record keeping what kinds of records should businesses keep? assets liabilities net worth profit...

Record KeepingRecord Keeping

What kinds of records should businesses keep?

Assets Liabilities Net worth Profit and loss statement Cash receipts Non-cash receipts Invoice

Assets

Things that one owns and completely pays for.

• Example: Your car after all payments have been made.

Assets

Current Assets-items quickly converted to cash or that will be sold within 12 months– cash– checking– savings– stocks or bonds

Assets

Non-current-items that have a useful life or more than one year– land– machinery– breeding livestock

Liabilities

Things that you owe money to other people for or debts

• Example: My Visa

Liabilities

Current-debts that are due to be paid this year– fertilizer and feed bills– tractor and building payments– part of the mortgage due this year

Non-Current-debts not due this year– mortgages not due this year

Net Worth

One’s assets minus their liabilities.

• You have $3000 in the bank, but you owe $1750 for your bills. Your net worth is $1250.00.

Net Worth

Current Assets + Non-Current Assets=Total Assets

Current Liabilities + Non-Current Liabilities=Total Liabilities

Inventory

An itemized list of things owned by a business with the beginning value and depreciated value

Inventory

Non-depreciable-items that will be used or sold within a year– feed– supplies

Inventory

Depreciable-items that have a useful life of more than one year and lose value because of age, wear or becoming out-of date because of technology advancements.

Land is NOT depreciable property– tractor– computer– chainsaw

Profit and loss statement

A financial statement of a business that reports the profit made by the business or the losses incurred.

Cash receipts

Cash that is paid for services or merchandise.

Non-Cash receipts

Payment for services in other ways than cash.

Invoice

Shows items and prices for things that have been bought from a certain business.

Other business records

Labor Materials Travel

Debt-to-Equity Ratio

Used by banks and lending institutions to decide whether or not to lend money to specific people or businesses

Debt-to-Equity Ratio = Total Liability

Net Worth

School to Work Employment Plan

Factors to consider when selecting a career:– Standard of living

• pay, location

– Personal contact• working with people or things?

– Educational Requirement– Skills Required

School to Work Employment Plan

Location of employment Your interest, likes and dislikes Working conditions Working hours and time for leisure

activities Retirement benefits Your health and happiness

Steps in Choosing a Career

1. Consider your interest, abilities and characteristics”

2. Narrow the field of jobs3. Study the requirements4. Plan an alternative5. Prepare a plan for preparation6. Be willing to pay the price

• education, dedication

7. Get work experience!