Common financial business forms

Common financial business forms

Lesson Details:
April 27, 2020

Video Transcription: So another time we people ask about is what kind of reports do they need to generate what kind of forms what are some very initial introduction introductory things people need when they're setting up their business financials this video is brought to you by Appy Pie’s Academy yeah that's a great question because a lot of times when you look online for that information you're given something that's like a fortune 500 deal where it's like 50 P in there and you're like I don't know what that is or you're given something that's very personal finance oriented and it doesn't really dovetail well with your business so it's hard to find like what exactly do I need as a small business so when we're talking to small business we're talking like maybe five employees or less and I have a Kate that you do just a simple profit and loss and if you if you are either a new business or you haven't done profit and losses you know consistently yet where you're really looking at them I see weekly for the first four weeks so I ask for a commitment of four weeks where you're giving yourself one hour each week to look at your profit and loss because your profit and loss contains a lot of really good information that can help you guide your business so we want to do it weekly the first four weeks because we're getting familiar with it and then after that you can go to monthly and then a lot of times you're making a big financial decision you're gonna want to go back you know and look at it a little bit more frequently because you're trying to see some trends here so it's almost like I I liken it to a marriage you know I've been married almost 20 years you can't show up on your anniversary and say hey baby you know let's have a marriage you gotta have a marriage everyday right .

You're gonna look at your profit and loss consistently so you can start to see those trends so you can build that relationship with your financials where you know what's going on in your business so you want to get that profit and loss generated weekly for the first four weeks and then monthly after that now once you have it a lot of people just go okay awesome I have it or they'll receive it via email from their bookkeeper and they'll just file it in the folder I want you print it out print it out and I want you to set a timer and spend an hour with it and I want you to review it I want you to look at it then I want you to put it aside and I want you to just think I want you to select your mind freewheel about what's in there because what we're looking for here is not numbers what we're looking for here is concepts because your P&L is gonna show you what your business is doing it's gonna show you where you're making money it's gonna show you where you're losing money you're gonna have a lot of great ideas you're gonna see like oh we made a lot of money doing this what if we tweaked it a little bit and kind of presented it this way we can make all that whore money you know or we're just hemorrhaging money you know maybe you're looking at your staff costs and you think well geez that Brian yeah now that I look at what we're paying him I'm not real excited about how to Brian on my team you know so put it aside let your mind think and then pick it back up circle the things that you find interesting and use it you can use it to make a to-do list here's your p.m. will tell you what needs to happen in your business so if you spend that hour with your P&L you will have the 30,000 foot view on your business and you don't really guide your business I call it my knee for P&L gold there's just gold in there that you can use to guide your business and I think a lot of people think it's just about numbers and it's really almost not at all about the numbers it's just a numbers show you where you're going and where the opportunities are yeah I think as we're talking I'm I'm getting a theme from you that as a business owner you have to be like deep in your business you have to understand the ins and outs of it and I think people skip that I mean in finance they definitely want to skip that like but people skip that all the time like in marketing in your product quality they're like you know like oh maybe some person X will just take care of that and I never have to think about it and and if you're a business owner if you're like well if you're doing that with your marketing you're doing that with your product and we're doing that with your finances what is really going on with your business you don't you don't know well interesting - I read Branson's autobiography and you know when he does this in a lot of his businesses but he flies virgin air and makes notes he talks to the stewardesses I mean he knows what's going on I guaran-damn-tee he knows what's going on with the PNL but he knows what's going on in every piece of that business that's why successful you can't outsource that stuff nobody cares like you do and nobody has your vision that's where you're the business owner yeah you have a good term like P&L gold I have a really not a good term I could put your nose in it yeah that sounds gross yeah I'm gonna come up with better times it just reminds me of courses like when you're riding and one puts their nose and the other ones too I think so many bad connotations can come about yeah it's not good work on that a little bit Alex I use internally for my own thinking but yeah I need to work on that yeah very descriptive yeah so maybe there's some poetry in there and some help hey why not.

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