $10M company. The term Real Revenue is used to make it very clear that the entrepreneur really has a $3M business. 9 Is Real Revenue the same as Gross Profit? No. Gross Profit is the total revenue minus Cost of Goods Sold (COGs). COGs can include materials, subcontractors, employee labor, project costs (e.g. project related travel), and ancillary costs (e.g. shipping costs). Real Revenue is a simpler calculation and less subjective. It is total revenue minus materials and subcontractors. Period. You do not subtract any labor of full or part time employees or other costs.
4 10 FREQUENTLY ASKED QUESTIONS My business requires that I run Profit First based on my Real Revenue. How do I manage the deposits from Total Income? If you are making a Real Revenue calculation, that means you have material costs and/or subcontractors. In this case you need to set up two additional bank accounts: 1. Materials & Subs; 2. Total Income. All your deposits from sales go to Total Income. Next, you take out the normal percentage of your Mat & Subs and move the money to the Mat & Subs account. Then the remaining money in the Total Income account goes to your "Real Income" account (formly name the Income account) and then you allocate the Profit First percentages from that Real Income account. The opportunity to improve your company s profitability is now achieved in two ways: 1. Reducing the amount spent on Materials & Subcontractors, which will flow more money to Real Revenue. And reducing Operating Expenses which will free up more money for the Profit, Owner s Pay and Tax accounts. 11 Please give me an example of a business that needs determine their Real Revenue. Let s look at an electrical contractor. For this example, let s use simple round numbers and say the contractor has $100,000 in Total Income. He spends $30,000 in materials (cables, outlets, etc.), $25,000 on subcontractors (another electrician he hires for certain projects), $11,000 on an internal administrator, $9,000 on vehicle costs, $8,000 on rent, and has take home pay of $15,000, has taxes of $2,000 and has never had a profit. This means that 55% of the Total Income ($100,000) is being used for Materials & Subcontractors ($30,000 + $25,000). So, when deposits come in they would go into the Total Income account. Then on the 10th and 25th, 55% of the Total Income money would be allocated to the Material & Subs account (that money would be used to purchase more materials and pay subcontractors). The remaining 45% would be allocated to the Real Revenue account. Then the Profit First allocations of Profit, Owner s Pay, Tax and Operating Expenses would be allocated from the Real Revenue account. For this example let s say that the allocation percentages match the Target Allocation Percentages (TAPs) specified in Profit First for a business under $250,000 in Real Revenue. That means 5% goes to Profit, 50% to Owner s Pay, 15% to Tax and 30% to Operating Expenses. Based on $45,000 in annual Real Revenue, the Profit allocation would be $2,250, Owner s Pay would be $22,500, $6,750 reserved in the Tax account, and $13,500. With $11,000 going to an admin plus $9,000 to vehicle costs and $8,000 to rent (a total of $28,000) this business needs to clearly cut costs and run smarter. Costs need to be $13,500 annually. The other opportunity to make more profit (and owner s pay) is to reduce the Material & Sub costs. Cutting those costs will drip that additional money to Real Revenue and make more money available for Profit, Owner s Pay, Tax and for Operating Expenses.
5 12 FREQUENTLY ASKED QUESTIONS I have 15 part- time employees who do pet sitting for me and are paid on a per- job basis. Are the considered sub- contractors? Yes. Employees or contractors who are compensated per project are considered subcontractors. So, you would subtract the costs of those individuals from your Total Income to find your Real Revenue. Profit, Owner s Pay & Tax Allocations 13 Since the Profit, Owner s Pay and Tax accounts are all for the benefit of me, the owner of the business, can t they just be one account instead of three? No. While the money allocated to these accounts do all benefit the owner(s), the use of the money is distinct. The Owner s Pay is for the owner s salary or regular recurring distribution. The Profit account is used as a quarterly bonus (and can also function as a rainy day fund, or used for a Death to Debt quarterly distribution.). The Tax account is used to pay the owner s taxes (and corporate taxes). So while the money does all benefit the owner, the accounts need to be kept separate so that you can instantly tell (by just looking at your bank balance) what money is allocated to what purpose. 14 I take a salary from payroll, do I still need an Owner s Pay account? 15 Yes. You just transfer the money from Owner s Pay to the payroll account when pay time comes. The purpose is to always be able to instantly see what money the company is allocating to Owner s Pay (and the other accounts) when you look at your bank balances. I take my owner pay in distributions. Do I still need a Profit and separate Owner s Pay account, since all the money flows to me? Yes, you still need both an Owner s Pay and Profit account. The Owner s Pay is distributed to you on the 10th and 25th and should a consistent amount should be withdrawn (acting like a payroll). Then on a quarterly basis the Profit is distributed, acting like a bonus (which it is). 16 Why is the Tax allocation 15%? It seems very high. The Tax account is intended to pay both corporate taxes and the personal taxes of the business owner(s). When the owner has periodic taxes due (quarterly or otherwise) the business pays for the owner s taxes. And since the money is being allocated to taxes on the 10th and 25th (or similar schedule) the taxes should be reserved well in advance by the business and negate the panic of scrambling for money when taxes are due.
6 17 I am an owner in the business, and our payroll is such that my tax is already deducted from pay. Do I still need to reserve such a high percentage in the Tax account? Yes. The reason you still need to reserve the percentage of money in your Tax account to cover both the corporate and personal tax is so the business can reimburse you for your tax payments that have been taken from your salary. While logically it doesn t make a difference since you could just increase the Owner s Pay allocation and reduce the Tax allocation, behaviorally it makes a big difference. When tax is deducted for your pay, it feels like a loss of pay. This triggers the behavioral pain response of loss aversion. But if the business pays your tax requirements directly or reimburses you for the taxes that were taken from your pay, it reduces the negative association you feel with paying taxes. So, if you have taxes deducted from your pay, on a 10/25 rhythm (or monthly/quarterly/annually if your Profit First Professionals advises you to do so) use the monies allocated in the Tax account to reimburse you. Additionally by allocating the actual tax percentages to the Tax account, your tax liabilities can t be hidden from you as part of your salary and you will have a much better understanding of your real pay and real tax liabilities when you do bank balance accounting. 18 I want to pay as few taxes as possible. Shouldn t I run up expenses to cut taxes? 19 That is one of the most damaging myths of money management. Running up expenses to reduce taxes is the same as spending ten dollars to save three, it is very damaging to the business. The goal is to run the business as profitably as possible (that is the only way to achieve financial freedom), and you should work closely with a Profit First Professional to additionally reduce your tax liabilities as much as you can. I have an S Corp and as an owner, I am on payroll and have taxes deducted from it. Do I still need a tax account? Yes. For a detailed explanation please refer to FAQ I have to pay sales tax (I am a retailer) which account does that come from? You would setup a separate checking account and call it Sales Tax (this is discussed in the advanced section of the Profit First book). The sales tax funds would be allocated from Total Income resulting in a Real Revenue amount. The Profit First allocations of Profit, Owner s Pay, Tax and OpEx would come from the Real Revenue. Remember that when you collect Sales Tax from customers that is NOT your money. You are serving as an agent for the government and collecting that money on their behalf.
7 Operating Expense Allocations FREQUENTLY ASKED QUESTIONS I pay all my vendors on the same day on the month. If I do allocations to Operating Expenses (OpEx) on the 10th and 25th will it be problematic for paying vendors on time? No, that will not pose a problem. Let s say you pay vendors on the 10th only. When the allocation goes into OpEx on the 25th it will just sit there. Then when the next allocation on the 10th goes into OpEx it will add to what is there. You then, on the 10th, pay your vendors from what you have in OpEx. Where do I pull the money from if I don t have enough money to pay expenses from my Operating Expense account? 23 This is the come to Jesus moment when you follow Profit First. The moment will come for every business where you don t have enough money in the Operating Expense account to pay your bills. The rule is this, you may NOT use other money. In fact this is the moment your business is yelling at you and shaking you saying that you CAN T afford to continue to carry all these cost and you need to find a better way. Reduce your costs, and find a way to pay what you owe when the next allocation to OpEx comes in...but no matter what you must cut your costs. Why does the money need to be moved twice, first from INCOME to PROFIT at Bank 1, and then transferred to PROFIT at bank 2... if it is going to a second bank? The logic of moving money twice... from INCOME to PROFIT (and TAX) at your existing bank, and then doing a second transfer to the second bank is that the transfer internal to the 1st bank is instantaneous. The money moves immediately, and when you instantly know what is was allocated for. The transfer of money to the second bank can take a day or two or sometimes longer. So the money "sits" at the first bank for a few days, and can becoming confusing or tempting if it is not moved immediately. 24 Should Profit First be done retroactively? No. The allocations start the day you implement Profit First, with your very next deposit. You don't do anything retroactive. So the money in your accounts currently just stay where they are (probably in one checking account). You setup Profit First with all new accounts at this same bank, but don't use the existing checking account with all the money currently pooled up in it as one of the Profit First accounts. Then you start doing Profit First allocations with the next deposit and follow the process. You handle the money that is pooled up in the prior account as you normally have been... until that money is fully drain (to $0.00) over time. Then you can close the account or use it for another profit first account. Expenses that are fully for the owner's benefit (leasing a car, club membership or something) would be paid out of the Owner's Pay account... since it is an owner benefit. But since it is paid by the company from that account, for tax purposes, it still acts like an expense.
8 Debt 25 My business has debt. I can t be profitable until I pay off all my debt. Wrong. In fact, the only way to pay off debt (which is simply past expenses that you haven t paid for yet) is to be profitable. You must currently make more than you are currently spending, so that you have current profits. Then you use those profits to pay off your debt (past expenses). 26 I have multiple loans and forms of debt. How do I pay it all off? Pay all the minimum fees out of your Operating Expenses. Then use any remaining money you have in Operating Expenses (after paying other bills) to pay off your smallest debt as fast as you can. No matter what keep doing the profit allocation of Profit First every 10th and 25th. I know this sounds crazy, since you have debt to pay... but you MUST build up that habit of always taking your profit first. Then when you do your quarterly profit distribution, take 95% to 99% of that distribution money and use it to crush one of your debts. The remainder (5% to 1%) is used for you to celebrate. This process has you constantly chipping away debt (from Operating Expenses) and then quarterly hitting that debt really hard. It is kinda like boxing... jab, jab, jab then a massive right hook. 27 I have lots of debts including credit cards, personal loans, and banks loans. Some are very high interest rates. Which debts do I pay first? While logically you want to pay off your highest interest rate loans first, Profit First is all about leveraging human behavior. One of the critical behaviors is early successes. When we see early, even if it is small, progress in our management of money, we become more committed to the process. In regards to debt, Dave Ramsey (author of The Total Money Makeover) suggests a technique that is in perfect alignment with Profit First. The process is simple. First sort all your debts from smallest amount due to largest. Then put all your financial effort in eradicating the smallest debt (in dollar amount) first, while maintaining the minimums due on all other debts. Then once the smallest debt is paid off, target the next smallest debt on your list. Wipe that out, and then hit the next. This will build a series of early successes and create a snowball effect as more and more money is freed up (as the small debts are paid off) to target the remaining debts. Other Applications Of Profit First 28 Can I use Profit First to identify a good business to buy? Yes!!!! Do an Instant Assessment on them. It shows what needs to be "corrected" in the numbers. Less correction = Better buy.
9 29 Can I implement the Profit First system before my business is profitable? 30 Always start right away. By implementing the system you will force profitability (not wait for it). Start at a low percentage... maybe 1%, but get started NOW! How do you adjust the Profit First allocation percentages for other currencies (outside the US)? Profit First is a percentage based system, so it works irrespective of currency or dollar amounts. Just convert your currency to US currency to find your revenue range and the corresponding TAPs. Then follow the process as normal. Since the TAPs are just targets. Every quarter you will need to adjust up and closer to your TAPs and find what is working for your business. Additionally you may discover that your tax allocation needs to be higher. If that is the case, adjust the allocations accordingly. Perfecting the allocation percentages is secondary to just getting started. Over time you will find the perfect percentages for your business. 31 My business is a brand new startup. When should I implement Profit First? Immediately. In fact the sooner you start with Profit First the sooner you will master financial discipline and force your business to run efficiently. No matter how new or established your business is, you should not wait to implement Profit First. 32 Does Profit First translate into personal financials? Yes. While the full explanation would represent another book (hint. hint.), the premise is the same. Set up multiple bank accounts: 1. Income (for deposits only); 2. Financial Freedom (the same as a Profit account); 3. Fun (similar to Owner s Pay); 4. Big Purchases (savings for car, home, etc.); 5. Living Expenses (similar to Operating Expenses); 6. Family Member 1 Expenses; 7. Family Member 2 Expenses, etc. Money comes into the Income account and on the 10th and 25th the allocations happen. The Living Expenses is the account for ongoing household expenses. The Family Member Expenses accounts are the accounts for the family members with personal spending budgets (usually wife and husband), and these are linked to debit cards. Hopefully that is enough to get you started. Never forget this system is flexible, you can change percentages to match your needs and you can set up additional accounts. The key is to always separate out your profit (in this case the Financial Freedom and Fun accounts) before anything goes to expenses.
10 Want to dive deeper into Profit First? Read the book! PROFIT FIRST A Simple System to Transform Any Business from a Cash- Eating Monster to a Money- Making Machine. The success formula for business has always been: Sales - Expenses = Profit. The problem is, it s wrong. You are about to discover the profoundly simple, Profit First Formula that ensures your business will be profitable from your very next deposit forward. ORDER NOW Ready for your business s profit to skyrocket? Work with a Profit First Professional! Profit First Professionals is an international network of extraordinary accountants, bookkeepers and financial experts who are not only masters of their trade, but have vasts amounts of skills and experience in helping companies grow their bottom line using the Profit First method. FIND A PROFIT FIRST PROFESSIONAL
63 COSTS AND COSTING 6 PROFIT AND LOSS AND BALANCE SHEETS Simple Financial Calculations Analysing Performance - The Balance Sheet Analysing Performance Analysing Financial Performance Profit And Loss Forecast
Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account. Account fee the amount charged by a financial institution for the
Cash Flow Forecasting & Break-Even Analysis 1. Cash Flow Cash Flow Projections What is cash flow? Cash flow is an estimate of the timing of when the cash associated with sales will be received and when
MYOB US, Inc. April 2002 Accounting 101 Like all small business owners, you went into business with a dream: to sell your unique product or services and make a living for you, your family, and your employees.
FINANCIAL INTRODUCTION In earlier sections you calculated your cost of goods sold, overhead expenses and capital cost in order to help you determine the sales price of your product. In your business plan,
Navigating within QuickBooks The simplest way to navigate within QuickBooks is to work from the home page. Looking at the home page, you will notice the most common functions within QuickBooks are represented
Money Management Test - MoneyPower Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A person s debt ratio shows the relationship between debt and net worth.
BUSINESS BUILDER 7 HOW TO ANALYZE PROFITABILITY zions business resource center 2 how to analyze profitability Although pride of ownership and career satisfaction are healthy goals, generating profit is
Understanding Accounting Reports Whats inside You ll often hear the term management accounts - but how often do you use this information to actually manage your business on a day to day basis? It may well
How to Analyze Profitability Peoples Bank Business Resource Center Business Builder 7 peoplesbancorp.com 800.374.6123 Table of Contents What to Expect... 4 What You Should Know Before Getting Started...
ACCOUNTING FLOW OF JOB COST / TIME BILLING The Data Pro Job Costing Series has a number of component parts that create both the reporting capability and the accounting flow through the modules. These component
Simple Financial Records for a Small Business December 2014 March 2015 A GUIDE TO SIMPLE FINANCIAL RECORDS FOR A SMALL BUSINESS CAVEAT This guide aims to help you set up simple financial records for your
Assist. Financial s Technology Solutions. About Our Financial s. Helping members with their financial planning should be a key function of every credit union s website. At Technology Solutions, we provide
Club Accounts. 2011 Question 6. Anyone familiar with Farm Accounts or Service Firms (notes for both topics are back on the webpage you found this on), will have no trouble with Club Accounts. Essentially
How to Use the Cash Flow Template When you fill in your cash flow you are trying to predict the timing of cash in and out of your bank account to show the affect and timing for each transaction when it
Introduction to Accounting Text File Slide 1 Introduction to Accounting Welcome to SBA s online training course, Introduction to Accounting. This program is a product of the agency s Small Business Training
Transactions & Savings Because managing your money should be easy. Your guide to how People s Choice Credit Union can help you with your everyday banking needs and achieve your saving and investment goals.
THE BUSINESS ENTERPRISE CENTRE S GUIDE TO PROJECTING YOUR CASH FLOW The Business Enterprise Centre is a member of Last updated 16 Jan 2015 TD Page 1 of 26 Preface A cash flow statement reports the outflow
Dimes to Riches Money Management for Teens in Grades 7-12 s e e r t n o row g t n s e o yd e n o M t a! h k t n a w b o n a k t u n By now yo Your parents are & Life is getting busy and you need cash for
INVESTMENT BOND WITH DEATH GUARANTEE CONTRACT DOCUMENT. Consisting of: Policy Schedule Policy Provisions. This is an important document. Please keep it safe for future reference. 2 INVESTMENT BOND WITH
Budget Main Window (Single Bank Account) Budget Main Window (Multiple Bank Accounts) Page 1 of 136 Using Budget Help Budget has extensive help features. To get help use Budget's Help > Budget Help menu
Guide to Financial Ratios Analysis A Step by Step Guide to Balance Sheet and Profit and Loss Statement Analysis By BizMove Management Training Institute Other free books by BizMove that may interest you:
Dollars and Sense Introduction Your dream is to operate a profitable business and make a good living. Before you open, however, you want some indication that your business will be profitable, if not immediately
Plan and Track Your Finances 9.1 Financing Your Business 9.2 Pro Forma Financial Statements 9.3 Recordkeeping for Businesses Lesson 9.1 Financing Your Business Goals Estimate your startup costs and personal
Annuities Safe Money Products that Stimulate Financial Growth & Preserve Wealth Safe Money is for money you cannot afford to lose. Learn why Annuities are considered to be a Safe Money Place and how these
1 Steps to Financial Freedom in Your Twenties and Thirties On our journey to obtain independence and achieve financial success, we usually prioritize having good educational experiences, a sound resume
Accounting Practice Questions 1) The fundamental accounting equation states that: a) assets = liabilities + owner s equity b) assets = liabilities + drawings c) assets = liabilities + net income d) assets
Merger Model Overview We can divide the merger model into an 8-step process: The merger model tells you what happens when one company acquires another company. Usually, the buyer makes an offer to acquire
Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger
ARCHDICOESE OF SEATTLE SECTION C PARISH ACCOUNTING CONCEPTS INDEX I. ACCOUNTING DEFINITIONS 1C - 3C II. RECORD KEEPING JOURNALS 4C - 5C III. GENERAL LEDGER 5C IV. DOUBLE ENTRY ACCOUNTING V. RECEIVABLES,
2 Chapter 40878 9/25/07 3:18 PM Page 53 2 Transaction Analysis 2 Chapter 40878 Page 53 09/25/07 jhr SPOTLIGHT APPLE COMPUTER, INC. How do you manage your music library? You may use Apple Computer s itunes,
THE TRUTH ABOUT FIXED RATE ANNUITIES Annuities are like magnets. Most people seem to be either attracted to them, or repelled. As you sit down to read this, where do you stand? In my experience, it s rare
The National Accounts and the Public Sector by Casey B. Mulligan Fall 2010 Factors of production help interpret the national accounts. The factors are broadly classified as labor or (real) capital. The
7 Secrets To Websites That Sell By Alex Nelson Website Secret #1 Create a Direct Response Website Did you know there are two different types of websites? It s true. There are branding websites and there
Electronic Funds Transfer Agreement and Disclosures ELECTRONIC FUNDS TRANSFER AGREEMENT AND DISCLOSURES Agreement 1. Issuance of Card or Personal Identification Number. In this Agreement and Disclosures
A Tax Resolution Institute Publication 2014 Step-by-step Instructions on how to submit an Offer in Compromise Submitting an Offer in Compromise is the process in which a taxpayer may reduce their Internal
Financial Planning in Your 20s and 30s Financial planning varies throughout the different stages of life. Older people are often focused on planning for a comfortable retirement, while younger people often
Make Money Like Banks Do The How to make money with credit cards report (Please make sure to read the Frequently Asked Questions at the bottom for further clarification after reading the report.) Banks
How to Use a Financial Institution Latino Community Credit Union & Latino Community Development Center HOW TO USE A FINANCIAL INSTITUTION LATINO COMMUNITY CREDIT UNION & LATINO COMMUNITY DEVELOPMENT CENTER
Important Update to Your Deposit Account Beginning February 12, 2012, U.S. Bank changed the way we post transactions to your deposit account to better align with the way you actually make those transactions.
.1. INTRODUCTION (DLA) simply describes the situation where either the company owes a director money or vice versa. Typically, a DLA is first created shortly before a company first starts to trade where
ACCOUNTING TERM: Corporation THEME: C CORPORATIONS By John W. Day A corporation is a person or persons granted a charter from a state that legally recognizes it as a separate entity having its own rights,
Guide to Leasing Carpet Cleaning Equipment You will find there are many advantages to Lease Rental which include Typically 24-Hour Set-Up Time! Fixed, Low Monthly Payments! VAT Paid On Monthly Rental (Not
THE ENVELOPE BUDGET The Easiest Budgeting Tool I Know By David Dopp My son, who has always had a problem keeping track of his money, had tried just about every budgeting trick he had ever read. Despite
Double-Entry Bookkeeping: Assets and Liabilities The purpose of this chapter is to introduce the fundamentals of double-entry bookkeeping and its role in accounting for business. The objectives of accounting
Cash Flow Planning "People don't plan to fail, they fail to plan." Anonymous Cash Flow Planning Money is. You must do a written plan monthly. Bounced checks are a sign of crisis living and sloppy, lazy
Adjusting and Closing Entries Adjusting and Closing entries tend to be difficult to grasp at first. A reason for this might be due to the type of transactions requiring adjustment, which tend to be unfamiliar.
Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold
Online Accounting Software FUNDING OPTIONS GUIDE Why you need to think about funding Every business needs money. Starting a business presents new challenges, many of which will require some financial outlay.
Finances out of shape. Learn to manage your money. Financial fitness for the future. Managing your money W E S T E R N U N I O N F O U N D A T I O N You want a better future. A better life. A better education.
BUSINESS IMMIGRATION 2010 UPDATE PAPER 1.1 Business Immigration: Initial Client Contact These materials were prepared by David L. Thomas of Thomas Immigration Law Group, North Vancouver, BC, for the Continuing
Best Practices page 1 of 8 _ Accounting Basics: The Balance Sheet & Key Performance Indicators Contributed by Michael A. Webber, A/E FINANCE The AIA collects and disseminates Best Practices as a service
A Freelancer s Pay... An excerpt from The Designer s Common Sense Business Book Designers seem to be most uncomfortable when dealing with the financial end pricing, billing, bookkeeping, collecting money
0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting
Business finance a practical guide BUILDING YOUR KNOWLEDGE Small Business Development Corporation 13 12 49 smallbusiness.wa.gov.au The small business specialists A practical guide to business finance An
ReportCard TheSmallBusiness Is your business making the grade? This number-crunching study guide has the answer. MasterCard Solutions For Small Business MasterCard Solutions for Small Business encompasses
Accounting for inventory Whats inside Accounting for your inventory is as important as accounting for your sales. Every product you have on the shelf has a cost value, and the total cost of goods is likely
Part 7. Capital Budgeting What is Capital Budgeting? Nancy Garcia and Digital Solutions Digital Solutions, a software development house, is considering a number of new projects, including a joint venture
Planning your cash flow Business Coach series Preparing the cash flow forecast Keeping on track Business Coach series The cash flow process The situation Money goes out earlier and faster than it comes
63802_02_ch2_p039-076 2/26/09 11:30 AM Page 39 2 Debits and Credits: Analyzing and Recording Business Transactions DID YOU KNOW? In 2006 20% of sales came from Staples brands. The company plans to increase
Understanding Financial Statements: What do they say about your business? This workbook is not designed to be your only guide to understanding financial statements. A much wider range of resources is available
SMALL BUSINESS OWNER S HANDBOOK PART V: RECORD KEEPING FOR A SMALL BUSINESS Introduction Bookkeeping Payroll & Personnel Records Other Important Records Record Keeping Checklist Final Considerations Introduction
How To Setup & Use Insight Salon & Spa Software Payroll - Australia Introduction The Insight Salon & Spa Software Payroll system is one of the most powerful sections of Insight. It can save you a lot of
Section 12.1 Financial Ratios Section 12.2 Break-Even Analysis OBJECTIVES Explain what a financial ratio is Describe how income statements are used for financial analysis Compare operating ratios and return-on-sales
Let s talk about the three primary financial statements for any small business; the Cash Flow Statement, the Profit and Loss Statement, and the Balance Sheet. We will use a business called Bonnie s Beachwear.
+ Checking & Savings + Smart choices for managing Your money. Checking that fits your life. Choosing the right checking account can be downright confusing. At Align, we make it easy to build an account
Why Purchase Price Allocation? We need to allocate the purchase price in an M&A deal because we often pay more for the seller than what their balance sheet says they re worth. When that happens, we run
INTRODUCTION TO FARM AND RANCH ACCOUNTING USING QUICKEN Larry K. Bond Extension Economist and Associate Professor Department of Economics Utah State University May 1995 Economic Institute Study Paper ~
Effective Strategies for Personal Money Management The key to successful money management is developing and following a personal financial plan. Research has shown that people with a financial plan tend
Chapter 12 Practice Problems 1. Bankers hold more liquid assets than most business firms. Why? The liabilities of business firms (money owed to others) is very rarely callable (meaning that it is required
GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and
Free Cash Flow Overview When you re valuing a company with a DCF analysis, you need to calculate their Free Cash Flow (FCF) to figure out what they re worth. While Free Cash Flow is simple in theory, in
CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY 1. The simple interest per year is: $5,000.08 = $400 So after 10 years you will have: $400 10 = $4,000 in interest. The total balance will be
How Do I Qualify for a loan? Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan, it is
Bookkeeping Proficiency (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials. Take a quick tour by visiting www.accountingcoach.com/quicktour. Table of Contents (click
business builder 4 how to prepare a cash flow statement zions business resource center zions business resource center 2 how to prepare a cash flow statement A cash flow statement is important to your business
+ Financial Planning Presented by Emma's Garden Financial Planning A comprehensive financial plan helps you to forecast and set your financial goals and milestones. Your financial forecasts are an essential
FINANCIAL SUCCESS CAN BE YOURS! Money Flow Tips, Tricks, & Bank Negotiations! Tracey Munns B.Comm Cloud-based financial tools you can access 24/7, to achieve your financial goals faster. ABOUT MONEY By
Chapter 9 Plan and Track Your Finances 9.1 Finance Your Business 9.2 Pro Forma Financial Statements 9.3 Record Keeping for Businesses Ideas in Action Electronic Safekeeping Katelin Shea addressed the unmet
Funding Options In a commercial a few years ago, baseball legend and philosopher Yogi Berra said they give you cash, which is just as good as money. In typical Yogi fashion, there is some wisdom behind
The Orangeville & Area Small Business Enterprise Centre (SBEC) 87 Broadway, Orangeville ON L9W 1K1 519-941-0440 Ext. 2286 or 2291 firstname.lastname@example.org www.orangevillebusiness.ca Supported by its Partners:
What's Your Business Worth? What you see isn't usually what you get - or want! "How much is my business worth?" and "How do I know for sure?" and "Why should I care? After all, I have no intention of selling