Business Financials Principles - Dr. Jorge Chavarian

Led by Dr. Jorge Chavarian, in this webinar you’ll learn how to analyze your Cash Flow and be able to better manage your business. Cash Flow illustrates if the operations of the business are generating enough funds to pay for its financial obligations like bills, taxes, or operating expenses.
Timestamps:
0:00 - Introduction and gratitude for attendance
1:12 - Overview of PCR and its services
2:03 - Introduction of Dr. Forge Sharin (Chevy) and his background
3:55 - Importance of understanding financial statements for small business owners
7:02 - Explanation of what will be covered in the presentation
15:47: Majority of small business owners have a separate business bank account.
16:41: Co-mingling funds makes financial storytelling difficult.
17:07: Separate business account helps in analyzing business numbers.
18:04: Importance of disciplined business accounting practices.
20:07: Understanding the balance sheet and its components.
35:56 - Explanation of operating income's importance for small business loans.
37:07 - Discussion on taxes associated with small business loans.
38:04 - Clarification on income for sole proprietors and LLCs.
39:04 - Overview of the cash flow statement and its significance.
47:04 - Illustration of cash flow statement and its relation to cash basis accounting.
52:52 - Discussing the cash account associated with the small business.
53:26 - Explaining the cost of goods sold for making cookies and calculating the profit margin.
54:24 - Addressing the importance of focusing on inventory and operational expenses.
56:01 - Discussing additional expenses such as marketing and subscription fees.
58:02 - Explaining the concept of operating income and its significance for loan eligibility.
1:13:10 - Discussion about vendor fees at Farmers Market and popup markets, considering it as an expense and accounting for transactions.
1:14:05 - Addressing Tax Day (April 15th) and importance of being aware of tax deadlines.
1:14:25 - Providing contact information for further assistance and explaining the process of becoming a client of PCR (Pacific Co Regional) Small Business Development Center for free services.
1:15:22 - Explanation about free services provided by PCR and how it differs from private clients, emphasizing the benefits of becoming a PCR client.
1:19:02 - Advice on handling losses due to services not rendered, considering it as an expense and its impact on tax liabilities.