In this session you will learn about:
- Cash and profits
- Cash flow and cash balance
- How your legal setup can affect your taxes
- How a calendar year or fiscal year can affect your taxes
- Types of business expenses to deduct from taxes
- Online resources for tax questions
OVERVIEW
Critical content is cash flow and understanding the difference between cash and profits. This is vital.
DEFINITIONS
Cash: Normally means banknotes and coins, as in paying in cash. The term is used in a business plan to represent the bank balance, or current account balance.
Cash Flow: Cash coming into and flowing out of a business over a period of time.
Profit: Start with sales, subtract all costs of sales and all expenses; that equals profit before tax. Subtract tax to get net profit.
