Fun with Financials
Fun with Financials – 10 week live online class led by Tom Crouser. Designed especially for non-accountant business owners who wish to learn more about how to READ and USE financial statements to guide their business. Also for others such as in-house accountants, bookkeepers, and successors.
Live Online Course Begins Thursday, November 14, 2019 at 12 Noon Eastern (11 am Central, 10 am Mountain, 9 am Pacific, 8 am, Alaska and Hawaii-Aleutian 6 am)
You will receive login instructions for Fun with Financials via email during registration and prior to the first class.
1: Concepts Introduction to the six major statements within Financial Statements. Difference in bookkeeping, accounting, and finance. Concepts you need to know including matching principle, materiality, timing, going concern, cost principle, business entity, and Generally Accepted Accounting Principles.
2: Attest Letter Purpose of the Attest Letter (it’s not all about you) and what it discloses. Different levels of attest: compilation, review and audit. Which do you need, if any? Limits of compilations. A backhanded way of assuring readers (read: your bankers). What disclosures that are typically omitted, included? Practical issues in working with a professional accountant, either monthly or yearly. Internal bookkeepers’ tasks in typical shop organization and accountant’s role. Most common time waster when using Estimating System and QuickBooks.
3: Balance Sheet Purpose of the Balance Sheet and Balance Sheet equation. Elements listed on Balance Sheet. Two ways to increase equity. Current ratio and why it’s very important. Quick or Acid Test ratio. Definition of current and working capital and what current ratio really means. Days’ sales in cash on hand. Effect of buying equipment. Treatment of stockholder loans, wage accruals, prepaid expenses,
4: Income Statement Gross margin, gross profit, how to calculate break-even (or the point where we make no money but lose none). Common issue in gross margin. Fixed, variable, and semi-variable expenses. Viewing expenses as costs: direct materials, wages walking out the door, and overhead. Types of income statements and a recommended type using a box score. Understanding what’s happening to your business including these conditions: make and take more; too much in wages; too much in overhead; too much equipment; low pricing; broker costs disguising real issue(s); and the compound problem. Importance of income statement dates and cut off issues.
5: Budgeting How to budget so you don’t lose money and a confident way to predict your next year’s sales and how to calculate. What sustainable sales really means. General manager’s (president, CEO, owner) responsibility in budgeting. Don’t budget yearly. Budget from today for next twelve months. How to treat loans that will be paid off during budget period? How to handle loans not being paid (like from yourself or a relative). Calculate a “get well” date. An Excel file you may use for your budget and estimated cash flow. Now focus on a Capital Budget. What is it and how it can predict when you will be rich.
6: Statement of Cash Flows This statement explains where your cash really goes! Often, we’re paying taxes because we made money, but have little cash. Understand this statement and you will know absolutely, positively where you cash went. Why cash and income aren’t the same? Practical illustration of where the cash goes and how it’s tracked. Reading the Statement of Cash Flows and one simple trick to understand easier. If you want to know about cash, this is the session to show you.
7: Depreciation Remove the mystery from depreciation. It is a real expense and ignoring it can impact you greatly. Depreciation illustrated. Knowing equipment costs in advance. Illustration of what happens to depreciation and asset (equipment) when it’s sold. Types of depreciation. Modified Accelerated Cost Recovery System (MACRS). How much do you save using Section 179 depreciation? What is it? Illustration of the timing difference between Section 179 and MACRS. 4 step answer to when you should use Section 179. When you shouldn’t.
8: Inventory Don’t sweat the small stuff. It’s not as difficult as it may seem. Types of inventories we need: raw materials, retail, finished goods, work-in-progress. How does “not” taking inventory throw off your income statement? Not recording an inventory and changing it in your financials can cost you in taxes. And why we need a Work-In-Process Inventory. Why? Because the IRS says so. Perpetual or periodic inventories and a recommendation. An easy way to take inventory that keeps you organized and more efficient. How inventory is valued (FIFO, LIFO, Cost or Market) and a recommendation. Valuing Work-In-Process. You may be surprised at what you need to include. Calculations you can make to keep it simple. When do you get cash out of inventory? It’s another tool to help you conserve cash.
9: Statement of Retained Earnings; Footnotes Equity in business is the part you own, and the Statement of Retained Earnings is all about what happens to equity. Illustration of what really happens. Then Footnotes, what they are and why they’re important. Why we rarely see footnotes. Calculating a Get-Well Date for your cash needs. End of class assessment review, preparation.
10: Review and assessment preparation Bonus review session to prepare for certification assessment, optional.
To register for Fun with Financials, click on ADD TO CART at top of page
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