1 Manage Finances and Contracts MODULE 1

Today my name is bruce welcome to manage finance and contracts you would receive from your facilitator and learn a guide and workbook in a portfolio evidence as we go through this module there’ll be class activities for you to complete at the end of each module which will be completed in your workbook and at the end of this whole course you’ll be able to complete

Your portfolio of evidence let’s have a look and see what are the unit standards which make up this course alright let’s have a look at the engender first one we can be looking at is what is managing finances in a new venture then how to administer contracts for a new venture so let’s have a look at the very first one which did manage finances for a new venture and

Here are the course module outcomes firstly we get you looking at how do you explain financial controls for managing a business also identify the playa card in practices and procedures manage business accounts and maintain business records then lost it utilize financial statements to identify business progress okay let’s kick off on looking at how do you manage

Finances for a new venture if you want to have a successful business that is to make a good profit you need to know how to manage your finances a lot to start up businesses fair as even though their owners and managers are skilled at marketing sitting they did not know how to efficiently collect the sales of money monitored and also save or spin it correctly let’s

Have a look how we explain the financial controls and managing your business when you start a business it’s a good idea to plan the various ways that money will flow from you as well as into your business as a business only responds to pay accounts as well as salaries at the same time you need to know how you accept payment from your customers a bank account offers

Many benefits for you and your money it’s safe convenient also easy to save money it’s cheaper but also it can help you access credit the skills for interpreting bank statements and operated bank accounts an account bank an account state or a bank statement is a summary of all your financial transactions occurring every given period of time on a deposit account

A credit card or any other type of account offered by a financial institution bank statements are typically printed on one or several pieces of paper and mail directly to the account holders address or by email please read pages thirteen to nineteen in your learner guide so what are the various types of accounts that we deal with now to succeed in your business

Venture accurate financial records will enable you to decide whether you are actually making a profit or a loss it was about to tip me with your possessive stable oh then you can expect some financial trouble in the near future there are various types of cancer the business venture should have such as a cash book a journal nature as well as a balance sheet now take

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A commercial business as the most common organization structure the key objective of financial manager would be firstly to create wealth for the business generate cash and they provide an adequate return on investment bear in mind that risks that business is taking and the resources that are invested financial management elements key elements of financial manager

Is the first financial planning manager needs to ensure that enough funding is available at the right time to control them or meet the needs of the business financial control is a critically important activity to help business ensure that the business is actually meeting its objectives financial decision making the key aspects of financial decision-making relate

To investment financing and dividends financial concepts as a business venture owner you need to be able to relate financial conscious to your own business venture and those includes having startup capital operating capital cash flow management profit for costs major assets as well as managed of liabilities please read pages 22 to 23 for further on your financial

Concepts please complete class activity one in your workbooks how to identify an apply accounting practices and procedures the whole point of using accounting software is to make your life easier by saving your time and money therefore if it doesn’t and you meet your devo requirements without it you should question whether it’s actually worth the effort they

Counting systems for your own venture it should save you time because a whole process of bookkeeping should be faster although sitapur packets can take an initial time investment at the start you should also be able to answer queries much quicker such as did you pay a supplier an aed last month and if so how much some things should be semi or fully automated such

As bank reconciliation v8t returns your ye-in should also be more straightforward when balancing so how does your account the system work first you have a business transaction or source document which then leads to a journal entry which then becomes a general ledger which goes into your trial balance and lastly moves across to financial statements or balance sheets

Or income statements the heart identify suitable characters support structures in accordance with their own business requirements there are various accounts and support structures that you can use in a new venture depending on the business requirements the exam for the appointment of accounting officer point when accounting clocks or appointment of a bookkeeper

Taxation requirements required in the administration of finances in your own venture if you keep up-to-date and accurate financial records you will find text compliance and relatively straightforward exercise if sales happen to want to audit your business they will be able to see these records to tax rules may differ slightly into character rules but is recommended

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To try and keep the two in line as much to keep your slice simpler that is do not try to keep two sets of records whenever you structure you need to be aware that galland will still require you to pay or register for income tax fear tea urf or cid pa ye and to play apply for certain licenses depend on your industry your size and also whether you are employing

Staff please read pages three eight to fourteen you learn a guide for more information about other types of legislation the analysis of elements of an income and expenditure statement for your own business venture the state of comprehensive income or income and expenditures table shows how profitable firm is it measures performance over a period of time it will

Also summary of transactions between consecutive balance sheets it also reports on what income has been earned and what expenses were incurred now the stated cash flow shows how a company obtained and has used cash the source of cash are also called cash inflows and users are known as cash outflows the cash flow budget consists of two sections cash receipts

And cash payments the cash receipts section also includes monies which you have received from debtors whilst of cash payments section also needs to include payments which you will make to your creditors as well as the payments of loans bank overdrafts etc identifying payment terms procedures relating to liabilities and to implement them accordingly liabilities

Consist of the money that the company owes to supplies and other creditors they are divided into current liabilities those are liabilities that are expected to be settled within 12 months or the statement of financial position position that your balance sheet date non-current liabilities these are dates that we settled after 12 months like a mortgage bond please

Complete class activity 2 in your workbooks now to manage business accounts and to maintain business records keeping accurate and timely financial information is the key to running a successful and profitable business for the following reasons please also read pages 51 to 55 in your donor guide firstly it’s to also look at how we monitor the excess or failure of

A business provide the information that you need to make decisions obtaining bank financing obtaining other source of finance budgeting as well as preparing your income tax returns as also well complying with your legislations key issues pertaining to books of accounts the book of the cards are useful analytical tasks which would include comparing performances

Over time comparing performance against competitors or the industry as a whole benchmarking against best-in-class businesses as well as any potential weaknesses and using published financial information to assess performances keep books of accounts on a monthly basis doesn’t shouldn’t effective financial management business venture keeping the business keeping

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The books for a small business involves recording all financial transactions organizing backup documentation as well as setting the stage for the counting to actually begin according to the sas there is no set rule as how a small business should handle its bookkeeping as long as income and expenses are actual recorded please also refer to pages 57 to 74 in your

Lerner guide for further information regarding this please complete class activity 3 in your workbooks now how do you utilize financial statements to identify business progress the priory financial statements other company are prepared in order provide information to the users of these statements to help them to make an economic decision the income statement is

Based the first financial statement you will come across in an annual report it also contains the numbers most often discussed when a company announces its results numbers such as revenue earnings and earnings per share basically the income station shows how much money that can be generated as revenue how much it spent its expenses and the difference between the

Two there’s a profit over a certain time period now to compare the income experience session to the cash flow statement the income statement shows you how the profit or loss for the period has arrived at as a minimum the face of the income statement shall include line items the presenter following amounts for the period like revenue financial costs share of the

Profit or loss of associates and joint ventures accounted for using the equity method as well as tax expenses and of course if you made a profit or a loss now to ascertain a profit loss is to determine your financial progress of your business account through which annual net profit or loss other businesses s10 is called your profit and loss account gross profit or

Loss other businesses as attained through trading account and net profit is determined by deducting all indirect expenses that your business operate expenses from the gross profit through profit and loss accounts thus profit and loss account starts resort provided by your trading account now comparing business records or financial records to business plans after

Reviewing financial records one must prepare these the budget as prepared in the business plan so the variances are afflicted on and modified to ensure alignment to the overall goals of the business a comprehensive business plan also provides a great way for monitoring the progress of your company on a point by point basis please complete class activity 4 in your workbook thank you

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1 Manage Finances and Contracts MODULE 1 By Spesres SA