The type of business dictates what expenses would be included in the cost of goods sold/ cost of service category/ grouping of expense accounts. If the expense can be directly linked to the specific product, project, or activity, it's a direct expense and should be included in the COS group on the P&L.
If the expense is less correlated to the company's sales, it would be included in the operating expenses or other expense below the GROSS PROFIT calculation.
What is included in cost of sale or cost of goods group > direct expense?
An example, you own a company that produces widgets.
All the direct manufacturing, supplies, and selling expenses to get the product in hands of consumer is a direct expense.
All functions of a business can use AI
accounting, marketing, operations, HR, legal, admin, etc...
AI using team > team alone
Apps like ChatGPT are allowing for people to learn and work faster and faster.
You can start using CHAT GPT today.
WHO is the gross profit & who cares?
WHAT can you do with GP?
WHERE do you use GP numbers?
WHEN is it calcuated and used?
WHY people care about gross profit?
WHO needs to incorporate?
Not everyone, depends on factors such as size, goals, risk tolerance, and tax situation.
WHAT are some benefits to incorporating
Tax advantage(s) and legal advantage(s).
WHERE can I get started?
Canada Revenue Agency: https://www.canada.ca/en/services/business/start.html
WHEN can I do this?
Any time.
WHO went bankrupt?
Silicone Valley Bank & Signature
WHAT happened?
Could not pay all withdrawals
WHERE is this?
Mostly US operating bank
WHEN did the bank shut down?
Friday March 10th
WHY did bank fail?
Too many people trying to take out $$ at once.
WHO is the T1 for?
The T1 is for all Canadian residents.
WHAT is a T1?
A Canadian tax form for individuals to fill out. Looks like this, trust me, it's not that complicated, and most fields probably don't even apply to your situation.
WHERE do I file my T1?
Tax filing & payment due to CRA, file online @ wealthsimple.com
WHEN do I have to file?
Every year before end of April.
WHY do I do this? (Submit and pay taxes?)
Because CRA collects money needed fund rest of the gov't.
The T1 General Income Tax and Benefit Return is a tax return form that individuals use to determine their annual tax liability and claim federal or provincial benefits, such as the GST/HST Credit.
The form summarizes the taxpayer's income, deductions, and tax payable, as computed on supporting forms and schedules, and calculates any refund or balance due.
The T1 form consists of five parts:
1) Identification
2) Total Income
3) Net Income
4) Taxable Income
5) Refund/ Balance owing
Online, In-person, mail, Tax professional
To ensure timely submission, the completed T1 form and any outstanding balances are due by April 30th of the following year (by June 15th for self-employed individuals or common-law partners). If these deadlines fall on a weekend or public holiday, the deadline is extended to the next business day.
Because CRA
Business owners need to build a company track & stay on it.
Key Performance Indicators are common statistics & ratios a company would keep track of.
Pulled from business & financial reports
Always be keeping track of KPIs and perform variance calculations.
Ensure mone is being made.
WHO needs to know?
ROI important metric for business decision makers.
WHAT is ROI?
Rerturn on marketing spend is how much profit is made from a given number of marketing cost.
WHERE can you collect this data?
Marketing ROI = SALES CHANGE/ MARKETING SPEND
WHEN should you look at Marketing ROI?
Constantly
WHY pay attention to marketing ROI?
Determine what is most profitable for business.
