1. Compliments of: Blazej Accounting
Managing Your
Business Finances
The Essentials
BLAZEJ ACCOUNTING
1425 Market Boulevard
Suite 330 - #130
Roswell, Georgia 30076
Office: 404.933.9234
Fax: 678.559.0684
www.BlazejAccounting.com

2. Financial Management Essentials
1. Introduction to Financial Management
2. Why Accounts Are Important
3. Using Reports
4. Tips and Resources
5. Additional Concepts & Terms
Compliments of: Blazej Accounting

3. 1. What is Financial Management?
Process of: Money In Money Out
Running Your
Business
Recording Sales Expenses
Money YOUR
coming in and CUSTOMERS
out Services /
BUSINESS VENDORS
Using Reports Products Services /
to: Out Products
Understand In
how your
business is
doing
Make
Decisions
Compliments of: Blazej Accounting

4. 2. Manage Customers and Sales.
Know and understand your customers
through consolidated records. What
1. Cash Flow. does XYZ Company buy from me? 3. Production.
Track the money Obtain goods and
going in and out of services. Apply for and
your business. What establish credit with your
you bill and spend. vendors.
YOUR
BUSINESS
6. Funding. 4. Compliance.
To be considered for a Report your company’s
loan or investment, incomes, expenses, and
you’ll need complete payroll accurately to
updated financial the IRS.
statements.
5. Insight and Decision Making.
Make informed decisions – and price your product or
service for profitability – with financial reports. Are you
losing money before the product leaves the door?
Compliments of: Blazej Accounting

5. What do you want to know about your business?
How much money am I
bringing in? Sales
How much am I
spending? Expenses
Is my business making
any money? Sales-Expenses
What’s the value of
what my business owns? Assets
How much does my
business owe to others? Liabilities
What is my business worth? Equity
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6. Major Account Types
Assets
Current (cash, inventory, Everything your business possesses
accounts receivable, etc.)
Fixed (property, vehicles,
machinery, etc.)
Liabilities Everything your business has
Current (within one year) borrowed
Long Term
Equity Everything your business owns
Contributed capital: owner’s
investment
Retained earnings (profits)
Assets = Liabilities + Equity
Compliments of: Blazej Accounting

7. Categorize Your Transactions with Chart Wizard
Gas Chart of Accounts
Insurance
Repairs
•Master account lists – a chart of
accounts – are used to sort your
transactions into categories
•Each account category contains
sub-accounts
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8. Chart of Accounts: Your Master List of Accounts and Sub-Accounts
INCOME ASSET
Sales Income Checking Bank
Other income Other income Accounts Receivable Accounts Receivable
EXPENSE Undeposited funds Other Current Asset
Advertising Expense Equipment Asset
Car and Truck Expenses Expense LIABILITY
Contract labor / payroll Expense Loans Liability
Cost of goods sold Expense Sales Tax Payable Other Current Liability
Entertainment / meals Expense EQUITY
Office expenses Expense Contributed Capital Equity
Repairs and maintenance Expense (Owner’s invested funds)
Supplies Expense Retained Earnings Equity
Taxes and licenses Expense (Business’ profits)
Utilities Expense
Other expenses Other expenses
Compliments of: Blazej Accounting

9. Reports help you understand how your business is doing
•Use reports as a planning
tool
•Gain insight into
your sales
•Income statement
(P&L) shows your
profitability
•Balance sheet
shows assets, liabilities
and equity
•Regularly monitor your
profitability – and your cash
flow
Compliments of: Blazej Accounting

10. What Do You Want To Know About Your Sales?
• What is selling?
• Who is buying? Gain insight into the
• Who owes me money? health of your
business with reports:
• Sales by item
• Sales by customer
• Unpaid invoices by
customer
Compliments of: Blazej Accounting

11. Income Statement
• Summarizes the
revenue and
expenses of a
company over a
period of time
• Also called a Profit
& Loss or P&L
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12. Balance Sheet
• Shows the assets, liabilities,
and equity at a given
moment in time
• Assets = Liabilities + Equity
Equity also referred to
as Owners Equity
or Retained Equity.
Compliments of: Blazej Accounting

13. Manage Essential Tasks
Remember, the
Money in better you
understand your
A. Record a sale cash flow situation,
B. Invoice a customer the better you’ll be
prepared to make
C. Receive a payment the right business
D. Make a deposit decisions.
Money Out
E. Write a check / record an expense
F. Use a credit card / record an expense
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14. Tips
1. Getting Started
2. Helpful Resources
3. Congratulations!
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15. Getting Started
Establish Good Accounting 1. Computerized Software
Habits
1. Record transactions regularly
Consider software packages
– Set a weekly date to get such as QuickBooks Simple Start
everything organized 2. Structure your accounts
– Keep a “receipt” envelope
in your car – extremely Start with a minimum # of
important to document
cash
accounts and add as needed
2. Accuracy and consistency are 3. Establish an accounting routine –
essential and stick to it
3. Fix mistakes as they happen
4. Manage and reconcile bank
Reconcile accounts monthly
account regularly Review financial statements
– Print out bank transactions at
least once per week
monthly
Update financial statements
quarterly
Compliments of: Blazej Accounting

16. Helpful Resources
Advance Your Knowledge
Expert help can
make the process
Professional Help
Accountants of setting-up and
We help you find a CPA if necessary maintaining your
Blazej & Associates
books much
Expert set-up can save you time
Free 30-minute consultation easier.
Training & Networking Tools Blazej & Associates
We help you find others that can help you with your
business is Your
Take business classes (either online or at local colleges) Outsourced
Attend local business seminars (i.e. Chamber of “In-House”
Commerce)
Build a network with other business owners Accounting,
Bookkeeping, &
Office Concierge
Compliments of: Blazej Accounting

17. Congratulations!
You now know:
Why financial management is critical to effectively
run a business
How to set-up and manage your accounts
The usefulness of financial reports
Time to put your knowledge to work!
Good luck!
Compliments of: Blazej Accounting

18. Determine Your Business Type
1. Sole Proprietorship
One owner
2. Partnership or Limited Liability Corporation
Two or more owners
3. S Corporation
Small business with one or more shareholders
4. C Corporation
Large business with one or more shareholders
5. Non-profit Organization
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19. Choosing an Accounting Type
Cash or Accrual?
A. Cash accounting
The practice of recording sales Choose whichever
and expenses only when cash is
actually received or paid out accounting method
B. Accrual accounting works best for you –
The practice of reporting the important thing is
income when earned and to be consistent once
expenses when incurred
you’ve selected an
Businesses with inventory (e.g.
retailers) must use this method accounting type.
Most businesses opt for accrual method We suggest you
of accounting discuss this with your
At any given time, gives a more
CPA
realistic picture of the health of
the business
Compliments of: Blazej Accounting