Accounting 101: Using Microsoft Excel For Accounting and Bookkeeping | Chris B. | Skillshare

Accounting 101: Using Microsoft Excel For Accounting and Bookkeeping

Chris B., Instructor, MBA and CFO

Accounting 101: Using Microsoft Excel For Accounting and Bookkeeping

Chris B., Instructor, MBA and CFO

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15 Lessons (1h 17m)
    • 1. 085ACCTG Section 00a Promotional Video

      2:24
    • 2. 085ACCTG Section 01a Course Introduction

      1:36
    • 3. 085ACCTG Section 01b Instructor Introduction

      1:20
    • 4. 085ACCTG Section 02b Introduction To Accounting

      7:19
    • 5. 085ACCTG Section 03a Spreadsheet Setup and Sheets

      4:47
    • 6. 085ACCTG Section 03b Revenue Part 1

      5:24
    • 7. 085ACCTG Section 03c Revenue Part 2

      6:02
    • 8. 085ACCTG Section 03d Expenses Part 1

      7:09
    • 9. 085ACCTG Section 03e Profit Part 1

      5:53
    • 10. 085ACCTG Section 03f Profit Part 2

      5:05
    • 11. 085ACCTG Section 03g Profit Part 3

      5:56
    • 12. 085ACCTG Section 03h Cash Balances

      9:12
    • 13. 085ACCTG Section 03i Dashboard

      10:09
    • 14. 085ACCTG Section 03j Wrapup

      3:01
    • 15. 085ACCTG Section 04a Course Conclusion

      1:57
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About This Class

Does The Idea Of Learning An Entire Accounting System Like Quickbooks Not Appeal To You?

Do You Run A Business You Want To Properly Do Accounting For But With Ease and Low Effort?

Do You Want A Free Solution To Doing Accounting?

Do You Want An Intuitive Method For Doing Accounting Without Having An Accounting Degree?

Do You Want To Increase Your Knowledge Of Your Business Performance?

If You Answered "Yes" To Any Of The Above, Look No Further.  This Is The Course For You!

Start today and join the 100,000+ successful students I have taught as a Top Rated instructor!

Three reasons to TAKE THIS COURSE right now:

  1. You get lifetime access to lectures, including all new lectures, assignments, quizzes and downloads

  2. You can ask me questions and see me respond to every single one of them thoroughly! 

  3. You will are being taught by a professional with a proven track record of success!

  4. Bonus Reason: I provide the template we build in this course for you to download at the end!

Recent Review:

Steve S. says: "Great information in this course, I really didn't want to learn accounting or buy accounting software for my small business, I'm too busy and not interested.  I knew though I needed to keep track of my books somehow, and this course helped greatly! Now I can actually run my business and track results with ease."

Why You Should Take This Course:

As an entrepreneur, you have to wear many hats.  One which often gets ignored is having a full understanding of how much money is coming in, where its being spent, how you are growing, and what you could be doing to grow more!  Basic accounting at its finest if you will.

By spending a little bit of time each week to do accounting, setting goals and tracking your results, you'll have far greater insight into what works and what doesn't, and how to proceed.  You will also be documenting a history of your sales for you to refer to in the future. 

In this course I teach you how to build a relatively simple but VERY effective accounting system in Excel (or Google Sheets) to track actual results.   Take your business to the next level.

When your business grows further to needing a fully dynamic accounting system you can easily import the data you've tracked in Excel (Sheets). 

What We Learn In The Course:

  • Learn basic Excel concepts for anyone not familiar with the program

  • Learn basic accounting concepts

  • Learn how to set up a proper revenue/expense/cash tracking spreadsheet

  • Learn how to create reports to track your businesses profit and cash balance

  • Learn how to properly set sales goals and what factors should be considered

  • Graph your results for visual representation of how you are performing

  • Make intelligent business decisions

  • And more! By the end of the course you'll be ready to take your business to the next level.

This course is not meant to be a complete introduction to accounting, instead it is for entrepreneurs who want to do basic tracking of revenue, expenses, cash and profitability.

At any point if you have a question, please feel free to ask through the course forum, I'd be happy to answer any and all questions.  

***JOIN NOW AND LEARN HOW TO USE MICROSOFT EXCEL TO DO ACCOUNTING! ***

About The Instructor

Chris Benjamin, MBA & CFO is a seasoned professional with over 20 years experience in accounting, finance, financial reporting, small business and accounts receivable.  Having spent the first 10 years of my career in corporate settings with both large and small companies, I learned a lot about the accounting process, managing accounting departments, financial reporting, external reporting to board of directors and the Securities and Exchange Commission, and working with external auditors.  

The following 10+ years I decided to go into CFO Consulting, working with growing companies and bringing CFO level experience to companies.  I help implement proper best business practices in accounting and finance, consult on implementation of accounting systems, implementing accounting procedures, while also still fulfilling the CFO roll for many of my clients which includes financial reporting, auditing, working with investors, financial analysis and much more.  

Thank you for signing up for this course. I look forward to being your instructor for this course and many more!

Chris Benjamin, Instructor, CFO & MBA

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Transcripts

1. 085ACCTG Section 00a Promotional Video: Hi, everybody. And thanks for visiting my course. Simple accounting using Microsoft Excel. My name is Chris Benjamin and I'm the instructor on this course Now who should take this course? Essentially have designed this course for business owners who don't feel control of your finances. Your the type of person who wants to see exactly how much you're making. You want to have full control of your cash spending, but most important, you don't want to spend hours and hours doing accounting. You don't want to have to learn accounting systems. You don't have to spend money for accounting software. Well, this is the course for you. So here's what we do. In this course. I start off with an introduction of Microsoft Excel. So if you're not familiar with Excel, that's okay. And most likely if you use a Windows based PC, you have Microsoft itself. That's while I give you an introduction to accounting, so I'll give you the basics of accounting. Just you have an idea of what the proper way to track your revenues expenses in cash balances again, we're not gonna be diving into the nitty gritty double worry. You don't need an undergraduate degree in accounting whatsoever for this course. So the course will be taught entirely on the screen in Microsoft Excel. If you want to use Google sheets, which is completely free, feel free to do so. It works pretty much exactly the same where if you're on a Mac IOS numbers, that's the software for their spreadsheet that works, Justus. Well, so we're essentially going to start with an entirely blank workbook. I'm gonna show you how to build this from scratch, and then we're gonna go and create and you'll see through the course how we could accurate accurately track our revenues are expenses are cash are incoming and outgoing. Then at the end, we're going to create a nice dashboard report, basically summarize all the data put in a few charts. So we kind of have a one stop place to go and see how are businesses performing? What this all does is it empowers you to make better business decisions based on the results you can really tailor. It is how you run your business. And lastly, I always provide the template for download at the end of the course. So what, you see me build in the course you'll be able to download, and then you can just tailor it to your own specific needs. If that sounds of interest to you, I'm excited to have you as a student. I encourage you to go ahead and sign up today and let's start learning how to do simple accounting in Excel. Go ahead and click that buy now button or added to your cart and go to the check out. Thanks, everybody. 2. 085ACCTG Section 01a Course Introduction: Hello, everybody. Welcome to the course. Thanks so much for signing up in joining us. This course is simple accounting using Microsoft Excel. My name is Chris Benjamin. I'll be your instructor in the next video lecture. I'll give you a little bit more background about myself. For now, we just mainly wanted to welcome you to the course and give you a little bit of a road map as to what we're going to be doing now. This course is taught entirely in Microsoft Excel Google Sheets works just as well. Or if you use some other type of spreadsheet program, maybe numbers on the Iowa system. That's totally fine as well. What we're gonna do, start with that blank workbook and build up a way for you to track your revenues, your expenses your cash will balance on, and then you can then report on it by week by month by year, and we'll put together a nice little dashboard, which kind of brings everything together once it's built. It won't take you long to maintain this. You can honestly maintain this maybe once a week if you want. If you want to do it every day, I encourage you to, but certainly once a week would be fine. And then at the end of the month, you'll have nice reports and really have a sense of where your businesses, where you're making money and ultimately, what we want to be able to do is make better business decisions as well. At the end of the course attached to the conclusion video, I provide the Excel File as a download, a template so you can use the file that I building that you see me build. I'll make that exact file available for you to download if you don't want to build your own for any reason. That said, let's go ahead, get started next video, giving a little introduction to myself, and then we'll dive in and give you some basics of excel basics of accounting, and then we'll start building our spreadsheet. 3. 085ACCTG Section 01b Instructor Introduction: Welcome back. Everybody want to give you a little introduction to myself. Just so you know who your instructor will be. My name is Chris Benjamin. I'm a chief financial officer and I have a master's in business. I got my undergraduate degree in accounting and finance, and then I went on and got my master's in business from the University of Washington, where I focused on entrepreneurship. I really want to work with small growing companies. I currently do. I worked as the chief financial officer on a consulting basis to several small businesses. Essentially, what I'm doing is all things accounting and finance related. I'm implementing best practices. I'm solving problems and much more. I've over 20 years experience doing so through my experiences. I'm also an advanced actually would say expert level, excel user and obviously an accounting expert as well. And I really look at my goal in life is to just make entrepreneurs life easier, and I would add on to that to help them grow. And the one thing I didn't put on here is I've been on instructor on you to me since 2013 and have quite a few courses, all in the business arena, accounting, finance, entrepreneurship, leadership and much more in the course Bunch and excel as well. So that's a little bit about me at any point during the course, if you have any questions, definitely reach out. Sending message, happy to answer them. I want this to be as interactive as you want it to be. That said, let's go ahead and move forward. 4. 085ACCTG Section 02b Introduction To Accounting: All right, everybody. So now it's time to learn some basics of accounting. Now, when I say accounting, I'm really talking more about sort of record keeping and tracking. Your results were really not getting into, like, the fundamentals of accounting. There's courses out there. I have some as well on that topic. If you're more interested in really learning more about accounting specifically, so what I want to do those give you those fundamentals that we're gonna play in this course . So essentially, I'm just gonna type out a few things for you here and keep these on the back your mind, as we then work through the spreadsheet and actually build this sort of simple accounting system, if you will. So, essentially, when you think about your business and you know the supplies pretty much to any business whether you sell things online, maybe sell stuff on eBay, maybe you make advertising, maybe have a website, maybe have a popular blawg and you earn advertising money. Or maybe you have a retail shop. You have a small retail shop. Maybe you sell things at the farmer's market there, so there's a 1,000,000 different ways you could be in business and sell something. But at its core, what we do in this course will apply to pretty much everybody. So, first of all, you have your incoming money, and we refer to those revenues, and I was gonna type out some words here, and I'm gonna actually do this for you. Make it just slightly bigger. So revenues will be your incoming money. So this might also be referred to as sales. Um, those are pretty much the two typical sort of things that are waves. It would refer to the money, you know, that's coming in. The things you're selling, right? So on the other side, we have our expenses. So that's your outgoing money. That expenses would be things like and I'm just going to list them off here like marketing supplies. You know, if you sell some type of good, you have to buy obviously supplies to make them. Or maybe you just buy the thing as a whole. You know, maybe you're you grow vegetables, so your supplies might be seeds and, you know, dirt and water. Well, hopefully enough to pay too much for water. But you know what I mean. I tell those things that you're having to spend on in order to get a product or service in place that you can sell, Um, as well. Things like payroll still say you do have a staff. Maybe you have a family memory works with you whatever that was worth following a category of expenses. And then there's honestly, so many other things as well. You could you know your gas if you travel a lot, you know, travel in general. How about we just put travel? Um, we put marketings that could be online marketing that could be paid, maybe television ads, print ads, whatever it might be. Business cards, all of those types of things. So I think that gives you a general idea. Essentially, I mean the really the core way of Just think about it as revenue and sales are the money that's coming in, All the stuff that's going out is probably your expenses. Now, at the end of the day, maybe I'll just make the slightly smaller here. So when you take your revenues less your expenses, you have what we call net profit. So net profit is your revenues, less expenses. It's essentially what you made right. So say you sold $200 during the month in your The thing that you sell were just so a common term used in the business world is widgets, and widget is a generic term and it's used just to refer to whatever it is that you sell. So whether you sell vegetables at the farmers market, crafts that you make on, etc. Um, advertising space on your website, it doesn't matter. You sell widgets, so we'll use the term widget going forward. So your money from all your widget sales less all the expenses that you accumulated, you know, maybe advertising your business, business card, advertising online, all those things. So at the end of the day, it's how much you made. Now, when we track revenues and expenses and net profit, we have toe kind of stipulate a timeframe, right? I mean, you know, is it up? I day Is it bye week by month, etcetera. So we always want to make sure whatever it is, we're comparing apples and apples to say we were comparing our revenues for the month. We would also want to compare, you know, did Dr expenses for the same month and needs to line up. You wouldn't look at your sales in January and then deduct all of your expenses from December and January to come up with a number. Now I'm nothing. You can't do that. You can do it. But just keep that in mind that you're kind of bringing in things that maybe didn't factor into. You know, your current month's sales up. Typically in accounting, we do go month by month. We really track things month by month, and then also we take a look at the quarters a hole. So the 1st 3 months, the next three months and then also a year end. We like looking at years, so we like very defined periods in accounting. And that's what we'll do in the way will structure this the spread sheep. Now, aside from that, I was gonna open up a new sheet here and kind of zoom in. There's the cache site of this. So, you know, while this is you know, in theory, all of our money that we brought in, we sold our net profit on a very simplistic level. This should also equal how much money we have in the bank. right, But there's other things that play. Maybe you inject it $500 into your business to start with what wasn't really revenue. You didn't sell anything to get that $500. That's just your own investment in the business. Um, or maybe your business is doing really well and you pull money out of the business. Well, that's not really a true expense, although it kind of is. It's kind of your payroll you're paying yourself. But say you didn't you decided you didn't want to track it in that manner. You just kind of wanted to say, What's my net profit? If I made over $1000 I'm gonna take 500 out Justin example then that wouldn't be completely accounted for in what we're looking at here. So that's why we're also going to track our cash. So, essentially the way we like to do it, it's rather than replicate all of these line items again, is just say Hey, how much did we bring in? In revenues as a whole, our expenses as a whole and then all other sort of other incoming, other outgoing and at the end of the day, so we would have a starting balance up here. We would, you know, add in the incomings, subtract the outgoings and here's our ending balance. That's it, guys. I mean, really, accounting is as simple as that. I mean, now don't get me run. The world of accounting is actually much more complex. There's a lot of accounting rules at center, but we're not. We're not just focus on that. I really want to give you a tool to track your business, its profitability, your performance and then be able to see over time. And I think you'll see by the end of this course when we get to that final spreadsheet, how you're really able to compare month by month and then make intelligent business decisions will put in some dummy data during the along the way. Um, so we kind of come up with a story and, you know, what would we do in this story as well? So that's it for basics of accounting guys. We might throw in a few more things along the way as we're building spreadsheets, but for that you I think you're fully equipped in excel in an accounting For now, let's actually get started on building the spreadsheet 5. 085ACCTG Section 03a Spreadsheet Setup and Sheets: all right, so let's start building our accounting system here and Microsoft Excel. So hopefully you have an understanding of Excel, or you watch the introductory sort of introduction to Excel video again. If at any point you have a question while I'm doing things, just send me a message. If you let me know which lecture you're watching and maybe around what time it is that I do something that you don't don't quite understand. That'll help me, because then I can go watch the video, and then I can send you a message and kind of explain it a bit better. And we'll put up like an extra lecture video to kind of explain whatever it is a little bit better. So here's are completely blank workbook. I've already saved mine. So when you open a blank work shook workbook in Excel, you have a few options for saving, so you'll find an excel. There's a lot of ways to do pretty much everything. So, for example, there's keys that you compress or there's menus you can go to, so one that you impress if you press. I'll teach a few shortcuts along the way as well. If you press the F 12 button on your keyboard should be up around your back space Key press F 12. It will bring up a save box, and this is where you can name it. I've already named mind some accounting Excel template, and this will be the file that should be able to download at the end of the course. You choose your location, go ahead and hit. Save, replace. Yes, so you definitely want to that from the start. I mean, it's seldom that you know Microsoft Excel will crash or anything like that. And with somebody auto backups these days, you probably wouldn't lose your data, but you don't want to risk it. So I would definitely encourage you to to save it. And we'll save along the way as we go. So as well you may or may not have seen in the bonus are not sorting out the bonus, the Excel sort of introductory video. These are called sheets down here, and we're gonna use multiple sheets. So think of sheets as pages in a book. You know, this is the book, and it's actually called a book of a book and Microsoft Excel and these were the individual sheets or pages. We can add additional ones, like pressing the plus sign on one other thing that's handing Excel. If you use your right click on your mouth pretty much anywhere, it will bring up a menu, but the menu will be specific to where you are. So if I right click on a cell, it gives the options like cut copy paste, you know, clear contents, etcetera. If I right click aren't a sheet, it gives me completely different. When I can insert a new sheet, delete a sheet, rename it move at etcetera, so that's definitely useful. Tool toe. Haven't handy self. There's something you want to do something you're not quite sure how to do it. Sometimes just right. Click on whatever it is you want to do and the option might be there for you. So that said, we have multiple sheets gonna name some of these right now, so let's start off. Our 1st 1 is gonna be our dashboard now. I just double clicked on that just to get it up, and that's one way to do it again. You can right click on something and go to rename we're gonna name this one revenues, or sometimes the quicker way is to just double click on it. Expenses. And then this one is cash. Now, that should be all we need. We'll see as we go along. Sometimes excel can be a bit of an art. You just kind of Aziz. You build things, you know? You decide. Oh, I need to add something to this. Well, that's not a problem, Occasional. I'm gonna hit my control bun along with s, which is safe. So if you see my mouth kind of turn to that blue circle, I'll do it again. It happens really quick. I'm just saving my workbook. Other thing I want to mention, I know we'll dive into this really soon. Guys is trying to keep these videos to about 5 to 7 minutes. So when I cut off a video, it'll pick up in the next video exactly where we left off. So Okay, so we have our different she'd set up. Now we're not We're gonna do our dashboard last cause that's where we basically combine all the information we're tracking on these sheets and already do actually want to include an additional sheet um I want to include ah profitable Aussie. I'll excluded color profit. Let's assume we're gonna make money. Let's be optimistic here now, as you saw in the introduction to accounting video, sometimes things, even an accounting have different names. So, like revenues could also be called sales. Profit might also just be called income. So don't be thrown by those at the exact same thing. I'm gonna go to my revenues tab and let's let's start this. So actually, before we get started, the city was kind of getting up there in time. So let's leave. This is now we have our our sheets set up. When we come back in the next video, we're gonna work on our revenue sheet on. The nice thing is, once we build it and it'll take a little bit more time, the expenses she it'll be set up pretty much in the exact same format, so we'll be ableto kind of moved through the expenses one a little bit quicker 6. 085ACCTG Section 03b Revenue Part 1: Alright, guys. So continuing on, we'll start off with our revenue sheet. Now, As I mentioned earlier in the course, there's lots of different business models. So, you know, I'm gonna build this under one sort of example, but you can easily modify this to fit your business. So, for example, if you were in a retail store and you make on average 10 sales a day, maybe it's like a boutique clothing store. You know, you're gonna have 10 transactions a day to recording here versus you are ah, blawg. And you get money from advertisers and affiliate payments, etcetera. You might only have, like, five payments all months. Like you just get bulk payments once a month from different sources. And that's the example we're going to use just sort of, Ah, lower volume, bigger dollar amount example. But this, I mean that what we're doing applies to any business. So first of all, we always want to record our date. Then we want to record, you know, basically what we sold, so you know, in in ah, physical store might be, you know, jeans, shirt, sweater, etcetera. In a long and might be advertising might be affiliate commissions, etcetera. So you have to kind of create your own categories that make the most sense. So what we sold? Um, so I was gonna call it item. We're also gonna call it source. Are You know who it came from? However you want to lay, but I'm gonna write source. That's terminology. I would I would use three amount, obviously, is important. And then any notes you want to make any special notes? So, guys, it's honestly a simple is this So recording the information is fairly straightforward. You can see I'm gonna put into a few examples here, so let's go with 11. 20. The item is, and I'm going to use the blawg example to use throughout the model. So we're going to say Google AdWords. We could just add words you could even put AdWords for the previous months. You know you to be paid a month later. So for October, Uh, so sources Google, Google decide. And maybe you made $200 now and if there was a note, you put a note, but you don't have to put a note. So a few things before we continue down. I mean, these always be text boxes. This one that was the dollar amount. So I'm going to highlight this whole column and just put it dollar sign just to get it looking how it should. So let's say also actually gonna backdate this. I'm gonna make this, like, 11 to maybe let's put in, you know, 10 trend urged are not 10 transactions, as I type the 10th. Just like five transactions. 25th. I'm not sure why that one didn't, but what we can do is make this all the same. There we go. So adwords, maybe affiliate commissions and maybe we get Philly commissions from two sources. Um, maybe we have direct ads. So this wouldn't be Google advertisers paying us for clicks. It's like someone who specifically pays us to advertise on our blood for examples, direct ads. And, um, maybe we do actually sell a product on her website. May we sell, like, one specific product and that product happens to be whatever it iss some type of digital. Uh, maybe it's a digital. Of course. It's like a course. Let's say core sales. So before we go much further, another point related to this. You could record every each and every sale. Or you could say, You know what? I'm really only interested in my accounting once a month, I'm just gonna lump everything together. I don't care if I sold to on, you know, the second and one on the third and then nothing on the forest like you're like, I just I sold $500 worth of courses over the over the month, and that's all I care about. So then certainly group things that make your life a little bit easier. Absolutely. A Philly Commissions. This came from Commission Junction. It's an actual site. Um, it was called the phone commission pros. I have no idea. I'm just making names up now. This is from advertiser number one. You would obviously name them, and then core sales would just be direct. Of course, sales are You know, you could put the name of your website that you actually sell them on whatever it is. X y z dot com sales Say you sold three different courses on your own website. I would break those out. Just toe. Have that distinction cause over time, like on a one month basis, you might say, Well, it's no big deal. But imagine two years down the road and you're looking back at your accounting. At that point, if your company has grown, you probably want some insight into how things performed and you would want that break out . So rather than having to break it out later and go back and try to figure it out, sometimes it's better just doing a bit more detail currently. So we're just gonna leave it as they have one product they sell. So I'm gonna quickly throw in some dollar amounts here, and then we'll end this video and move on to the next. Let's say that's 100. That's right. That's bold. Ah, fillets 1 75 Let's say they have to 50 and direct sales, and the big one is they sell their courses to get $900. Okay, guys, I'm going to save this. Let's end. This video will pick it up in the next one. I'll show you how to continue on 7. 085ACCTG Section 03c Revenue Part 2: Okay, So continuing on. So again, we're trying to keep this A simplest can be. You know, we're not gonna be running any fancy pivot tables. Nothing. I want to give you guys just a basic tool to track your accounting. So here's your monthly sales. And again, whether this is five items or 50 items or 500 it doesn't matter, guys. So what I encourage you to do at this point is put in a total for your month. So I'm gonna write the word total. We're gonna basically bold this whole line. So I press control be too bold. It I also like putting in the kind of separators. So right here, the borders, the true accounting border, since we wanna somewhat stick to accounting is the top and double border. You see how that looks, And then here we're just gonna do the some formula. We just want to add up all of these down. As I mentioned before, there's lots of different ways to do things in excel. The quickest way that I believe to do this. When you have stuff in a nice kind of line category like this you want if you put your cursor here. So we want to some of all these numbers come up and click this auto some button. And honestly, all you have to do is click it. It automatically figures out Hey, you probably want to add all the stuff that's right above where I am. We do hit, enter. And there you go. There's your sales for the month, easy as that. So let's put in. I want to put in three months worth of data just so that when we create some reports, we have something to work with. So what, we're gonna do this quickly? I'm just gonna copy this. I'm gonna pay Stan. You give a little space and then here is well, And then let's just change these dates to 10 12 and then here, too. Let's do Ah, This will actually be nice, because this will allow us to create two separate years as well. Now, obviously, this is complete dummy data. The specific dates aren't that important. And let's change the numbers a little bit. Let's say December December does a bit better, right? Everybody is buying for the holidays. Core sales are 1600 direct ads. Maybe they paid twice as much. And then same thing with affiliates. May we got 200 from these 2 25 from these and Google ads 300 then January is typically a down month. Let's go 1 50 80 60. Let's say this advertiser drastically cut back this month and your core sales also take a bit of a hit. 700. Okay, quickly. Just like that, we now have three months worth of data. Now, I realize you know, this isn't to actually do it with real numbers. You would have to go through and look them up. And, you know, you kind of have to decide on these categories. But you see where a few points on this as I charged forward when you want some consistency So I would try to, you know, pick categories and item names that are consistent. So whether it's a Philly commissions direct as core sales, that's why I was even a little hesitant right average for October. Just make it AdWords and then honestly, in the notes you could put from October is how I would handle that I mentioned early on. Sometimes this is a work in progress. This is you're seeing a live everybody. So I'm just copying and pasting. And then you could write for December and this is for in November what this allows us to do . And we create reports depending on how far you want to take him. We can group things than and they have a common name, so it's a lot easier to group something when everything is named the same. So the item is just AdWords and then we know which month it's for. Alright, guys. So that's pretty much it for revenue, like a simple Is that so say, the next month you had some special. I mean, say there was a second advertiser and you want to break that out? You could do the same thing, you know, copy down your consistency or just start listing it out right? And advertising number to direct ads on. There you go. For some reason, you wanted to break out the different types of commissions or the different types of direct ads. Or again, you have more than one course. I would encourage you like course number one course number to call him out by name. Whatever the case might be again, this is for your own use. So what you put into it is what you're gonna get out of it. So don't don't be too lazy on it, but also don't make it a nightmare on yourself. Don't overthink it. Don't worry too much about it. And that's very much a simple as it is guys for tracking your revenues. So I mean, before we move on, we're going to the expenses and really, the expenses will be quite the same. But when you think about this, think about already how much information you have. You have something that's nice and organized, and here you could even look and see. While so say again, think two years in the future you'll be able to look back at November and December from two years ago and from one year ago and say, Well, how did we do then? One. It might help you forecast how you're going to do in the current year. Two. It might just help. You might show your growth. You will say, Hey, look, remember back when we only did $200 AdWords in October 2018 and now you're doing 800 or 1000. It's that type of information that really helps you grow and helps you focus as well. Another thing. You might look at this and go Well, you know, this this affiliate, they're really not bringing in too much relative to the total sales. So what can we do to help these guys perform better? It's things like that that looking at this information will spur and make you ask the important questions. And then you'll be able to come up with the smart answer. So that is basically it for tracking revenues. Guys, it's honestly, a simple Is this where this will actually come together again, is on the dashboard. So once we create the dashboard, you'll have a nice to report that a list things out will actually calculate things like a prophet, etcetera. So for now, don't worry that this is fairly simplistic. This information will get pulled into other areas that will make it all the more usable 8. 085ACCTG Section 03d Expenses Part 1: So let's move on to expenses now. Expenses. They're gonna work in almost the exact same way as the revenues were gonna list out. What date we incurring? Expense. What? It was for where we spent it, who we paid etcetera. How much? And any special notes. So what That said I'm actually honestly just gonna copy a copy of this entire thing. We're gonna clear out the data, so I'm gonna move over to expenses pasting control V. If you did not know and one thing we can do, we can actually copy the format of the sheet just to save yourself some time. And there we go. Zoom in there. Well, looks much the same. Right? So we're gonna delete this. We're gonna delete the data. We can leave the dates. Honestly, guys, keep in mind this is complete sample data, and we're not gonna be cream reports by date. You know, we're doing it month by month when we create them so But I do encourage you toe list out the date. Nonetheless, I'm not saying that's not important. So the items So let's stick with our online store. So we have ah, web, you know, Web hosting that we have to pay for each month. May we have our employees? May we have a one employee put employees and then our notes. We can write one, Ah, customer service. And then who else would we pay? We pay for some advertising ourselves. We're trying to get people to our site. So they come to our site. We have ads on there and we sell our courses. So we get money from the ads on our site, but as well, we're paying for advertisers to send people to our site. So advertising now, So you want to make sure that you distinguish, just, I guess, just to be extra clear. So I mean, here AdWords is very specific, cause that's, you know, that AdWords is money coming into you. Where's here When you say advertising its money going out now, you could pay for AdWords yourself on the outgoing side. But we want to kind of make sure we, uh, have that distinction. So advertising. And it might also be Google. But we're actually paying Google for placing ads. Other places. I think we got clear what else way might have some taxes. Let's just let's put in taxes. Nobody likes paying them, but, you know, maybe we pay a payment of tax and what else? Maybe we have some course development. So you know, we have a new course in the works and we're paying people to help us. Maybe do some research. Big make logo's. Maybe we pay just a virtual assistant to help us lay it out on the website, whatever it might be. And again, if you want to break that out more specifically, by all means for our purposes, I'm just putting in kind of a catch all category, but that's what we're using. So it's a Web hosting. Let's just put host Gator. I mean again, completely fictional example Here, employees. I would put the person's name, so let's just call him John Doe in here Advertising. Let's say it is Google that you're paying taxes. It's the I arrest, so you make a monthly payment. Unlikely, but again, taxes. Or maybe it's your city or state, whatever it might be and course development. So maybe you're paying again. If you have a specific person, you want to come out by name. Maybe you just use one of the working sort of outsourcing websites like up work, Good source to find contractors. That's the side note. And then let's put in and you could even hear put logo design and ah, uploading content just so you know what they did for that month. So here, maybe this might only be like 20 bucks a month. Employees say you pay someone 300 bucks for customer service. They handle it for you, so you don't have to worry about it. Advertising. Let's say you put uh, well, it's November. So you want to put a bunch of money and let's put, uh, so you spent some one of $50 on advertising, really trying to push it this month. Taxes? I have no idea. I mean, it would be relative to how much you weren't. Let's just say you paid $75 in taxes. Whatever those taxes might be, in course development. So you spent 200. Okay, let's just copy these down just to keep the consistent categories and again, honestly, probably would actually have mawr variants in your expense side, like maybe one month, like maybe you are only paying your taxes every three months. Actually, yeah, let's just take this. Alice, Let's make this riel little more realistic. Um, maybe course development. Maybe. Maybe you do nothing in January because, you know, it's a slow sales month and you don't want toe devoting money to it. You can leave stuff in here like leave course development and just put a zero because you know that you know, it's a placeholder, if you will, because the next month it's easier just to copy this down and have that in their, um, didn't do any work in January. Just a note. Your customer service probably makes about the same every month. Hosting is probably going to be the same Google. So it's another month. Let's say you do 900 December how big holiday push. But down here in January, you scale it way back. You do 400 and then for like, an extra expense maybe had some additional marketing like so this was advertising. Maybe did local local marketing, whatever that might be. Its and we could put in our notes. Uh, you know, that somebody handing out flyers about your website, you know, maybe in front of them all, I have no idea. It's whatever it needs to be for you, um, person handing out flyers. And let's say you spend 200 on that, and their name is Jane Doe. Okay, so there's no harm in leaving blanks. We will put something in here. So maybe instead of local marketing, what do we do? Office supplies. How about that? You know, they were reload on Ah, after our big you know, year end at Office Depot or Staples, or wherever it is. You shop and you spend 100 bucks, um, reload on office supplies again. The notes are optional for you do encourage you to use them. It helps when you look back. Always think ahead. So you're too from now when you look back. You know, if I was a look at this, I got okay. Like, say, I didn't have this. I'd be like John Doe 300. Why was that paying 300? How much was he working? Um, you know, But here, one customer service person. Oh, that's right. He did customer service for us. Are you likely to forget that? Maybe not that, but maybe if it's 10 people, and instead you just put employees and you put, uh, you know, various says your source over here, You could write 10 employees, part time, whatever it might be. Okay, guys. I mean, that is it for expenses now. So the real curious thing is, when we next, we're going to start working on our profit. But that expenses a simple is this. And honestly, this could be again five items. 5500. It doesn't matter. You just make the list as long as it needs to be. 9. 085ACCTG Section 03e Profit Part 1: all right. So moving on to profit. So we were going to set this up in a lot of this information. Then we'll get pulled into our dashboard when we're done. So we want a nice sort of logical layout as usual. So when we think about things right now, we have three months worth of revenues. We have three months worth of expenses. So what I would encourage you to do is almost do a more in depth profit analysis here. Now, again, you can do this however you want. But what I I would personally dio is I would actually calculate my revenues by each category. And I would else are what everyone item, if you will, on same thing with expenses, eso as well instead of item. You could actually call this category again, whatever you might be. So what we want to do is somehow represent each of those different categories and what were the totals? And we also want to summarize it by month and at the end of the month, we need to somehow calculated profit, right? That's the whole purpose of this sheet. So what I would personally do is is right. The profit. So let's to start. Let's start with our revenues here. I'm gonna pull this. Okay? So we have just going over to revenues. We have 1234 We have four categories, actually. Let's just copy this. Just gonna grab this. We can clean it up over here, and then across the top will put the different months, so I'm gonna we'll start with revenues. And then again, as before, dropping and expenses will be no problem. I'm going to delete that one, since there's too affiliates on each month. But we're it's going to combine them, and we can actually just perfect do that. So across the top here, we're gonna have Let's see, we had November. So I'm gonna write November 18 December 18 and January 18. Now taking a step back. What I would actually do is move this over here and I would write total 2018. Now, we only have two months. I'm gonna bold this whole line. I like to do a little cleanup while I'm and I'm gonna center everything. It's actually zoom in here. Just a touch. So what we could do? So imagine you have a full year. So Let's actually lay out what a full year would look like. Let's put in the placeholders for this one February 18 March. And this is where guys, you will really benefit from downloading the sheet because you could just, uh, obviously just piggyback off with us and make it your own and not have to do some of the somewhere monotonous stuff, if you will. If you're wondering what I'm doing, if you type Ah a ah apostrophe and then whatever you type won't get formatted, it stays exactly how it is otherwise, if you do that with dates, it will try to, like format a format it as a date, and it might not be the date format that you like. So it's easier sometimes just to write our sorry apostrophe and then exactly how you want it to look. October. Don't worry, we're almost done. And then we want a total 2019. I just realized that should all be 2019. Make quick work of this again. Nice thing is, once this is set up, I mean, a lot of this is you can tell us the set up once the set up is done and you can download this template. Then it's just about putting in your own data. Okay, So before we start pulling over information, um, let's go ahead. We're gonna write total revenues with pulled out down here. We're gonna write expenses. That's up to you. If you want to repeat the dates. Um, you know, some people would if you had a lot of categories. Sometimes it's useful just to repeat the dates. Just so it's easier on the eye to kind of spot things I feel like, though we don't have that many categories, so we can just do expenses and let's grab a month and then we know that taxes. But then we changed it to a local marking in office. The place we're gonna tow apparently didn't company that properly. Now, since those seem to be the ones that are changed every month, I'm gonna put those kind of the bottom. So, um, local marketing office supplies in total expenses. Hold that. Okay, so let's do a few things. Let's put in our famous lines that typically this top line double bottom line is saved for , like, ultimate totals like your total profit. So what we'll do is just a top and bottom single border on revenues topping bottom, single border on expenses. And then we're gonna write total profit us. And this one will be our double. Okay, so one last thing formatting wise, before we grab anything, put it over. Since this is a total for the year, I'm gonna go ahead and just give this a little shade. Just Ah, make it stand out. You can use colors if you want. Accounts are usually boring. We just do things like Grey's. Um I'm going to do that. And then I'm going to do the same on the total for 2019 just so it kind of sticks out. You see that? This is Ah, total total. Alright, guys, I'm gonna end this video here now than in the next video. We're going to start pulling information over, and I mean, we only have three months to do, but it will give you perfect set up to do it for the other months as well 10. 085ACCTG Section 03f Profit Part 2: Okay, so now we need to pull these numbers over. So there's a couple ways to do this one again. We're trying to keep this simple. You can just type the man. Honestly, just look over here and say Okay, What was my adwords revenue for November? And remember, on a normal months, you're just doing this once a month. You're just populating this, so we're gonna be populated three months, so it seems like a bit more work. But remember, on a normal month, this is they be, like, an hour's worth of work. Hopefully. So we know that we copy these down pretty much verbatim. Except for there's two here. So it's going to be 201 75 to 50 and already missed the other 1 900 Now we have to do the same formulas here, but luckily we can use our troops, um, auto, some button and bingo. We will form out all these to be dollars once we let's finish this first column and then we'll we'll do it now. The expense one's a bit more. Let's say tricky, but we have to keep in mind that we kind of changed the order a little bit, so I'm gonna copy these. We know that taxes Air 7500. Course development is 200. And this is the bow. All right. Same thing here. We can do our auto some. It knows exactly what to do now for profit And this one because I copied. That's why it has the dollar signs for profit. We're going to type this so we're gonna type equals, which is how you started formula. I'm gonna click on revenues, and then we hit the subtract button expenses. Simple. That hit Enter. There's our profit for the month. Now. I kind of want I like totals. Lines always be bold, the whole line. So let's do that again. We're kind of mixing and formatting and formulas at the same time. Okay, Now we know that all the data and here is just gonna be numbers. Right? So what, this can all be the same format is this? I use this earlier is called the Format Painter. If you select a cell whose format you like and you want apply to other areas, you would click this, click the format painter, and drag it all over. And now the problem is it's a format painter it's gonna wipe out. That's gray that we have in here. So there's a couple different ways to do this one. I mean, honestly, probably the quickest way to do this Guy's just thinking about this. Sometimes you have to just think is to just highlight the whole area and just click the dollar sign. And there you go. It's format it, okay? And we got to keep our gray. So another thing, we know that the formulas are gonna be the same, right? So this is gonna be a total here. This will be a total up here. Let's just copy this formula all the way across and again. We don't want to ruin our formatting, so I'm gonna do pace formulas. So what that does is it only paste the formulas Go figure right. I can already tell these columns are a little bit too narrow, so I'm just gonna widen them. There we go. And again we can zoom out if you'd like to see, like, the whole thing at once. It just makes everything a bit smaller. So active. Zoom in while I'm working on something. Ah, same thing here with the formulas. And honestly, we can do this. Just copy both of these. Since there, there's no real data in between. I'm gonna hit by right, click the formula button and there we go Formulas post it. And if you go to any cell and press F two, it brings up the edit box and it shows you what it say something, and you can see it's adding up the right columns. And this is subtracting those two. So perfect. Okay, guys, son next just leaves us to fill in December and January. So let's do that really quick. Ah, we can. So we know that because so we kind of because we condense this to the different categories . Would you have to be a little bit careful? So it's 300 but then it's 4 25 500 for 25 500 I believe it was 1600. Now there is another way to do this, and it would be used formulas. Um, I'll show you on the expense sites. What you could do is you could type instead of going and may looking and typing it in. You could press the equals, you know, signed for the formula. Go the expenses we want December Web hosting. Click on it and hit, Enter and it's pulling it over. And if you see what the formula is, it saying equals expenses. Exclamation mark. Which means the expenses Sheet Cell D nine and it's the one we picked. That's another way to do it. I'm just gonna switch it back to oops, typing too much to just typing them in. Now we know that employees 300 for this month, Advertising's 900 then 202 100 uh, 200. And then we didn't do any taxes. But we did do local marketing. Perfect. Now we're gonna put in the totals for 2018 and for 2019. Let's do that after the fact. Actually, let's cut off this video now. It's going a little bit long. We'll put in January, put in these totals and go from there in the next video 11. 085ACCTG Section 03g Profit Part 3: All right. So, as promised, let's do our revenues for January. So 1 50 1 41 25 700 I believe that's right. And you can always check Check your totals so it should be 15 25 2025 1115 15 25 28 25 1115 Highly encourage you to check those total special. And we're doing it this kind of manually. I mean, we will do the same thing with the expenses, but let's start by just getting these in. So 2300. That's the same advertising we bumped down to 400 then office supplies 100. From then. We didn't do any course development. We have no taxes in the local. And then I already forget how much we spent 100. So our total for expenses should be 13 45 16 21,000 30 45 16 20 only 18 8 20 So what did we do wrong here? We obviously typed a number incorrectly 20. I believe that would be the one. Yes. See perfect example of why you need to double check those numbers so 8 20 a 20. Great. So before we get into, like looking at these numbers do a little bit of analysis, let's put in our total total. So we have to write some formulas here, and you can try the auto some and see what it grabs now. It actually did grab the correct cells. So let's just do that. And then I'm gonna copy this formula down so this formula always move relative to you know where you are. And honestly, we can copy that same formula down here as well. It knows to move down with Excel is smart like that. All right, so let's just pop on over here. I'm going to zoom out. Just you can see the whole the whole screen. We need to do the same thing here. Now if we hit auto, someone to show you what it does Oh, it actually worked a lot of times when there's blank cells in front of it, it doesn't know what to do. So in this case, though, it figured out, Hey, it must be something. There's a number way over there, so perfect. So that makes our life easy. We just copy of these down, and it's a simple as that guy. So I mean, this is only gonna be one month's data, obviously. And there you go. So now you zoom in. So I mean, that's basically it. We have a nice profit and loss statement guy. So now let's how do we read this? What do we do with this information? Well, let's look at any given month. So here's November. We made 15 25 and money and revenues money coming in. We spend 13 45 for a total profit. What we ended up with at the end of the month was $180. December big holiday month. We had core sales, went up direct ads. Everything went up, everything went up. We had way more sale. We had almost doubled the sales amount in terms of expenses are expenses increased a little bit, but definitely didn't double double would have been 2700. So we have a nice big profit. We have 1200 bucks, especially, is essentially in profit for December. And then lastly. So then some. Now, this isn't a complete year, so it's a little bit harder to maybe use this relative to other years. But whatever months you're starting this in, just set it up this way. So now for January, let's take a look. So sales definitely went down. So our lowest out of the three we did cut back on her expenses, though. And you know what? We still turn a profit, and that's ultimately what you're looking at is how much profit m I and then you can start looking and say, Well, this month was only was almost 1000 less. It was 900 less than this month. Why? Well, the revenues are a big part of that. I mean, look at that. The revenues were down 700. Uh, revenues were down 700. We did cut our expenses, but not quite. You know, we can't make up that difference. Obviously, there's some things we just have to pay for self. You're able to look at this and make decisions. And also so now think I had to say October next year, you're gonna be looking at this and going well, you know how What what? What should we expect? You know, let's say that or say December like December almost doubled in sales from the previous. So next year when you get to November and you say have 3000 sales and you're thinking, Well, what are we going to do in December? Well, maybe double. I mean, that would be a good assumption, A good baseline assumption. Now you obviously have to do the right mechanics and put things in place and make sure it happens. But that's not how you use this information. That's just one example. So hopefully you find that useful. Um, and you could sit here all day and do all kinds of analysis. You couldn't look at each category. How much are we spending on Web hosting employees? That's always a big expenditure. Advertising looks like it's a huge part for this company, so you would have to look at it and say, You know, we're spending, you know, we made for. I mean, it's only two months data, but we made 4300. We spent 1/3 of that on advertising. Do we want to continue to do that? Are we seeing the return from that? Or do we think we could maybe spend that money? Um, you know, cut this back and spend it on course development. Get some more courses up, which generate more sales. So all of these types of decisions everybody that you need to think about, and that's really the fun. I mean, that's why I should say it's the only reason we do accounting. But it's really one of the big reasons. It's not just because we like recording data. I mean, this stuff over here is the boring part, right? You're just recording transactions. Essentially, here is where you get the actual knowledge and intelligence out of those numbers, and it only gets better. The more you do it, where months you have, the more years you have, the more intelligence and information you have to work with. So that's pretty much all I have to say about that again. Always feel free to send me questions. And then in the next video, we will take a look at our cash balance. Italy. Fairly simple. Um, I just want to create something for you to track your cash as well 12. 085ACCTG Section 03h Cash Balances: All right, so, as promised, let's move on to the cash. Now, if you remember in one of the first videos in this course, I explained how your casual different from your profits because, you know, this is how much so you would expect and say the month of November, you brought in all this money and then you spent all this money, so you should have made $180 you should expect to see that in cash, right? Well, what if What if this payment say AdWords is late paying and I money doesn't actually show up till December or, um, you know, like, what? Maybe you don't pay your view. You realized you owe your employees $300 but he's on vacation last week in the month, and he says, I'll just pay me in December for that. Just pay me double. Well, you should still reflect that properly in here. Like it really wasn't 600 page in December. I mean, maybe physically, that's what you painted. But you owed him for November and December so that this would be the proper way to lay this out. But that's where your cash can get off. I mean, just two simple examples. I gave the example before, to what happens when you, um you started the business and he put money in? Well, it wasn't really revenue. You wouldn't record that. His revenue on here. Likewise, as the owner of the business, you typically don't put yourself in the employee category. You don't. You wouldn't list yourself and say, Well, you know, paid you know myself. $300.600 dollars. Now you can. I'm not saying it's 100% you know, against what we're doing here. But typically, the owner doesn't reflect that in the pl because it's a discretionary expense. Right you are, son. Even I shouldn't use the word expenses. Discretionary. Withdraw your withdrawing from the business. So a little bit more accounting there than, um, you may be bargained for, but all we want to do here, I just want a simple way where I can basically see how much cash I have. Um, and the where you can get this is off your bank statements, so we'll just put this some cash balances. So again, we kind of want to track it by months. I'm actually gonna grab. I'm gonna grab some of these totals or start out these totals. But these headers, it's gonna stick it over here for now. Um, so cash is one where you don't really have a total for 2018. I mean, whatever your December ending balance is is just your year ending balance, right? You don't you don't accumulate your balances over the course of the year. It's just Here's how much we had at the beginning. Here's how much we at the end. And here's what happened in between. Here's our balance. So you don't need to add up November December to come up with what the ending year is. It's just December 31st balances the balance of we're going to start this with, um, opening balance, um, deposits, withdrawals ending balance as simple as that, guys, that's all I want now. That said, if you want to distinguish and break this out by all means, so maybe you put deposits and then you put deposits by owner. That's you've just injecting money in the business you put deposits from. I mean, you could in theory, break out each of those categories say deposits by from affiliates, deposits by course, sales, etcetera. Now, that's kind of overkill, because we're already tracking that information here. That's why I'm just summarising it with deposits. You It wouldn't be a far step to go deposits from owner and then deposits from revenues. The thing is, though, is you probably wouldn't be putting much money and hopefully you have a profit business like you do a one time like when you start the business deposit, and that would be it. So that's why I don't get too worried about breaking these out. And I don't want to again make this overly complicated. So this is really you know, I'm trying make this a simple but effective for you guys as possible. I'm gonna delete this one. That kind of moved it over to firing a zoom in just to touch. Now, this one could just be an ongoing, like total, like a running tally, if you will. Um, and this one's gonna be really simple guys. I mean, you're ending balance is what? So it's your opening balance. I'm gonna hit. Plus, that's another way to start a formula. It's just plus, you would add your deposits and he was, Subtract your withdrawals, right? Simple. Copy this formula over. Let's make this all dollars. It's gonna be really quick. One guys, that's about it. So let's say your opening balance was you had Let's say this was your first month. You started off with 500. Say you put a deposit the bank $500 in October and then November was your first actual month of operation. So you actually kicked things off pretty well. Your deposits in this case would actually be your revenues. So let's say 15 25 and now your withdrawals. Now remember, we wrote the formula system, tracked this number, so it's up to you. In that case, I need to just put it in a za positive number. Or if you, and actually may be a bit better, way to do this was put put withdrawals as a negative number, and then we need to rewrite this formula. So first of all, let's get our expenses. Was 13 45 groups 13. 45. Now what this format now needs to be is honestly, we can use our auto some tool again. There we go. Now let's copy this across. So does this make sense Well, let's see. I'm gonna bullet before we make sense of it. But it's a $680. Well, on our profits sheet here that were pretty zoomed in on, we made 100 $80 in profit. And I also made the assumption that we started with $500 in cash. So it all adds up, right? I mean, and it should I mean, onset the end of the day. This should reconcile. And this is again when you get into, like, more elaborate accounting that would be considered a bank reconciliation. It's something businesses do at the end of each month. And the reason is because then that this should add up. So now, for example, your opening balance here is 6 80 Now, I'm just gonna do a formula. And honestly, your opening balance should always be the ending balance from the previous month. So I'm just going to stick this across now. That's just a formula. So it's obviously there's no data for these months yet deposits. It's gonna be our revenues. So to 8 to 5, I'm gonna grab the next 11115 our expenses or 16. 20. And if I'm just grabbing these numbers, guys, these totals right here and then our expenses were 8 20 Oops. I need to put them in his negatives, forgetting you'll quickly remember when the balance doesn't tie up. So there we go now, Same thing. Now, these months up to you, if you want to put in those formulas, they're just kind of delete this, like put in the formula as you add on the month. Let's just do that just to keep it a little cleaner. So now how would you tie this number out? Well, we know we've started with 500 then we also have all the profits from those three months. So I'm gonna show you another shortcut If you click on a cell and then hold down control button and click on another cell, you highlights from both and then click on another cell of highlights that also so it's a good way to highlight multiple cells. But also, what's more important is down here at the bottom of excel. Hopefully going to see this? I know. I have my screen kind of truncated. It shows you very choosy. An average account in a some and if you can't see it, the summits. 16. 80. Let's go over to our cash. So we know that I'm just gonna shot something down here. 16. 80. And we started with 500. Right from our very beginning. Highlight those two or even. I mean, hopefully you can do that. Math 2180 and 2180. So it ties out. That essentially is what a bank reconciliation is. You just tied at your numbers? Yes. This all makes sense. There's no errors. That's what you're also looking for. So that's it? That's it. Guys, I know this one's a little bit longer, but that's it for the cash tracking spreadsheet. This is important. It will let you see incoming and outgoing. Your ending balance is you'll be able again. So think next year when you're getting close to November. December, you go. Well, how did our cash balance really work out for us? You know, maybe, Do we need to leave somewhere money in? Maybe I don't need shouldn't do withdraw for myself this month. Um as well. Think about this. You know, we just use the straight revenues expenses for the business. We didn't, you know, say you had withdrew $1000 for your own personal expenses this month. Well, you would add that in here. So this will be 2115 Or you could do what I kind of mentioned you could do. I'm gonna withdrawals, expenses I don't get to do with draws. Owner. We have put zeros in here. Now we need to rewrite this formula. I know. No, perfect. It grabbed it, and they all should grab it. So just to put it in there, cause it seems like I'd actually would be important. Sergo guys. But again, so say you did, uh, minus 1000 here cause you took 1000 out for yourself. The balances reflect it, and all is good. All right, guys, that is it for the cash tracking. Lastly, we're gonna make a cool It's lick, lick and dashboard with some graphs and charts. And who knows? We're gonna wing it. We're gonna make it look good and really give you a central location to see all this data in one spot 13. 085ACCTG Section 03i Dashboard: All right, everybody, last step here. We're gonna make a cool dashboard. First thing I'm gonna dio I'm gonna grab these dates already. Know I want them over here. So this one, we might format up a little bit better, so this could be excised. The business dashboard or public performance dashboard. This would be the place if somebody asked you about your business, like, Hey, can you show us how you do? This is what you're gonna want to show them. So let's see. Let's just leave that there for now. We can move things in a second. And basically, what we want is we just want the summary data we want to show revenues, expenses, profit ending, cash balance. That's all I really want to see. It's gonna be a simple is that guys, So revenues, expenses, profit, cash balance doesn't sound exciting, but it will get exciting. All right, so I'm gonna just narrow this down on delete out one of these roses to move it up a bit. Now, this is one where I probably I would put in a total again for the year, and I probably I mean, honestly, at this point, I'm not sure I wouldn't map out. I would bother to put all these extra months. If I'm only in January or February, I'm just gonna leave him on here for now. For your sake. Um, okay. And then another. Honestly, another way of doing this is one to have several years of data rather than list out each of the month. Just list out the totals for the years. Hey, here is our 2018 or 2019 or 2020 totals. Nobody cares about the month on month specifics. And even this I'm a little hesitant. I would almost put, um I kind of want to do something. Let's do something. Let's Let's make this worth your while here. I'm gonna delete this radio total 2018 and then we're going to Q 1 2019 Let's do some quarter and then this will be a total 2019 and then we can get rid of all this stuff. We do want it to be like a condensed report, and that's part of the reason why I'm doing this. I wanna I wanna make it easier on sort of the end, read or so, because if they want the specifics of Cuban. They can go look at the profit report and see the month by month. And I say they, whoever might be maybe you are talking to a potential investor, maybe just yourself. You are the someone who we're talking about. So we have revenues, expenses, profit on, then cash balance. Now we could put in the totals line here. Let's do that. Let's just put a single are actually let's go with the totals and then cash balance will be down below. And then I Once we do that, we're gonna put in some graphs Now the graphs are going to be too exciting, honestly, guys, yet because it's a very summarized, you know, data, and we only have 2018 and a Q one for 2019 so far So. But let's let's just start with getting some information in here, and you have, Ah, an idea of how to do that. It's the first of all before we even pull information. I'm going to write the formula to do this Now. Total 2018 just happens to be, you know, only two months so we could just grab this stuff. So, uh, now we have several places we could grab this now, right off the revenues off the profit. I'm just gonna grab it off the revenues. As long as you're consistent about where you get your information from, actually know what? If we do it off the prophet, it's a little bit more linear rather than down, then. I mean, that's personal preference. So our total expenses are going to be here, Profit calculates, and then we know that these all need to be dollars. The other thing we might want to do. Let's ah, let's ditch the two decimal points. Make it nice. Summary information. That cash balance we know is gonna come from our cash. She move on over and it is Oops. So december end of December is our 2018 ending balance, right? There's no accumulation here. Okay, enough for some reason to This is all Bolden. The groups get rid of the bowl. Not everything has to be Bolden. Now, here's where things get tricky, but we have to do a little bit more formula writing here, So Q one is really January, February, March. So we need to add three months and the way we do that, it's the some formula and open the bracket. Now we go back to our profit. So it's basically January, February, March. We can just highlight these three. I'm gonna hit. Enter now. I'm gonna go back here and hit up to so the technical formula is equal. Some bracket open. The Prophet tab is what profit exchange point means sells E seven through G seven, which is General Ferry march and then close the bracket. That is the technical way of just saying add up those three cells now, unfortunately, can't copy this over because that you see, if we copy it won over. The problem is we needed to move three cells over on our thing. So it's easier to just rewrite these formulas each time A little bit. I should say quicker than trying to, like, copy paste than edit the formulas on. I do want to put these formulas in now. I mean, he obviously don't have to. You could do it, uh, at a later date and then 2019 que and we need to change those headers. This is actually Q four. I realized that would be October, November, December. Okay, so let's just do that now. real fast to and this is three groups. Okay, so Total for 2019 is going to be these four, and we know that this one will be the same. And now we just need to put in thes and grabber cash balances. Let's do this real quick. Quickest can be. It's the exact same process. Guys go to our expenses. It is these three, right here again, if you want to. There's a couple ways. There's always to do everything and excel. You could copy those formulas and go in and edit them to be the right, um, instead of cells, I find it's easier just to just I mean, you see how quick this is going might seem like a lot of work, but it's hoops. Apparently I There we go. We're talking like two minutes of work to fill in. You know, these formless and then cash balance. So Q one will be the cash balance at the end of March. So let's see right here. This one will be in June. This one will be in the September and this one, of course, and of December, which will also be the 2019 total. Let's just move over here, and so we know that. So it's cash. Oh, wait. We can just copy this over and change that one. Okay, guys. So this is our little nice summary dashboard. Now, it's not as exciting, right, Because we just don't have a ton of data in here yet. Um, and honestly, creating graphs for this is a little bit they won't be too exciting, but I'm gonna show you how to do it. So essentially, you can think of total of 2018 as almost Q four of 2018 because it was only two months. Um, so let's create graphs for these. So what I want to do So think about the types of graphs he want. Like I would want to see maybe a profit graph. We don't want all the state on one graph. I would want maybe a profit graph. That's bars and maybe a line that has the cash. So here's what we're gonna dio we're gonna highlight this. This and this and sell was pretty smart. Let's see how smart it is. All I did was hold down control and then click and hold and then drag around what I wanted to highlight. So if I go to insert and I excel calls them charts now, didn't really work graphs. I'm not sure why. Um recommended charts. Let's see what it recommends. So it puts the two numbers side by side. That's one option. I was thinking of something else, but we could do, said This one doesn't really make sense. You don't want to stack them. They're not related, but one would be profit. One would be cash balance. It's not a horrible idea, so let's just take a look. See what happens. We'll show you how it works. Simple is that click on. So we highlighted a few numbers, went to recommended charts. Bang, we have a chart with change. The title. This is profit and cash balance. It already pulled. So by highlighting the names of the rose and knew what to call them by highlighting the, uh, the months or two. Sorry, the quarters up here and knew how to label them down here. That's a simple as that and his data feels in this chart will be dynamic. It'll update itself based on what information populates in here and member to this dashboard is set up through the end of 2019. All you need to do now is maintained your revenues, your expenses, your profit. You're gonna have to. Let's see, you're gonna have to populate these, obviously each month and then your cash balance. So to do, update this these four sheets, I mean on our I mean, it depends on the size of your business, but you're thinking for an hour's worth of work, you get a lot of intelligence. I think there's a lot information, and here that you can use its cash balance is a great way to track where you're at with your cash on your dashboard. Finally, once data starts to populate in, you have a cool looking graph and you'll be able to really see like, Here's how much profit with me. And here's how much cash we had, etcetera. So say these were to switch. All of a sudden you had 1400 in profit, but your cash balance dropped. Well, that means that, you know, you probably did a big withdrawal. I mean, you have to. It prompts you to ask the important questions, if you will. I think that is it, guys, Um, I will do a final wrap up video. So for now, though, that will be it for the dashboard. 14. 085ACCTG Section 03j Wrapup: All right, everybody. So I will have a final Final course conclusion video after this one, but I wanted to just kind of go through this one more time, highlights some of the important things and really just kind of go over what we've accomplished. So I mean, in the matter of just over an hour, I believe Look at what we've built. So we have this nice looking dashboard. Now, one thing I want to mention to I mean, you could do what you want with this. Say you wanted to break these revenues out. Or you did want to show this by month on your dashboard. You Taylor, this toe. How you want to do it If you build your own, obviously didn't along the way. Or if you want to take this, you're going to break a few formulas and fix them. But I've shown you the tools and how to properly do that, uh, as well. Keep in mind, this is available for download. It's going to be attached to the final conclusion video of the course, depending on the platform you're using Italy there, be there for download, or it'll be just available as a download of the course. So what do we have? We have a nice way to track our revenues. So again, always think a year or two from now how important is this information will be what's going to be really important to be able to look back at your history and really see you know where your sales came from? What the amounts were relative to each other, etcetera. Same thing with expenses. Where were you sent? Spending money. Imagine all you had was a total like we made 1100 we spent 800 we made 300. You'd be like, Well, that's great. But we're like, Where? What? Where the money come from. Where did it go? Those are probably the questions you were having at the beginning, the chorus. And that's why you took the course. Hopefully, Well, now you have a way to track that and really see where the money comes from them. And maybe these are general categories that are, you know, bigger and you could break them down. It's up to you how detailed you want to get with it again. The profit she ton of value here. And also I mean, this is the same as a profit loss sheet of like a blue chip company trading on the stock exchange. I mean, this is what in general profit and loss statement is or an income statement. You show all your incoming money sources your revenues, all your outgoing expenses. How much did the month company make at the end of the period, which in this case is the month or further year ton of value? And then you can also examine that the categories etcetera and then lastly, the cash balance on here definitely encourage you to do this. It might seem simple, and you might think, Well, this doesn't have anything else that, like the bank statement, doesn't have. True. But how often do you go back and examine your bank statements or say you got halfway through the year and your cash just was going down your like There's a problem. I want to see what's happening. It's a lot easier to do it. If you've already been tracking it along the way, then if you have to, now go open those bank statements and try to figure it out. So you're already making the effort to track your revenues. Expenses make the effort to just track cash mounts because casually is king, as they say for a small business. So that is it for the template guys. And remember to download this template, be sure to watch conclusion video. Be sure to watch the bonus video if you leave feedback at the end of the course. Highly appreciate it very much so. Thanks, you guys. 15. 085ACCTG Section 04a Course Conclusion: Congratulations, everybody. Welcome to the course conclusion. You've made it through all the content, so I want to give you just a few takeaways as we wrap up the course. So, first of all, always keep in mind. Accounting can be easily handled in a small amount of time. You really don't have to worry about the counting side Once you have a system in place like we built on this course, it's really just about spending no half an hour, maybe an hour, each week, just updating it so that you keep this running record. And really, that's the key is to make sure that you update it regularly. If you let it fall behind. It's very easy to just say, Well, now I'm three weeks behind. I don't want to deal with it. No, you've put in this much effort, definitely encourage you to stay on top of it, and part of why you want to stay on top of it is you can make better decisions by knowing your numbers. This is really not just about doing some basic accounting. It's really about empowering yourself as a business owner to make the best decision to possibly can and a big way that you can do that is through knowing your financial results, which aren't that difficult to calculate. So as well, don't forget to download the templates. So the template we built in the course it's either attached to this lecture or just to the course in general as a download depends on what platform you're using to view this course. And lastly, be sure to ask any questions. I'm happy to answer any questions in order ends. Ask questions. So first of all, you can contact me through the website you're taking the course on. Obviously, just click the message certainly encourage you to do so in Almost make your questions public so we can answer them for all the students who are taking the course. But as well feel free to email me. There's my email. There's my Twitter. Honestly, I don't post too much on Twitter, just so you know. But feel free toe to follow me and as well my linked in profile if you want to check out and see what else I'm involved in that said, really happy. You guys took the course. Hope to see you in another course. I really enjoyed instructing you and that is it. Good luck, everybody