FINANCIAL REPORTING
BASIC ACCOUNTING
I. II. III.
Assets Liabilities Revenue Expenses
IV.
BASIC ACCOUNTING (cont.)
V.
Assets equals Liabilities and is presented on the Balance Sheet
The Balance Sheet is a financial snapshot of your organization at a given time, usually at month end. Revenue minus Expenses equals Earnings and is presented on the Statement of Operations
VI.
VII.
VIII.
The Statement of Operations shows the financial activity that occurs between Balance Sheets.
CHART OF ACCOUNTS
I.
Define Revenue Streams & Associated Cost Centers
II. III.
IV. V.
Other Cost Centers Sales & Marketing General & Administrative Expense
Designated Funds
COMPONENTS OF GOOD FINANCIAL STATEMENTS
Invites Dialogue Transparent
Simple Concise Accurate Intuitive
Illuminates
Three Key Financial Statements
Statement of Operations Statement of Cash flows Balance Sheet
Statement of Operations
Sales Projection Production Schedule (if applicable) Prime Costs (Direct Cost of Sales) Overhead Expenses Sales and Marketing Expense Administrative Expense Interest Expense
Statement of Cash flows
Connects the Income Statement to the Balance Sheet Accounts Receivable Projection Accounts Payable Projection Accrued Expenses Expenses Line of Credit/Credit Facility Loan Schedules
Balance Sheet
Snapshot of the Company at a specific time Always reconcile:
Bank Accounts Accounts Receivable Accounts Payable Prepaid Expenses Accrued Expenses
Assumptions
Define time period List expectations:
Growth Interest Rates Cash Flow
Terms COD Prepaid
BUDGETING
I.
A. B. C.
Resources
Historical Data (Where have we been?) Organizations Consultants
II. III. IV. V. VI. VII.
VIII.
Break Even Analysis Flexibility Growth (Where are we going?) Discretionary Funds Restricted Funds Review Implementation
FINANCIAL REPORTING
I. II.
III.
Flash Report Monthly, Quarterly & Yearly Analysis Departmental Reporting Government Compliance
Year end tax reporting for members
IV.
V.
VI. VII.
Management Participation Information Systems
FLASH REPORT
ACTUAL vs. PRIOR COMPARISON
ACTUAL vs. PRIOR COMPARISON
ACTUAL vs. BUDGET COMPARISON
ACTUAL vs. BUDGET COMPARISON