The Essential Finance Handbook2018-07-05T14:12:36+00:00

The purpose of the step is to help entrepreneur define where he wants to be and how will he measure his progress as he approach the destination of his goal.

Key Principles in step 1 will help you learn to

  • Decide what you want
  • Dream big without limitation
  • Link your personal goals to business
  • Design financial goals that are SMART
  • List reasons why this is important to you
  • Establish current financial status
  • Develop strategies to achieve your financial goals
  • Monitor your goals by being accountable and coachable

Key Tips, Strategies and Exercises

  • 5 questions that I need to answer to determine personal needs or meet my standard of living
  • 6 Ways to solve any problem even when you cannot develop strategies
  • 9 Things you must do to achieve your financial goals
  • 8 Tips of things to do to be accountable
  • Learn how to replace fear with faith and adopt 4 things to change and start getting the results you want

Templates and Tools

  • Action List to get you started
  • Financial Goal Template
  • Personal Budget Master – Monthly and Annual
  • 100 things that you want to have, do, be, feel, touch, see, change, experience, etc

Additional Resources to read further

  • You were Born Rich by Bob Proctor
  • Goals by Brian Tracy
  • The Success Principles by Jack Canfield

The purpose of the step is help entrepreneur understand that as founder they define the how this business will function and selecting structures by assess all pros and cons based on his environment and what that industry generally use. Such understanding allows entrepreneur select the appropriate environment that compliment his own needs and personality. It also focuses on the character expected from entrepreneur.

Key Principles

  • Know yourself
  • Clean your messes
  • Choose a role that compliment your talent and skills
  • Deep understand of top 4 most common business structure – advantages and disadvantages
  • Learn about Tax and legal considerations, including contractual arrangements between owners
  • Understand financial requirements based on size and growth plans, including the nature of the business;
  • Study common key leadership traits required to be successful
  • Contemplate type of industries in which each structure works best.

Key Tips, Strategies and Exercises

  • Learn 5 things you need to have to success
  • Conduct free personality test – DISC
  • 4 Money principles that are never taught in business schools

Free Bonuses in Templates and Tools

  • Personal development plan
  • Summary of common business structure in terms of characteristics
  • Partnership Agreement
  • Association Agreement

Additional Resources to read further

  • Win Friends and Influence People by Dale Carnegie
  • Your network is your Net worth by Porter Gale
  • 5 Additional resources

Identify your obligations, the purpose of the step is enable the entrepreneur to have a clear key procedures with relevant forms of what needs to be done as he build his business from being a trader which is registered entity to employing staff and being a tax payer. It covers all basic legislation that an entrepreneur needs to implement to run legitimate business and manage compliance risks.

Key Principles

For each legislation mentioned we cover

  • Basic principles of each affected legislation in a transaction (purpose and who it applies to);
  • Compliance considerations to help you get started;
  • Forms that need to be completed on registration, including the key regular requirements;
  • Documents that need to be kept, and how long they need to be kept; and
  • Non-compliance implications

Learn how who qualify and disqualified to be director
Learn how decisions are made i.e meetings and resolutions
Study how directors should conduct themselves including dealing with personal financial interest and remuneration including insurance.
Know steps that need to be followed to remove the directors
Identify 6 different type of taxes governed by Income Tax Act
Learn 4 requirements to qualify Small Business Corporation (SBC)
Understand ways the NCA protects customers
Understand VAT basics like registration and categories including submission of returns
Documents that need to be kept as per VAT and retention period
Learn about requirements of PAIA as per sectors with respective revenues
Learn and understand employer rights
Learn the laws that protect employees at work and how to comply
Understand how employees tax work – PAYE, UIF and SDL.

Key Tips, Strategies and Exercises

5 Prohibitions when creating business names
8 Alterable provisions of Memorandum of Association
10 Decisions that can only be made by ordinary resolutions
13 Decisions that can be made by special resolutions
9 things to ensure company compliance ito accountability and transparency
13 Companies Act Documents you need to keep for 7 years or indefinite.
Take a quick test for turnover tax
9 fundamental customer rights
25 Prohibited Unfair Business Practices
9 Key areas for your terms and conditions
7 things should do according to NCA as credit provider
9 Customer rights protected by NCA
8 Minimum requirements for Tax invoice above R3000
8 Duties of VAT Vendor i.e registered supplier.
8 group of zero rated items as per VAT
10 group of exempted supplies as per VAT
Best practice to create organogram that does not get you into trouble with employees
7 employee rights you cannot afford to infringe
5 Documents you need to keep for BCEA

Bonuses: Templates and Tools

Directors Responsibility Statement
11 Action List to implement CPA
BEE affidavit form
13 BCEA Implementation plans
Employment contracts template
Once off Compliance Checklists
Periodic Submission Compliance Checklists
Attendance Register and Visitors

Additional Resources to read further

8 best resources to help you implement principles

Understand financial concepts. The purpose of the steps is to help entrepreneur understand how world of economy and money works including understanding of finances which is focused on four basic elements irrespective of size of organisation or nature of product and services. It further cover principles of costing and pricing. Learning how to read financial statements and use business language.

Key Principles that you will learn are:

3 corporate finance principles and how they apply in your business
How to track microeconomic factors
4 types of accountants and what their role in your business
4 Basic elements of finance and how they relate to each other business Language and their meaning
How information is classified by accountants and why

Key Tips, Strategies and Exercises

5 key questions that you need to answer as a shareholder
9 Analytical questions to understand the impact of microeconomic factors
7 weekly questions you should conduct to improve your performance
Case study 1 – 7 transactions which are summarised in financial statements to enable you to read your finances.
9 Money principles that are not taught in business classes
Case study 2 – Strategic Planning – how to set a goal and design action plans with understanding of environment

Additional Resources to read further

Aladdin Factor by Jack Canfield and Mark Victor Hansen
50th Law by 50cent and Robert Greene

The purpose of the step is help entrepreneur to understand different types of services they need on financial reporting and who has a capacity and capability from bookkeeper, accountant or auditor and tax practitioner.

Key Principles that you will learn

Understand pros and cons of 4 types of financial reporting
Learn key responsibilities of practitioners and yourself as director in financial reporting
Understand content of contracts related to the services
What documents or requirements needed to perform the 4 type of financial reporting

Key Tips, Strategies and Exercises

When to use which types of financial reporting
Questions to answer before you engage practitioners

Free Bonuses in Templates and Tools

Do calculation for PIS
11 accounting professional bodies and services they provide
4 types Terms and Conditions with practitioners
Sources about how tax practitioners need to conduct themselves

The purpose of the step, to help entrepreneur have solid grip on what is controls and how to establish them. It further helps you link financial risks, benefits and costs of internal controls.

Key Principles

Learn what internal controls are and how they help you to manage your business
Learn common risks which exist in any start up
Monthly Financial Management Reports
Learn about over 24 possibilities when analysing management accounts

Provided a structure for creating Policies and Procedures

Key Tips, Strategies and Exercises

5 things that you need to consider when designing internal controls
6 factors that limit the effectiveness of internal controls
18 General control to improve your controls
43 Accounting financial controls to improve reliability and accuracy of your records

5 top questions to ask when designing procedures

Free Bonuses in Templates and Tools

Risks Management Template
Permanent and Monthly Filling System

Additional Resources to read further

Porter

Conduct financial evaluation – the purpose of this step is help the entrepreneur evaluate the financial reports as per financial accountant, with an aim to assess if they are reaching the financial goal or not. It will assist to identify red flags and possible solutions which could improve the situation.

Key Principles

Understand key 3 major stages of business growth what you need to focus on in each stage
Understand 4 areas of financial statements analysis
Learn to calculate 6 profitability ratios and factors that influences them
Study 5 ratios to monitor your assets efficiencies
Understand 5 Liquidity ratios and how they work
Identify 6 Solvency ratios and learn strategies to improve your performance

Key Tips, Strategies and Exercises

8 Strategies to improve your profitability
4 key controls to improve collection period
22 Formulas of rations
5 factors that contribute Gross Profit

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