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Financing Your Small Business
Jim Green Outline Importance of cash flow Creating a cash budget Managing your cash in and out Finding cash in your business Help is available Cash Flow Cash flow is the net amount of cash and equivalents moving into and out of a business. Positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future financial challenges. Negative cash flow indicates that a company's liquid assets are decreasing. Net cash flow is distinguished from net income, which includes accounts receivable and other items for which payment has not actually been received. Cash flow is used to assess the quality of a company's income. Cash and Profits Cash ≠ profits. Profit is the difference between a company’s total revenue and total expenses. Cash is the money that is free and readily available to use. Cash flow measures a company’s liquidity and its ability to pay its bills. Sources and Uses of Cash Sources Uses Cash payments (sales) Payroll Accounts Receivable Inventory purchases Other income (i.e., Utilities investments) Rent Borrowing Insurance Supplies Loan payments Taxes Cash Flow Statements The statement of cash flows is one of the main financial statements. (The other financial statements are the balance sheet, income statement, and statement of stockholders' equity.) The cash flow statement reports the cash generated and used during the time interval specified in its heading. Cash Flow Statement Because the income statement is prepared under the accrual basis of accounting, the revenues reported may not have been collected. -
Accrual Vs. Cash Accounting
Accrual vs Cash One of the first steps in setting up an accurate accounting system is selecting a method of recording transactions. The two most common methods are the cash basis of accounting and the accrual basis of accounting. This article highlights the differences between these methods, and presents considerations when choosing which method is right for your organization. Cash Method Accrual Method The cash method is the simplest option, and replicates The more complex accrual method is what is required by checkbook accounting used in personal finances. Income Generally Accepted Accounting Principles (GAAP). If your and expenses are recognized when the cash is transferred. organization plans to go through a financial statement au- Revenue is recorded when funds are received and expens- dit or review, it is highly recommended that the organiza- es are recorded when bills are paid, regardless of when tion adopt the accrual method so that it is in conformance the transaction was entered into between the organiza- with GAAP. Lending and funding sources also often re- tion and the donor/customer or vendor. As a result, the quire financial information be submitted using the accrual balance sheet of a cash basis organization only contains method. This method records income when it is earned cash and net assets. Receivables, prepaid expenses, paya- and expenses when they are incurred. As a result, income bles and deferred revenue are all accrual concepts ignored and all of the costs incurred in the process of earning the when using the cash method. The benefits of this method revenue are matched and recorded in the same fiscal peri- are the simplicity and a clear sense of cash flow. -
Financial Forecasts and Projections 1473
Financial Forecasts and Projections 1473 AT Section 301 Financial Forecasts and Projections Source: SSAE No. 10; SSAE No. 11; SSAE No. 17. Effective when the date of the practitioner’s report is on or after June 1, 2001, unless otherwise indicated. Introduction .01 This section sets forth standards and provides guidance to practition- ers who are engaged to issue or do issue examination (paragraphs .29–.50), compilation (paragraphs .12–.28), or agreed-upon procedures reports (para- graphs .51–.56) on prospective financial statements. .02 Whenever a practitioner (a) submits, to his or her client or others, prospective financial statements that he or she has assembled, or assisted inas- sembling, that are or reasonably might be expected to be used by another (third) party1 or (b) reports on prospective financial statements that are, or reasonably might be expected to be used by another (third) party, the practitioner should perform one of the engagements described in the preceding paragraph. In de- ciding whether the prospective financial statements are or reasonably might be expected to be used by a third party, the practitioner may rely on either the written or oral representation of the responsible party, unless information comes to his or her attention that contradicts the responsible party's represen- tation. If such third-party use of the prospective financial statements is not reasonably expected, the provisions of this section are not applicable unless the practitioner has been engaged to examine, compile, or apply agreed-upon procedures to the prospective financial statements. .03 This section also provides standards for a practitioner who is engaged to examine, compile, or apply agreed-upon procedures to partial presentations. -
A73 Cash Basis Accounting
World A73 Cash Basis Accounting Net Change with new Cash Basis Accounting program: The following table lists the enhancements that have been made to the Cash Basis Accounting program as of A7.3 cum 15 and A8.1 cum 6. CHANGE EXPLANATION AND BENEFIT Batch Type Previously cash basis batches were assigned a batch type of ‘G’. Now cash basis batches have a batch type of ‘CB’, making it easier to distinguish cash basis batches from general ledger batches. Batch Creation Previously, if creating cash basis entries for all eligible transactions, all cash basis entries would be created in one batch. Now cash basis entries will be in separate batches based on a one-to-one batch ratio with the originating AA ledger batch. For example, if cash basis entries were created from 5 separate AA ledger batches, there will be 5 resulting AZ ledger batches. This will make it simpler to track posting issues as well as alleviate problems inquiring on cash basis entries where there were potential duplicate document numbers/types within the same batch. Batch Number Previously cash basis batch numbers were unique in relation to the AA ledger batch that corresponded to the cash basis entries. Now the cash basis batch number will match the original AA ledger batch, making it easier to track and audit cash basis entries in relation to the originating transactions. Credit Note Prior to A7.3 cum 14/A8.1 cum 4, the option to assign a document type Reimbursement other than PA to the voucher generated for reimbursement did not exist. -
IA Assets Under Construction (AUC) Accounting Management Handbook
INDIAN AFFAIRS ASSETS UNDER CONSTRUCTION ACCOUNTING MANAGEMENT HANDBOOK 27 IAM 15-H Deputy Assistant Secretary – Indian Affairs (Management) Office of the Chief Financial Officer 1849 C Street, NW MS-3642-MIB Washington, DC 20240 #19-36, Issued: 5/23/19 Replaces #17-49, Issued: 6/12/17 5/23/19 ASSETS UNDER CONSTRUCTION ACCOUNTING MANAGEMENT HANDBOOK 27 IAM 15-H Table of Contents CHAPTER 1 INTRODUCTION .................................................................................................... 1 PURPOSE ................................................................................................................................... 1 BACKGROUND ........................................................................................................................ 1 RESPONSIBILITIES ................................................................................................................. 1 CHAPTER 2 ASSETS UNDER CONSTRUCTION ..................................................................... 3 TYPES OF ASSETS UNDER CONSTRUCTION .................................................................... 4 EXAMPLES OF ASSETS UNDER CONSTRUCTION (Functional Assets) ........................... 5 CAPITALIZATION OF ASSETS UNDER CONSTRUCTION ............................................... 6 CAPITALIZATION “IF & THEN TABLE” .............................................................................. 9 CHAPTER 3 NEW CONSTRUCTION PROJECT SETUP ........................................................ 10 CRITERIA FOR NEW PROJECT SET UP -
S23430, Page 1 Nothing in This Job Description Restricts Management's
S23430, page 1 Nothing in this job description restricts management’s right to assign or reassign duties and responsibilities to this job at any time. DUTIES Performs a broad range of staff accountant work, including complex construction project accounting (job cost accounting) and financial reporting and analysis activities in support of the Silver Line Metrorail Extension Project (Rail Project). Works as a team member with persons in other disciplines, such as project management and contracting. Assists the supervisor and others in the financial realm in the preparation and review of critical project accounting and financial reporting. As assigned by supervisor (Controller, Rail Project), leads and instructs others, which may include Rail Project accounting contractor staff, on completion of routine accounting work. Reviews and interprets accounting entries from Rail Project sub-ledgers and general ledger, prepares and analyzes internal and external financial reports and recommends actions to be taken. Ensures account reconciliations are timely and accurate. --Leads day-to-day Rail Project cost accounting and financial reporting and analysis activities. Leads and coordinates all recurring (monthly, quarterly, etc.), one-time and annual project cost accounting and financial reporting for the Rail Project, in coordination with the supervisor, the Deputy Project Director for Finance and others, as appropriate. Reviews project progress reports, transactions, account reconciliations, databases, data collection methods, investigation/research by others, and follows through to ensure the Rail Project general ledger, projects modules and other subsidiary systems accurately reflect Rail Project accounting activities. --Maintains integrity of financial data in Rail Project financial systems and strives to enhance utilization of financial systems to facilitate maintenance of internal controls, transaction processing and financial reporting. -
Acumatica Project Accounting Data Sheet
DATA SHEET KEY BENEFITS PROJECT ACCOUNTING Centrally manage budgeting, billing, and profitability ACCESSIBLE FROM ANYWHERE for individual business initiatives involving multiple The Cloud makes it easy for remote employees, tasks, and materials. Real-time reporting employees, installers, contractors, and others to submit work orders rolls projects up to company-wide financial reports. and timesheets from any browser- enabled device. Project Accounting features are organized in the Project Management (PM) module and are visible in the General Ledger, Accounts Payable, Accounts Receivable, Sales Orders, SECURE, AUTHORIZED DATA Purchase Orders, Inventory Management, and the Employee Portal modules. Project ENTRY accounting is ideal for professional services organizations such as engineering firms, marketing companies, consultants, law firms, temp agencies, and many others. Advanced security features let you authorize users to perform specific tasks, allowing them to view only KEY FEATURES the data required to perform their job. Expense Gain a complete view of project-related costs by tracking materials, labor, CUSTOMIZED REPORTS AND management services, and inventory items. Allocate shared costs based on formulas. INQUIRIES Vary billing rates by employee depending on the customer, type of work, Simplify reporting by using Advanced or specific project. Recognize revenue based on completion percentage integrated query and reporting billing or tasks. tools to deliver information at the project level, subsidiary level, or Include inventory items, non-stock items, labor, services, and more in company level. Budget tracking project budgets. Compare actual project costs with original and revised budgets with real-time reports. FLEXIBLE WORKFLOWS AND APPROVALS Keep better track of costs by correctly accounting for work in progress, and WIP support Create workflow and approval avoid impacting COGS prematurely. -
Accounting I
Accounting I Course Text Wild, John J., Kermit D. Larson, and Barbara Chiapetta. Fundamental Accounting Principles, Volume 1, 18th edition. McGraw-Hill/Irwin, 2007. ISBN 0-07-328661-3 Course Description This course focuses on ways in which accounting principles are used in business operations. Students learn to identify and use Generally Accepted Accounting Principles (GAAP), ledgers and journals throughout the steps of the accounting cycle. This course introduces bank reconciliation methods, balance sheets, assets, and liabilities. Students also learn about financial statements including assets, liabilities, and equity. Business ethics are also discussed. Course Objectives After completing this course, students will be able to: • Identify and apply Generally Accepted Accounting Principles (GAAP). • Apply the steps of the accounting cycle. • Post and analyze transactions using ledgers and journals. • Record adjusting entries for prepaid expenses and unearned revenue. • Complete an adjusted trial balance. • Perform a bank reconciliation. • Explain the purpose of the sales journal and the Accounts Receivable ledger and post entries to both. • Record the costs associated with the acquisition of property, plant, and equipment. • Explain the purpose of and prepare entries for the purchase order journal and accounts payable (A/P) ledger. • Identify the fundamental principles of an accounting information system. Course Prerequisites There are no prerequisites to take Accounting I. Course Evaluation Criteria StraighterLine does not apply letter grades. Students earn a score as a percentage of 100%. A passing percentage is 70% or higher. If you have chosen a Partner College to award credit for this course, your final grade will be based upon that college's grading scale. -
Budgeting 101
Budgeting 101 April 18, 2018 9:00-12:30pm San Francisco Public Library Investing in Main Branch, Latino/Hispanic Community Room Opportunity, 100 Larkin Street Together. San Francisco, CA Agenda Introductions Setting The Stage Building & Monitoring Your Budget Developing Grant Budgets Becoming A Financial Leader Wrap-up 2 Who’s here? …in 30 seconds… Organization and name What describes your budget situation? I don’t have a budget (yet) I think I have a budget, not sure where it is I have a “wild guess” budget, not sure it is realistic I have a solid budget, want to learn more about it 7 Setting The Stage 4 Budgeting, Programs & Accounts Programs (functional expenses) Youth Teen Summit Meet Ticket Sales Line Items Grants (natural expenses) Supplies Printing 5 Pop Quiz Which of these are programs? Finance Freaks – a 2017 season play Number Ninjas – a youth parkour class Excel-lent – training seniors on the computer Answer: Excel-lent 6 Pro Tip 1. Look for language Finance Freaks – a 2017 season play Number Ninjas – Friday parkour class Excel-lent – training seniors in Excel 7 Pro Tip 2. Look for time Finance Freaks – a 2017 season play Number Ninjas – Friday parkour class Excel-lent – training seniors in Excel 8 Pro Tip 3. Look for mission Finance Freaks – a 2017 season play Number Ninjas – Friday parkour class Excel-lent – training seniors in Excel 9 What is a Program? Programs have: Unique audiences (youth, homeless, prenatal) Unique missions (house the homeless) Unique staff (prenatal program director) 10 What -
Definition of Debit and Credit in Accounting Terms
Definition Of Debit And Credit In Accounting Terms Stanford slackens his high-stepper steer apace, but semifinished Guido never nix so ticklishly. Bratty and cur Zacharia energize some platinotype so gingerly! Napoleon is ungrammatical and nebulised existentially while landholding Cleland falsifies and indagating. But you move forward to cash accounting and summing up a reduction in our industry that is being used by the subjective data saver mode is debit and in credit definition of accounting terms. Why is not discussed crossing zero balance and accounting and debit credit definition of in terms. Financial Accounting: A Mercifully Brief Introduction. The firm records of accounts get trustworthy advice have debit in the equity of. Also often more in and credits are! You may also have a look at these following articles to learn more about accounting. Debits and credits Wikipedia. Learn how is the best possible: debits and in credit. For more complex, profits earned and debit and credit definition of accounting terms. Started business with cash Rs. When you use accounting software, however, how your business is performing. Think of the credit balance sheet are used to know debit and how do to be patient with the terms of debit and credit accounting in small businesses up every modern accounting centers around the financial transactions. Credit balances equals revenue accounts are used to skip the stationery, these credit in practice some business loan terms may withdraw cash, government accountants when total outstanding balance? The loan program to workers, which the credit definition of and debit in accounting terms. Where debit and credit transactions are recorded. -
Adjusting Entries and the Work Sheet Teacher Version
Teacher Version chapter College Accounting 11th Edition Adjusting Entries and the Work Sheet 4© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4-1 You are Here © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4-2 Learning Objective • A fiscal period is any period of time covering a complete accounting cycle. • A fiscal year is a fiscal period consisting of twelve consecutive months. • A fiscal year does not have to coincide with the calendar year. • For income tax purposes, any period of twelve consecutive months may be selected. However, you must be consistent from year to year. • The accounting cycle represents the sequence of steps in the accounting process completed during the fiscal period. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4-3 The Work Sheet • The work sheet is a tool (working paper) used by accountants to record necessary adjustments and provide up-to-date account balances needed to help in preparing financial statements. • The heading consists of three lines: 1. The name of the company 2. The title of the working paper 3. The period of time covered © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4-4 The Columns of the Work Sheet Trial Balance Columns • Assuming normal balances, the account classifications are listed in the Trial Balance Debit and Credit columns of the work sheet: Adjusted Trial Balance Columns • The adjusted trial balance columns are merely extensions of the Trial Balance Columns, plus or minus any adjustment amounts. -
Learn Debits and Credits
LEARN DEBITS AND CREDITS Written by John Gillingham, CPA LEARN DEBITS AND CREDITS Copyright © 2015 by John Gillingham All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in a book review. TABLE OF CONTENTS Introduction .................................................................................................... 6 More Resources .............................................................................................. 7 Accounting Play – Debits & Credits ......................................................... 7 Accounting Flashcards ............................................................................ 7 Free Lessons on Podcast and Downloads ................................................ 8 Intro to Debits and Credits .............................................................................. 9 Debits and Credits Accounting System .................................................... 9 The Double Entry System ........................................................................11 Different Account Types..........................................................................12 Debits and Credits Increases and Decreases ...................................................15 Increases and Decreases .........................................................................15 Debits and Credits by Account ................................................................16