1. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Sankofa Financial Group LLC and Island Flavors Restaurant Present Accounting and Record Keeping For Small Businesses

2. Securities offered through J W Cole Financial Inc., member FINRA/SIPC About Sankofa Financial Group Virginia Jackson – President  CPA  Registered Representative, JW Cole Financial Inc Tax, Investment, Business Management services Small business owner

3. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Elements of Sound Accounting & Record Keeping Notes Corporate Structure Record Keeping Balance Sheet Income Statement Cash Flow Budgets Payroll and Income Taxes Hiring an accountant Ways to Improve Cash Flow

4. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Corporate Structure Notes Sole Proprietorship Partnership Corporation LLC Corporate structure impacts  Record keeping needs  Cash flow needs  Taxation

5. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Record Keeping Notes Accounting records should be kept separate from personal records (no commingling) Establish separate bank accounts  Complete reconciliations monthly Setting your fiscal year end  Most companies use calendar year end – December 31 Cash vs accrual basis Software  Quicken  Microsoft Money  QuickBooks How to choose  Ease of use  Particular feature needed/industry supported  Likelihood that vendor will be around to support product  Provides a good audit trail

6. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Balance Sheet Notes Listing of your  Assets  Liabilities (debts)  Equity (investment)  Exhibit A Fixed as of a point in time Cumulative Usually prepared at the end of a month/quarter Must be in sync with income statement Used to judge solvency

7. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Income Statement Notes Summary of your profit and losses  Income  Expenses  Exhibit B Covers a financial period  Monthly  Quarterly  Annually Start over at start of the fiscal period (not cumulative) Must be in sync with balance sheet What is the bottom line – income or loss

8. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Cash Flow Notes Net income/lost does not equal cash flow Use a budget to estimate cash flow needs Include taxes in cash flow projections Sources of cash  Savings  Credit cards  Personal loan  SBA loan  Venture capital  Investments from family/friends

9. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Budgets Notes Know your income and outflow Fixed vs variable expenses Expenses cannot exceed income  Earn more income  Decrease outflow Write it on paper Track spending monthly Adjust periodically as circumstance change

10. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Hiring an Accountant Notes CPA vs bookkeeper  College degree  CPA examination (state licensing requirements)  Continuing education and ethics requirements

11. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Payroll and Income Taxes Notes Paid from business cash flow Corporate form effects taxes  Sole proprietorship, partnership and LLC taxes at personal income tax rate using Schedule C  Corporation files separate business tax return (double taxation) File quarterly returns with estimated tax payments Self employment taxes Consider outsourcing payroll if more than a few employees

12. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Ways to Improve Cash Flow  Sharing office space or sublet unused space  Set up a home office  Buy secondhand furniture and equipment  Make sure prices are competitive  Review business insurance coverage  Print on both sides of paper for internal documents  Solicit bids from new vendors/suppliers  Take advantage of early bird discounts  Buy airline tickets online  Pay bills when due  Follow up on past due receivables  Work with accountants to discuss income/expense shifting  Buy office supplies during back to school sales or at bulk warehouses  Don’t overstock inventory  Buy equipment instead of leasing  Decrease advertising costs  Barter  Use a virtual support  Use VOIP service  Use interns  Print your own business cards  Advertise on social networking sites  Use free website hosting (officelive.com)  Build a referral network  Go paperless  Upgrade computer memory instead of buying new  OpenOffice.org – free word processing, spreadsheets, presentations

13. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Online Resources  360financialliteracy.org  Annualcreditreport.com – must pay for FICO score  Dummies.com  Money.cnn.com  Credit.com  FTC.gov (Federal Trade Commission)  Feedthepig.com

14. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Island Flavors Restaurant

15. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Free Financial Check Up Schedule an appointment today for your free financial review

16. Securities offered through J W Cole Financial Inc., member FINRA/SIPC Virginia Frazier Jackson, CPA www.sankofafinancial.net Virginia.Jackson@jwcmail.com 202-213-2116 Upcoming Seminars Investing for College Education Investing for Retirement Charitable Contributions and Gift Giving Tax Returns for Small Businesses: Schedule C