Financial Record Keeping
2h 1mBeginner2022-10-31
Authors
Jim Stice
Professor of Accounting at BYU
Kay Stice
Professor of Accounting at the BYU Marriott School of Management
Course details
Bookkeeping—financial record keeping—is the cornerstone of a healthy business. Accurate records ensure you can make intelligent decisions, stay on the right side of the IRS, and demonstrate the value of your business should you decide to sell it. Join accounting professors Jim and Kay Stice for this overview of financial record keeping. Learn how to create forecasts and a quantitative business plan, capture rudimentary business data such as sales and expenses, understand income tax reporting, and prepare detailed reports to help you attract financing from banks and other investors. This is an introductory course—no prior accounting knowledge is required. After taking it, you should understand the basics of this critical business function.
Learning objectives
Summarize the two forecasting techniques used to create a complete business plan.
Analyze the five methods for maintaining financial records for a company and explain what kind of company would require each method.
Calculate payroll expenses with accuracy.
Apply the entity concept to hypothetical situations.
Describe the process for obtaining financing from third-party sources.
Explain the process for valuing a company.
Learning objectives
Summarize the two forecasting techniques used to create a complete business plan.
Analyze the five methods for maintaining financial records for a company and explain what kind of company would require each method.
Calculate payroll expenses with accuracy.
Apply the entity concept to hypothetical situations.
Describe the process for obtaining financing from third-party sources.
Explain the process for valuing a company.
Skills covered
Accounting SkillsFinance and AccountingPersona
Concepts
Introduction
- Why is financial record keeping important
Create a Qualitative Business Plan
- Financing a small business
- Sales forecasting
- Forecasting expenses
- Cash flow management
- Forecasted financial statements
Capture Basic Business Data
- Wasatch Medical Center and paper records
- A simple spreadsheet
- Basic accounting software
- Payroll record keeping
Small Business Income Taxes
- Types of books
- Business income tax report - US Schedule C
- Separating personal from business expenses
Prepare Financial Reports to Be Shown to Outsiders
- Reliable financial reports
- Financial reports for banks, potential investors, and partners
- Earnings management and user skepticism
- Auditors
Determining the Value of a Business
- Valuing a family-owned business
- Using price-earnings (P E) ratio for valuation
- Using price-to-book (P B) ratio for valuation
- Using price-to-sale (P S) ratio for valuation
- Establishing the credibility of income forecasts
- Managing internal controls
Conclusion
- Setting up your business for success