Linda Dawson


The Profit & Loss Statement describes you how your business is performing at that particular time and the Balance Sheet is the statement that tells you about the long-term health and strength of your business. The Balance Sheet shows whether you can meet your obligation as they come due, how much you are indebted to others and your prospects for staying in business.

Assets = Liabilities + Equity. This is the accounting equation. Assets = your stuff. Liabilities and equity = how you paid for your stuff. Liabilities indicate how much of your stuff that you have paid for with other people’s money. Equity shows how much of your stuff that you have paid for with your own money. Retained earnings are exactly what they sound like: how much of previous years’ profits you have retained in the business.

The terms current assets and current liabilities have a special meaning in the Balance Sheet. Current, in this case, indicates any asset or liability that will convert into cash within the next 12 months. Accounts receivable is current because when your customers pay you (hopefully within 12 months), that asset will become cash. Same with inventory: When you sell your product, that asset converts to accounts receivable and then to cash, typically within 12 months. On the liability side, accounts payable are typically paid within 12 months. So are credit card bills and your bank credit line.

Another interesting feature of the Balance Sheet is that the assets and liabilities are listed according to their liquidity. So cash is the first asset, accounts receivable the second, inventory the third and so on. Fixed assets and investments are listed toward the bottom of the asset side of the balance sheet because they are not expected to convert to cash anytime soon. The same holds true for liabilities: accounts payable first, credit cards next with long-term debt coming in lower on the liabilities side of the Balance Sheet.

Financial ratios are very helpful in assessing the strength of your business. The current ratio (current assets minus current liabilities) indicates how much free cash that you have. A current ratio greater than one indicates that you have sufficient current assets to meet your current obligations as they come due.

The debt to equity ratio (total liabilities divided by total equity) indicates how much of your creditors’ money as compared to how much of your money is supporting your assets. A debt-to-equity ratio greater than one is a strong indicator that you have borrowed too much. Too much debt is not a problem during good times, but it can wreak havoc when your business dips.

So take a few minutes and look at your Balance Sheet. Compare it with last year and see how your business is progressing. Compare your current ratio and debt-to-equity ratio to last year and see if your business is becoming strong or weaker. You will be surprised at how much valuable information is contained in your Balance Sheet.

Tips On Interview


Business tips for small Business owners

Seo stands for search engine optimization. and any small business owner will be trying to advertise his products, but they find it difficult to advertise there products will less budget.

Small business owners to advertise there products only see news paper or pomplets or hordings as the sourse for advetising there products, but the one and most important thing ignored by business owners is internet. Today millions of dollars of business is dotn through online.so small business owners should understand the importance of online business and targeting the customers through online.

Small Business owners should try to employ latest technologies which are cheap and best to target the customers . Business involves selling the products using many marketing techniques. Marketing is not just selling goods, it also involves coustomers satisfaction, customers get satisfied only when his requirements are full filled.

But if the small business owners concentrat in seo, sem or ppc they can advertise there products in a cheaper way. but seo some times can be costlier, but seo is the best method to target the right coustomers with less budget. seo stands for search engine optimization sem stands for search engine marketing, and ppc stands for pay per click. by employing a right seo consultent the small business can benefit a lot in reaching the target goals.

small business owners should also target internet world. many people are searching for information in internet, there are many people who are searching for products online. so small business owners should concentrate on the people who are searching for produts online.

 

 

 

Linda Hunt


 

Financial forecasting reminds me of the weather – you make your forecast at a moment in time based upon the information currently available. You draw a conclusion and state your financial forecast.  But then, the information changes, now it’s raining, and you’re caught without your umbrella!

Financial forecasting, unlike the weather, isn’t a science but it’s not pure guess work either.  It is a combination of:



knowing your business;

understanding your marketplace;

setting goals; and

using common sense.



 

As a business coach, I know that every small business needs to make reliable financial projections at one time or another.  Forecasting is critical during the following stages of a company’s life span:



when seeking financing

gauging the profitability of a new product or service

determining the impact of staff expansion or cutback

assessing other business decisions



 

The many components of forecasting boil down to the following five bookkeeping business tips that for years I’ve shared with business coaching clients:

Bookkeeping Business Tip #1: Review Actual Year-To-Date Results

 

Start by looking at where you’ve been.  If you use an accounting program like QuickBooks you can print out a Profit & Loss statement showing year-to-date results.  Check the statement for all financial transactions that occurred up to the date of the report. Reconcile the report to your bank statements.  (If you don’t use an accounting program or bookkeeping service, then take the difference of the total year-to-date cash receipts and total expenditures.  This should equal your profit or loss.) Examine each line item to make sure that it makes sense – is your year-to-date revenue figure where you anticipated, or has it fallen short?  Are expenses higher than expected?

 

Bookkeeping Business Tip #2: Establish Goals and Incorporate into Your Forecast

 

What do you wish to accomplish by year’s end?  Do you want to introduce a new product or service, increase revenue on existing products or services, decrease spending, hire a new employee, outsource a bookkeeping service, or launch a marketing campaign that will position the company for the beginning of next year?

 

Write out your objectives and then choose three to five which are the most important to accomplish by the end of the year. Determine the needed steps to achieve the objectives. Which Profit & Loss line items will be impacted? Adjust your forecast accordingly.  For example, your goal may be to increase revenue 10% by year’s end or to launch a marketing campaign now so its benefits will be felt in the first quarter of 2009.

 

Bookkeeping Business Tip #3: Forecast Variable Costs

 

Variable costs are costs that change in step with revenue change.  For example, you are selling more widgets; therefore, your labor costs and materials costs will increase in relation to the revenue increase. 

 

Using the concept that Forecast = Projections + Predictions, combined with the knowledge that variable costs change in step with revenues, forecast each month’s variable costs.  Forecast each line item separately. Look for opportunities to reduce costs, and be aware of likely future influences on each cost.

 

Bookkeeping Business Tip #4: Forecast Fixed Expenses

 

Fixed costs are relatively stable costs that recur every month.  Examples of fixed costs are rent, telephone and bookkeeping service fees. Forecast the month’s fixed expenses by using the same concept used to forecast variable costs (Forecast = Projections + Predictions) and the knowledge that fixed expenses tend to be relatively stable and do not change in step with revenues.  Again, forecast each line item separately, looking for opportunities to reduce costs, while keeping in mind any likely future influences.

 

Bookkeeping Business Tip #5: Forecast Net Profit

 

The final step is to evaluate your forecast for net profit.  Is the profit forecast is reasonable and acceptable?  If not, re-evaluate each line item including revenues and make appropriate adjustments.  Also, anticipate non-operating income and expense items, and include them in your forecast.

 

Your financial projections may not be perfect at first, but we didn’t learn to walk without falling down.  As a business coach I’ve seen others get a few bumps along the way. But I guarantee that if you follow these bookkeeping business tips, set your financial projections on paper and revisit them frequently, you will achieve your goals faster.  

 

Manager Arena


Manager Arena is a FREE persistent browser based game.

You take the role as a manager over a fantasy football club in this online soccer manager game.

This is the place where football fans can manage their favorite team for free. Play against other managers from all over the world, with 64 real life teams across the globe and over 1900+ real life football players.

Your task is to pick a team and manage their way up to the top. Get to the first three places in the club’s starting division and then you can get into higher divisions, finally battle for the first place in Division A.

The first season starts with clubs divided in four divisions equally so everybody has a chance to finish in first three places and advance to a higher division.

You select the team and the tactics for each game, research the opposition, trade players to add strength and depth to your side. They then use your and their football skills and

abilities to win the matches and bring you glory. Buy/sell players on the transfer market, play matches against other users. How your way to success will look is totally up to you as a manager!

Communicate with other users through private messages or discussion boards. Take on the challenge and register to Manager Arena! A password is sent to you within 24 hours. After you have received your password you can start your career as a manager in Manager Arena.

This game can be found at http://manager-arena.com