3-Month Accounting Course

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3-Month Accounting Course

3MAC Training

FINANCE COACH

Finance Coach 3MAC Training Video

Purpose of this Webinar

How solid is your Financial Education? Improve it now with the… 3-Month Accounting Course (for non-accountants)

Welcome to the Webinar

“Reviewing the trading performance of a business…”

Reminder:

“What items are listed on a Profit & Loss statement?” 3MAC Week 1 Page 13

Profit & Loss

Main Parts of a Profit & Loss Statement: 1. Sales 2. Cost of Goods Sold 3. Gross Profit 4. Overhead Expenses 5. Net Profit (or Loss!)

© Copyright 2012, UBT

Profit & Loss

A Defined Period

3MAC Week 2 Page 6

Where did the data come from?

3MAC Week 2 Page 7

Step 1: Validate the Transaction

Phone Bill

3MAC Week 2 Page 6

First Check: • Is this for us? • Who ordered it? • Is there a purchase order for it? • Have we been supplied the correct quantity… • …at the correct price? • Is any freight charged correct? • Does the supplier’s invoice comply with local tax law? • Has it already been entered in the bookkeeping system? (Check both Orders and Bills)

Step 2: Classify the Purchase

3MAC Week 2 Page 8

Data in…

3MAC Week 1 Page 19

The workings:

3MAC Week 2 Page 9

Sales are Recorded:

3MAC Week 2 Page 9

Cost of Sales Deducted:

3MAC Week 2 Page 9

The workings:

3MAC Week 2 Page 9

Where do the Profits go? Profit Transferred 

Profit & Loss 3MAC Week 2 Page 9

Equity

What if there was a Loss?  Loss Neutralised

Profit & Loss

3MAC Week 2 Page 9

Equity

Financial Reports ABC Confectionery Co PROFIT & LOSS For the period ending 31 December 2010

ABC Confectionery Co PROFIT & LOSS For the period ending 31 December 2011

SALES

$3,457,841

SALES

$3,978,507

COST OF SALES Opening Stock Purchases Available for Sale Less: Closing Stock Cost of Goods Sold

$414,574 $2,244,845 $2,659,419 -$457,685 $2,201,734

COST OF SALES Opening Stock Purchases Available for Sale Less: Closing Stock Cost of Goods Sold

$457,685 $2,711,884 $3,169,569 -$473,260 $2,696,309

GROSS PROFIT

$1,256,107

GROSS PROFIT

$1,282,198

EXPENSES Marketing Administration Financial Total Expenses

$178,459 $795,481 $59,845 $1,033,785

EXPENSES Marketing Administration Financial Total Expenses

$198,752 $781,404 $69,854 $1,050,010

NET PROFIT

3MAC Week 2 Page 14

$222,322

36%

6%

NET PROFIT

$232,188

32%

6%

Inventory Costing:

Cost of Goods Sold: SALE!

Stock on Hand 3MAC Week 2 Page 18

Inventory Costing: Inventory

3MAC Week 2 Page 22

Tax Calculations: Tax

3MAC Week 2 Page 28 & 31

GST/VAT Intro:

3MAC Week 2 Page 37

Any Questions?

Next Week

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COPYRIGHT 2013 This presentation is copyright of UBT Accountants, and must not be distributed, copied, lent or hired.

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