How to write a BP 'Financial
manage
ment' component
Includes financial statements
and forecasts for the business.
Explains
revenue projections
how much money you have?
how much money you need?
when and how your business expects
to make a profit?
what your marketing and operational
processes and plans will cost?
The financial structure of the
business is its foundation.
generally described in the three
financial statements
Balance sheet (rozvaha)
Income Statement (výkaz zisků a ztrát)
Cash Flow Statement
many people are intimidated by financial
statements, but you should not be
The financial performance of any
business is measured by the interrela
tionships among six essential elements.
These elements compose financial
statements meant above and are
revenue (příjmy)
expenses (výdaje)
profits/losses (zisky/ztráty)
assets (aktiva)
liabilities (pasiva)
net worth (čisté jmění)
A business will prosper or fail based
on owners effectiveness in planing and
controlling these components.
The accountant statements that illustrate and
measure these elements are balance sheet and
income statement
The cash flow statement is monthspread
and simplistic variation of the
income statement.
Statements explanation
Balance sheet
The balance sheet represent the basic
accounting equation.
Assets - Liabilities = Net Worth
Assets ~ Value
Liabilities ~ Debts
Net Worth ~ Equity, what is a difference
between company assets and liabilities
The balance sheet provides a measure of the
business value in the particular point in time. It is considered as a snapshot in time
Income Statement
Revenue - Expenses = Profit/Loss
It is a measure of how our business has
performed over specific period of time. usually six months or year
It measures all income less all expenses
to arrive at the amount of profit or loss
generated by the business over period.
Income statement is also called 'Profit
and Loss Statement' or 'Income and
Expense Statement'
Cash Flow Statement
It is a statement used to monitor and
project the incoming and outgoing cash,
typically on monthly basis.
It helps you determine how much cash your
business has on hand in any point in time.
If your business has a negative cash
position it means that in the given point
of time, you have more money going out
than coming in. You will be probably not
able to pay your bills.
The Cash flow is a valuable tool to
monitor and project the financial
performance of your company.
If you are new in business , the
financial management compo
nent should include
Estimate start-up costs
Projected balance sheet (1 year forward)
Projected income statement (1 year forward)
Projected cash flow statement (1 year forward)
If you are in existing business ,
the financial management
component should include
Balance sheets (last 3 years, if available)
Income statements (last 3 years, if available)
Projected cash flow statement (12
month forward)
If you are submitting your
business to bank because you
are applying for a loan, you
should also include
current personal financial statement
on each company principal
company or individual federal tax
return for prior year (daňové přiznání)
SBA_6_Financial_management.mmap - 5.4.10 - Michal Oskera