Small Business Financial Management Kit For Dummies (For Dummies (Business & Personal Finance))

If youвЂTMre a small business owner, managing the financial affairs of your business can seem like a daunting task—and itвЂTMs one that far too many people muddle through rather than seek help. Now, thereвЂTMs a tool-packed guide designed to help you manage your finances and run your business successfully! Small Business Financial Management Kit for DUMmIES 1 About the Authors 3 Dedication 4 Authors’ Acknowledgments 5 Contents at a Glance 7 Table of Contents 8 Introduction 16 About This Book 16 Conventions Used in This Book 17 What You’re Not to Read 17 Foolish Assumptions 18 How This Book Is Organized 18 About the CD 20 Icons Used in This Book 20 Where to Go from Here 21 Part I: Improving Your Profit, Cash Flow, and Solvency 22 Chapter 1: Managing Your Small Business Finances 24 Identifying Financial Management Functions 24 Tuning In to the Communication Styles of Financial Statements 25 Previewing What’s Ahead 28 Chapter 2: Understanding Your P& L and Profit Performance 30 Getting Intimate with Your P& L (Profit and Loss) Report 31 Measuring and Reporting Profit and Loss 35 Presenting the P& L Report for Your Business 40 Breaking Through the Breakeven Barrier 48 Improving Profit 50 Chapter 3: Getting Up to Speed on Cash Flow from Profit 56 Sorting Out Your Sources of Cash 57 Avoiding Confusion Between Profit and Its Cash Flow 58 Deciding How to Have Cash Flow Information Reported to You 59 Introducing the Statement of Cash Flows 64 Summing Up the Critical Importance of Cash Flow from Profit 71 Chapter 4: Keeping Your Business Solvent 74 Liquidity and Business Solvency 75 Business Solvency Measurements Tools 78 Liquidity Measurement Tools 80 Liquidity Traps 82 Untapped Sources of Liquidity 87 Financial Leverage — the Good, the Bad, and the Ugly 91 Part II: Using Tools of the Trade 94 Chapter 5: Protecting the Family Jewels 96 Recognizing the Need for Controls 97 Clarifying Terminology 99 Reporting on Internal Controls 100 Distinguishing Security and Safety Procedures from Internal Controls 103 Policing Internal Controls 105 Surveying Internal Controls for Small Businesses 106 Presenting Internal Control Guideposts for Small Business Managers 109 Chapter 6: Scrutinizing Your Costs 120 Getting in the Right Frame of Mind 120 Getting Down to Business 121 Looking into Cost of Goods Sold Expense 135 Focusing on Profit Centers 138 Reducing Your Costs 140 Chapter 7: Practical Budgeting Techniques for Your Business 142 Deciding Where the Budgeting Process Starts 143 Honing in on Budgeting Tools 145 Budgeting Resources 150 Preparing an Actual Budget or Forecast 150 Understanding Internal Versus External Budgets 154 Creating a Living Budget 155 Using the Budget as a Business Management Tool 158 Using Budgets in Other Ways 160 Chapter 8: Making Decisions with a Profit Model 162 Introducing the Profit Model 162 Stopping at Profit Before Income Tax 169 Improving Margin 169 Using the Profit Model for Trade-off Analysis 177 Pushing Cost Increases Through to Prices 182 Getting Behind the Reasons for Cost Changes 183 Distinguishing Cost Decreases: Productivity Gains Versus Cutting Quality 184 Part III: Dealing with Small Business Financial Issues 186 Chapter 9: Jumping Through Tax Hoops 188 Thinking about Business Taxes 188 Coming to Terms with Income Taxation and the Business Legal Structure 189 Filing Annual Income Tax Returns 195 Understanding How Taxable Income Is Calculated 197 Managing Payroll Taxes 199 Remembering Other Types of Business Taxes ( The Fun Is Just Starting) 205 Discovering Hidden Taxes 209 Chapter 10: Raising Capital for Your Business 212 Getting the Scoop on Capital 213 Developing a Business Plan 217 Finding Sources of Capital 220 Understanding Business Legal Structures and Raising Capital 226 Putting Your Capital to Good Use 227 Chapter 11: Diagnosing Your Financial Condition 234 Connecting the P& L and Balance Sheet 235 Spotting Financial Condition Problems 248 Part IV: Looking at Service and Manufacturing Businesses 258 Chapter 12: When You Sell Services 260 Comparing the Financial Statements of Service and Product Businesses 260 Looking at the Expense Structures of Product and Service Businesses 264 Contrasting Sales Volume and Sales Price Changes Impact on Profit 268 Selling Some Products with Services 272 Chapter 13: When You Make the Products You Sell 274 Setting the Stage 275 Introducing a Manufacturing Example 275 Computing Product Cost (Per Unit) 278 Tweaking the Basic Product Cost 280 Looking at Cost Accounting Beyond Manufacturing 287 Part V: Reaching the End of the Line 288 Chapter 14: Putting a Market Value on Your Business and Selling 290 Why You Need Business Valuations 291 How Businesses are Valued 293 The Keys to a Successful Business Valuation 297 Types of Business Acquisitions 302 Structuring the Sale of Your Business 303 The Business Acquisition Process 307 Chapter 15: Hanging Up the Spikes and Terminating Your Business 312 Looking into Business Terminations 313 Delving into Bankruptcy Protection 317 Planning the Burial 319 Managing Assets to Maximize Value 321 Satisfying Liabilities 323 Thinking about Employees, Insurance, and Taxes 326 Managing Logistics 328 Part VI: The Part of Tens 330 Chapter 16: Ten Management Rules for Small Business Survival 332 Remember That Planning Counts 332 Secure Capital 333 Don’t Overlook Management Resources 333 Understand the Selling Cycle 334 Don’t Fail to Communicate 334 Practice CART 335 Remember to KISS 335 Comply, Comply, Comply 336 Execute Your Exit Strategy 336 Know When to Say When 337 Chapter 17: Ten Hard-Core Financial Tools and Tactics 338 Understand Profit Mechanics 338 Understand Cash Flow 339 Know Your Sources of Profit 340 Analyze Year-to-Year Profit Change 341 Keep Sizes of Assets Under Control 342 Budget Profit and Cash 342 Audit Your Controls 343 Choose the Right Legal Entity 343 Stabilize Your Sources of Capital 343 Don’t Massage Your Financial Numbers 344 Appendix: About the CD 346 System Requirements 346 Using the CD 347 What You’ll Find on the CD 347 Troubleshooting 350 Customer Care 350 Index 352

If you’re a small business owner, managing the financial affairs of your business can seem like a daunting task-and it’s one that far too many people muddle through rather than seek help. Now, there’s a tool-packed guide designed to help you manage your finances and run your business successfully!

Small Business Financial Management Kit For Dummies explains step by step how to handle all your financial affairs, from preparing financial statements and managing cash flow to streamlining the accounting process, requesting bank loans, increasing profits, and much more. The bonus CD-ROM features handy reproducible forms, checklists, and templates-from a monthly expense summary to a cash flow statement-and provides how-to guidance that removes the guesswork in using each tool. You’ll discover how to:

• Plan a budget and forecast
• Streamline the accounting process
• Improve your profit and cash flow
• Make better decisions with a profit model
• Raise capital and request loans
• Invest company money wisely
• Keep your business solvent
• Choose your legal entity for income tax
• Avoid common management pitfalls
• Put a market value on your business

Complete with ten rules for small business survival and a financial glossary, Small Business Financial Management Kit For Dummies is the fun and easy way® to get your finances in order, perk up your profits, and thrive long term!

Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.

If you're a small business owner, managing the financial affairs of your business can seem like a daunting task--and it's one that far too many people muddle through rather than seek help. Now, there's a tool-packed guide designed to help you manage your finances and run your business successfully! Small Business Financial Management Kit For Dummies explains step by step how to handle all your financial affairs, from preparing financial statements and managing cash flow to streamlining the accounting process, requesting bank loans, increasing profits, and much more. The bonus CD-ROM features handy reproducible forms, checklists, and templates--from a monthly expense summary to a cash flow statement--and provides how-to guidance that removes the guesswork in using each tool. You'll discover how to: Plan a budget and forecast Streamline the accounting process Improve your profit and cash flow Make better decisions with a profit model Raise capital and request loans Invest company money wisely Keep your business solvent Choose your legal entity for income tax Avoid common management pitfalls Put a market value on your business Complete with ten rules for small business survival and a financial glossary, Small Business Financial Management Kit For Dummies is the fun and easy way® to get your finances in order, perk up your profits, and thrive long term! Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file. Note: CD-ROM/DVD and other supplementary materials are not included. If you're a small business owner, managing the financial affairs of your business can seem like a daunting task--and it's one that far too many people muddle through rather than seek help. Now, there's a tool-packed guide designed to help you manage your finances and run your business successfully "Small Business Financial Management Kit" "For Dummies" explains step by step how to handle all your financial affairs, from preparing financial statements and managing cash flow to streamlining the accounting process, requesting bank loans, increasing profits, and much more. The bonus CD-ROM features handy reproducible forms, checklists, and templates--from a monthly expense summary to a cash flow statement--and provides how-to guidance that removes the guesswork in using each tool. You'll discover how to: Plan a budget and forecastStreamline the accounting processImprove your profit and cash flowMake better decisions with a profit modelRaise capital and request loansInvest company money wiselyKeep your business solventChoose your legal entity for income taxAvoid common management pitfallsPut a market value on your business Complete with ten rules for small business survival and a financial glossary, "Small Business Financial Management Kit" "For Dummies" is the fun and easy way(R) to get your finances in order, perk up your profits, and thrive long term Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.