по Ashley Hongru Liang 3 лет назад
159
Больше похоже на это
Type in the name of your organization and press Enter.
If you win the investment or support that you need, where will you start?
Add a risk.
Balances that are opposite their “normal” may either be due to a mistake, or may in fact be an exceptional (abnormal, opposite) balance.
If the Trial Balance is still out of balance at this point, you must start again (re-calculate the Trial Balance), as you missed the error.
Check that each transaction entered in the ledger is balanced. (Debits = credits)
Recalculate the balance in each ledger account to ensure accuracy.
Check to see if each account balance from the ledger was copied correctly to the trial balance.
Check the addition of each column in trial balance
Add up the two columns. If the totals are equal, then write them and draw a double underline beneath each total, which is now referred to as the “balancing figure”. If the totals do not balance, then all errors must be found and corrected.
Transfer the final balances (circled) from the ledger to the proper column of the Trial Balance. Place the debit balances in the debit column and the credit balances in the credit column.
List all the accounts in the proper order. (Assets follow liquidity order; Liabilities follow order in which they have to be paid and (AP goes first)
Start with a three-lines heading.
Left= Right / DR=CR
A listing of accounts (in ledger order) showing debit/credit balances for each account.
Debit means Left Side of the account. Credit means Right Side of the account.
Add the next step.
Enter the amount on either as either a debit or credit
Enter the account balances into each ledger account
Make the T- Accounts
1. Ensures that different people looking at the evidence will arrive at the same values for the transaction. 2. Accounting entries will be based on fact, not on personal opinion or feelings.
1. Source documents are kept on file as they provide proof that transactions occurred. 2. For future reference purposes as they may be required for audit purposes. 3. A source document for a transaction is almost always the best objective evidence available to maintain objectivity.
A business paper or document that verifies the transaction and dollar amount
What are the key points in the implementation of your plan? How will you know that you are making real progress?
Think about:
Add a milestone.
Any financial event that results in a change in financial position.
EX. Phone bill, store receipts, cheque copies,credit card slips, purchase orders, etc.
What are the key points in the implementation of your plan? How will you know that you are making real progress?
Think about:
Add a milestone.
You will need credible forecasts of profitability and strategic benefits if you are proposing investment in your business.
Your profit and loss (or income) forecasts should detail where, when and how profitability will be achieved.
Add a highlight from your Profit and Loss forecast.
Consider making forecasts for year 1, year 2 and year 3 of your plan.
How will your balance sheet change as a result of this initiative?
Add a key point from the balance sheet forecast.
EX. If a business is going out of business, then the value of the assets cannot be determined until sold.
How will your costs base change as a result of your initiatives? Think about:
Add a key point from the costs forecast.
EX. The original cost of the asset purchased must be recorded, regardless of the market value.
How will sales increase as a result of your initiatives? Think about:
Add a key point from the sales forecast.
EX. Owner's personal home should not be on the company's Balance Sheet
The question that investors will ask is How will you turn your forecasts into reality?
Having identified your product or service, and the demand for it in the market, how will you reach that market?
It must be clear to investors what you are asking for, when you need it and when & how it will be repaid - in short, what value they will get for their investment.
1. No abbreviations 2. No corrections or changes on sheet 3. Align figures and dollar signs 4. Dollar signs on first item in each column and final totals only 5. Single underline columns to be calculated Double underline final totals only
Total liabilities do not need double underline
Total Assets & Total Liabilities and Equity needs ( “$” sign + upper line+ double underline)
The first item and total has a “$” sign
Add a sum-up of how this investment will be spent. Include:
The owner's claim on the entity's assets/ the difference between assets and liabilities
1. Withdrawal 2. Loss on sale of an asset 3. Expenses
1. Sale 2. Investment 3. Gain in the sale of an item
Accounts Payable
Something that the owner owes
Things that the company/business owed
Claims Against Assets
Creditors
Accounts Receivable
The debts of customers
Resources owned by a business/company
Add a summary of how much is required and when.
Assets= Liabilities + Owner's Equity
Although the executive summary appears first in the document, it is easier to complete it last, when you can summarise and prioritize the key points in your plan.
Provide capital, elect directors, receive dividends.
Hire executives, guide mission, distribute profits between business and shareholders.
The executive runs the day-to-day operations of the business.
Add the key points about the track record of your team and your capabilities.
1. Higher start up costs 2. Greater formalities 3. Requires annual maintenance from accountant and lawyer 4. Losses cannot offset personal income
1. Limited liability of shareholders 2. Possible lower taxation rate 3. Can sue or be sued in the corporate name 4. More prestige 5. Continuity of business
Add short descriptions of the key products and services which bring your mission to life and are making it happen.
1. Unlimited liability 2. Possible disagreements 3. Divided authority 4. Difficult to find partners 5. Partners liable for each other
1. Ease of formation 2. Broader management skills 3. Limited regulations 4. More capital resources
Summarise the value and the difference that your organization aims to create. Mission statements are more useful if they describe the difference that you want to make to your customer's lives, rather than what you want to achieve personally. Your mission statement should directly influence strategic decisions.
1.Unlimited liability 2. Difficult to raise capital 3. Llimited to owner’s knowledge 4. Lack of continuity 5. Profits taxed at personal rate
1. Low start-up costs 2. Great freedom from regulation 3. All profits to owner 4. Owner has complete control
Your business plan is a commercially sensitive document and you may wish to add a confidentiality statement (or non-disclosure agreement) at the front of the document.
Type in or attach your statement of confidentiality
EX. Churches, Cancer Society, Community Hockey League
EX. Clothing store, supermarket
EX. A farm that produces milk, grain A construction company
EX. hairdresser, accountant, and nail salon
Provide your investors with a clear picture of your business: how it is structured, who owns it, who runs it, and how it is doing so far?
Add some information about your successes and achievements. Think about:
Add some information about important partnerships. Think about:
Who are the key members of your management team, and what are their skills and experience?
Add some information about the current shareholding.
How much have the current owners invested in the business?
Add some information about the regulatory environment that affects your company. Apart from company law, what other regulations apply to your sector? Consider:
What is the legal status of your organization? Are you a sole trader, a limited company with shareholders, or a non-profit?
Describe the vision and the opportunity that the plan is based on.
The investor's question you answer here is Where are you headed, and why?
