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 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. YouвЂTMll 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 wayВ® 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. Small Business Financial Management Kit For Dummies 5 About the Authors 7 Dedication 9 Authors’ Acknowledgments 11 Contents at a Glance 13 Table of Contents 15 Introduction 23 About This Book 23 Conventions Used in This Book 24 What You’re Not to Read 24 Foolish Assumptions 25 How This Book Is Organized 25 About the CD 27 Icons Used in This Book 27 Where to Go from Here 28 Part I: Improving Your Profit, Cash Flow, and Solvency 29 Chapter 1: Managing Your Small Business Finances 31 Identifying Financial Management Functions 31 Tuning In to the Communication Styles of Financial Statements 32 Previewing What’s Ahead 35 Chapter 2: Understanding Your P& L and Profit Performance 37 Getting Intimate with Your P& L (Profit and Loss) Report 38 Measuring and Reporting Profit and Loss 42 Presenting the P& L Report for Your Business 47 Breaking Through the Breakeven Barrier 55 Improving Profit 57 Chapter 3: Getting Up to Speed on Cash Flow from Profit 63 Sorting Out Your Sources of Cash 64 Avoiding Confusion Between Profit and Its Cash Flow 65 Deciding How to Have Cash Flow Information Reported to You 66 Introducing the Statement of Cash Flows 71 Summing Up the Critical Importance of Cash Flow from Profit 78 Chapter 4: Keeping Your Business Solvent 81 Liquidity and Business Solvency 82 Business Solvency Measurements Tools 85 Liquidity Measurement Tools 87 Liquidity Traps 89 Untapped Sources of Liquidity 94 Financial Leverage — the Good, the Bad, and the Ugly 98 Part II: Using Tools of the Trade 101 Chapter 5: Protecting the Family Jewels 103 Recognizing the Need for Controls 104 Clarifying Terminology 106 Reporting on Internal Controls 107 Distinguishing Security and Safety Procedures from Internal Controls 110 Policing Internal Controls 112 Surveying Internal Controls for Small Businesses 113 Presenting Internal Control Guideposts for Small Business Managers 116 Chapter 6: Scrutinizing Your Costs 127 Getting in the Right Frame of Mind 127 Getting Down to Business 128 Looking into Cost of Goods Sold Expense 142 Focusing on Profit Centers 145 Reducing Your Costs 147 Chapter 7: Practical Budgeting Techniques for Your Business 149 Deciding Where the Budgeting Process Starts 150 Honing in on Budgeting Tools 152 Budgeting Resources 157 Preparing an Actual Budget or Forecast 157 Understanding Internal Versus External Budgets 161 Creating a Living Budget 162 Using the Budget as a Business Management Tool 165 Using Budgets in Other Ways 167 Chapter 8: Making Decisions with a Profit Model 169 Introducing the Profit Model 169 Stopping at Profit Before Income Tax 176 Improving Margin 176 Using the Profit Model for Trade-off Analysis 184 Pushing Cost Increases Through to Prices 189 Getting Behind the Reasons for Cost Changes 190 Distinguishing Cost Decreases: Productivity Gains Versus Cutting Quality 191 Part III: Dealing with Small Business Financial Issues 193 Chapter 9: Jumping Through Tax Hoops 195 Thinking about Business Taxes 195 Coming to Terms with Income Taxation and the Business Legal Structure 196 Filing Annual Income Tax Returns 202 Understanding How Taxable Income Is Calculated 204 Managing Payroll Taxes 206 Remembering Other Types of Business Taxes ( The Fun Is Just Starting) 212 Discovering Hidden Taxes 216 Chapter 10: Raising Capital for Your Business 219 Getting the Scoop on Capital 220 Developing a Business Plan 224 Finding Sources of Capital 227 Understanding Business Legal Structures and Raising Capital 233 Putting Your Capital to Good Use 234 Chapter 11: Diagnosing Your Financial Condition 241 Connecting the P& L and Balance Sheet 242 Spotting Financial Condition Problems 255 Part IV: Looking at Service and Manufacturing Businesses 265 Chapter 12: When You Sell Services 267 Comparing the Financial Statements of Service and Product Businesses 267 Looking at the Expense Structures of Product and Service Businesses 271 Contrasting Sales Volume and Sales Price Changes Impact on Profit 275 Selling Some Products with Services 279 Chapter 13: When You Make the Products You Sell 281 Setting the Stage 282 Introducing a Manufacturing Example 282 Computing Product Cost (Per Unit) 285 Tweaking the Basic Product Cost 287 Looking at Cost Accounting Beyond Manufacturing 294 Part V: Reaching the End of the Line 295 Chapter 14: Putting a Market Value on Your Business and Selling 297 Why You Need Business Valuations 298 How Businesses are Valued 300 The Keys to a Successful Business Valuation 304 Types of Business Acquisitions 309 Structuring the Sale of Your Business 310 The Business Acquisition Process 314 Chapter 15: Hanging Up the Spikes and Terminating Your Business 319 Looking into Business Terminations 320 Delving into Bankruptcy Protection 324 Planning the Burial 326 Managing Assets to Maximize Value 328 Satisfying Liabilities 330 Thinking about Employees, Insurance, and Taxes 333 Managing Logistics 335 Part VI: The Part of Tens 337 Chapter 16: Ten Management Rules for Small Business Survival 339 Remember That Planning Counts 339 Secure Capital 340 Don’t Overlook Management Resources 340 Understand the Selling Cycle 341 Don’t Fail to Communicate 341 Practice CART 342 Remember to KISS 342 Comply, Comply, Comply 343 Execute Your Exit Strategy 343 Know When to Say When 344 Chapter 17: Ten Hard-Core Financial Tools and Tactics 345 Understand Profit Mechanics 345 Understand Cash Flow 346 Know Your Sources of Profit 347 Analyze Year-to-Year Profit Change 348 Keep Sizes of Assets Under Control 349 Budget Profit and Cash 349 Audit Your Controls 350 Choose the Right Legal Entity 350 Stabilize Your Sources of Capital 350 Don’t Massage Your Financial Numbers 351 Appendix: About the CD 353 System Requirements 353 Using the CD 354 What You’ll Find on the CD 354 Troubleshooting 357 Customer Care 357 Index 359

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.