Accounting field is covering numerous grounds from producing finance reports up to setting up accounts. If you want to know more about accounting, this cheat sheet accounting will be your help.
This accounting cheat sheet will help you in safeguarding the money’s company
Tips in Controlling Business Cash: Cheat Sheet Template
- Separate cash handlers from the bookkeeping: Make sure that the person who is accepting cask is not also the one who is recording transaction
- Separate authorization responsibilities from the cash handlers: Make sure that the person who is authorize when it comes to payments is not the one signing check or the one dispersing cash.
- Segregate duties of bookkeeping staff to make sure there is good system on balances and checks: Do not put much trust to 1 person, unless you are the one who is doing the task.
Relationship of Profit and Cash Flow: Cheat Sheet Template
Making profit means generating cash flow and all business owners knows about it. It is important to understand how profit and cash flow is related to each other because it is critical for business accountants and owners to know about it. Here are some points illustrating how cash flow is related to profit.
- Amounts of the cash flows during period are equal to revenue as well as expense numbers in profit and loss report.
- Actions that is lower cash flow: Increasing accounts inventory and receivable. On the other hand, decreasing account accrued payable and payable expenses.
- Actions that raise cash flow: Decreasing accounts inventory and receivable. On the other hand, increasing accounts payable as well as accrued expenses payable.
Cheat sheet accounting
Cheat sheet tips are important to know so that you will know what you will consider and what you should not.
To eliminate and reduce the costs in business, it is important that you know the formulas that are most often used in the accounting. If you understand the foundational formulas, you no longer need to worry.
- Breakeven Formula:
Profit ($0) equals the Sales minus the Variable costs minus Fixed costs
- Target Net Income:
Target net income equals Sales minus Variable costs minus Fixed costs
- Gross Margin:
Gross margin equals Sale price minus Cost of sales (material and labor)
- Contribution Margin:
Contribution margin equals Sales minus Variable costs
- Pre-Tax Dollars Needed for Purchase:
Pre-tax dollars needed for purchase equals Cost of the item divide (1 minus Tax rate)
- Price Variance:
Price variance equals (Actual price minus the Budgeted price) multiplied by (the Actual units sold)
- Efficiency Variance:
Efficiency variance equals (the Actual quantity minus the Budgeted quantity) multiplied by (the Standard price or rate)
- Variable Overhead Variance:
Variable overhead variance equals the Spending variance plus the Efficiency variance
- Ending Inventory:
Ending inventory equals Beginning inventory plus Purchases minus Cost of the sales
If don’t, try to learn them and remind yourself elementary formulas with mathematics cheat sheet
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