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Revenue
All income that a business receives over a period of time.
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Expenses
The costs of operating a business.
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Profit
When revenue is greater than expenses.
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Loss
When expenses are greater than revenue.
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Budget
Provides detailed plans for the financial needs of individuals, families, and businesses.
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Business Budget
- 1. Anticipate sources and amounts of income for a business.
- 2. Predict the types and amounts of expenses for a specific business activity or the entire business.
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Small Business Administration (SBA)
Provides many planning tools for new businesses.
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Start-up Budget
Plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable.
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Operating Budget
Describes the financial plan for ongoing operations of the business for a specific period.
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Cash Budget
An estimate of the actual money received and paid out for a specific period.
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Financial Records
Used to record and analyze the financial performance of a business.
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Asset Records
Identify the buildings and equipment owned by the business, their original and current value, and the amount owed if money was borrowed to purchase the assets.
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Depreciation Records
Identify the amount assets have decreased in value due to their age and use.
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Inventory Records
Identify the type and quantity of resources and products on hand along with the current value of each. Accurate records are crucial to determine if adequate resources are available to meet operating and production needs as well as customer demand.
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Records of Accounts
Identify all purchases and sales made using credit.
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Accounts Payable Record
Identifies customers that made purchases using credit and the status of each account.
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Cash Records
List all cash received and spent by the business.
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Payroll Records
Contains information on all employees of the company, their compensation, and benefits.
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Tax Records
Show all taxes collected, owed, and paid.
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Asstes
What a company owes
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Liabilities
What a company owes.
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Owner's Equity
The value of the owner's investment in the business.
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Financial Statements
Reports that sum up the financial performance of a business.
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Balance Sheet
The assets, liabilities, and owner's equity for a specific date are listed here.
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Income Statement
The report the revenue, expenses, and net income or loss from operations for a specific period.
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Current Assets
Assets that can easily be converted into cash
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Long-term Assets (Fixed Assets)
Assets with a life span of more than a year.
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Current Liabilities
Liabilities that will be paid within a year.
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Long-term Liabilities
Debts that will continue for longer than a year.
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Payroll
The financial record of employee compensation, deductions,
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