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Accounting Basics
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CONTENT
Content.
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Definition- Resume
What is Networking?
What is Business Accounting?

• Accounting is the systematic recording,
• analysis and interpretation of financial data in
• your company.
• Accounting allows business owners to keep
• track of their financial operations, comply with
• legal duties and make better business decisions.
• Accounting is an crucial aspect of running
• a business.
• It's a task that you'll have to either master or
  
• outsource or both.
• Let's get started by going through some of the
• accounting terms.

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Definition- Resume
What is Networking?
Business Accounting Basics

• An Income Statement is a financial statement
  that reveals how profitable your firm is and how
  much money it has gained or lost.
• A Balance Sheet is a snapshot of your company's
• financial standing at a specific point in time
  that
• displays your company's retained earnings.
• A Profit And Loss (PL) Statement is a snapshot
• of your company's income and expenses over a
• period of time.
• A Cash Flow Statement is a financial statement
• that examines your company's operational,
  financing
• and investment activities to show how and where
• money is received and spent.
• A Bank Reconciliation compares your cash
  expenditures with your total bank statements and
  assists in maintaining consistency in your
  business records.

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Definition- Resume
What is Networking?
Business Accounting Terms to Know

• These terms will serve as the foundation for your
  understanding of business accounting.
• 1). Accounts Receivable Accounts Payable.
• Accounts receivable is money that
• individuals owe you for products and services.
• It is considered an asset on your balance sheet.
• Accounts payable refers to money you 
• owed to others and is shown as a liability on
• your balance sheet.
• 2). Accruals
• Accruals are debts and credits that you've
• documented but haven't paid off yet.
• These could be sales that you've completed but
  haven't yet received money for or expenses that
  you've done but haven't yet been paid for.

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Definition- Resume
What is Networking?
Business Accounting Terms to Know

• 3). Assets
• Anything that your company owns is
• referred to as assets whether tangible or
  intangible.
• Cash, tools, property, copyrights, patents and
• trademarks are all examples of assets.
• 4). Burn Rate
• Your burn rate is the rate at which your company
  
• spends money. When it comes to calculating and
• managing your cash flow, this is an major
• factor to consider.
• To calculate your burn rate, simply choose a
  time period (like a quarter or a year).
• Subtract your cash-on-hand at the ending of the
  term from your cash-on-hand at the beginning,
  then divide it by the number of months in the
  term.

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Networking Gets You Hired
Business Accounting Terms to Know

• 5). Capital
• Capital refers to the money you have to invest
• or spend on expanding your firm.
• Commonly known as "working capital", refers
• to money that can be accessed (such as cash in
• the bank) excluding assets and liabilities.
• 6). Cost of Goods Sold (COGS)
• COGS or cost of sales (COS) is the price you
• pay to make a product or provide a service.
• COGS is the first expense on your profit and
  loss
• (PL) statement and is a crucial component in
  determining your company's gross margin.
• You can enhance profit without increasing sales
  by lowering your COGS.

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Networking Gets You Hired
Business Accounting Terms to Know

• 7). Depreciation
• Depreciation refers to the decrease in
• your assets values over time.
• Its is crucial for tax purposes, because
• larger assets that impact your companys
• potential to make money can be written
• down depend on their depreciation.
• 8). Equity
• The amount of money invested in a firm
• by its owners is referred to as equity.
• Equity is the difference between your company's
  assets and liabilities.
• Potential investors, lenders and purchasers are
  more interested in a company with healthy
  (positive) equity.

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Networking Gets You Hired
Business Accounting Terms to Know

• 9). Expenses
• Any transactions you make or money you spend in
  an attempt to produce
• revenue are considered expenses. 
• It can be divided into four categories
• Fixed expenses, such as rent or salary,
• are expenses that occur on a regular basis.
• Variable expenses vary with the organizational
• performance and production, like utilities and
• raw materials.
• Accrued expenses are Single spending that
• has been documented or reported but not yet paid.
• Operating expenses are essential for a firm to
  do business and generate revenue, such as rent,
  utilities, payroll and utilities.

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Networking Gets You Hired
Business Accounting Terms to Know

• 10). Fiscal Year
• A fiscal year is the accounting period used by a
  company.
• Your company determines the start and end
• dates of your fiscal year some match with the
• calendar year, while others vary depending on
• when accountants can create financial
• statements.
• 11). GAAP
• Refers to Generally Accepted Accounting
• Principles.
• GAAP compliance is especially crucial
• for publicly traded firms since many investors
  and lenders rely on GAAP-compliant financial
  reporting when making investment and lending
  decisions.

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Networking Gets You Hired
Business Accounting Terms to Know

• 12). Liabilities
• Liabilities are everything your company owes,
  whether long or short term such as credit card
  balance, salary, taxes or a loan.
• 13). Profit
•  Profit is the difference between your revenue,
• cost of goods sold and expenses.
• 14). Revenue
• Your revenue is the whole amount of money
• you get in return for your goods or services
• before any expenditures are deducted.
• 15). Gross Margin
• Your gross margin is the difference between your
  total sales and
• your COGS. This figure represents the
  sustainability of your company.

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VIDEO RECOMMENDATIONS
Videos Recommended by SOYTIL

• 1. Basic Concept of Accounting.
• 2. Basic Accounting Terms.
• 3. Business English Vocabulary for Accounting.
• Summary of the 3 videos shared with you.
• In this video we will learn the basic concept of
  accounting in a simple way for beginners.
• This video will help students understand
  accounting so that they can understand the basic
  terms clearly.
• This Business English video lesson introduces
  English vocabulary for finance, accounting and
  accountants.

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18 PRINCIPLES OF A SUCCESSFUL LIFE
Dos and Don'ts Of Networking

1. The result will be worth the sacrifice.
2. Patience is power.
3. Nothing worthwhile in life comes easy.
4. Nothing that has happened in the past can stop
   you from creating a better future.
5. Its never too late to be great.
6. Not everyone will be happy for you.
7. Habits make you or break you.
8. Fear is an illusion.
9. Without direction ,youll end up in the wrong
   path.
10. No one will believe in you until you do.
11. There is nothing you cant achieve in life if you
    are willing to work for it.
12. Dont chase money. Follow your purpose.
13. There is always something to be grateful for.
14. There is no such thing as Failure, unless you
    fail to learn the lesson.
15. Never stop learning and working on yourself.
16. Live with integrity.
17. You can change the way you feel at any moment by
    changing your thoughts.
18. Dream big. Stand out. Fly high.

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BOOKS YOU SHOULD READ
Dos and Don'ts Of Networking
1. How to Win Friends and Influence People- by
Dale Carnegie 2. The Psychology of Selling- by
Brian Tracy 3. Rich Dad, Poor Dad- by Robert
Kiyosaki 4. The 100 Startup- by Chris
Guillebeau 5. Click Millionaires- by Scott Fox 6.
The Lean Startup- by Eric Ries 7. The
Entrepreneur Mind- by Kevin D Johnson 8. The
Power of the Subconscious Mind by Dr Joseph
Murphy 9. 7 Habits for Highly Effective People-
by Stephen Corey 10. Start with Why How Great
Leaders Inspire Everyone to take Action- by Simon
Sinek 11. Think Grow Rich by Napolean Hill 12.
On Becoming a Leader- by Warren Bennis 13. The
Ten Commandments for Business Failure by Donald
R. Leough 14. Good to Great Why Some Companies
make the Leap and others dont- by Jim
Collins 15. Emotional Intelligence Why It can
Matter more than IQ- by Daniel Goleman 16. Drive
The Surprising Truth about what motivates us- by
Daniel H Pink 17. Thinking, Fast and Slow- by
Daniel Kahneman 18. 2049 Elites Secret Apple-
by Smalan Varghese
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LEARN LEAD EMPOWER
Visit our website _at_ www.soytil.com
BELIEVE IN YOURSELF
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