Negosyo 101

Entrepreneurial
Accounting
 Fact or Fiction

It takes a lot of money

to start a feasible
business.
In business we have to embody:

VISION
PASSION
ACTION
 Secret to be Successful in
Business

SM, BPI and Jollibee.

Their owners dreams, were
translated into passion. Their
passion became action and their
action brought them to Filipino
Icon Status.
Effective Habbits

Knowledge
(what to, why to)

Skills
(how to) Desire
(want to)
NO MONEY?
USE THE
LAKOPA
TECHNIQUES
(LAWAY, IKOT,
LAWAY

BE A COMMISSIONER

BE A RUNNER
LAWAY
USING YOUR
LAWAY MEANS
BEING A
MEDIATOR
BETWEEN THE
CUSTOMER AND
THE SUPPLIER
IT ENTAILS
GAINING
THE TRUST
OF YOUR
SUPPLIER AND
THE
CUSTOMER.
IKOT
DO CONSIGNMENT

USE YOUR CREDIT

CARD
MAKING IKOT
SIMPLY MEANS
FINDING
WAYS TO
BUY YOUR
MATERIALS
THE BASIC
SETUP IN
IKOT IS
BUY NOW
PAY LATER
PAWIS
USE YOUR SPECIAL
SKILLS AND
TALENTS TO EARN
MONEY
PAWIS
IN MAKING
PAWIS, DO
YOUR BEST
IN YOUR FIELD
AND EXPECT A
HIGH PAY
IF YOU CANT
MAKE PROFIT
OUT OF LITTLE
MONEY, THEN
YOU WONT
MAKE MONEY
EVEN WITH
LOTS OF
MONEY.
NO MATTER
HOW SMALL
YOUR MONEY
MAY BE, YOU
CAN BE A
SUCCESSFUL
ENTREPINOY.
Why are many still unable to
venture into business?

The answer-only TWO THINGS.

1. LAZINESS in MIND and/or in
action
2. FEAR of FAILURE (Takot): The
reason why we rarely want to leave
our comfort zone.
How to Succeed in Business?
How to Succeed in Business?
How to Succeed in Business?
Why you start a Business?
How do you know you earned a
PROFIT from Business?
What is the Secret to
Success in Business?
Accounting - defined

Accounting is the systematic and

comprehensive recording of
financial transactions pertaining
to a business, and it also refers
to the process of summarizing,
analyzing and reporting these
transactions to internal and
external users.
Accounting - defined

Accounting is one of the key

functions for almost any
business; it may be handled by
a bookkeeper and accountant
at small firms or by sizable
finance departments with
dozens of employees at large
companies.
What is the Secret to Success
in Business?
Financial Statements

Financial statements (or

financial report) is a formal
record of the financial
activities and position of a
business, person, or other
entity.
Financial Statements
Balance Sheet
ACCOUNTING EQUATION
Balance Sheet
Balance Sheet
What is an 'Asset'
An asset is a resource with economic
value that an individual or corporation
owns or controls with the expectation
that it will provide future benefit.
Assets are reported on a company's
balance sheet, and they are bought or
created to increase the value of a firm or
benefit the firm's operations.
Cash on Hand
Cash in banks
Receivables
Inventory
Inventory
Land
Land
Transportation Equipment
Office Equipment
Total Assets
What is an Liability'
A liability is a company's financial debt
or obligations that arise during the
course of its business operations.
Liabilities are settled over time through
the transfer of economic benefits
including money, goods or services.
Payables
Total Liabilities
What is an Equity'
Ownership interest or owners claim in
the assets of a company.
Equity represents funds contributed by
the owners (stockholders) plus retained
earnings or minus the accumulated
losses.
Equity
Debt vs. Equity
Total Equity
What is an Revenue'
Revenue is the amount of money that is
brought into a company by its business
activities.
Revenue is the amount of money that a
company actually receives during a
specific period, including discounts and
deductions for returned merchandise.
What is an Expenses'
An expense consists of the economic
costs a business incurs through its
operations to earn revenue.
Expenses may be in the form of actual
cash payments (such as wages and
salaries), a computed expired portion
(depreciation) of an asset, or an amount
taken out of earnings (such as bad
debts).
Expenses
Recording in Journals
Recording in Journals
Recording in Journals
Posting to Ledgers
Posting to Ledgers
Posting to Ledgers
Posting to Ledgers
Any Questions?