General Business Unit 4 – Small Business Mgmnt. Chapter 14 – Maintaining Financial Information

Text Book Page 182 Page 183 Electronic Budgeting Tool Focus On Real Life

Business Budget A planning tool used to: Anticipate sources & amounts of income To predict the types & amounts of expenses for a specific business activity or the entire business

Business Budget Income or Revenue Expenses Money received Costs of operating

Business Budget Financial info help for new business SBA / Dun & Bradstreet / Standard & Poor / Value Line Business mags & newspapers Forbes / Fortune / WSJ Associations National Federation of Independent Business

Budgets Start-up budget Plans income & expenses Beginning until profitable Buildings, equipment, inventory, advertising Lenders want detailed budget before lending money

Budgets Operating budget Day-to-day operations Lists all revenues & expenses Shows planned net income or loss

Budgets Cash budget Estimate of actual cash received and paid out

Math Sheet Math work sheet – 29 & 30

Financial Records Record and analyze financial performance Use to see if budgets have been achieved

Financial Records Cash records Record of accounts List cash receipts & disbursements Record of accounts Identifies all credit purchases & sales Accts. Pay – credit purchases made by business Accts. Rec. – customers owe on credit purchases

Financial Records Inventory Records Payroll Records Types & quantity of products for sale Payroll Records Info on all employees & earnings

Financial Records Asset Records Identifies buildings & equipment owned Original & current value Amount owed if money was borrowed to purchase asset

Financial Statements Reports that summarize the financial performance Balance Sheet Assets, liabilities & owner’s equity (capital) Income Statement Revenues, expenses & net income or loss

Financial Statements Net Income Net Loss Income > Expenses Net Loss Income < Expenses Compare statements from one period to another How’s company doing?

Class Work CW 14-1 Check if done Review in class

Text Book Page 187 Page 193 Global Perspectives Cultural Notes Pricing For Global Markets

Work Book Pages 75-78 Study Guide All activities Pages 71-73 Turn one in per group

Quiz Time Quiz 14-1 Crossword Puzzle http://www.intro2business.swep.com/

Test Unit 4 – Chapters 12-13-14 Next class meeting

The End Chapter 14