Basics of BookkeepingJun 17, 2021
good evening everyone welcome to our webinar for tonight we're talking about the
basicsof bookmaker accounting it's Saturday night and I'm glad you guys were here with me for another webinar in our webinar series fast forward to 2020 thank you for joining us um if you are with us if you saw the comments before have you started before? Have you tried to track your spending before tonight? your expenses have you experienced that before um let's see let's see maya yes dal unless you good night carmella maricel john from bulacan jane from quezon city jaleen hasn't tried to track expenses and good night shirley chorito myla maya ponchano matteo doris ever um hope um greece hannah hello good night silvia ian tin yvonne remundo um to ted frelin jeffrell giselle tessa uh anna cherry javelin casey isabella nene uh marielle jenny jerry hmm that viewers name we have um over 2 50 viewers out of 300 um i haven't tried to track the paris expenses between buy discord but i got in ok i'm going to freeze on the timer on the timer next stop um a lot of people have tried to track but most have tried to track their spending oh yeah every month july habit i've tried to do a tracking my expenses and this is what
bookkeepingis all about is keeping track of yuma transactions keeping track of expenses , so yeah hi good evening thanks for tuning in tonight and if you know we're doing it.
This is free as part of our advocacy, just um, to let you know and I want you to know that I encourage you to share this webinar on your Facebook wall and know that we were spreading the word and helping other Filipinos improve their lives through freelancing education so you can share this webinar on your wall so you know they can hear about this too and the
basicsof accounting and freelancing online now today is actually our penultimate webinar for this breakthrough series fast 2021 s no it's the 7th next week it's the last it's going to be the 8th um today we're talking about the basics of accounting next week we're going to close by talking about marketing your freelance skills ok so that goes This is our last webinar, I hope you have attended, have you seen it with full attendance, have you attended all seven in the past and do you have all the cer tificados now let me know in the comment section if you have or how many certificates you have now how how much attendance how many certificate how many certificates do you know now that we have been you have been attending these webinars and this last one next week what happened in marketing your freelance skills so this is where we apply the skills and really try to find clients so we don't just learn but we apply these skills and we want to find clients that's why next week we're talking about marketing your freelance skills also if you have attended our previous if you missed our previous webinars not at all three thousand john um to grace michie three gisele a lung if you missed our previous fast forward series webinars 2021 can you binge watch me netflix binge me watching tayo um we have them all organized on one page so you can eda find all your bombs of courage plus nothing with just one click so just go to this website webcam.ph slash ff 2021 vid you can bookmark that link see all previous webinars including this one we're going to put that in there too, on this page on accounting basics you can see them all on one page in case you missed them of course you can't get the cert mod cert timelines so you won't be able to get those certs, but it will. being able to get today's certificates ok you can look at these last ones and still know look at them they won't be around forever ok we are going to put them out in December it will only be for students um starting in December but right now I still you can see them and this webinar will also be a part of that and at the end of this webinar I want you to say that we have a special treat, we have a special announcement for everyone, not just my winners, not just the certificate holders, but you all are going to get a gift alright from the va boot camp team you are going to get a gift and very excited about it so stay till the end until we talk about that gift so even though after we talk about accounting we have a surprise surprise do you like the surprises? comment yes yes you want your surprise let me know if you want a surprise or no bye onion surprise surprise so let me say yes I want a surprise ok it's my first time um yeah I glad.
You're here I'm glad you're here to join us thank you in advance a gift oh my gosh surprise okay we also have our certificate of completion if you stay until the end of this webinar I'll give you instructions so you can. get a certificate of completion and you can add th is you can show this to potential clients to hire you and you know you can show them that yes I know how to do
bookkeeping. I have attended the basic accounting workshop launched by the va boot camp. let's dive right into tonight's shoot oh damien guston surprise miletta matteo delia imelda hannah anna jenny lizelle rove joanne jennifer rose oh nice diamond surprise crystal gene ok ok so let's jump right into tonight's shoot so our coverage today This is what we're talking about tonight, first of all, what is bookkeeping in basic terms, turning a basic on what is bookkeeping, then we're going to compare bookkeeping and accounting, okay, And then, um, do you know the difference between bookkeeping and counting?
Baha, some of you already know the difference Some of you may not know the difference, but we're going to talk about that, we're going to talk about different reports in accounting, we're going to talk about balance sheet and income statement a statement of cash flow how is double entry bookkeeping um t accounts and transaction workflows based on what's actually in the quickbooks software okay so let's go ahead and start bookkeepers existing bookkeepers um here let me know if you're a bookkeeper huh and you're attending this maybe you just want to know what it's like online or experience in bahama accounting case let me know about accounting experiences um does anyone have experience or is a current accountant me an accountant so yeah let me know To know now before we dive into what accounting really is, um, you might be wondering how much bookkeeper jobs pay per hour. bros ok how much do accounting jobs pay per hour? usually hourly and based on a pre-approved or agreed rate now based on my research my surveys on Zip Recruiter the average hourly rate for a bookkeeper is between 19g per hour ok that's the average rate, so that's what you can see here in dark green that's about 19 an hour but experienced bookkeepers can make 35 bucks an hour 40 bucks an hour bookkeepers who are adept now in accounting skills earn as much as 75 an hour, okay, that's a lot of money, right?
And these are bookkeepers in the United States. Tayo if we offer accounting as a service. Yeah, we probably won't charge nineteen dollars an hour on average. we charge half that amount, even if you charge ten dollars an hour, that will end up at 500 pesos an hour, right? And typically what we see is bookkeepers charging as much as 10 15 per hour as hourly rates go up to 500 to 750 pesos per hour. it's what they make for every hour of work they do well so you pay it's pretty good do bookkeeping soon will be accounting experience but former undergraduate accounting clerk oh um jennifer accounting graduate 16 years as a personal accountant so never you would experience it, other people already have experience and you can translate it online to work online eg mime and jobs either national average 19 per hour on the left side of the scale 10 on the right side of the scale, we have 28 dollars and 61 cents, but the national average in the United States is 19 and most of the clients that we have, most of the clients that we target are in the United States, so it will be 19 per hour and you know like i said you can charge 10 15 an hour and as long as you know you are a good bookkeeper if experience ko or made knowledge go you can scale the skill its very easy for you to charge 10 15 an hour now as a bookkeeper now there are different jobs and now i am in my jobs online when it comes to accounting here are some examples if you study more and you get pr actice you can apply for these kind of jobs like office assistant , ledger, monthly task based quickbooks knowledge project so this is accounting work how to set up quickbooks light file data entry how to catch up on 2 and 2020 work backlog .so your transactions, yes, from January to November, you need help with them.
Daily Quickbooks. Help to reserve an account. Bank account. Installation of credit cards. home office in the east has a local job some of the time can be remotely good someone is looking for a side hustle and so on now who here is who here knows how to use quickbooks does anyone know how to use quickbooks here because i ask because maybe already You can apply for these types of jobs if you have experience with Quickbooks because a lot of the time that's what they're looking for. ickbooks is the most popular memory over software so i did zero beachtree main and so on but quickbooks is the most popular so if you know how to use quickbooks if you experiment with using quickbooks now you have a head start ok , and we are talking about us. we are going to deal with quickbooks a little later tonight ok here is another qbo quickbooks job posting online accounting job for an accounting firm we are an accounting firm looking for a freelancer to help with needs Ongoing bookkeeping from our monthly clients, we currently require 20 hours per month, the freelancer will work exclusively on Quickbooks online and will be responsible for coding transactions that you can sign and save money for each small business or non-profit organization.
These are the qualities we look for in the position Honest and Trustworthy qbo software experts who know how to use banking rules. code transactions. Journal entries work efficiently in qbo. human bank reconciliation is really very important between reporting then attention to detail able to multitask and manage projects and this guy budgeting nia per hour is 15-25 bucks per hour so this is a job that if you know how to use fast books if you are an expert in fast books you know how to use journal entries um bank acknowledgments bank rules then these are the kind of jobs you can apply for certified balance or if you are certified if you're a certified professional quickbooks consultant online and can take the test it's free for the whole month that's already a huge plus when applying for formal accountant jobs online so that's something you can definitely do oh maybe he'll play them and not worry all about it.
Okay, let's start diving into accounting. I just wanted to show you that my work is available. Your average fee for you to have an idea managing an opportunity. However, every business, every online store, every business needs an accountant. r they need especially in the US report you have to declare your taxes unlike lazada in the malls many of them don't report the taxes they want so they don't do the bookkeeping they are in the US. very strictly they can track and find small kaikimo sellers so amazon ebay etc need accountants to track their spending to keep track of their income so they can properly report to the IRS so there is a demand from more companies. there are more bookkeepers needed and can even be a virtual assistant a focus on accounting i know there are some of your goes out there you can add this to your skills so you can not only help your client with administration between research but even some types of accounting jobs as well ok let's take a look at accounting so I'm not talking about accounting so what is accounting so it's the process of recording all financial transactions made by a business ok all financial transactions so that bookkeepers are responsible for recording, classifying and organizing every transaction that takes place throughout the course of business operation so that every business is ok now there are more transactions there are more transactions than notthey have to do with money, but most of the time to make it simple, um, we're going to focus on the transactions that we understand by transactions most of the time the money coming in and the money going out, even if it's from a credit card or check or future payable money going in money going out so this is the very basics but I mean more advanced transactions like there's depreciation there's amortization um that don't involve money pedals a that can still be assigned a value, so they can still be assigned a value, even though there's no money coming in directly, they can still be assigned a monetary value can value match everything that happens in the business and that's an accounting tracking every thing that happens is an accounting tracking money coming in that s money owed to us ok money becomes money having ours as a business and then money going owed to others or money going well so this is the right thing but enough transaction recording oh transaction recording at pinnacle basics when it comes to accounting that's what proper accounting helps our client Answering some of these questions is fine, so how much money am I really making?
Because when you have a small business or cash flow, it's very important money and money when you have, although really, even if you're not going to practice accounting, but it's you. you are looking at your own business as a freelancer or bahamas business this is also an important topic for you it will be interesting for you so with accounting the client or business owner can answer the questions of how much money I'm really earning which is hard to answer because I'm doubting my spending they buy it if we're not tracking ok money in money out but if we're not tracking we don't know how much money we have but we just see money com. ing on the money that goes out so it helps them answer this question how much money am I actually making how much do I have to pay how much can I afford so my expenses a lot of times business owners spend too much money because they don't track it they think it's ok the content i'll spend on this advertising i'll buy this new team but if they're spending too much money on napala and if i have enough to invest that's ok so it helps them answer these types of questions well um full time omg my experience , assets, liabilities, equity, or principal, okay, so what do bookkeepers actually do?
Usually a bookkeeper if you are interested in becoming a bookkeeper you should know what a bookkeeper is. you get scanned receipts ok so if you're working with a client no of course there's another country like the usa i'm going to look at nd copies of the receipts and then um what you can also do is download transactions from banks from quickbooks and you can automatically download auto recording because it's a bank like we did we have our bdo our transactions bpi download multinational online we can even download the same thing here you can download the transactions from banks in the usa and then you can record These transactions in the software for you to review the receipts and then the customer sends you, downloads the transactions from their bank accounts and records them. in the software for revenue to come in and out transactions post it to multiple accounts so multiple accounts means the different bank accounts the cash account the cash on hand and then track and classify the transactions too so when he sees a receipt, he sorts it all out. categorize what type of transaction is purchasing supplies is it a salary transaction is this for ads is this for marketing is this s for equipment so you will get all these transactions from my bank statement receipts from among the csvs of banks, you will examine them all, record and classify them for each transaction. this is to buy a piece of equipment this is for supplies so what you might as well not do all the time but you might as well process payments ok you can process payments in an accounts payable example they bought something that had a 30 day due date shopping you can process payments you can transfer online many times you can also do daily banking like writing checks make fun transfers and this is more if your customer trusts you now or goes down if they don't give him access you can tell them it's ok what You can send reminders to the customer that you have to process these payments, you have to perform these activities, and lastly, you will also produce various statements of cash flow from the profit and loss balance sheet and these are important tasks that bookkeepers perform.
These help customers make business decisions and often don't like to look at receipts. Look at the transactions. Sorting out transactions isn't a hassle because it's for a business owner, but that's what the bookkeeper is for by the book, the business owner can focus on other things and then the bookkeeper what they're going to do is be the ones in charge so at the end of the month you can tell your customer or you can tell the business owner that he spent five thousand dollars on supplies this month or raw materials on sleeve electronic circuit boards so he can give him a tell the client now and it will really give you an idea ok how much money do they really have etc. you have to write it down on a piece of paper in Quickbooks automatically in total automatically in total so it automatically calculates how much was spent in total on advertising how much was spent in total on supplies so it gets booked like most softwares are really good for that , okay, um, we don't seem to have any questions, so bookkeeping and bookkeeping differentiate bookkeeping from bookkeeping, who knows the difference between bookkeeping and bookkeeping, does anyone know the difference between these two? difference between bookkeeping and accounting ok let's see let's look at some transactions some description here so bookkeeping is the process of keeping records to track your finances accounting is when you process and compile account information and analyze data ok so you are analyzing data accounting you are tracking accounting is more analysis ok accounting keeping and balancing accounts ing account you analyze general health finance by reviewing records so i analysis oh , it's more analysis once you get into accounting you keep records oh and you know what's going on by accounting you look at trends and predictions bookkeepers record the day to day transactions of your business. and they generate data they record data the same way whenever accounting accountants check recorded data on financial activity they turn the data into statements they give you a bigger picture so not just what are the trends and what are my predictions in accounting, it is very important to keep accurate accounting records. what you do is make money forecasts based on records so over the next five years over the next 10 years what might happen that's accounting accounting this is what happened in the past accounting future looking ahead accounting documents categorized for income tax declaration accounting preparation annual personal and commercial income tax returns, so it is another thing when it comes to tax returns.
Bookkeepers tend to categorize. They make sure everything is recorded. The new counters are the ones that prepare the humans. Accountants post debits and credits. They make adjusting entries and they do audits, so audits mean they double check. They verify that they are not just new accountants. the foundation accounting is the foundation of your finances you call the bookkeepers when you need help with your books accounting is higher level processing when you need to make good sense when you need to interpret and do analysis to make predictions that's when you call an accountant so most of the time most of the time um bookkeeper for smaller companies they really just deal with a bookke For example they don't need accountants especially in business they just deal with a bookkeeper and then deal with a accountant once a year to prepare your tax returns, but other than that, the accountant does not deal with smaller businesses.
Smaller business accountants are also expensive, so bookkeepers keep bookkeepers. Accountants only go into special cases when they need forecasts. When they need analysis. That's when accountants come in, of course, for larger companies that do manga forecasts and analysis all the time. Accountants are important but for smaller businesses and most of my clients are not online among the smaller businesses you know accounting starts when accounting works and oh that's a good description accountant everyone sets everything up tapasna recording then account that's when accountants start working now they audit double check analyze make predictions so again data from experienced bookkeepers and accountants is ok some online reporting is ok now that we have the definition and differentiation between the accounting account let's take a look at the different reports that are important to accounting so if you're doing the accounting for if you're going to be doing the accounting for your client you'll be dealing with a balance sheet okay this is one One of the most basic reports in accounting, so the balance sheet is based on the fundamental equation, okay, so maybe the idea can be based on the balance sheet that assets equal liabilities plus equity, okay, so assets equal liabilities. more equity and I will define what they are.
I know these terms may be a little foreign to you, but I'll discuss them, but each of these are on the next few slides, okay, but for now yes, from our assets with or or me. I'll give a quick definition of assets so what you own what you own equals liabilities which means more equity which means you're worth your true value so let's say okay let me give you a quick example of a balance sheet In general, okay, so it's an asset, the best cell phone, let's say you value it on the cell phone, it's thirty thousand pesos, okay, there's a thirty thousand pesos cell phone, so your Italian asset has thirty thousand pesos, but for for me to buy it, I had to ask for a loan, okay, let's say my loan is fifteen thousand pesos, okay, and then your real property objective, so its real value is actually fifteen thousand, so why the value is thirty thousand for meutan fifty thousand, so that is what the assets are thirty thousand, the liabilities are fifteen thousand well, I mean the fifteen thousand and you are worth your value ninety-one, that is the capital, which also it's 15 000. well hope that clears it up a bit here yeah the balan ce is a statement of financial position ok that's the statement of financial position how where does a company stand financially ok here's an example of a balance sheet right now so we have more numbers than we won't go through all of these but on the left we have total assets on the right on the right we have liabilities and equity so on the left we can see cash we can see accounts receivable inventory Prepaid expenses, investments, buildings, equipment, ignore these, organization depreciation, well that's more. advanced better that's part of accounting too bookkeeping um you have total assets here liabilities accounts payable notes payable accrued expenses deferred income so basically 247,000 and then what's left is equity value so common stock paid in equity retained earnings treasury stock so this is an example of a balance sheet here okay um thanks so thirty thousand equals fifteen thousand and thirty thousand new asset new amount of asset equals fifteen thousand which is um the utang plus the value how much I really have the value that is fifteen thousand because initial thirty thousand although I have the cell phone the thirty thousand reais you have left the initial value is minus fifteen thousand the responsibility of fifteen thousand look, that is a very basic example and I know that there are some errors with that terror that is like a basic way of understanding well, that made that kind of hope that it has clarified that for some people that is a clear example, but ro let me know in the comment section if it's clear write clear if it's not clear just say you're not clear about the capital that the company owns ok well good listen that's clear that's why the balance is basically and you have your real value in real. word sayo that's e1 so if you have all you own is capital that's the value you have yes then your assets and liabilities shouldn't beequals it's ok if assets equal liabilities in a very scary business and assets can also equal equity in business but usually business it's always part of business well that's good to hear , it is good to listen and clarify, it is good, it is good to hear that it is clear, shy assets, assets minus liabilities equals capital and I am not assets plus liabilities. ies assets minus what you own versus what you owe is you value their value balance balance according to what is the balance sheet it shows the total assets of a company how the assets are financed through debt or equity they utang or through value then Actual value or actual value may be called a statement of net worth or a statement of financial position;
Now, the balance sheet provides a snapshot of the company's financials as of a given date so you can get a good look at how much in equity, how much you value, how much money. have a business um it's like they buy if it is yes how much does the uttara company have if it's all utana then the company is very in trouble but you can see you can it gives you that idea in a quick screen and a snapshot it's very important it's very important to a business because you can see how liquid a business is which liquid means how much money they have to spend and also how efficient they are when it comes to things like debt to equity ratio that equity ratio means how long a company has been in compared to how much, how much value are those are things that companies want to keep in mind or keep in mind at all times because they want to make sure that their business is healthy. it's a young yellow paper in a 12 12 column, so what are the assets?
Assets are something valuable. Your company owns equipment. how much do i have So if something has a value and you have ownership of it, it's an asset, so it's a cell phone just like before. I have ownership of it. I still technically have it right, so it's an asset of 30,000 pesos, equipment, land, buildings, intellectual property, what other people owe you, you can count them as assets, intellectual property, copyrights, etc. e all assets ok the worksheet includes accounts receivable so that's what people owe you accounts receivable um cash inventory so these are most stocks that you're going to sell, you own ownership of them and they'll possibly bring you future, um, future value, okay. that's one thing that also falls under the definition of an asset, it can provide you with potential financial value in the future, okay, um, property, plant and equipment, so all of these things are necessary to operate the business and will bring future financial value is ok of course there are other things intangibles etc basically if we think about it these are the major asset categories maybe someone wants to add among the major asset categories but cash , accounts receivable, inventory, property, planting equipment, ok, asset is any possession that has value in exchange, yes that's correct, anything that has to have financial value, any resource that is property from the company all this stuff around here so again i remember doing business after i got a score which was after a sem balance ok ok ok so passives let's move to passives then s liabilities are something a person or business must let me get through this a little faster liabilities are settled over time the transfer of economic benefits includes money, goods or services. liabilities as part of the business, therefore, passive liabilities, current liabilities, we have current liabilities and non-current liabilities, current liabilities, generally, are accounts payable, accounts receivable are money that is coming in and possibly come in, accounts payable is manina, we owe to other people, current debt, promissory notes so these are different forms of utam and current portion of long term debt is ok so these are all forms of utah I will not go into details here.
Non-current liabilities are utang that will be paid within more than one year. Current. What we mean by current is in one year. so it's ok next year pa payments are ok so we have bonds payable and we have long term debt here so yeah i won't go into too much detail there but we have your liabilities which are those are all just different forms of uttam you can have ok next we are talking about shareholder equity it can be um shareholder or owner equity it is the amount that shows how much the company has been financed with the help of common shares and preferred shares. that's the technical term it can be called share capital, capital statement, shareholder equity or net worth ok and on the balance sheet assets minus liabilities equals equity ok so all assets minus liabilities equals equity, and typically this is the amount you own.
I'll put this here on the next slide here, so it's the equity, the investment that the owners make in a business that's part of the equity, okay, plus retained earnings, so their income in the past, therefore , retained earnings means that it is the income of the last two years. that is kept by the owners now hindi paid so as the company grows as the company makes income that is added to what we call retained earnings so if they don't pay sometimes a company when it has profit will you will pay but what is not paid is called retained earnings and that helps continue to increase the value of a business ok so if we look at the balance sheet again we have assets what you own equals liabilities what you owe plus capital, which is what's left over, okay, so if you make it simpler, all you own are your assets and if you take out a home loan from us, a car loan, a cell phone loan, what's left it is a new capital, a new value, how much value does it really have? ity and that's what looks good um terms that's why I scrolled through the different terms but basically this is what you have to look out for ok I'm looking if you have any questions if you have any questions let me know know in the comments section the second thing we're looking at in the second report is called the income statement so a young balance sheet on we have what you owe minus what you owe and what's left and when we look at the income statement and this it's an example of an income statement income minus expenses is ok and then we have different profit and loss and we have net income at the bottom ok so basically it's an income statement profit and loss statement it shows the income and expenses of a company for a set period of time, usually every year, okay, you do an income statement, okay, so you have all the income, all the sales, the income s minus all expenses and then you get the net income, it's pretty simple and we're talking about one input. comes statement its purpose is to show shareholders and my investors the com the company made money or not for a certain period is ok and the difference between the income statement and the balance sheet is the period of time so the balance sheet is everything well balance sheet you bought it 10 years ago, okay, there you are, you made money 10 years ago, that's part of your balance sheet, the income statement is in one year, how much did you earn or in three in three months, how much did you earn in that specific time period? income statement the balance sheet i showed you earlier is like a specific date is all the income statement is at a specific time period level or income and expenses minus expenses is ok so income is also known as income is ok so between the sales, you can include interest from bank accounts my earnings on investments are not going to be most of the time they are sales ok my sales income from sales before deducting the form uh additional deductions um i won't really let's go over this here we're going to stay short and over time the best sales income comes from your sales okay that's what you have to remember here okay income income so when we talk about income these are different types not just your sales income where also you can earn income from your bank account interest interest on loans um and other sources then rent rental income is alright that can be an income versus a sale so sales are part of income it's just a form of income income can have many different types of income let's say profit profit is yes i won't we won't talk about profit too much but if you sell long term assets and have an increase in value that's kids ok the next expenses are the cost of running a business ok so to run the company for the most part you generally have expenses you know it they say it costs money to make money that's the popular saying it's a cost experienced by a business you pay vendors you pay your vendors you pay your vendors um and when even if you use cash or you pay in utah it's still an expense, okay, if you say that's okay, that's an expense too, so it doesn't necessarily mean cash is exchanged whenever the expense is incurred, which means you've already agreed to it, then that's already an expense po Because sometimes in the business world the value you can get like, say, peanuts from your supplier but due next month is still an expense even though you didn't pay any money at that specific time there are operating expenses usually utilities rent huh mortgages there are advertising expenses are professional fees some lawyers my accountants consultants are included in professional fees employee benefits of course including employee salaries and more supplies, supplies are usually consumables such as pencils, pens, staplers, paper, etc. are considered supplies that are not generally considered. do not count them as assets because they are very consumable, that is, when you know it in a week or let's see a week one month, you know that they are consumed, so they are considered expenses, they are not considered assets, assets are things that are a longer term, um, expenses are usually more short term, like these things right here, so yeah, let me look up, let me see the can that I have. peanuts, actually, we have a whole course on this if you want to sign up for it by then, so yeah, why are income statements important? um it indicates profitability because no matter how much money in assets on the balance sheet we see how much money is worth that it has but on an income statement you can see the trend ok you can see if the business is profitable this year well or for a Given a certain amount of time and timely updates and classifications of income and expense operations, you can see how much is being spent on marketing, how much is being spent on supplies, and so on, and all of those are important things on a company's income statement for managers.
Short-term income statements are a very important comparison versus longer-term balance sheets because when you're talking about smaller companies, they care more about income statements, it shows how profitable a company is, even if it has a lot of money. money but lugia and business model even if the assets are ok but If you look at the negative income statement expenses are more than revenue then that v to in a bad direction, okay, so that is the profitability of a business that is also very important. I need puppies for my brain cell store. confusing discussion journal writing practice nothing that's too much if we do journal entries because we won't deal with journal entries that's confusing so yeah um now we have the cash flow statement so let me help you this question before we dive into cash flow statement what is the number one reason small businesses fail in the first five years of the business what is the number one reason businesses fail so what do you think i know your comments below, what do you think is the number one reason why there is actually a study stating that 80 percent of small businesses fail within the first five years of cash flow?
Do you know our guest nila? They don't measure their income and expenses they don't control cash flows either they don't control it correctly correctly and because they don't monitor it properly they can't manage their cash flow correctly that's ok poor cash flow management or a Poor understanding of cash flow contributes to small business failure, which is why my banks in the US found that 82 percent of small businesses fail because they don't properly track and control their cash flows, so it is very important that you control your cash flows. and to hold cash cash is important ok my accounts payable which means people will pay you money but if you don't have cash well you can't survive as a business so that's when the sums up cash flow statement. the cash coming inand the cash coming out new statement of cash flows which is cfs measures how well a company manages its cash position, which means how well the company generates cash to pay its debt obligations and finance its operating expenses the cash is really important you know if you have that much value that much equipment cash you're going to have problems so the cash flow statement is another thing companies really look at so an example here cash flow from companies operations so we have additions to cash subtractions from cash don't mind the term much but what you have to remember is just cash cash withdrawn that's okay where is the money is okay what money came in what money went out and how much money is left that's all the cash flow statement ok we have these terms here but I know a lot of you don't like to see this sheet here but that's cash how much is cash comes in, how much cash is withdrawn, how much cash is left, so in the business there is money coming in.
From customers who buy your products or services and other sources, the money comes out in the form of expense payments, etc. flow um some companies what they do is make a lot of sales they make a lot of sales but utampala like mangasaris get restored and then maybe they pay you in three months but you need the cash right now. to run the business you have to make expenses, you have to pay rent, you have to pay mortgages, so you're managing cash flow, it's really important for small businesses, it's a skill that's important for small businesses, therefore , for companies that want to better manage their cash flow and avoid emergencies where they have to take out loans or need to look for financing they have to control their inventory, which means they shouldn't have too much inventory they don't buy everything as is well and I'm going to make t-shirts i'm going to buy a million t-shirts yes you have assets but where is your cash?
It's all in the t-shirts and now you're going to have a problem, so keep an eye on the inventory. you have to store new um collect receivables collecting that is sometimes really hard for a business to do but it's also a very important and unprofitable relationship so now there are times when a business like say sorry you I'm sorry, he's in storage because he wants to end his unprofitable relationships. now it's not being paid or it takes that long to pay now no the business had trouble running because the cash flow wasn't right so that's the in and out of the cash flow statement you know and that's a big problem they have to end that relationships with people who take so long to pay or don't even pay anyone they pay you but six months later and you need the cash right now this is the same when we do a personal budget record our expenses and the cash flow and make forecasts on the state of our finances oh and as a staff stagger your money human or bank expense accounts receivable hindi um ok let's talk briefly about double entry bookkeeping. the first thing to talk about when it comes to accounting and this is a bit this is a bit so we'll just go into this if you're already interested in accounting you know if you watch this webinar and say okay I want to get in to bookkeeping take our free bookkeeping course by the way bootcamp.com free bookkeeping course if you want to learn more about bookkeeping because this is double entry bookkeeping. be a little technical and a little quick, just warning you up front, jemima, um, you don't track your cash flow, as much as possible, you should track your cash flow, just list it, yeah, runs today and then for a certain period cash coming cash coming that's all it's very simple so again double-entry bookkeeping so double-entry bookkeeping is the system that accountants use is the system that accountants use bookkeepers when they record the transactions ok so how it works is in debit and credit we hear this many times in debit and credit accounting whenever a transaction occurs there is always a debit and there is always a credit so it should always be the same when recording transactions, meeting these requirements will result in the ledger or accounting equation being in balance at all times is ok so it's always the same l every time you debit, you also credit, okay, every time you debit, you also credit now, when this is the whole really accounting system, okay, this is the complex accounting system, it's double-entry accounting and this that's where we classify well so when you think of debit and credit usually when you think of debit you think of it as good credit bad but when you talk about double entry bookkeeping which is no don't think about it no there are good debits and bad credit, debit increases on the left side, okay, and then credit increases on the right side, okay, there is left and right, there is debit and credit, I am going to show you the different types of accounts that we have, we have different categories of accounts, we have the balance sheet account, which is assets, liabilities and equity, and we have the income statement accounts, which are income and expenses, these are the five different types of accounts okay? can someone give the link um to the free course free uh viabootem.ph free accounting course it's a thank you mark so these are the different types of accounts when it comes to accounting it's ok now default is ok by default memory default settings accounts default assets are debits well default assets debits liabilities and equity are default credits remember credit debits always equal credits so if you're looking at balance sheets assets equal liabilities plus equity so the assets are always debits liabilities and assets are credits by default ok you know the default setting ok on the other hand in income statement accounts income or income by default is credits , it's ok by default this credit spends by default your debits are ok that's something that d You have to keep in mind so if you are going to increase an asset from accounts now if you are going to increase an asset you debit an asset because your default setting is debit you just have to remember the default setting on liabilities if you are going to increase a liability or equity that credits so you use the right side there's a left side and a right side that's all you have to remember if you're going to decrease an asset using the opposite side is fine so assets increase increase if going to decrease use the right hand side credit it ok same for others you you each type of account has a default s Setting if it's debit or credit so debit left the credit to the right I mean default settings.
If you are going to increase it, go with the default setting. if you're going to downgrade a certain account then it's going against the default settings nila ok so I won't dive into too much detail here but the thing to remember here is that you can set me the default settings that you will downgrade it, Whether you're going to debit it or credit it, whether you're going to tip the scales to the left or to the right, okay, that's what you have to remember with debit and credit, but yeah, this we can, we can talk all day about double energy accounting so again an example here to illustrate double entry if a company charges 500 from a customer who had previously purchased goods and credit is good so the assets for the assets they bought th eir if they collected 500 so a company collects what they collected from an ultang that would previously buy goods and credit the company will make a debit entry which means they go to au increase your cash should this actually be a better journal entry the company will increase your cash by 500 and cash is an asset liability capital income or expense what is another category cash is asset is an income or liability capex on normal balances in default setup what i mentioned earlier oh young cash is an asset so increase if you're going to increase an asset debit an asset ok debit an asset and then what you do is that you need a dog there make a credit entry of 500 in the assets accounts receivable account so you cashed in accounts receivable earlier it was listed as accounts receivable now going to list na bayadna so no more accounts receivable receivable from this customer so the accounts receivable is an asset and you're going to decrease the asset account by 500 so you're going to credit the accounts receivable by 500 okay that's it one more time can s repeat this I won't I won't go over this in more detail but uh but you can repeat watching this and dive into my journal entries on double entry bookkeeping but yeah this is more optional now it's deeper it's okay yeah lastly we're going to talk about the accounts um or do we have more workflows but I don't think we'll have time for that the account so when we look at double entry ledger when we had debits and credits and stuff usually It shows up in the t account, it's just a graphical representation, so before, for example, if you have a t account of all assets, so you collect everything, all debits are on the left, all credits are on the right, this is how you run the account and you can do the accounts for each type of each type of trends each type of um account so for your cash if you are going to increase your cash that you list on the t side on the t side you are going to list the magnifications on the left side and the s decreases on the right side you know if you have your account for your cash the account for your cash here all your all your increases are on the left all your decreases are on the right so all your increases are debits all your decreases are credits like this that's how accounts work ok um they're also called ledger accounts ok so when the debits are on the left the credits are on the right ok that's all you have to remember with second accounts once more these are more these are the more technical aspects so we won't dive into too much detail right now if we go to Quickbooks let's briefly go over Quickbooks here and look at transaction workflows and Quickbooks so there's a customer when we're talking about customer-centric transaction workflows, they have an account, they're very willing to learn within Quickbooks, uh, when you're getting paid, what can you do? what you do is create invoices ok you could when you create invoices in quickbooks create record a sale and also record accounts receivable record now you have made a sale and someone will pay you so invoices mean hindi hindi bayan ok ie people will owe you money when you have an invoice so sell and have receivables and then that's the first transaction you create ok let's say someone will buy you peanuts you are a supplier but they will not pay you at this time.
I will pay you in 30 days, so you create an invoice Auto-invoice due in 30 days, so the sale is recorded on the invoice. increase cash decrease accounts accounts receivable here and then the next step in this workflow is to record the deposit so step by step ok make a sale now account create invoices get paid so get cash decreases uttam and then records deposits so the customer is going to record going to the bank to make that deposit um they are going to decrease their cash on hand and increase their cash at the bank for that given account ok like this that this is a workflow a customer centric workflow another workflow is when you take the first step so look here step one and then step two step one you create sales receipts and immediately post it like a deposit it's ok payable early in 30 days workflow number two is if the transaction is cash jung you create a sales invoice don't create an invoice that's when they're going to pay you in the future they can receive a larger amount you create a rec sales ibo if you're doing a cash transaction so cash then sales debit increases cash then credit sales so you create a sales receipt click here on sales receipt Quickbooks and then once the customer makes a deposit you just record the deposits so yeah the third workflow here is the third way you transact when dealing with customers in Quickbooks is with estimates and you can also use what we call progress billing so it creates an estimate so usually someone uh let's say I'm on a construction project creates an estimate okay hindiba finalized estimate no It doesn't mean there are still sales because the estimate is an estimate, but when the customer creates an estimate, what is it going to do?renewals by any client, you create an estimate and then the client looks at the estimate once they accept the estimate, they create an invoice and it says ok let's get to work, you pay this in 30 days and 30 days later you get paid and then you record the deposits you can also do what we call progress billing now let's say for a million young people the first bill is 25 25 25 25 that's also known as progress billing so these are just the different transactions in Quickbooks and how it works estimates are the same as quotes yes so here is the same as quotes yes exactly in quickbooks You don't have to really understand accounting, you can do double-entry bookkeeping, it helps, but if you're dealing with fast books, all you have to do is do these things: create an invoice, receive payments, record deposits, or create receipts for sales, register deposits or create. an estimate or a quote creating invoices getting paid and recording deposits is really simple so yeah progress invoice and build progress is the same thing um you really don't have to worry about all the technical stuff all the mondo bleeding stuff usually when you're doing bookkeeping you don't have to worry about that it helps if you know but when it comes to quick books all you have to do is enter the amounts and in these different transactions and now it's very simple ok that's the cool thing from um software like Quickbooks you don't need to know the technical stuff you can just do it in the software the workflow floor is a little bit longer I want and five and six we won't discuss that but these are just more steps on how can handle customer workflows, can focus on supplier when we like accounts payable before, accounts receivable now is accounts payable workflow r pay one is that it's ok you usually have a purchase order for example if you are doing a construction project you create a purchase order or yes you have a construction project you create a purchase order they send it to you to your vendor they send you the inventory so you create a purchase order okay there's the and then they send you the inventory you receive the inventory step three is you enter the invoices against inventory so you check the inventory, usually you check, okay they shipped the stuff, they shipped it to you, you check it and then you enter the invoices, you check in now, okay we have an account payable.
I received the inventory now we have accounts payable step four is you pay your bills then that's when you pay cash or write a check ok another workflow is when you don't use purchase order we don't use use directional inventoryenter bills pay bills so you get a bill from pldt for example ok let's record it and then usually around 15 days you can input data so 15 days later or 20 days later you pay the bill very simple very simple when it comes to quick books you see the flows can arrows eng i dont use step one step two step three step four does step one step two there are arrows pointing from the connection of the steps and it shows you now in advance what you should do to So what it does is really simple for you and you don't need to know the technicalities.
Do we need to have our own qbo? it helps if you have your own but i'll show you something later accounting in accounting is like reading a book you should know details from start to finish ok mostly enter sorry ok i know there was some bleeding parts but i gave you an overview of at least some accounting basics and you have an idea of what accounting really is now we talk about what accounting is ing accounting vs accounting reporting in bookkeeping the balance sheet the income statement the cash flow double entry accounting t accounts and a cup i showed you a couple of different transaction workflows in Quickbooks okay um questions what other questions do you have we answered a number of people?
I already have questions guys, do you have any additional questions and if you found, was this webinar helpful? Did you find this helpful but have been qubio on sage? They're different software, they're both accounting software made by different companies, um, certain quick books for accounting or they played it on slack. accounting for accounting yes, but they can create invoices, they can send invoices, they can even print checks from Quickbooks, those bleeds are very helpful. well it's nice to know if you found it helpful I would appreciate it if you would leave the review on our facebook page just hit the review button and leave us an honest review even if you found it a nosebleed please let me know and then leave us a review for this free webinar ok medjool accounting internship increased sensitivity new numbers so we can't have internships for accounting if malaysia accounting is a big deal compared cyborg internships not in uh ok ok so next Saturday, but see you.
Next Saturday now I hope you are excited about your gift. Are you ready enough for your gift? Okay, but before that, let's add, let's answer this question. Can you do the bookkeeping? but most people can do accounting you just have to understand the system like what we talked about before and understand the system and yes this was more of an introduction for you it's actually a very short hour and we talked about a lot of things but when you study this in detail of course you take more time and in our paid course we have a course on this it costs 2 190 pesos um we go into more detail of course the more examples this was an intensive course for parents.
You can do the accounting. You know, given the technique. The right technical knowledge. You have to be careful to detail them. It's okay. Accounting can be as simple as categorizing things correctly. also in our casamayor accounting friendship crash course if you sign up for the crash bootcamp it's ok we have our free courses as I mentioned we have a free accounting course and we have many other free courses ok you know we have free webinars we have our free course goes and we have different we have free webinar courses sorry about web design and accounting for writing about email marketing we just launched one on lead generation but in addition to our free course we also we have our paid course our paid course goes Boot Camp we have different packages for it and we see a lot of results you guys said you learned a lot from this free webinar and we have from paid courses you will get more results because we have guidance i will just give you all this information, I don't know, in the training camp, if you sign up, You have guidance, you have programs to help you succeed, for example. here is teresa cleo she was a newbie and now she has a client ok she just started lashon experience well actually she has experience working online but now she has a client she applied what she learned in boot camp , was also a mentor we had. adopt a newbie program before she got certified in quickbooks she got quickbooks online certification took the exam and now she has a client and we have um her testimonial here um she is very happy as an unlikely hotspot smart giga 99 em you converge , i think for a month he reduced his conversion so he was just using smart giga 99 when he got his client and we have another one here by beth terrado he got his first client during what we call our guided hustle challenge program if you sign up for the bootcamp and you finish the guided lesson program so you get a client because she didn't give up she applied what she learned in the bootcamp in the guided hustle challenge she was a moderator she interned for us in august and then she joined the hustle challenge, which It's part of the new hustle challenge.
This is a free foreign training program for those who participate in the boot camp goes fast and full packages ok so if you sign up for those paid programs you get the guided hustle challenge included there. she joined the guide hustle challenge in september and then she got the client from her in october so a month after joining the hustle challenge she now she has the client very excited about it. I'm not too happy that she is now one of the newbies experimenting online but and her client now gets paid to work online so if you want to be like Beth you have to sign up for the course in the boot goes. camp out and finish it and then since you finish the course you have options you can do internships you can take part in the hustle challenge so you have a lot of options to really help you succeed and that's what we provide in boot camp it goes so we have our guided hustle challenge this is one of the training group meetings and guided hustle challenge meetings now where my classmates interact they got like what they have here um we have our trainers here bong and mitch our trainers and akimi is also here uh a couple of our trainers and them every month except december because i know of course we have our holidays in december every month there is a guided hustle challenge that people can join in and be a part and this is where you get the training and guidance to really help you succeed if you get the accounting course you only get the lessons where you don't get the hustle challenge it's just in boot camp it goes fast and full if you get the fast rochelle you get the accounting course demand it for free it's part of it now you guys have your next program huh marissa i think november batch ends next week not sure but its next january batch because i when i come back december paid for the courses um there are different price packages you can get huh how to enroll and then um can you link thanks rom for giving the link there you can sign up um on that link we have packages start installing the lowest installment nothing is 1990 you can start with what muna or you expedited nothing is 7990 one time payment ok so check the different packages there are different options for its pay in installments or pay one time step so um in the bootcamp va can get k now the skills you have lessons you have your community you have trainers to help you get you have an answer to your question and much more is ok so if this webinar was helpful to you you will get a lot of value out of the bootcamp goes because these are just the lessons we are just teaching the skills and crash correspondent is just a description general basic but if you want to go into more detail and if you want guidance you would enroll in the bootcamp va ok and let me share with you um ok the certificate how do you get the certificate I know many of you are excited to earn this certificate and can include it in your profiles and show it to clients. the action items for you to get your certificate, not only do we give it to everyone who attended, but you have to show that you really learned how to do it by submitting your action items, okay, your action items here, step one, sign in quick ks test drive so they have a demo version of quickbooks online go to the test drive take screenshots of the following you just need to get a profit and loss account and balance sheet take screenshots of screen of those, create a sales receipt transaction, just finalize your ntm and enter whatever amount, take a screenshot of that and then post the screenshots to our task thread, not this link, we have a task thread and comment with the hashtags.
I'll create the assignment thread right now, the deadline to submit is November 27th so next Friday and then we'll start sending out the certificates in the week of November 30th. That's ok, all you have to do is go to the Quickbooks demo test drive account and then take screenshots of the profit and loss balance sheet and a sales receipt. very simple transaction we won't ask you to do all the ticket bookkeeping or mahti accounts or anything like that we want to make it simple for you but this is shown now and of course i want you to practice in quickbooks then but experience now it's ok lemme i'm just going to create the thread for the assignments here so you can post them even starting right now ok leave me and i'll learn your text so i can copy and paste the accounting assignment ok like this I created a thread right now so you can go ahead and post it to the task thread so you can get your cert.
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