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In this episode of SOIC, we simplify the Profit & Loss Statement—from topline to margins, segmental profits, and peer comparisons. Learn how to read P&L like Peter Lynch and analyse fast-growing companies using real case studies. Plus, get insights on our upcoming SOIC Pune Event on 25th May and the power of AI in stock research. Perfect for retail investors & finance learners!
Your business is landing clients, your calendar is full, and the money should be flowing — but behind the scenes, it's a scramble to stay on top of your business' finances. You're in a panic when tax season rolls around, and you're not sure how much you should *actually* be paying yourself as the business owner. You're not alone!In today's episode, we're pulling back the curtain on the money moves every service-based online business owner should know when you're scaling to multi-6-figures in annual revenue. These are the exact strategies we use (and teach our clients!) to help you grow sustainably, increase your profit margins, and *actually* feel in control of your business finances.No financial shame spirals. Just simple, strategic money moves that will finally give you the financial clarity and confidence to lead your business well.In this episode, we cover:The most common money mistakes we see service-based online business owners make (hint: it starts with being proactive, not reactive, with your business' finances!)How to actually use your finances to make smart CEO-level decisions (if you're unsure how to *actually* make decisions from the Profit & Loss Statement your bookkeeper gives you - this is for you!)The 3 financial habits that helped us scale to $6M in revenue – yep, we learned these habits the hard way, so YOU don't have to!The key financial numbers you should be looking at every month to assess the financial “health” of your business — (and, ofc, how to easily track these)It's time to stop winging it with your business' finances — and start making intentional money moves that fuel your next season of growth!FREE DOWNLOAD: Our CEO Monthly Money Date GuideDownload Now → https://bucketlistbombshells.com/ceomoneydate GET ON THE WAITLIST: Our Scale with Purpose Mastermind program is opening again for enrollment very soon! Get on the waitlist now to be first to know when applications open!Get on the waitlist → https://bucketlistbombshells.lpages.co/mastermind-waitlist/DM us on Instagram! We'd love to hear what resonated with you in this episode & what topics you'd love us to cover next. Say hi here → https://instagram.com/bucketlistbombshells
Afimilk recently released the first product to accurately identify individual cow dry matter intake and calculate the feed efficiency of each animal. Product manager, Veronica Shabtai, DVM, shares the research behind the ground-breaking development and producer Jacob de Jong from Parkview Dairy in California, talks about how he's used the service to enhance the accuracy and profitability of his culling decisions. Listen to hear that and more. This episode is sponsored by Afimilk.
Associates on Fire: A Financial Podcast for the Associate Dentist
In this episode with Wes Read, CPA and founder of PracticeCFO, explore a topic that is absolutely foundational to the financial success of your dental practice—your financial statements. Host [Your Name] (or "I") breaks down the importance of understanding your Profit & Loss Statement (P&L) and how it reflects the economic health of your practice.Whether you're preparing to sell your dental practice or simply want to make smarter financial decisions, this episode will help you interpret your numbers and transform your P&L into a powerful decision-making tool.Key Points:Financial statements are your practice's financial X-rays. They tell the story of all your effort.P&L (Profit & Loss) shows income and expenses; it's key to understanding your monthly performance.Balance Sheet shows assets and liabilities—important, but covered in a future episode.Your P&L should be reviewed monthly—ideally by the 15th–20th of the following month.Understand Net Operating Income: what's left after operational costs but before debt, taxes, and personal draw.A well-structured P&L is essential whether you're managing or selling your practice.Tools like QuickBooks Online and REACH Reporting can improve report clarity and benchmarking.#DentalPodcast #DentalFinance #DentalPracticeManagement #ProfitAndLoss #PracticeCFO #DentalBusiness #DentalAccounting #DentalSale #PlandL #BalanceSheet #DentalOwners #FinancialFreedomDentist #DentistLife #SellYourPractice #DentalConsulting
It's tax season crunch time, so we are resharing a timely episode debunking the 1120-S tax return. In this episode, Brian will walk you through the S-Corporation income tax return to help you better understand what you're filing and hopefully catch mistakes before it's too late. He provides a section-by-section analysis of Form 1120-S and highlights key areas that business owners and tax professionals make mistakes. Episode Highlights Part 1: Heading, Income, Deductions, Tax and Payments Most of this information is drawn from your business's Profit and Loss Statement. Here's a breakdown of what's on the first page: Calendar year: The very top of the form asks for the calendar year. If the corporation has a calendar year-end, leave this blank. If a fiscal year or short year put in the appropriate dates. Address: Underneath the calendar year, the form asks for a name and address. Use the name set forth in the charter or other legal documents, such as your Employer Identification Number (EIN) letter. Item A: Located to the left of the address, Item A asks for your S election effective date. You should have a letter from the IRS (CP 261) with your S-Corp starting date. This date should stay the same every year. Item B: Your business activity code. This code shows the IRS exactly what you do. Item C: Item C only applies if you have assets of $10 million or more. Most of the time, Item C will not be checked. Item D: Put your EIN in Item D. Make sure to verify it's correct before you file your form. Item E: Your date of incorporation should match the articles of incorporation. This date may or may not be the same date as your S-election. Like the S-election date, the date of incorporation won't change. Item F: Total assets at the end of the year. Item G: If the corporation is electing to be an S-Corp beginning with the current filing tax year, check the appropriate box. If the S-Corp did not already file the S-Election, attach Form 2553 with the return. Item H: These boxes should be self-explanatory. Check the boxes that apply. Item I: Enter the number of shareholders in the firm (e.g. yourself and your partners). Item J: Most of the time, Item J will not be checked. If you believe that one of the Item J items applies, follow up with your tax accountant. Income: Report gross revenue your business has earned for the year and any additional income or interest income that you may have incurred. Only report trade or business income. Do not list rental income, portfolio income, or tax exempt income (those go on your Schedule K). Expenses: Report all deductions on your Profit and Loss statement. Pay special attention to the following lines: Line 7: Compensation of officers should have something on it. S-Corporations must pay shareholder/employee reasonable compensation for services rendered, and failing to put reasonable compensation could lead to an IRS audit. Also included on this line are fringe benefits, including employer contributions to health plans and group term life insurance, for shareholders/employees owning more than 2% of the corporation stock. If your S-Corp has total receipts of $500,000 or more, you'll need to attach Form 1125-E to explain what was paid to each officer. Line 8: Salary and wages paid to employees (other than officers) of the corporation. Line 17: An S-Corporation can deduct contributions made for its employees under a qualified pension, profit sharing, annuity, SEP plan, Simple plan, or any other retirement deferred compensation plan. This includes shareholders/employees owning more than 2% of the corporation stock. Line 18: Employee fringe benefits provided to officers and employees owning less than 2% go on this line, such as health insurance, disability insurance, and educational assistance. Line 19: Line 19 includes any other deductions. There should be an attached statement, and it should match your profit and loss. The numbers should be close to your Profit and Loss statement. Taxes and payments: In general, an S-Corporation does not pay taxes at the corporate level, so this section will be blank. Signature: It's important to sign the return only after verifying all of the information, including the following sections. Part 2: Schedule B This section is mostly self-explanatory questions. Make sure to read and understand each question. Below are two lines to pay special attention to: Box 1: This easy-to-miss box can change your entire return if you're not careful, since it's where you select whether you're a cash or accrual basis taxpayer. Once you choose an accounting method, you generally cannot change without approval from the IRS. Box 2: Here is where you explain what you do. Part B is an either/or question, so state whether you sell products or services. Also, if you hire contractors, say yes to question 14 -- and hopefully you got out your 1099 forms by January 31. Part 3: Schedules K and K-1 Schedule K reports the pro rata share items in total for the Corporation. Schedule K-1, which you receive in your personal name, reports the percentage of pro rata share items allocable to each shareholder. Lines 1-17 on Schedule K correspond to Boxes 1-17 on Schedule K-1. Most items on Schedules K and K-1 are self-explanatory and come from other parts of the return. Part 4: Schedule L This is where many taxpayers make a mistake. Schedule L matches your business' balance sheet and should agree with your books and records. If it doesn't, find out why before you file. The first two columns match what your accounts were at the beginning of the year and should match what the accounts were at the end of last year. If this is your first year filing an 1120-S return, these two columns should be blank. The second two columns are for what the accounts had on December 31 of the previous year and will carry over to next year's return. Some of the most common assets on Schedule L are: Line 1: Write the amount of cash in your bank account on the last day of the year. Line 7: Loans to shareholders are loans from the corporation to the shareholder. Keep in mind, these loans need to be documented and should have a repayment schedule and interest rate. Line 10a: Buildings and other depreciable assets are fixed assets that the business owns that have been depreciated, such as real estate, furniture, or machinery Some of the most common liabilities on Schedule L are: Line 18: Other current liabilities are expenses incurred at the end of the year but not paid until January of the next year. Current expenses often include wages, state taxes, federal taxes, and payroll taxes payable at the end of the year. Line 19: Loans from shareholders are loans from the shareholder to the corporation. As with the other loans, these loans should be documented and include a repayment schedule and interest rate. Line 22: The par value or stated value of the capital stock issued by the corporation. This amount stays the same each year unless the S-Corporation issues additional stock after incorporation. The corporate charter or minutes should identify the stock. Line 23: Enter the beginning and ending balances of additional paid-in capital. This includes the amount contributed to the S-Corp by shareholders for which the corporation did not issue stock or amounts contributed in excess of the stated or par value. Line 24: This section is especially tricky. You should base the retained earnings on the S-Corporation's books and records. Most of the time, retained earnings should match the Accumulated Adjustments Account (AAA), other adjustments account (OAA), and previously taxed income (PTI) balances on Schedule M-2. Line 27: This line represents the total liability and shareholders equity. This line must match line 15. If you answered “yes” to question 11 on Schedule B that your total receipts were less than $250,000 and total assets were less than $250,000, then you aren't required to file a Schedule L. However, it may be beneficial to file Schedule L anyway because it will be crucial for future balance sheets. Part 5: Schedules M-1 and M-2 Schedule M-1 helps explain discrepancies between the books and your tax return. This section should explain any differences you notice. Some common items reported on Schedule M-2 include: Meal expenses (100% on books, 50% on taxes) Entertainment (100% on books, 0% on taxes) Life insurance premium expense (100% on books, 0% on taxes) Certain fines and penalties (100% on books, 0% on taxes) Political contributions (100% on books, 0% on taxes) Book depreciation expense (100% on books, 0% on taxes) Tax depreciation expense (%0 on books, 100% on taxes) Tax-exempt income (100% on books, %0 on taxes) Schedule M-2 tracks the income and losses and separately states items that the shareholder should report on their tax return. Resources + Links Bank Reconciliation 101 Lessons from the 1099-NEC deadline Follow Brian Thompson Online: Instagram, Facebook, LinkedIn, X, Forbes About Brian and the Mission Driven Business Podcast Brian Thompson, JD/CFP, is a tax attorney and certified financial planner who specializes in providing comprehensive financial planning to LGBTQ+ entrepreneurs who run mission-driven businesses. The Mission Driven Business podcast was born out of his passion for helping social entrepreneurs create businesses with purpose and profit. On the podcast, Brian talks with diverse entrepreneurs and the people who support them. Listeners hear stories of experiences, strength, and hope and get practical advice to help them build businesses that might just change the world, too.
Today's episode is from Mobile Home Park #67. When you start looking at parks, you will begin to notice revenue items such as Late Fees, Application Fees, and Other Income. Brokers and sellers alike will try to tell you that it is appropriate to capitalize these income sources. I'm here to tell you that that is not necessarily the case! One of the great things about owning mobile home parks is that your average lot renter is an extraordinarily stable tenant. So, how much money do you really think you'll be getting from application fees year in and year out? The same goes for late fees. It is true that you will receive late fee income through the year. However, this should not be a significant source of income for any park. If it is, you may need to ask yourself if this is truly a stable and reliable tenant base. The “Other Income.” We've seen “other income” run as high as half the park's revenue. Brokers and sellers will put whatever they can think of in this category. Single family homes, small apartments, self-storage, vending machines, laundry income, etc. For these items, we prefer to break out the separate income streams and evaluate the reliability of each separately. We also want to see the expenses broken out for each to determine if they are truly worth having. This gives us a complete picture of what we are buying rather than lumping it together in vagueness. When looking at your next deal, add together these revenue items and multiply them by 10. The number you come up with is the amount you could potentially be overpaying if you don't have a handle on these items. Recommended Resources: Accredited Investors, you're invited to Join the Cashflow Investor Club to learn how you can partner with Kevin Bupp on current and upcoming opportunities to create passive cash flow and build wealth. Join the Club! If you're a high net worth investor with capital to deploy in the next 12 months and you want to build passive income and wealth with a trusted partner, go to InvestWithKB.com for opportunities to invest in real estate projects alongside Kevin and his team. Looking for the ultimate guide to passive investing? Grab a copy of my latest book, The Cash Flow Investor at KevinBupp.com. Tap into a wealth of free information on Commercial Real Estate Investing by listening to past podcast episodes at KevinBupp.com/Podcast.
In this episode of the Million Dollar Landscaper Podcast, hosts Scott and Kati Molchan dig into one of the most overlooked but critical aspects of running a successful landscaping business: your P&L (Profit and Loss) statement. If you've ever wondered why your profits don't match up with what's in your bank account, or how other landscapers claim they're hitting sky-high profit margins, this episode is for you. Scott and Kati break down why having a properly set-up P&L is the foundation for pricing your work accurately, making smarter financial decisions, and staying profitable year-round. From understanding gross vs. net profit to identifying mistakes in your overhead and labor costs, they're sharing the insights every landscaper needs to know.
Unfiltered Entrepreneur by Ashli Pollard - Business Tips for Digital Service Based Businesses
2024 has been the worst year of my life. There have been so many lessons both personally and professionally, with so many issues cropping up that I had to tackle and address. I want to share pretty candidly what challenges I faced this year and the growth I experienced because of it. We're getting into the importance of reaching out to your mentors, doing a profit/loss statement for my many businesses, and the two pieces of advice that leaned on the most: 'trim the fat' and re-evaluating the 'hire slow, fire fast' principle. Despite this insanely tough year, I'm committed to moving forward because I love this work and I think we are heading into 2025 the clearest and strongest that we have ever been. We're laser focused on the Doer's Library and nationwide in-person events and as a stronger team. Join me as I offer the insight and practical advice I wish I had for navigating business hurdles and embracing personal and professional growth. 00:00 — Welcome to the Unfiltered Entrepreneur 02:49 — Reflecting on a Challenging Year 03:15 — Seeking Advice and Leaning on Mentors 05:51 — Lessons Learned and Moving Forward 10:41 — Trimming the Fat: Streamlining the Business 20:25 — Reevaluating Hiring Practices: Hire Fast, Fire Slow or Hire Slow, Fire Fast? 26:44 — Looking Ahead to 2025 Resources: · Listen to The Unfiltered Entrepreneur “THE FULL OVERVIEW OF HIRING, MANAGING + LEADING A TEAM (EVEN IF YOU JUST STARTED)” · Get the Profit & Loss Statement with The Doers Free Trial! ----- Into it? Subscribe/Follow/Rate the podcast wherever you are listening (from one entrepreneur to another, we know how important this is right?!) Subscribe to the Team AP Consulting YouTube Channel! And make sure you check out our FREE downloads page for even more incredible resources made specifically for you. Follow us on IG here! And check out all the other phenomenal podcasts from Fast Forward Productions right here. Get more from Ashli over on this side and leave your listener voicemails at the link below
Why on Earth Do You Need a Profit & Loss Statement? Why are they so difficult to understand? Maybe these 10 things can help you understand why a profit and loss statement is so critical to your small business and how you can use it to make more profit in your small business! ______ DIVE IN DEEPER & LEARN MORE ABOUT YOUR NUMBERS
We all know that Knowing Your Business Numbers will help you make more money, But what if those numbers were full of bad Numbers? How good would that profit and loss really be? Let's talk about something I find way too often when folks aren't paying attention to what goes into their business numbers and profit and loss income statement. ______ DIVE IN DEEPER & LEARN MORE ABOUT YOUR NUMBERS
In this new episode, Rick sits down with Cassandra Tyagi to talk about all things related to accounting and finance for your clinic. They talk about red flags in CRA audits, available funding for startups, and what profession makes the most (chiro, PTs, ND, etc). Cassandra is the CEO of Tyagi Group Accounting, a firm that works with healthcare practitioners on accounting, finance, and bookkeeping. Tyagi Group has grown to a team of 9, including 5 CPAs, bookkeepers and administrative staff. In this conversation, Rick and Cassandra discuss topics such as: What is a solopreneur? How much do solopreneurs make? Which profession makes the most? (i.e Chiro, PT, ND, counsellor) How to let go on underperforming staff (including clinicians and front desk) Craziest financial disaster Cassandra has seen from bad bookkeeping What is a bank reconciliation? Why is it important? Profit & Loss Statement vs. Balance Sheet What is a tax deductible? Red Flags in CRA Audits Simplifying Payroll for Contractors or Employees w/ fee splits Funding Available for Startup or Buying a Practice Watch the episodes on YouTube: https://www.youtube.com/c/RickLauCallHero Follow on Instagram, new videos EVERY SINGLE DAY: instagram.com/thericklau/ Linkedin: https://www.linkedin.com/in/rick-lau/ Signup for the newsletter (22k+ clinic owners): clinicowner.com Sponsors: Callhero: mycallhero.com Apply to join #1 clinic owner community clinicaccelerator.com
In this episode of Business by the Numbers, Hunt Demarest, CPA at Paar Melis Associates, explores how auto repair shop owners can simplify their financial statements using the 50/30/20 profit model.Key Topics:Simplifying KPIs to focus on the most impactful metricsHow to effectively analyze your P&L statementIRS tax extensions for those affected by hurricanesDeep dive into the 50/30/20 profit modelhttps://www.irs.gov/newsroom/irs-provides-relief-for-helene-various-deadlines-postponed-to-may-1-2025-part-or-all-of-7-states-qualifyThanks to our partner, NAPA TRACS Did you know that NAPA TRACS has onsite training plus six days a week support?It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.comThanks to our partner, PromotiveIt's time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comDownload a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from...
In this episode of Business by the Numbers, Hunt Demarest, CPA at Paar Melis Associates, explores how auto repair shop owners can simplify their financial statements using the 50/30/20 profit model.Key Topics:Simplifying KPIs to focus on the most impactful metricsHow to effectively analyze your P&L statementIRS tax extensions for those affected by hurricanesDeep dive into the 50/30/20 profit modelhttps://www.irs.gov/newsroom/irs-provides-relief-for-helene-various-deadlines-postponed-to-may-1-2025-part-or-all-of-7-states-qualifyThanks to our partner, NAPA TRACS Did you know that NAPA TRACS has onsite training plus six days a week support?It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.comThanks to our partner, PromotiveIt's time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comDownload a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from...
Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services
This Podcast Is Episode 592, And It's About Tips For Working With Banks And Lenders In the Construction Industry If your company is experiencing rapid growth, you might find yourself navigating a good news/bad news situation: while your sales figures climb, managing cash flow becomes increasingly complex, pushing you to seek additional financing to meet the rising demand. Consider this scenario: A couple wanting to sell their house expresses interest in your remodeling service, presenting an exciting opportunity that could significantly elevate your construction business. However, they have a requirement: they want the job done in three weeks. Now, you're caught in a challenging position. Declining could mean missing out on a lucrative partnership, yet agreeing could strain your cash reserves. You're not alone in this struggle; many businesses face similar hurdles when scaling operations or entering new partnerships, especially when balancing cash flow and the cost of fulfilling the project on time. To build a stronger case when approaching your financial institution for support, it's essential to understand how bankers think and what they look for in terms of business viability. A solid business plan is just the beginning; you must clearly outline your financial needs and establish a robust strategy highlighting your project's viability. Here are some practical tips to help you prepare for that crucial conversation—and improve your chances of a successful outcome. Understanding your financial institution Understanding how financial institutions—such as national banks, regional banks, credit unions, and other lenders—operate is essential for enhancing your borrowing potential. Here are some fundamental operating principles to consider: 1. The difference between being bankable and lendable. Every entity with financial records is bankable: you can open a business account, deposit revenues, and pay bills. However, to be deemed lendable, you generally need at least three years of financial statements and tangible assets, inventory, or accounts receivable to serve as collateral. A minimum risk rating is also required. Understanding your company's financial performance is crucial before approaching your banker for additional funding. 2. How financial institutions evaluate creditworthiness. The approach that financial institutions take to assess creditworthiness is constantly changing. Evaluating a business often involves several decision-makers, so bankers may use a behavioral-based model to determine your credit score. This score typically merges performance metrics from businesses within your industry and assesses your business's history with the current financial institution, which includes factors such as borrowing and repayment patterns, cash cycles, and customer payment terms. 3. Banks often don't value foreign assets. Many banks need help assigning value to overseas assets, including foreign accounts receivable. The reason for this caution is straightforward: if repayment issues arise, banks face challenges in recovering losses when collateral assets are internationally situated. This situation can lead to reduced financing possibilities and limit the size and number of contracts your business can manage simultaneously. 4. Competition for loan dollars When you seek financing from your bank, remember that you are competing with other businesses for the same loan funds. Therefore, it's vital that you present your case clearly and persuasively. The following section outlines the essential elements you need to include. 5. Time constraints of account managers Your financial institution's account manager likely balances a diverse portfolio of clients, each with distinct needs and business backgrounds. To ensure a successful meeting, providing a concise business plan and well-presented financial statements will significantly enhance your chances of a favorable outcome. Essential documents to take to your lender With an understanding of how banks operate, it's time to prepare your documentation and refine your pitch. 1. Define your request Clarifying your financial request is crucial. Take the time to outline precisely what you need from your financial institution. Whether it's bridging the gap between supplier payments and customer receipts or funds to secure materials for a significant contract, presenting your pain points will aid your account manager in determining the appropriate financing solution—a loan or line of credit. Keep in mind that loans provide a limited credit amount that must be repaid in full, while lines of credit offer revolving access, allowing for continuous borrowing within a predetermined limit. 2. Compile financial statements Financial institutions generally favor established companies with a history of economic stability. Aim to have at least three years of financial statements ready to demonstrate your business's viability. If your business is newer or has unusual financial trends, be prepared to share future projections that reflect your anticipated growth. For younger businesses, pursuing financing for specific transactions can enhance your credibility. 3. Evaluate your collateral For small business lines of credit, banks typically require $2 in collateral for every $1 financed. Understand what collateral you can offer, including capital assets, inventory, or accounts receivable. Capital assets consist of real estate and equipment, which banks may be reluctant to accept due to liquidation challenges. Inventory - this can be used at a discounted valuation, depending on its quality and turnover rate. Accounts Receivable: Domestic receivables with short payment terms may be accepted, while international receivables are often unsupported. 4. Perfect your pitch With your understanding of the bank's considerations, ensure your pitch stands out. Develop a well-prepared presentation that balances enthusiasm for your construction business with sound financial planning. Your banker will appreciate your passion, but they'll also seek reassurance that you have a strategic plan. Be ready to discuss the reasons behind your working capital need and the unique aspects of your business that set you apart. Additionally, if you aim to enter a new market, prepare to articulate the associated risks and benefits and your long-term vision for growth. 5. Mitigate your bank's risk To improve your chances of securing working capital, demonstrate to your bank that you understand and can mitigate their risks. They will need confidence in their ability to recover funds if repayment becomes an issue. Following these guidelines will enhance your approach to securing financing from your financial institution, ultimately positioning your business for sustainable growth and success. In Summary What can you expect from us? Banks typically require several documents from a construction business to approve a loan. These may include: 1. Profit and Loss Statement - overviews the business's profitability. 2. Balance Sheet - shows the company's assets, liabilities, and equity at a specific point in time. 3. Business Plan - details the construction company's operations, market analysis, and financial projections. 4. Tax Returns - typically, banks ask for the business's tax returns for the past few years. 5. Projected Cash Flow - provides insight into the company's ability to repay the loan. 6. Business Licenses and Permits - banks may also request documentation showing that the business operates legally. We can help you with these standard requirements when you become a client, but remember that specific documentation needed can vary based on the bank and the loan type. It's always best to check with the lending institution to ensure all required documents are provided. As always, I'm just a phone call away for a no-charge business consultation. PS We offer free resources to help you save time and money that you can download and print now. About The Author: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
I recently revealed the "The 4 ISO Model Fundamentals " as Financial, Strategic, Mindset, and People. It doesn't matter whether you own a solo cleaning business or a catering company. If you want to grow your company to create the life you've dreamed of, you'll need to master these fundamentals. I am not a caterer... obviously. I can't coach caterers. I can't coach photographers or digital agencies or doctors. I'm a 16-year solo cleaner that has optimized 2 solo cleaning companies to over $50,000 profit per year on 2 cleaning days per week without employees, subs, or drama. I've successfully sold one solo cleaning business for $80,000 and I've successfully scaled another solo cleaning business to allow my family to go to Florida for the month of February the past two years. I have mastered these 4 fundamentals for winning with a solo cleaning business and therefore, I am highly qualified to be your coach if you're looking to master your solo cleaning company.In that podcast episode, I stated that I wanted to lay out the 4 fundamentals in simple terms first. Then, I promised to follow-up with episodes adding more depth to each. Today, we start with the first one called FINANCIAL. There are thousands of cleaning business owners in Facebook cleaning groups. I have interacted with hundreds and personally coached dozens over the years. The ones I've coached have been side-hustlers, startups, solos, and striving to 7-figures. I have enough data to make this bold statement.Of the 4 fundamentals of a successful solo cleaning company or any cleaning company, the most lacking skill is Financial Fluency. In my experience (and the combined experience of other reputable coaches in the industry), over 95% of cleaning business owners do NOT know their numbers. They are Financially Illiterate. This is scary as these cleaning business owners go year-to-year making jokes about "sucking at math" or "not knowing where they are". It's not funny. It's sad. 95% of you RIGHT NOW are literally treading water and about to drown. You are one bad wave or rip current from financial bankruptcy and you don't even know it. 90% of you are anxious, stressed, and overwhelmed because you don't know where you stand. When you are Financially Illiterate, you are standing on sinking and shifting sand. You have literally nothing firm to build on. So what do you do? You continue to work harder and harder and hope that the money works out. Enter geniuses like Mike Michaelowicz and his book "Profit First". Mike was Financially Illiterate until he took the first step. He went from not-knowing his numbers to knowing his numbers. This didn't make the business any better. But it did allow Mike to place his feet on something firm and something he could build from. His stated mission is to help the millions of us in the same place and to eradicate entrepreneurial poverty.My friend Ellen was once in this position. She ran a successful cleaning company with 20 team members and close to a half-million in revenue. She did not know her numbers at all and she was the first to admit it. I helped her set goals to over a 3-month period to learn her business through a Profit and Loss Statement or a P&L. Once she understood her P&L, she was able to set financial goals and track her business through a financial dashboard. Ellen has grown quite a bit since this major change. There are thousands of Ellens' out there, so don't feel bad if that's you. We will address all 4 fundamentals over time.Read the rest of this article at the Smart Cleaning School website
As a leader, you know you need to make wise and efficient financial decisions. But you can also make a real impact in other peoples' lives by helping them learn to be smarter with their own hard-earned money. In this episode, we'll help you better understand investing and building wealth, so you and your team can live your fullest lives. This information is so important for a well-rounded leader. Fun fact: The average millionaire in the U.S. spends 8 hours a month analyzing their net worth, bank statements, assets and liabilities, etc. Financial literacy is absolutely worth the effort. Take the First Step: I highly recommend a Profit & Loss Statement and a Pro Forma sheet as the first steps toward financial literacy. If you're interested in one or both of these tools, send me an email at jon@getforwardfocused.com and we'll get you a copy. ___ Chapter Breakdown: 00:00 - Intro 2:55 - Hypothetical Financial Situation 05:06 - Time - Your Most Important Asset 05:41 - Cash on Cash Return 06:48 - Return on Investment 07:53 - Understanding Passive Income 8:18 - Savings Account 09:17 - Award Certificate of Deposits 10:40 - Money Market Account 12:04 - Credit Union vs Bank 13:22 - Securities 15:46 - Profit & Loss and Pro Forma Sheet 16:46 - Money Isn't Good or Bad 19:04 - Outro __ Follow us on Facebook --- www.facebook.com/getforwardfocused Connect with us on Instagram --- www.instagram.com/getforwardfocused Subscribe on YouTube --- www.youtube.com/@getforwardfocused --- Send in a voice message: https://podcasters.spotify.com/pod/show/get-forward-focused/message
The Profit and Loss Statement or P&L? Why do I need to know about that if I am in Supply chain? These are valid questions. Supply Chain is not Finance or Accounting. But, we need Finance and Accounting to be successful in Supply Chain careers and to improve in sales and operations planning or in integrated business planning. It is the language of the business. In this episode, you will learn about the Profit and Loss Statement (P&L) or Income Statement and its key components so you can understand the impact of operations on a fundamental financial statement and think like the CEO and CFO. For Free and Actionable Resources, please visit https://usmsupplychain.com/ Please also visit our YouTube channel: https://www.youtube.com/@usmsupplychain387
A breakdown, a tow, a rental truck, another breakdown, getting ignored by a broker and rushing to make appointments, all in a week's work for one of our drivers and the team that supports him. I have said this before, nothing is easy in trucking and the best company owners are people who can solve problems. We had a lot of problems we had to solve throughout that trip. I start off this episode talking about a truck we had breakdown and the excitement that ensued. It all ended as well as can be expected, the load got delivered, only a day late, and our driver made it home in time for Thanksgiving. What To Expect From Episode 142 Your CPM (cost per mile) is one of the most important things you should know and understand well about your trucking company. This is the second time we have dedicated an entire episode to this subject. The first time was over 4 years ago and a lot has changed so we're overdue to dive into it again. We cover a lot in this episode and it is definitely a must listen. The excel spreadsheet with our CPM data is below. It is best to look at it while you are listening to or watching the episode. Here are some of the things I feel like you need to consider when it comes to your cost per mile, we discuss each in detail. How often you should figure out your cost per mile Is it better to calculate your CPM based off one month of data or the average of 6 months worth of data When should you re-evaluate your CPM My Process For Calculating Haulin Asset's CPM I dive into the mechanics of how I do it. Here is an overview: I pull a Profit and Loss Statement for the most recent month and one for the previous 6 months and export them into Excel. I delete the revenue info. I like a clean workspace without unnecessary data and the revenue info is not needed. I categorize all my expenses as either fixed or variable and group them together. Fixed costs-costs that are based on time rather than the quantity miles driven. (I give some examples in the podcast.) Variable costs-costs that change as the number of miles driven changes. (I give some examples in the podcast.) To simplify things, I lump the smaller less significant fixed costs into one group I call G & A (General and Administrative). I do the same thing for smaller variable costs and put them in a group called miscellaneous. I like a hybrid CPM calculation where some of the expenses are based off the most current month and some of them I use a 6 month average. I explain this better in the podcast. I take the mileage from the most recent month and divide each expense by the mileage to get the CPM. Using a spreadsheet makes this step pretty easy. How Do I Use This Info In the podcast I cover a bunch of different ways I use the CPM to help me make better business decisions. With that being said, just because I know my CPM doesn't mean I won't take a load that I essentially lose money on. I use some examples of recent loads to explain this better. If you haven't actually started your company yet and you want to estimate your cost per mile, Motor Carrier HQ has a great online CPM tool. You can use it to get an idea of what you think it will cost you to operate and that will help you know if you can be profitable based on the rate per mile you think you can get from loads you will be hauling. You can access the calculator by clicking on here. To close out, Craig and I talk about how using my CPM as a comparison to yours could be a great tool to give you better insight into your operations.
Are you struggling to understand your financial statements? Every business owner must understand the language of money and have their business's financial health clearly defined. In this episode, Danielle and Victoria simplify Profit and Loss statements, going over their importance, the biggest mistakes people make, and the most important metrics to know. Join us as we explore accounting details, business profitability, and the divide between popular financial perspectives! Topics Discussed: Intro (0:00) The Big Three Financial Statements: Profit, Balance, Cash (1:43) Finance Framework Course (2:47) Overview of the Profit and Loss Statement and Accounting Basics (3:28) Operating Expenses and Bookkeeping (08:33) Net Income or Loss (10:15) Money Mindset Mastery Framework (13:49) Bookkeeping as a recipe for business success (14:52) Accountants vs. Popular Financial Views (16:28) Tax planning and the importance of business profitability (19:02) Profit and Loss Statement Issues (25:47) For help with your financial estatements and more, visit: https://kickstartaccountinginc.com/get-started/ Connect with Danielle: Instagram | @Daniellehayden__OH Instagram | @Kickstartaccounting Website | Kickstart Accounting, Inc. Facebook | Kickstart Accounting, Inc. Get Started Today: https://kickstartaccountinginc.com/get-started
Hi Everyone, I'm talking about budgeting and income as a first-year freelance illustrator. I feel like it's not talked about as far as I see artists that are successful talking about their year-end income, but no so much for the person starting out. I decided to talk about the importance of budgeting, and having a monthly profit and loss statement has helped my peace of mind. I mentioned I'd provide some helpful links. Jennifer Smekler Interview about starting her wholesale business https://www.youtube.com/watch?v=gidIeVqlTos How to Create a Profit and Loss Statement by MidWest Corp. Credit. https://www.youtube.com/watch?v=9AAYTMjWFEk Free Templates for Budgets from Microsoft https://create.microsoft.com/en-us/templates/budgets Free Profit and Loss Statement for Illustrators https://www.nmillerillustration.com/illustratorbiz.html Thanks for listening!
Adam Rundle is the founder and owner of CleverProfits, a Strategic Advisory Firm for entrepreneurs. Services include Accounting, Taxes, Fractional CFO, HR Consulting, Payroll Services, and Advisory Services. Top 3 Value Bombs 1. Success requires constant, dedicated, hard work. Keep swinging at opportunities daily; the ones who persist the longest are the most successful. 2. In business, two critical aspects are acquisition and fulfillment. These are the pillars that determine whether a company is truly functional. 3. By clearly understanding your role and managing compensation thoughtfully, you can ensure the long-term success of your business. Check out Adam on YouTube - Adam's YouTube Sponsors HubSpot There's a better way to win, and it all starts with the new HubSpot Sales Hub. It's smart software for smart sales teams that feels good to use! Try it for yourself at HubSpot.com/sales FranBridge Many EOFire listeners have launched franchises in a variety of industries outside of food – and FranBridge Consulting has guided them to these premier opportunities! Sign up for a free consultation with Jon - or get a free copy of his book, Non-Food Franchising - at FranBridgeConsulting.com
Adam Rundle is the founder and owner of CleverProfits, a Strategic Advisory Firm for entrepreneurs. Services include Accounting, Taxes, Fractional CFO, HR Consulting, Payroll Services, and Advisory Services. Top 3 Value Bombs 1. Success requires constant, dedicated, hard work. Keep swinging at opportunities daily; the ones who persist the longest are the most successful. 2. In business, two critical aspects are acquisition and fulfillment. These are the pillars that determine whether a company is truly functional. 3. By clearly understanding your role and managing compensation thoughtfully, you can ensure the long-term success of your business. Check out Adam on YouTube - Adam's YouTube Sponsors HubSpot There's a better way to win, and it all starts with the new HubSpot Sales Hub. It's smart software for smart sales teams that feels good to use! Try it for yourself at HubSpot.com/sales FranBridge Many EOFire listeners have launched franchises in a variety of industries outside of food – and FranBridge Consulting has guided them to these premier opportunities! Sign up for a free consultation with Jon - or get a free copy of his book, Non-Food Franchising - at FranBridgeConsulting.com
I recently revealed the "The 4 ISO Model Fundamentals " as Financial, Strategic, Mindset, and People. It doesn't matter whether you own a solo cleaning business or a catering company. If you want to grow your company to create the life you've dreamed of, you'll need to master these fundamentals. I am not a caterer... obviously. I can't coach caterers. I can't coach photographers or digital agencies or doctors. I'm a 16-year solo cleaner that has optimized 2 solo cleaning companies to over $50,000 profit per year on 2 cleaning days per week without employees, subs, or drama. I've successfully sold one solo cleaning business for $80,000 and I've successfully scaled another solo cleaning business to allow my family to go to Florida for the month of February the past two years. I have mastered these 4 fundamentals for winning with a solo cleaning business and therefore, I am highly qualified to be your coach if you're looking to master your solo cleaning company. In that podcast episode, I stated that I wanted to lay out the 4 fundamentals in simple terms first. Then, I promised to follow-up with episodes adding more depth to each. Today, we start with the first one called FINANCIAL. There are thousands of cleaning business owners in Facebook cleaning groups. I have interacted with hundreds and personally coached dozens over the years. The ones I've coached have been side-hustlers, startups, solos, and striving to 7-figures. I have enough data to make this bold statement.Of the 4 fundamentals of a successful solo cleaning company or any cleaning company, the most lacking skill is Financial Fluency. In my experience (and the combined experience of other reputable coaches in the industry), over 95% of cleaning business owners do NOT know their numbers. They are Financially Illiterate. This is scary as these cleaning business owners go year-to-year making jokes about "sucking at math" or "not knowing where they are". It's not funny. It's sad. 95% of you RIGHT NOW are literally treading water and about to drown. You are one bad wave or rip current from financial bankruptcy and you don't even know it. 90% of you are anxious, stressed, and overwhelmed because you don't know where you stand. When you are Financially Illiterate, you are standing on sinking and shifting sand. You have literally nothing firm to build on. So what do you do? You continue to work harder and harder and hope that the money works out. Enter geniuses like Mike Michaelowicz and his book "Profit First". Mike was Financially Illiterate until he took the first step. He went from not-knowing his numbers to knowing his numbers. This didn't make the business any better. But it did allow Mike to place his feet on something firm and something he could build from. His stated mission is to help the millions of us in the same place and to eradicate entrepreneurial poverty.My friend Ellen was once in this position. She ran a successful cleaning company with 20 team members and close to a half-million in revenue. She did not know her numbers at all and she was the first to admit it. I helped her set goals to over a 3-month period to learn her business through a Profit and Loss Statement or a P&L. Once she understood her P&L, she was able to set financial goals and track her business through a financial dashboard. Ellen has grown quite a bit since this major change. There are thousands of Ellens' out there, so don't feel bad if that's you. We will address all 4 fundamentals over time. Read the rest of this article at the Smart Cleaning School website
Automation is the future, but it is already starting now. eCommerce brands like you should utilize AI tools now to get ahead of the game.In this episode, Jordan West dives into the world of AI tools that are revolutionizing the eCommerce industry. He shares 5 AI tools that will be a great help for businesses.Listen and learn in this episode!KEY TAKEAWAYS FROM THIS EPISODEAI Tools You Should Check Out Today:1. Shopify Sidekick https://apps.shopify.com/sidekick-aiShopify Sidekick is an assistant that can answer any question about a user's Shopify store. It gathers information and statistics from the user's website and provides guidance and support.Shopify Sidekick can keep track of your inventory, manage your orders, and create discounts and promotions for your brand.2. Bard https://bard.google.com/You can ask Bard AI to help you find stores in an area you want to connect with and give all their contact information available.3. Chat GPT Plus https://openai.com/Try asking ChatGPT Plus for whatever information you need in your business. You can even make it analyze your Profit and Loss Statement.4. Eleven Labs https://elevenlabs.io/Eleven Labs help you create different variations of video ads with voiceovers. You can also record a few minutes of your voice and let it generate a voiceover using your voice.5. Maverick https://www.trymaverick.com/Use Maverick to create personalized emails with videos for your customers.Get 5 Offers for 2 Products (10 in total) along with 10 highly engaging tried and true creatives, 30 captivating headlines, descriptions, and ad texts sent to you for only $99. Go to https://www.upgrowthcommerce.com/offer and order now - this offer is only available for a limited time.We love our podcast community and listeners so much that we have decided to offer a free eCommerce Growth Plan for your brand! To learn more and how we can help, click here: upgrowthcommerce.com/grow Join our community and connect with other eCommerce brand owners and marketers! https://www.facebook.com/groups/secretstoscalingpodcast
Understanding the financial health of a small business is a complex puzzle, but there are three key pieces that, when put together, reveal a comprehensive picture. The Profit and Loss Statement, the Cash Flow Statement, and the Balance Sheet hold valuable insights into a business's performance, liquidity, and overall financial well-being. In this episode, we dive deep into the correlation between these financial reports, unveiling the secrets to effective financial planning, identifying improvement areas, and ultimately maximizing profitability for small business owners.
On this episode of REI Mastermind Network, host Jack Hoss talks with expert guests Michael Coffee and others about strategies for analyzing seller's profit and loss statements when reviewing potential real estate investments. They highlight the importance of examining repair and maintenance costs and discuss how underwriting guidelines can impact loan proceeds. Listeners will learn about factors lenders consider when evaluating deals, such as credit, cash flow, and experience. Additionally, the speakers provide insights into the loan origination process and offer tips for screening potential capital sources. Whether you're a seasoned real estate investor or just starting out, this episode has something valuable for anyone interested in the intricacies of the industry.
Heather Zeitzwolfe of GetRadBiz.com joins host Julie Hood to talk about business and accounting - and taxes - just in time for tax season. Get the full show notes and the business checklist at https://CourseCreatorsHQ.com/141. Note: This episode does not contain business, tax or legal advice. Visit your tax or legal specialist for advice for your business.LINKS MENTIONED Get the full Business and Accounting Checklist for free at https://coursecreatorshq.com/BizChecklist To connect with Heather Zeitzwolfe, visit GetRadBiz.com and sign up for her monthly workshop, How to Run, Read and Rock Your Profit and Loss Statement. KEY TAKEAWAYS FOR ONLINE COURSE CREATORS There are simple steps you can take to:Protect your businessTrack your income accuratelyAvoid mistakes with expensesDo better with bookkeepingGet the detailed checklist at https://coursecreatorshq.com/BizChecklist . COME VISIT! FREE 2023 Ultimate Course Creators Planner - https://coursecreatorshq.com/2023planner Sign up for my email list and get this free course Is My Course Idea Any Good? here. GoodPods Let's talk about this episode on GoodPods – https://CourseCreatorsHQ.com/goodpods (mobile only, download the app first) Clubhouse Connect with me on Clubhouse for FREE masterclasses at @JulieHood.Website https://www.CourseCreatorsHQ.comFacebook https://www.facebook.com/CourseCreatorsHQInstagram https://www.instagram.com/CourseCreatorsHQTwitter https://www.Twitter.com/CourseHQ
It's tax season crunch time. In this episode, Brian will walk you through the S-Corporation income tax return to help you better understand what you're filing and hopefully catch mistakes before it's too late. He provides a section-by-section analysis of Form 1120-S and highlights key areas that business owners and tax professionals make mistakes. Episode Highlights Part 1: Heading, Income, Deductions, Tax and Payments Most of this information is drawn from your business's Profit and Loss Statement. Here's a breakdown of what's on the first page: Calendar year: The very top of the form asks for the calendar year. If the corporation has a calendar year-end, leave this blank. If a fiscal year or short year put in the appropriate dates. Address: Underneath the calendar year, the form asks for a name and address. Use the name set forth in the charter or other legal documents, such as your Employer Identification Number (EIN) letter. Item A: Located to the left of the address, Item A asks for your S election effective date. You should have a letter from the IRS (CP 261) with your S-Corp starting date. This date should stay the same every year. Item B: Your business activity code. This code shows the IRS exactly what you do. Item C: Item C only applies if you have assets of $10 million or more. Most of the time, Item C will not be checked. Item D: Put your EIN in Item D. Make sure to verify it's correct before you file your form. Item E: Your date of incorporation should match the articles of incorporation. This date may or may not be the same date as your S-election. Like the S-election date, the date of incorporation won't change. Item F: Total assets at the end of the year. Item G: If the corporation is electing to be an S-Corp beginning with the current filing tax year, check the appropriate box. If the S-Corp did not already file the S-Election, attach Form 2553 with the return. Item H: These boxes should be self-explanatory. Check the boxes that apply. Item I: Enter the number of shareholders in the firm (e.g. yourself and your partners). Item J: Most of the time, Item J will not be checked. If you believe that one of the Item J items applies, follow up with your tax accountant. Income: Report gross revenue your business has earned for the year and any additional income or interest income that you may have incurred. Only report trade or business income. Do not list rental income, portfolio income, or tax exempt income (those go on your Schedule K). Expenses: Report all deductions on your Profit and Loss statement. Pay special attention to the following lines: Line 7: Compensation of officers should have something on it. S-Corporations must pay shareholder/employee reasonable compensation for services rendered, and failing to put reasonable compensation could lead to an IRS audit. Also included on this line are fringe benefits, including employer contributions to health plans and group term life insurance, for shareholders/employees owning more than 2% of the corporation stock. If your S-Corp has total receipts of $500,000 or more, you'll need to attach Form 1125-E to explain what was paid to each officer. Line 8: Salary and wages paid to employees (other than officers) of the corporation. Line 17: An S-Corporation can deduct contributions made for its employees under a qualified pension, profit sharing, annuity, SEP plan, Simple plan, or any other retirement deferred compensation plan. This includes shareholders/employees owning more than 2% of the corporation stock. Line 18: Employee fringe benefits provided to officers and employees owning less than 2% go on this line, such as health insurance, disability insurance, and educational assistance. Line 19: Line 19 includes any other deductions. There should be an attached statement, and it should match your profit and loss. The numbers should be close to your Profit and Loss statement. Taxes and payments: In general, an S-Corporation does not pay taxes at the corporate level, so this section will be blank. Signature: It's important to sign the return only after verifying all of the information, including the following sections. Part 2: Schedule B This section is mostly self-explanatory questions. Make sure to read and understand each question. Below are two lines to pay special attention to: Box 1: This easy-to-miss box can change your entire return if you're not careful, since it's where you select whether you're a cash or accrual basis taxpayer. Once you choose an accounting method, you generally cannot change without approval from the IRS. Box 2: Here is where you explain what you do. Part B is an either/or question, so state whether you sell products or services. Also, if you hire contractors, say yes to question 14 -- and hopefully you got out your 1099 forms by January 31. Part 3: Schedules K and K-1 Schedule K reports the pro rata share items in total for the Corporation. Schedule K-1, which you receive in your personal name, reports the percentage of pro rata share items allocable to each shareholder. Lines 1-17 on Schedule K correspond to Boxes 1-17 on Schedule K-1. Most items on Schedules K and K-1 are self-explanatory and come from other parts of the return. Part 4: Schedule L This is where many taxpayers make a mistake. Schedule L matches your business' balance sheet and should agree with your books and records. If it doesn't, find out why before you file. The first two columns match what your accounts were at the beginning of the year and should match what the accounts were at the end of last year. If this is your first year filing an 1120-S return, these two columns should be blank. The second two columns are for what the accounts had on December 31 of the previous year and will carry over to next year's return. Some of the most common assets on Schedule L are: Line 1: Write the amount of cash in your bank account on the last day of the year. Line 7: Loans to shareholders are loans from the corporation to the shareholder. Keep in mind, these loans need to be documented and should have a repayment schedule and interest rate. Line 10a: Buildings and other depreciable assets are fixed assets that the business owns that have been depreciated, such as real estate, furniture, or machinery Some of the most common liabilities on Schedule L are: Line 18: Other current liabilities are expenses incurred at the end of the year but not paid until January of the next year. Current expenses often include wages, state taxes, federal taxes, and payroll taxes payable at the end of the year. Line 19: Loans from shareholders are loans from the shareholder to the corporation. As with the other loans, these loans should be documented and include a repayment schedule and interest rate. Line 22: The par value or stated value of the capital stock issued by the corporation. This amount stays the same each year unless the S-Corporation issues additional stock after incorporation. The corporate charter or minutes should identify the stock. Line 23: Enter the beginning and ending balances of additional paid-in capital. This includes the amount contributed to the S-Corp by shareholders for which the corporation did not issue stock or amounts contributed in excess of the stated or par value. Line 24: This section is especially tricky. You should base the retained earnings on the S-Corporation's books and records. Most of the time, retained earnings should match the Accumulated Adjustments Account (AAA), other adjustments account (OAA), and previously taxed income (PTI) balances on Schedule M-2. Line 27: This line represents the total liability and shareholders equity. This line must match line 15. If you answered “yes” to question 11 on Schedule B that your total receipts were less than $250,000 and total assets were less than $250,000, then you aren't required to file a Schedule L. However, it may be beneficial to file Schedule L anyway because it will be crucial for future balance sheets. Part 5: Schedules M-1 and M-2 Schedule M-1 helps explain discrepancies between the books and your tax return. This section should explain any differences you notice. Some common items reported on Schedule M-2 include: Meal expenses (100% on books, 50% on taxes) Entertainment (100% on books, 0% on taxes) Life insurance premium expense (100% on books, 0% on taxes) Certain fines and penalties (100% on books, 0% on taxes) Political contributions (100% on books, 0% on taxes) Book depreciation expense (100% on books, 0% on taxes) Tax depreciation expense (%0 on books, 100% on taxes) Tax-exempt income (100% on books, %0 on taxes) Schedule M-2 tracks the income and losses and separately states items that the shareholder should report on their tax return. Resources + Links Bank Reconciliation 101 Lessons from the 1099-NEC deadline Brian's Social Media: Twitter, Instagram, Facebook About Brian and the Mission Driven Business Podcast Brian Thompson, JD/CFP, is a tax attorney and certified financial planner who specializes in providing comprehensive financial planning to LGBTQ+ entrepreneurs who run mission-driven businesses. The Mission Driven Business podcast was born out of his passion for helping social entrepreneurs create businesses with purpose and profit. On the podcast, Brian talks with diverse entrepreneurs and the people who support them. Listeners hear stories of experiences, strength, and hope and get practical advice to help them build businesses that might just change the world, too.
Are you ready to fulfill your dream of owning a restaurant? It's an exciting venture, but before you dive in, there are critical financial factors you need to consider. In this episode, we're going to show you everything you need to know before buying a restaurant and how to assess its financial health. We'll be going through essential financial documents like the Profit and Loss Statement, Balance Sheet, and Cash Flow Statements to help you understand how to evaluate a restaurant's financial standing. Listen to this episode and get the education you need to make the right purchase decision and start your restaurant's success story. Read the full Blog Post: https://rasiusa.com/blog/how-to-buy-a-restaurant-everything-you-need-to-know-financially/ Watch the full Video: https://youtu.be/xtY1OPxqf-U Social Handles: RASI Instagram: https://www.instagram.com/rasinc__/ RASI Twitter: https://twitter.com/RASInc_ RASI Facebook: https://www.facebook.com/RestaurantAccountingServicesInc RASI LinkedIn: https://www.linkedin.com/company/restaurant-accounting-services-inc-rasi
Lesson: How to Read a Profit & Loss Statement
In this episode, Keila is excited to bring you the first of her “Beyond the Numbers” series, a deeper look into why numbers themselves aren't necessarily good or bad. And while they don't mean anything as a standalone, the story behind the numbers is what we really need to know in order to make decisions for our business that not only make the most sense but also build a life and business that we can be proud of.So tune in as Keila dives into profit and loss statements and why it is the foundational piece of helping you make the best strategic decisions about your business. Find the common deductible expenses spreadsheet mentioned in this episode here: drive.google.com/file/d/1gzoqJvta260ESLGwXv0jLfzBcuzKXgu_/view?usp=sharing KEY POINTS:- What is a profit and loss statement?- Breaking down revenue, expenses, and deductibles- How often should we be bookkeeping?- Explicit versus implicit data- “Don't get too focused on the number itself” QUOTABLES:“The whole point of your profit and loss and all of your financial statements is to tell you a story. It's not enough to just look at a number; you really want to know what the numbers are trying to tell you.” RESOURCES:Like what you're hearing? Check out Little Fish Accounting at: www.littlefishaccounting.comFollow Little Fish Accounting on social media!IG | instagram.com/littlefishaccounting The Fish Food Podcast is edited by Instapodcasts (visit at instapodcasts.com)
On this episode of the LIFT Your Shop podcast we got to talk with CPA Hunt Demarest with the accounting firm Paar, Melis and Associates. He shares with us some of the most important metrics to understand in your auto repair shops finances. Hunt goes over some KPIs in your Profit and Loss Statement and certain percentages that you should be shooting for. On top of that he has a downloadable book that goes over some of these items and more! You can download a copy of Hunt's book here at https://paarmelis.com/your-perfect-shop-book-download/
So, each month you attend your board meeting, or you meet with your bookkeeper and somewhere along the line, someone hands you a whole bunch of reports with numbers on them. In our second episode, we started to talk about those in reviewing the Language of Finance. In our third episode, we broke down the Profit & Loss Statement a bit more in reviewing how to create a Budget. Today, we're going to delve a bit deeper into the financial reports you're likely to see, and why they're important. Sometimes the scariest thing about finances is not knowing where you are. Is your practice doing okay? Are you well compensated in relation to your peers? Are your practice expenses in line with the rest of the industry? All of these questions are easy to answer when you have good data. Please Follow or Subscribe to get new episodes delivered to you as soon as they drop!Visit Jill's company, Health e Practices' website: https://healtheps.com/Subscribe to our newsletter, Health e Connections: http://21978609.hs-sites.com/newletter-subscriberWant more content? Find sample job descriptions, financial tools, templates and much more: www.MedicalMoneyMattersPodcast.comPurchase your copy of Jill's book here: Physician Heal Thy Financial Self Join our Medical Money Matters Facebook Group here: https://www.facebook.com/groups/3834886643404507/ Original Musical Score by: Craig Addy at https://www.underthepiano.ca/ Visit Craig's website to book your Once in a Lifetime music experience Podcast coaching and development by: Jennifer Furlong, CEO, Communication Twenty-Four Seven https://www.communicationtwentyfourseven.com/
This episode discusses strategies for increasing profits for e-commerce businesses, including monitoring conditions and cleaning up the profit and loss statement. It also emphasizes the importance of understanding cash flow and working with an accountant who understands ecommerce and the business. The article provides twelve ways to maximize profit and stay safe, using a metaphor of instrument flying to understand the system, and suggests involving oneself in the process of setting up an accounting system and chart of accounts. Get a Free Amazon Profit Audit Get a free audit from me, Michael Veazey, personally. As long as you have at least $10K/€10K/£10K in monthly revenue. You can be a reseller or Private label/custom product brand owner Just click the link below, scroll down, click on “Amazon audit” and book in a time! Timestamps [0:00:00 : Maximizing Profits in Ecommerce: A Step-by-Step Guide to Cleaning Up Your Profit and Loss [0:02:35] 2 Ways to Boost Your Profits by Cleaning Up Your Amazon Profit and Loss [0:05:54] Understanding Cash Flow and Instrument Flying for Ecommerce Businesses [0:07:04] Setting Up an Ecommerce Accounting System: Tips from an Accountant [0:08:41] Tips for Cleaning Up Your Profit and Loss Statement for an Ecommerce Business [0:12:14] Tips for Accurate Accounting for Amazon Sellers [0:14:43] Tips for Effective Financial Management in E-Commerce Businesses [0:16:09] Tips for Monitoring Your Ecommerce Business Finances [0:18:18] Tips for Optimizing Operating Profit in E-Commerce Businesses [0:20:04] Audit Your Profit and Loss: Get a Free Audit from My Amazonaudit.com The Show Outline Why This matters Amazon Seller Frustrations Working hard but not much money left at end of month/quarter/year Don't know where your money goes Don't know if you should reorder products, what to buy. How much What we Want from our Profit System Clarity and guidance Financially informed decisions Overview of business Know what to do more and to stop Know what to costs to cut Profit and Loss Mistakes Having no accounting system Not integrating Amazon with the system Not updating the system with accurate data Not acting on the insights you get Who this is for Resellers using RA, OA, or wholesale sourcing Own brand sellers (Private Label/custom products) Using Amazon Profit and Loss is like a dashboard on a small plane “Instrument flying” is what pro pilots do to be able to fly in all weather conditions With “instrument flying” you are using accurate data to build a mental map of conditions. Everything you do has two aims: To get to the destination To stay safe while doing so You need to monitor things like Altitude above the ground Attitude/orientation Air speed Weather conditions Other aircraft What Amazon profit seekers can learn from instrument flying Altitude - how far from zero profit are you? Attitude/orientation Are you at an aggressive approach angle relative to direction of travel Environmental conditions - like shrinking markets, recessions Other aircraft - competitors - where they are, speed, how close How to Clean up your Amazon Profit and Loss Choose an accountant that understands ecommerce/ your business Use an accountant to set up your accounting systems Use the system your accountant and book keepers are comfortable with Xero is common. QuickBooks is fine 3 . Identify the most important numbers to clean up for in your p and l - then work backwards from there The most important numbers in your p and l for management accounting are gross profit Operating profit Gross profit is your net revenue minus all your direct costs It shows how profitable your product sales are. It's most helpful at the product by product level to help you decide what pro...
The two most common financial statements that you will encounter in your business are a profit & loss statement and a balance sheet. In this episode, I will be focusing on the profit and loss statement. Understanding how to properly read this statement can help you know how well (or not so well) your business is doing. The most important thing to remember when reading your statement is that revenue - cost of sales = gross profit THEN gross profit - operating expenses = net profit. * Find everything you need at www.keepwhatyouearn.com! https://www.keepwhatyouearn.com/ * Questions about this episode? Text me!: https://my.community.com/shannonweinsteincpa * Chat about this episode in the Keep What You Earn Community – http://keepwhatyouearn.circle.so Related episodes: 166. What Does a Fractional CFO Do? 174. Building Wealth Habits with Candy Valentino 176. When Should You Hire a Fractional CFO? * Hire us: https://www.fitnancialsolutions.com/accounting * Find me on IG @shannonkweinstein * Meet me face-to-face on YouTube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ * Featured in Yahoo Finance! Read more here: https://finance.yahoo.com/news/10-bookkeepers-accountants-watch-2021-113800161.html The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
In the 19th installment of our Tuesday open office hours on TikTok Live, Chris shows you the 2021 Refine Labs Profit and Loss Statement and how finances affect strategic decision-making at the executive level. As always, we also opened the show up to Q&A and covered topics including: - How to get a promotion if there are some gaps in your resume - The benefits of full salaried sales teams - Paid vs free communities - Tips on utilizing your CS team for marketing initiatives - and more... Thanks to our friends at Hatch for producing this episode. Get unlimited podcast editing at usehatch.fm.
This week Drake is breaking down the Profit & Loss Statement. This 4 part series is designed to assist you to track and understand your numbers which will assist you to make better business decisions! This week we discuss the importance of evaluating your Financial Statements on a regular basis. If you missed last week's discussion it was published on 10/19/22 Are you in need of a Financial Advisor? A CPA or a Bookkeeper? Book a free 30-minute consultation with Drake using the link below. https://bit.ly/3wpQZXf Learn more about Tile Money University here https://bit.ly/3xs7qCO Get your Happy Tile Guy website here https://bit.ly/3QFX3SE
Learn how Realtors should analyze a real estate profit and loss statement by comparing it to a real estate agent budget to ensure that their income, expenses, and profit are all in alignment with a successful and proven model. Order The High-Performing Real Estate Team: https://therealestatetrainer.com/high-performing-real-estate-team/ Subscribe for more real estate videos and real estate resources: http://bit.ly/2P70Avb Check out Brian's online courses here: https://courses.therealestatetrainer.com/ For free materials, great educational resources, and more information about our Coaching Programs, visit TheRealEstateTrainer.com. Where You Can Find Us: Website: https://www.therealestatetrainer.com/ Facebook: https://www.facebook.com/TheRETrainer/ Twitter: https://twitter.com/bicenhower YouTube: https://www.youtube.com/user/brianicenhower/ Pinterest: https://pinterest.com/realestatetrainericc/
Profit and Loss Statement for Realtors - Learn the various itemized components of a real estate agent's P&L statement, and the most important line items to pay attention to. Order The High-Performing Real Estate Team: https://therealestatetrainer.com/high-performing-real-estate-team/ Subscribe for more real estate videos and real estate resources: http://bit.ly/2P70Avb Check out Brian's online courses here: https://courses.therealestatetrainer.com/ For free materials, great educational resources, and more information about our Coaching Programs, visit TheRealEstateTrainer.com. Where You Can Find Us: Website: https://www.therealestatetrainer.com/ Facebook: https://www.facebook.com/TheRETrainer/ Twitter: https://twitter.com/bicenhower YouTube: https://www.youtube.com/user/brianicenhower/ Pinterest: https://pinterest.com/realestatetrainericc/
This week Drake is breaking down the Profit & Loss Statement. This 4 part series is designed to assist you to track and understand your numbers which will assist you to make better business decisions! If you missed last week's discussion it was published on 10/05/22 Are you in need of a Financial Advisor? A CPA or a Bookkeeper? Book a free 30-minute consultation with Drake using the link below. https://bit.ly/3wpQZXf Learn more about Tile Money University here https://bit.ly/3xs7qCO Get your Happy Tile Guy website here https://bit.ly/3QFX3SE
As a fitness coach, you may be wondering how to help your business weather an economic storm. While it may be tough, there are still ways to make it work. Tune in as I talk about 3 recession protection strategies for fitness coaches: Mistakes to avoid with an Emergency Fund Why Profit & Loss Statement could mislead you in a recession One expense NOT to cut Links: Map How Your Money Flows: Map My Money Save Taxes in your business: Free Consultation Follow me: https://www.instagram.com/thepatdarby Weekly Tax Tips & Deadline Reminders: Get Tax Reminders FitPro Business Survey: Take 5-Min Benchmark Survey
Today's Hump Day Financials is all about understanding your Balance Sheet. This is the first of a four-part series designed to assist you to understand your business's financial statements. The point of this series is to assist you to track & understand your numbers to enable you to make good business decisions. Next week we will be discussing your Profit & Loss Statement, otherwise known as your Income Statement. Are you in need of a Financial Advisor? A CPA or a Bookkeeper? Book a free 30-minute consultation with Drake using the link below.
This episode will breakdown the essential data points in your profit and loss statement. It will give you industry standards on notable metrics connected to your profit and loss statement. It will also share strategies on how to build a budget based on your profit and loss. http://www.wellnessworksmp.com
Many operators don't fully understand how to read a restaurant's Profit and Loss Statement (P&L). In fact, many don't even have a basic understanding of where the data is coming from. Furthermore, how to interpret the data into actionable insights. It's critical for the financial health of all restaurants that those who are making scheduling decisions, buying decisions, etc. fully comprehend how to read an income statement. It's even more important that they can utilize the knowledge behind what goes into the P&L. Read the full Blog Post: https://rasiusa.com/blog/easy-tips-how-to-read-a-restaurant-profit-and-loss-statement-pl/ Watch the Quick Snippet Video: https://youtu.be/25cQdFDASPs Social Handles: RASI Instagram: https://www.instagram.com/rasinc__/ RASI Twitter: https://twitter.com/RASInc_RASI Facebook: https://www.facebook.com/RestaurantAccountingServicesInc RASI LinkedIn: https://www.linkedin.com/company/restaurant-accounting-services-inc-rasi
Successfully closing out a period starts the domino effect for proactively operating a restaurant versus missed opportunities in the following periods. The Period End Financial Close purpose is accuracy verification to highlight where your money is going. This enables you to make quicker, more educated business decisions. To close out a period, begin with a review of the financial statements; The Profit & Loss Statement, The Balance Sheet, and Cash Flow Statement. Within each statement, defined areas of focus should pop out to an operator as a must-watch for success. Throughout this webinar, we will review a few key items to concentrate on when conducting a Period End Financial Close: Capital Expenditures & Preopening Expenses. As a bonus, we'll run through some additional restaurant accounting tips to assist with better financial practices for your business. Read the full Blog Post: https://rasiusa.com/blog/restaurant-accounting-tips-capital-expenditures-and-preopening-expenses/ Watch the Quick Snippet Video: https://youtu.be/ugpF2kKCuAE Social Handles: RASI Instagram: https://www.instagram.com/rasinc__/ RASI Twitter: https://twitter.com/RASInc_RASI Facebook: https://www.facebook.com/RestaurantAccountingServicesInc RASI LinkedIn: https://www.linkedin.com/company/restaurant-accounting-services-inc-rasi
When your Profit and Loss Statement shows that you have positive profit, you need to really check if that is real profit because it may not. Positive doesn't mean the business is financially healthy. This is the case of just “paper profit”. Why does this happen? Unreal profit happens when profit that does not equate to having actual cash in the bank. In this episode, Annette will give you some guidelines on how to ensure that you have the right cash management in your business. Some of the causes why the business is not financially solvent is when there are money leaks happening in your business operation. Here are a few insights you'll hear in today's show… What are the types of profits? How do you know if your business is financially healthy? How do you ensure that your business has physical cash profit? What does "Profit First" do and how do you operate it? Why is it important that you identify and assess money leaks that are happening in your business? What are money leaks? Resources: Identify and eradicate money leaks: https://youtu.be/tKDmRApyrww (https://youtu.be/tKDmRApyrww) Understanding a profit and loss account: https://youtu.be/9R6QwNPsM7w (https://youtu.be/9R6QwNPsM7w) Understanding a balance sheet: https://youtu.be/EZ1cctAAnI0 (https://youtu.be/EZ1cctAAnI0) Connect to Annette Ferguson: Facebook - https://www.facebook.com/UKAnnetteFerguson/ (https://www.facebook.com/UKAnnetteFerguson/) Instagram - https://www.instagram.com/annetteandco_/ (https://www.instagram.com/annetteandco_/) YouTube - https://www.youtube.com/channel/UCkohh_X-4R5mKfEW9rBQ1qA (https://www.youtube.com/channel/UCkohh_X-4R5mKfEW9rBQ1qA) Listen to the Podcast - Financial and Lifestyle Freedom for UK Business Owners - https://podcasts.apple.com/gb/podcast/financial-and-lifestyle-freedom-for-uk-business-owners/id1473582522 (https://podcasts.apple.com/gb/podcast/financial-and-lifestyle-freedom-for-uk-business-owners/id1473582522)
The 'Profit and Loss Statement' (P&L), or ‘Income statement' is one of the three major Financial Statements. In this video, you'll find out what the Profit and Loss statement is and how you can use it to measure a business's financial health. Here are a few insights you'll hear in today's show… - What is a Profit and Loss Statement and why it is one of the important financial statements of a business? - Sections of a Profit and Loss Statement and explanation of terms - If you are interested in making more profit come and join our (new!) free Facebook Group - https://www.facebook.com/groups/915326342418247 (Profit First UK - here ) - If you want to speak to us about how we might be able to support you, https://www.annetteandco.co.uk/fitting/ (book a call with our team here)
Have you ever wondered what that pesky Profit and Loss Statement is for? Money in the bank account is proof that you're profitable, right? There's actually far more to the profit and loss statement than that. In this episode, Jennifer, Patricia, and Daniel talk about what the numbers on your P&L statement mean. Learn how you can use those numbers to call the right play for your business.
Welcome to Firepreneurs 101 - A series of short episodes to help you better understand your numbers and speak the language of business. Starting from the top of the Profit and Loss Statement all the way to the bottom line, we will unpack what the categories mean, how to use them as tools when running your business and how to ensure that your business turns a profit. In this episode we discuss "What is Net Profit?"
Welcome to Firepreneurs 101 - A series of short episodes to help you better understand your numbers and speak the language of business. Starting from the top of the Profit and Loss Statement all the way to the bottom line, we will unpack what the categories mean, how to use them as tools when running your business and how to ensure that your business turns a profit. In this episode, we discuss "What are Legal and Professional?"
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