.

This is used to include all the activities that define how a firm competes in the marketplace.
Business Model
To say that something will happen in the future.
Business Forecast
Money is made by or paid to a business or an organization.
Revenues
The following are three ways to forecast revenues.
Research thoroughly
Provide a breakdown of expenses
Review your company’s cash flow history
The ratio of total operating costs-direct costs and overhead, excluding financing costs to total revenue during a
given quarter or given year.
Operating Profit Margin
Refers to the excess of the business total income less all expenses within the accounting period, which maybe
represented monthly, quarterly or annually.
Business Profit
The difference between the total income and total expenses.
Net Profit
The difference between the total income and total expenses.
Net Income
A formal record of the financial activities and position of a business, person, or entity.
Financial Statements
Summary of various component projections revenues and expenses for the budget period. They indicate the
expected net income for the period.
Projected Financial Statements
Shows your assets, liabilities, and equity at a particular point in time.
Balance Sheet
Captures profit performance, demonstrates immediate capability to service debt for banks or real potential
growth in returns for venue capital.
Income Statement
The most critical forecast since it reflects viability rather than profitability.
Cash flow statements
The only way to inform the entrepreneur how the business is doing in order to analyze the health of your
business.
Record Keeping
The following should be kept religiously in good record keeping except one.
Competitors Profile
These records include information about your income, expenses and equity.
Accounting Records
Records of all your accounts in a bank.
Bank Statements
The following are the importance of good record keeping except one.
Creative Mind
It is the recording, on day – to day basis of the financial transactions and information pertaining to a business.
Bookkeeping
Paper – based traditional way of bookkeeping.
Manual Bookkeeping
The new and innovative way of recording business transactions.
Computerized Bookkeeping
A financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.
Cash Book
Record all the invoices it receives which includes purchase ledger folio and total amount.
Purchases Book
This is the book of prime entry for credit sales, where all credit sales of the day are listed and totaled.
Sales Book
When goods are returned, for whatever reason, this is recorded in this book.
Sales return book
Used to record bill accepted by the business owner/s which includes electricity bill, internet bill and supplier bill.
Bills Receivables Book
Provides necessary information regarding various accounts and also called the Principal Book.
Ledgers
After posting the accounts in the ledger book, this statement is prepared to show separately the debit and
credit balances.
Trial Balance
Record Keeping Tools Simple Paper Tools
Simple Paper Tools Ledger
Tickler System Hanging Folder
Computer System Tickler
Cloud Computing Accordion Folder

How to implement a business plan?

YOUR BUSINESS PLAN HAS TO BE REALISTIC PROGRESS AND REVIEW
SET OUT YOUR OBJECTIVES KEEP A TAB ON YOUR FINANCES
TIME ALLOCATION REGULARLY REVIEW YOUR BUSINESS PLAN

INCOME STATEMENT
SONGBIRD’S COLLECTION
For the year 2018
Sales Php 2, 000, 000.00
Cost of Goods Php 1, 130, 000.00
Gross Profit Php 870, 000.00
Selling and Administrative Expenses Php 300, 000.00
Depreciation Php 70, 000.00
Operating Profit (EBIT) Php 500, 000.00
Interest Php 150, 000.00
Earnings Before Taxes Php 350, 000.00
Taxes (10%) Php 35, 000.00
Earnings Available to Common Shareholders Php 315, 000.00
Dividends Php 115, 000.00
Net Income Php 200, 000.00

BALANCE SHEET
SONGBIRD’S COLLECTION
For the year 2018
ASSETS
Cash Php 200, 000.00
Accounts Receivable Php 130, 000.00
Inventors Php 87, 000.00
Fixed Assets Php 30, 000.00
TOTAL ASSETS Php 447, 000.00
LIABILITIES AND EQUITY
Accounts Payable Php 180, 000.00
Long Term Bank Loans Php 150, 000.00
Owners Capital Php 117, 000.00
Total Liability and Equity Php 447, 000.00