Basic accounting help
Discussion
I'm trying to get an understanding of some accounts to get an understanding of the current financial state of a business where records are woeful. The business is paid in advance by holiday makers travelling on their tours.
The hard part for me is to understand how to unwind the numbers and get a clear picture of the health of the business.
You have the amount of cash in the bank (a). The figures for how many people have paid for an upcoming tour (b) and how much is expected when they have paid the outstanding balance (c), cost of running tours (d), overheads/salaries/etc (e)
How do you get a handle on the current state of finances?
Current cash in bank (a+b) + expected outstanding balances to be paid (c) - cost of running those outstanding tours (d) - overheads (e) = Current ProfitLoss
Am I missing something significant here?
The hard part for me is to understand how to unwind the numbers and get a clear picture of the health of the business.
You have the amount of cash in the bank (a). The figures for how many people have paid for an upcoming tour (b) and how much is expected when they have paid the outstanding balance (c), cost of running tours (d), overheads/salaries/etc (e)
How do you get a handle on the current state of finances?
Current cash in bank (a+b) + expected outstanding balances to be paid (c) - cost of running those outstanding tours (d) - overheads (e) = Current ProfitLoss
Am I missing something significant here?
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