Ink (toner) Paper. Ink (toner) Paper £5000 £4000 £4000.

Slides:

Advertisements

Similar presentations

National 4/5 Business Management

Advertisements

The profit and loss account. The profit and loss account is produced by a business to show:   How much net profit has been made   How much net loss.

Charter Partners Institute eVenture Financial Case Guide Note: This is only a guideline. Presentations should be adapted to bring out the important financial.

3. 23 Calculating the profit or loss of a business.

Financial Strategy and Financial Objectives “Running by the Numbers”

Section 36.2 Financial Aspects of a Business Plan

Financial Statements Business Management.

Welcome Business Start-Up Programme Workshop 3 to the ‘Finance’

FINANCE BASIC FACTS. Sources of funds Internal Retained profits Sale of assets Using trade credit Investing surplus cash Reducing inventory External Personal.

C ASH - FLOW F ORECASTS Objective Prepare cash flow fore cast from given information.

Creating a Successful Financial Plan

Accounting & Financial Analysis 111 Lecture 12 Cost – Volume – Profit Analysis Horizontal & Vertical Analysis Common Errors in End of Period Reports Essential.

FINAL ACCOUNTS  All companies or corporations ( businesses owned by shareholders) must provide a set of final accounts consisting on three statements:

Lim Sei cK.  Cash flow describes the movements of cash into and out of a business  When you look at the bank statement of any business, you soon.

FINANCIAL STATEMENTS Business Management. Today’s Objectives  Interpret basic financial statements, including cash flow, income statement, and a balance.

THE INCOME STATEMENT Chapter 5.2. Terminology Review Revenue is the money or promise of money received from sale of goods or services Expenses are the.

Easy Start 1Define the following key words: Asset, Liability, Gross profit, Net Profit, Creditor, Debtor, Cashflow, Balance sheet, Profit & loss, Expenses,

Preparing Financial Documents The Income Statement & Balance Sheet.

IGCSE Business Studies Cash Flow. What is meant by cash flow? Cash flow is the flow of cash in and out of a business, over a period of time. Cash inflows.

Managing Financial Operations Patterns of Entrepreneurship Chapter 11.

Starter QUICK QUESTIONS Complete the following quick questions in your workbooks. Indicate how sure you are, using the following system I am sure this.

Lim Sei cK.  Cash flow describes the movements of cash into and out of a business  When you look at the bank statement of any business, you soon.

Management of Working Capital. Balance Sheet A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific.

Double Entry System 3 DRCR FINANCIAL STATEMENTS.

Chapter 36 Financing the Business Section 36.1 Preparing Financial Documents Section 36.2 Financial Aspect of a Business Plan Section 36.1 Preparing Financial.

Chapter # 5 Financial Plan. Financial Plan for start up business A financial plan is a series of steps or goals used by an individual or business, the.

Finance Citi Funded Entrepreneurship Training Program UNIVERSITY OF DUBAI Dr. Zahi Yaseen.

Income Statement and Balance Sheet Revision

LEARNING AIM B: Understand how businesses plan for success.

Cash Flow. Cash – Working capital Profit – Total revenues less the total expenses of running a business.

FINANCIAL MANAGEMENT 1 Objective ESSTENTIAL QUESTIONS 2 What is Financial planning and how do businesses do conduct it? What are the types of Business.

UNIT 7 Revision. Sources of Finance Source of financeWhat this source of finance is, it’s advantages and disadvantages….. Owner’s funds Retained profits.

Chapter 1-1 Introduction to Financial Statements Financial Accounting, Fifth Edition.

National 4/5 Business Management

SC3 – Business Planning (E)

Accounting and Finance 101

Financing Unit 6.

11 FINANCIAL STATEMENTS Section 11.1 Income Statements & Cash Flow

IB Business Management

Financial Strategy and Financial Objectives

Financial Statements Business Management.

Lesson Objectives All students will understand Most students will

University of 6th of October, Egypt

Unit 2 The Basic Accounting Cycle

Final Accounts At the end of every financial year, all businesses will prepare a set of final accounts These accounts enable the business to assess their.

11 FINANCIAL STATEMENTS Section 11.1 Income Statements & Cash Flow

Basic Financial Statements

© Inge Hill, Start Up, Palgrave 2015

Chapter 36 Financing the Business

Unit 6 – Business Finance and Accounting

Chapter 26 – Cambridge Tutorial

1.1 Financial Records BST.

1. List ‘em up Before we get to the actually structure of balance sheet, we shall see the components that make up the balance sheet.

C. Financing a Small Business

Topics Covered Business Costs Revenue Profit Expenditure

Unit 6 Finance Knowledge Organiser 6 The Role of the Finance Function

11 FINANCIAL STATEMENTS Section 11.1 Income Statements & Cash Flow

Financial Statements.

Topics Covered Business Costs Revenue Profit Expenditure

General Money Management & Personal Savings and Investment

Preparing Financial Statements

MAINTAINING FINANCIAL INFORMATION

Topics Covered Business Costs Revenue Profit Expenditure

11 FINANCIAL STATEMENTS Section 11.1 Income Statements & Cash Flow

Operations Management

Entrepreneurship, Continued Financial Statements

The Dental Practice: Business Foundations

Effective Tips for Writing the Financial Section of Business Plan

Business Accounts: the Balance Sheet

Presentation transcript:

Ink (toner) Paper

£5000 £4000 £4000

£125,000 £2.50 x 50000 = £125,000

Budgeting is a method of planning the use of resources and money Budgeting is a method of planning the use of resources and money. It also forecasts where the business will be in the future. Budgetary control measures, reports and analyses the budget giving feedback on budget performance. This is the top part if the profit and loss account, which provides information regarding stock, cost of goods and gross profit.

This is the point of balance between making a profit and lost (when Total Revenue exceeds Total Cost).

£350000

£9250 £9000 £11950 £8855 £-2700 £145 £-960 £-960 £-815

Spread the payments from February to other months in the year. Spreading the cost of payments can leave the business with a positive closing balance, thus having more cash at the start of various months. A positive closing balance also looks good if they ever need a bank loan.

60 TVs

Reduce either “cost of sales” or “staff wages”. Increase the “sales of products”.

Income from sales £68,500 £33,750 £34750 Wages & Salaries £12,750 Vehicle Leasing £8,500 £13,500

Try and pay off its current liabilities, leaving more working capital. Whoever owes them trade receivables need to pay them off to also increase working capital. Increase cash into business using promotions and discounts.

Preparing what's known as a "break-even analysis," as well as several other financial projections, can help you determine whether or not your business will succeed. Breakeven analysis is a tool used to determine when a business will be able to cover all its expenses or costs and begin to make a profit. For the startup business it is extremely important to know your startup costs, which provide you with the information you need to generate enough sales revenue to pay the ongoing expenses or costs related to running your business. The breakeven point is reached when revenue equals all business costs. The following are additional financial projections that should also be part of managing the success of he first year in business: A profit-and-loss forecast. This is a month-by-month projection of your business's net profit from operations. A cash flow projection. This shows you how much actual cash you'll have, month by month, to meet your expenses.