Dream Maker IOWA CENTER FOR ECONOMIC SUCCESS Iowa

Dream. Maker IOWA CENTER FOR ECONOMIC SUCCESS

Iowa Center for Economic Success Mission Our mission is to empower Iowans with the potential to succeed as they pursue opportunities for financial success. Priorities Education Capital Networking Our Why The Iowa Center is committed to empowering people to strengthen and stabilize their financial futures through business ownership and investment. It is our belief that to be successful in small business, one needs support in three core areas: education, capital, and networking. We have built key programs that support those core areas and empower individuals to succeed, families to prosper, and communities to thrive. Success to us is people supporting themselves and their families through the execution of their own ideas.

Accounting & Finance Alexander A. Polzin, CPA Director of Finance & Administration – The Iowa Center apolzin@theiowacenter. org

Bookkeeping Overview: • Utilize a business bank account for all business transactions • Do not co-mingle business and personal funds • Open a business credit card account if required for operations • Develop a strategy for regularly recording all business transactions • Business bank account, business credit account, business expenses paid personally • Consider accounting software to help record business transactions • Reconcile your business accounts on a monthly basis • Prepare Financial Statements = Decision Making, Strategic Planning, Tax Planning & Compliance

Financial Statements: Overview Balance Sheet: What are the assets, liabilities & equity of my business at a specific point in time? Income Statement: What was my profit or loss over a specific period of time? Statement of Cash Flow: How much cash is required for operating, financing & investing activities? Statement of Owner’s Equity: What is left after paying off all of my business debts?

Financial Statements: Overview Assets = Liabilities + Equity ◦ Equity = Assets – Liabilities Net Income = Revenue – Expenses ◦ Gross Profit = Rev – COGS Cash flow statements report all transactions in a P&L style format to show total cash surplus or deficit spending over a period of time. Equity is the Net Assets on a company’s balance sheet after paying off all debt.

Use accounting to make informed business decisions, plan, grow… Is my business profitable? Is a specific product or service line profitable? Do I need additional funds to support operations or growth plans? Can I offer a new product or service? What is the best avenue to raise capital for my business? Can I take on new clients? What is the value of my business? Can I hire a new employee? Can I purchase additional inventory? Can I purchase additional Real Estate? Can I purchase my own office space? Can I purchase additional fixed assets for operations?

What’s the answer? ! Maintain current financial statements for your business. Read and understand your financial statements. Make informed decisions. Use cost-accounting strategies to maximize profitability. Make a budget and track your actual activity vs your expected outcome. Make long-term goals based on your historical performance, current activity, and budget.

2021 Budget Example

Alex’s 5 Keys to Small Business Success 1. Know your worth 2. Know your passion and motivation 3. Be prepared for the unexpected 4. Have a long term plan 5. File your taxes on time

Thank You! ALEXA ND ER A. PO LZI N, CPA APOLZIN@ THEIO WACENTER. ORG 515 -283 -0940