Profit Mgt and Owner’s Equity

The most recent session of our Business Mastery Program continued into Accounting for Your Business as part of Module 6 on Financial Management. Here is what we touched on from my notes during our session:

• Where the line is between small and medium business – and what are actually micro businesses
• The most important reports for a cash based business vs. accural
• At what size you’ll want to consider changing between cash and accrual – and why
• How to differentiate between what you have and who owns it
• The differences between current, near current, and long term resources
• The differences between outside owners and company owners
• How to get paid in capital and profits
• The difference between current profits and retained earnings
• The “Language of Accounting”
• How to tell the difference between current liabilities and long term liabilities
• What you can turn into cash quickly – and what you can’t
• How to categorize Intellectual Property on your Balance Sheet
• How to calculate your Current Ratio and your Debt to Equity Ratio – and when/why those are used
• What most businesses get wrong and causes their untimely demise that’s right in their reports
• Calculating your Net Profit
• How often you want to be reviewing your Balance Sheet and P&L based on business size
• When to use an external bookkeeper and accountant – vs when to have one on staff

Want to join us for a future Business Mastery session or catch the full replay of the session above? Join us for a Mastermind Test Drive to see if our Mastermind is a fit for you. Mastermind Members get full access to our live and recorded Business Mastery sessions like the one above!