Free Accounting Resources
View or download some of our helpful material below:
Whether you’re new to accounting or not, these sheets below will get you acquainted with need-to-know terminology:
As a small business owner you are often your own money manager. Here is a quick reference sheet reviewing the basic term regarding the input and output of your company’s money.
Things of value which the company owns which can be tangible or intangible. Tangible assets can include cash, supply, and equipment. Intangible assists can include matter such as accounts receivable and patents.
This is your financial summary of assets, liabilities, and owner’s equity that can be captured at any point in time.
Also knows as owners equity, it refers to partner’s capital, stock, and retained earnings. A simple equation to arrive at equity is the residual difference between assets and liabilities.
Things of value that company owes and transfers
to another party. Liabilities can include loans,
accounts payable, and accused expenses.
This is what your business does, how you are making money, and if you can make money.
CASH FLOW STATEMENT
It’s the summarization of what you are spending and how your cash is being used.
To reduce and eliminate costs in a business, you need to know the formulas that are most often used in cost accounting. When you understand and use these foundational formulas, you’ll be able to analyze a product’s price and increase profits.
Profit ($0) = Sales – Variable costs – Fixed costs
TARGET NET INCOME
Target net income = Sales – Variable costs – Fixed costs
Gross margin = Sale price – Cost of sales (material and labor)
Contribution margin = Sales – Variable costs
PRE-TAX DOLLARS NEED FOR PURCHASE
Pre-tax dollars needed for purchase = Cost of item ÷ (1 – Tax rate)
Price variance = (Actual price – Budgeted price) × (Actual units sold)
Efficiency variance = (Actual quantity – Budgeted quantity) × (Standard price or rate)
VARIABLE OVERHEAD VARIANCE
Variable overhead variance = Spending variance + Efficiency variance
Ending inventory = Beginning inventory + Purchases – Cost of sales
Download our Financial Spreadsheet
This spreadsheet will speed up your bookkeeping:
Download our Start-up Accounting Guide: