This made more sense than the last 200 pages of my textbook. I truly think I will get a better grade on this exam and future exams since I've subscribed. No where in those chapters did it underline that profits will come from the income statement...That's obvious now *but* I got confused when told to "record transactions in spreadsheet" in perpetuation for/to transfer to the balance sheet. That had me thinking that every item/service sold was listed in the balance sheet. Now I understand how this will always be balanced with cash and retained earnings. Thank you! Two steps back, who is the balance sheet for? Is it's main purpose to double check the income statement?
Fantastic explanation for such a difficult subject as this. I have never been the accounting type. This was simple and clean with a great example and step by step explanation of it all. Great job!!
Thank you for this video and making it understandable. It has been years since I have taken an accounting class in Junior College and you have helped me recall with clarity.
Well explained. Thank you a lot. I wish to receive from you videos such as tax management, finance, the International Accounting Standard, the IFRS, etc. I’ve learned them in French, now I would like to learn them in English. Anthony
I dont know why i was hired for days entry I have no experience but its 20phr job so I'm trying to learn everything I might need to know Youre video was supremely helpful I dont think I'm the smartest but i was able to mostly understand you GREAT VIDEO IM SUBSCRIBING,😍
you clarified what i was looking for. in order to bring my net income/loss to the balance sheet. I need to add a retained earned account. For some reason this was not in my quickbooks and I was exactly off by the net loss from the prior months business activity in my balance sheet. Thank you.
Thank you so much for this video. Your explanations are very clear and succinct. I stumbled across the video (looking for something else), but I will be actively searching for more of your tutorials!
Dear Miss Amanda, This is Rickey. I have just watched your video about the Income Statement and the Balance Sheet. I think you explained it well, and I believe it can be helpful in my Bookkeeping and Accounting business. I may still need your advice about getting more clients and growing my business, because my business still has not been too successful. Thank you so much. If possible, I would like to hear from you concerning this. Otherwise, I look forward to seeing more of your upcoming videos. Thank you again, and keep up the good work.
Hi Rickey - super cool! Thanks for your comment! Yes, I have business coaching program to help you get clients and grow your business - send me an email at contact@amandarussell.mba and we'll send you a link to schedule a call with me to talk about how my program could help you. I look forward to hearing from you Rickey!
Hello, Miss Amanda. This is Rickey again. I am sorry I took so long to respond back to you. I have been sort of busy. However, I still would like your advice on how to operate my Bookkeeping and Accounting business well. I would be more than glad to communicate with you about this. Hopefully, I will send you an email concerning what I am doing, and I think I may need your help. Please let me hear from you again at the earliest convenience possible. I look forward to it. Thank you again, and keep up the good work. @@businessfinancecoach
How would you record this scenario on the income/balance sheet? Look forward to your take as I've gotten different opinions from Accountants. A land restoration company receives a prepaid amount for a project that is estimated to take 3-4 years or longer. While The company is confident that it will complete the project for far less than the client's prepaid estimate, there is no certainty of profit amount until project completion. Shouldnt the company be able to defer paying income tax until project completion? Of course any draws by owner will be taxable as personal income.
Hi, Thank a lot for your explanation. It is really helpful. I do have a question on it that the weakness and strength of a balance sheet is that it can shows only the value, isn't it? Please advice.
Will you make a video on how to reconcile an unbalanced balance sheet? I am working on a project, and I put in everything in the right place but it doesn't come out equal. For example, what if your mortgage was 350K? How would your balance sheet balance then? Thank you.
Well you're never going to balance if you aren't keep complete and accurate accounting records (really double entry, but in my Small Business School I've created a work around so it is possible). I explain at the end of the video: plug the balance under Owner's Equity A mortgage is a liability, it's decreased by principle parts of payments made, while interest expense reduces net income which effects retained earnings
No, you'd need to say more details. Plus, analyze it - asset is something you own. Liability is something you owe. 2nd is the plan owned by the business or personally?
As I said in the video and typed first thing in the description below, the balance sheet is part of my paid program. The free spreadsheet includes 3 worksheets - basic income statement/accounting worksheet, quarterly tax estimates and end of year tax totals (sums up accounting accounts into the tax categories). That is all I offer for free, plus the e-course of course. My paid program helps people get their accounting and taxes setup in a spreadsheet, which includes office hours with me for a year and all sorts of templates (and we are constantly creating more!). Aloha
Under fixed assets - how would you determine how much an asset has depreciated? Say I purchased a desk for $100, when I update my balance sheet am I saying it's depreciated since I bought it?
you don't need to worry about accounting depreciation because it's a non-cash expense and small businesses 99.9% of the time use cash method (WAY more work to use accrual). Therefore, the depreciation is based on TAXES. What did you deduct on the tax return? Probably the full amount.
When doing videos hunny,, dont take to long to get into what is most important.. after you deliver value you can sell us any thing after that.. lil advice for you
Thanks - unfortunately, I've watched it 3 times and I cannot find it!!! We are going to have to write these down when we edit! :) thanks for your comment
First thing I saw and I was like I gotta go cause I don't know you'll be doing BEHIND CLOSED DOORS and with that sign in your room and be comfortable, I literally thought I was the only one.
it would normally be positive but the nature of a contra asset account (accumulated depreciation) will decrease the asset value they are netted with. I made it negative for the sake of those using the report and needing to understand it since I try to simplify accounting for non accountants (and accountants) alike.
You started out by saying you would explain the balance sheet. Then you spent a third of the time explaining why reports are important. Duh. Then you stated the accounting formula, i.e. Assets = Liabilities + Equity. Then you spent the rest of the time explaining what an asset is, what a liability, is, and what equity is........that's another Duh. What you did not do was explain why Assets = Liabilities + Equity, which is what you said you were going to do, in simple terms. Does explaining a motor, a transmission, and a drive-train explain what a car is. No. It doesn't. You need to drill down on the problem which is why Assets=Liabilities+Equity. You did not do that.
Maybe this example would help: -Let’s say you started a business and contributed cash of $100k into the business. Your business would have Assets of Cash of $100k and your equity is $100k. Therefore Assets ($100k) = Equity ($100k) -Now say you purchased a vehicle for your business with a purchase price of $60k. You paid $20k as a down payment and financed the remaining $40k. For this specific transaction and to help visualize equity: Assets (Truck - $60k) = Liabilities (Auto Loan - $40k) + Equity (Down pmt - $20k). You can look at equity as the owner’s claim or "equity" in the assets. -In total you now have: Assets: Cash - $80k ($100k - $20k down payment) Truck - 60k Total - $140k Liabilities: $40k (Auto Loan) Equity: $100k ($80k cash + $20k downpayment) So, of course Assets of 140k = Liabilities of $40k + Equity of $100k. And to further breakdown the $100k of equity in this example, it represents your $80k in cash left, along with your $20k equity in the truck purchase. Hope this helps. If you have more questions, feel free to ask.
That was literally the best example I've ever heard. So easy to digest.
This was very concise and helpful, thank you for making things so clear for someone like myself who does not have a strong business background
This made more sense than the last 200 pages of my textbook. I truly think I will get a better grade on this exam and future exams since I've subscribed. No where in those chapters did it underline that profits will come from the income statement...That's obvious now *but* I got confused when told to "record transactions in spreadsheet" in perpetuation for/to transfer to the balance sheet. That had me thinking that every item/service sold was listed in the balance sheet. Now I understand how this will always be balanced with cash and retained earnings. Thank you!
Two steps back, who is the balance sheet for? Is it's main purpose to double check the income statement?
I swear to god this made me understand everything. Thank you so much!!
Fantastic explanation for such a difficult subject as this. I have never been the accounting type. This was simple and clean with a great example and step by step explanation of it all. Great job!!
thank you David!!! And thanks for commenting :)
Thank you for this video and making it understandable. It has been years since I have taken an accounting class in Junior College and you have helped me recall with clarity.
My teacher has a harsh accent and I didn’t understand anything she said. Right when I clicked on this video it helped a lot. Excellent job (:
Wow thank you. A free balance sheet download does not exist besides this one.
This was the best tutorial for novice like me! Thanks!!
Well explained. Thank you a lot. I wish to receive from you videos such as tax management, finance, the International Accounting Standard, the IFRS, etc. I’ve learned them in French, now I would like to learn them in English. Anthony
do you want to try it in Russian? ruclips.net/video/yExl0NREaKo/видео.html
Your explanations are awesome!!! Really easy to understand and I am loving it. Thank you
I dont know why i was hired for days entry I have no experience
but its 20phr job so I'm trying to learn everything I might need to know
Youre video was supremely helpful
I dont think I'm the smartest but i was able to mostly understand you
GREAT VIDEO IM SUBSCRIBING,😍
you clarified what i was looking for. in order to bring my net income/loss to the balance sheet. I need to add a retained earned account. For some reason this was not in my quickbooks and I was exactly off by the net loss from the prior months business activity in my balance sheet. Thank you.
Awesome - Thanks for telling me!!!!!
Great information very good material,save the video and watch it multiple times to understand.
Excellent video. Very well explained. Simple and relevant. Thank you!
Thanks. Very clear explain to the listener.🙏
Thank you. This breaks down a lot and defines a few terms I was unsure of
excellent instructor!
There is a lot to digest here. Will have to watch the video again.
Yes - this is a big topic!
By far the best example I’ve seen. I actually understand now! Thank you.
Thank you so much for this video. Your explanations are very clear and succinct. I stumbled across the video (looking for something else), but I will be actively searching for more of your tutorials!
Many thanks 🙏🏼 finally I understand 😁 you explained very well 👍
Great video, simply explained.
this is the best explanation ever
Thank you for this clear explanation~
Thank you
You have helped me
Amazing simple video! Thanks!
Awesome job with your explanations.
You just earned a subscriber:)
Great and easy way to follow. Thank you.
I like how you explain the balance sheet simple Lecture .
Good explanation skill, thank.
Ty, easier to read balance sheets for companies with stocks now
Very nice work.
Good and simple explanation...
WOW! Amazing Explanation!!!
Bravo!
Dear Miss Amanda,
This is Rickey. I have just watched your video about the Income Statement and the Balance Sheet. I think you explained it well, and I believe it can be helpful in my Bookkeeping and Accounting business. I may still need your advice about getting more clients and growing my business, because my business still has not been too successful. Thank you so much. If possible, I would like to hear from you concerning this. Otherwise, I look forward to seeing more of your upcoming videos. Thank you again, and keep up the good work.
Hi Rickey - super cool! Thanks for your comment! Yes, I have business coaching program to help you get clients and grow your business - send me an email at contact@amandarussell.mba and we'll send you a link to schedule a call with me to talk about how my program could help you. I look forward to hearing from you Rickey!
Hello, Miss Amanda. This is Rickey again. I am sorry I took so long to respond back to you. I have been sort of busy. However, I still would like your advice on how to operate my Bookkeeping and Accounting business well. I would be more than glad to communicate with you about this. Hopefully, I will send you an email concerning what I am doing, and I think I may need your help. Please let me hear from you again at the earliest convenience possible. I look forward to it. Thank you again, and keep up the good work. @@businessfinancecoach
Good explanation in the simplest form. Thank you
please be my accounting professor
This was very helpful, thank you!
Nice and simple explantations, thanks
Very clear. Thanks
Awesome description! thanks
Very helpful for me as a non-accountant and small business owner. Would love to have the templates.
This was a helpful into. Thank you.
Interesting in taking your course, how do I get more information.
Great video. So clear and to the point! 👏
Great explanation.
How would you record this scenario on the income/balance sheet? Look forward to your take as I've gotten different opinions from Accountants.
A land restoration company receives a prepaid amount for a project that is estimated to take 3-4 years or longer. While The company is confident that it will complete the project for far less than the client's prepaid estimate, there is no certainty of profit amount until project completion. Shouldnt the company be able to defer paying income tax until project completion? Of course any draws by owner will be taxable as personal income.
Great video!
you should be a teacher, learned a
lot. thank you
Good video 📹 thanks alot 🙏
Simple and clear explanation! thank you.. how I get the excel sheet ?
Hey that was pretty good!
Thank you so much ♡
Hi,
Thank a lot for your explanation. It is really helpful.
I do have a question on it that the weakness and strength of a balance sheet is that it can shows only the value, isn't it? Please advice.
THANK YOU VERY MUCH
I enjoyed your video. Please send me the download so I can use it for my small business
Subscribed
Thank you
outstanding!
Very Good Teaching and How can get the form Ballad Sheet, Income Statement, Profits and Loss. I want to know more about you.
Wow. Thank you. As a new little business owner accounting dies very overwhelm. I am doing Amazon FBA. Is your course fit my business model?
You're awesome!
easy tnx
Will you make a video on how to reconcile an unbalanced balance sheet? I am working on a project, and I put in everything in the right place but it doesn't come out equal. For example, what if your mortgage was 350K? How would your balance sheet balance then? Thank you.
Well you're never going to balance if you aren't keep complete and accurate accounting records (really double entry, but in my Small Business School I've created a work around so it is possible).
I explain at the end of the video: plug the balance under Owner's Equity
A mortgage is a liability, it's decreased by principle parts of payments made, while interest expense reduces net income which effects retained earnings
To avoid an imbalance, you must simultaneously post amounts to accounts of a double entry, for example: ruclips.net/video/yExl0NREaKo/видео.html
Explained it dwn to the T .
Tyvm
vid actually starts at 2:30
Can you tell me RRSP is asset or liability??
No, you'd need to say more details. Plus, analyze it - asset is something you own. Liability is something you owe. 2nd is the plan owned by the business or personally?
In the balancesheet where we show RRSP ,it's from personal account
Interested in the templates but don't see too many responses....??
what do you mean responses? templates free www.amandarussell.mba/getthebusinessspreadsheet
There is no link
what is the other term cash in bdo (to be used in expansion in 2017) buy you're doin balance sheet on year 2015
This video is so helpful, but I can’t find the balance sheet template on your website. Can you clarify where to find it?
As I said in the video and typed first thing in the description below, the balance sheet is part of my paid program. The free spreadsheet includes 3 worksheets - basic income statement/accounting worksheet, quarterly tax estimates and end of year tax totals (sums up accounting accounts into the tax categories). That is all I offer for free, plus the e-course of course.
My paid program helps people get their accounting and taxes setup in a spreadsheet, which includes office hours with me for a year and all sorts of templates (and we are constantly creating more!).
Aloha
Subbed!
How do we treat bad debts if they are decreasing in the balance sheet ?.....
Under fixed assets - how would you determine how much an asset has depreciated? Say I purchased a desk for $100, when I update my balance sheet am I saying it's depreciated since I bought it?
you don't need to worry about accounting depreciation because it's a non-cash expense and small businesses 99.9% of the time use cash method (WAY more work to use accrual). Therefore, the depreciation is based on TAXES. What did you deduct on the tax return? Probably the full amount.
@@businessfinancecoach I was just curious - what would be an example of when I would need to list something in the asset depreciation column?
It is really good please send me the Spreadsheet Template.
Ahmadnoorani1000@gmail.com
where can i download that
When doing videos hunny,, dont take to long to get into what is most important.. after you deliver value you can sell us any thing after that.. lil advice for you
Hunny???
The link isn't showing up in the description. After the word "here:" it is blank. Just spotted it for you
Thanks - unfortunately, I've watched it 3 times and I cannot find it!!! We are going to have to write these down when we edit! :) thanks for your comment
Can u please explain in more detail
This balance sheet looks nothing like any of the ones on Yahoo Finance, and there's about 50 extra lines and numbers on others?
My god that smile
i found the income sheet, but not the balance sheet?
Correct, as I said in the video the Balance Sheet is part of my Small Business MBA program and I help people get it setup for their situation.
Where is the free template? TIA!
Hi Maria! sorry I missed you! it's here: www.amandarussell.mba/getthebusinessspreadsheet
Are you still offering the free template?♥️
Hi Lauren! Yes, here --thanks for commenting! www.amandarussell.mba/getthebusinessspreadsheet
She has a concise and friendly approach that turns me on
Giant eye 'art' piece on the wall has me wondering "illuminate?" like 🤔🧐🤨
First thing I saw and I was like I gotta go cause I don't know you'll be doing BEHIND CLOSED DOORS and with that sign in your room and be comfortable, I literally thought I was the only one.
Liked _/
Came here because I'm learning the accounts in English. Fucken teacher :(
"in accounting there are no negative numbers" as her head floats above negative Accum. Depr lol
it would normally be positive but the nature of a contra asset account (accumulated depreciation) will decrease the asset value they are netted with. I made it negative for the sake of those using the report and needing to understand it since I try to simplify accounting for non accountants (and accountants) alike.
You started out by saying you would explain the balance sheet. Then you spent a third of the time explaining why reports are important. Duh. Then you stated the accounting formula, i.e. Assets = Liabilities + Equity. Then you spent the rest of the time explaining what an asset is, what a liability, is, and what equity is........that's another Duh. What you did not do was explain why Assets = Liabilities + Equity, which is what you said you were going to do, in simple terms. Does explaining a motor, a transmission, and a drive-train explain what a car is. No. It doesn't. You need to drill down on the problem which is why Assets=Liabilities+Equity. You did not do that.
Maybe this example would help:
-Let’s say you started a business and contributed cash of $100k into the business.
Your business would have Assets of Cash of $100k and your equity is $100k.
Therefore Assets ($100k) = Equity ($100k)
-Now say you purchased a vehicle for your business with a purchase price of $60k. You paid $20k as a down payment and financed the remaining $40k.
For this specific transaction and to help visualize equity: Assets (Truck - $60k) = Liabilities (Auto Loan - $40k) + Equity (Down pmt - $20k). You can look at equity as the owner’s claim or "equity" in the assets.
-In total you now have:
Assets: Cash - $80k ($100k - $20k down payment)
Truck - 60k
Total - $140k
Liabilities: $40k (Auto Loan)
Equity: $100k ($80k cash + $20k downpayment)
So, of course Assets of 140k = Liabilities of $40k + Equity of $100k.
And to further breakdown the $100k of equity in this example, it represents your $80k in cash left, along with your $20k equity in the truck purchase.
Hope this helps. If you have more questions, feel free to ask.
"Everything I own =everything I owe" she said that. Its simple. If more time could have been spent on it, cool, but don't bite her head off about it.