Financial Record Keeping

Accurate record keeping is the cornerstone of a healthy business. Learn to track the finances and taxes for your business in this introductory bookkeeping course.

Introduction

• Why is financial record keeping important?

1. Create a Qualitative Business Plan

• Financing a small business
• Sales forecasting
• Forecasting expenses
• Cash flow management
• Forecasted financial statements

2. Capture Basic Business Data

• Wasatch Medical Center and paper records
• A simple spreadsheet
• Basic accounting software
• Payroll record keeping

3. Small Business Income Taxes

• Types of books
• Business income tax report: US Schedule C
• Separating personal from business expenses

4. Prepare Financial Reports to Be Shown to Outsiders

• Reliable financial reports
• Financial reports for banks, potential investors, and partners
• Earnings management and user skepticism
• Auditors

5. Determining the Value of a Business

• Valuing a family-owned business
• Using price-earnings (P/E) ratio for valuation
• Using price-to-book (P/B) ratio for valuation
• Using price-to-sale (P/S) ratio for valuation
• Establishing the credibility of income forecasts
• Managing internal controls

Conclusion

• Setting up your business for success