Introduction
Why is financial record keeping important?
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1. Create a Qualitative Business Plan
Financing a small business
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Cash flow management
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Forecasted financial statements
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Sales forecasting
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Forecasting expenses
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2. Capture Basic Business Data
Payroll record keeping
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Wasatch Medical Center and paper records
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A simple spreadsheet
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Basic accounting software
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3. Small Business Income Taxes
Types of books
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Business income tax report: US Schedule C
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Separating personal from business expenses
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4. Prepare Financial Reports to Be Shown to Outsiders
Reliable financial reports
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Financial reports for banks, potential investors, and partners
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Earnings management and user skepticism
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Auditors
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5. Determining the Value of a Business
Using price-earnings (P/E) ratio for valuation
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Using price-to-book (P/B) ratio for valuation
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Using price-to-sale (P/S) ratio for valuation
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Managing internal controls
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Valuing a family-owned business
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Establishing the credibility of income forecasts
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Conclusion
Setting up your business for success
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Glossary_Financial_Record_Keeping.zip
(102 KB)