Webinar: Preparing the Financial Statements

Conducted by Nick Chapman (nchapman@veinternational.org), these video tutorials walk through the basics of preparing Financial Statements for your VEI firm.

This webinar addresses the following Reference Files:

  • Cash Budget
  • Break-even Analysis 2013-2014
  • Sales Forecast Template
  • Income Statement
  • Financial Statement Templates with Explanations (Includes the Balance Sheet Template)

Here’s the PDF of the Presentation.

Click here to see the Q&A section from this presentation.

Introduction
Review Elements of Your Budget and VEI Cash Budget
Sources of Cash to Support Operations
Review the Balance Sheet
Making Sales Projections
Preparing a Break-Even Analysis
Cash and Accrual
Preparing the VEI Income Statement
VEI Balance Sheet and Conclusion


 

Introduction and Overview

Review Elements of Your Budget and VEI Cash Budget

Sources of Cash to Support Operations

Review the Balance Sheet

Making Sales Projections

Preparing a Break-Even Analysis

Cash and Accrual

Preparing the VEI Income Statement

VEI Balance Sheet and Conclusion

Q&A Section

How many sales can we have that aren’t involved with Virtual Enterprise?
We allow firms to use non-VE sales to support up to 75% of their projected salaries expense for the year, net of cost of goods sold.

Can we get seed money from non-VEI sources?
In theory, seed money can be received from a non-VEI source such as a corporate partner or business mentor. However, this MUST be facilitated through your regional office.

Why do you use Net salaries and not Gross salaries on the Cash Budget?
The reason for this is that the Cash Budget reflects the actual payments that were made from the firm’s bank account. Net salaries is what you are paying your employees, it is the amount of cash that is leaving your bank account. In a separate payment, you will remit your employees’ payroll withholdings.

How can I get equipment for my firm?
There are a number of VEI firms selling computers, office equipment, and office furniture. Contact these firms for information on their products and pricing. You can find a directory of firms from the VEI Portal or by visiting the public directory of firms located here.

If you are unable to find a supplier for your specific needs, contact your Regional Office for assistance.

Do we need to include our money market accounts in any financial statements?
Yes, you will need to include information from all of your accounts in your financial statements. Particularly, the “Current Assets – Cash” on the Balance Sheet should include the balance of all available cash in all accounts.