Accounting Strategies for Businesses with Dak Gilinsky

Dak Gilinsky provides expert guidance on managing business finances, bookkeeping, and tax compliance. Learn essential accounting strategies to improve financial transparency, reduce errors, and optimize profitability. Whether you're a startup or an established company, these insights will help you stay financially organized and compliant.

1. Accounting and Finance: An
Overview
This presentation explores the interconnected fields of accounting and
finance. Accounting records, classifies, and interprets financial transactions.
Finance manages money, investments, and capital assets. Accounting
provides the data finance uses for decision-making.

2. Core Accounting Principles
Matching Principle
Match revenues and expenses in the
same period. Cost of goods sold when
revenue is recognized.
Accrual Principle
Recognize revenues when earned,
regardless of cash flow. Record revenue
when service is performed.
Going Concern
Assume the business will continue
operating. Impacts asset valuation and
depreciation.

3. Key Financial Statements
1
Income Statement
Reports financial performance
over time. Revenue minus
expenses equals net income.
2
Balance Sheet
Presents assets, liabilities, and
equity. Assets equal liabilities plus
equity.
3
Cash Flow Statement
Tracks cash movement in and out.
Operating, investing, and financing
activities.

4. Financial Ratio Analysis
Liquidity Ratios
Measure short-term
obligations. Current
ratio: Current Assets /
Liabilities.
Solvency Ratios
Measure long-term
obligations. Debt-to-
Equity: Total Debt /
Equity.
Profitability Ratios
Measure a company's
profits. Net Profit
Margin: Net Income /
Revenue.

5. Capital Budgeting Techniques
Net Present Value (NPV)
Accept projects with a positive NPV.
Internal Rate of Return (IRR)
Accept projects with an IRR greater than the cost.
Payback Period
Accept projects with a shorter payback period.

6. Cost Accounting Methods
Job Order Costing
Track costs for individual projects.
Used for custom products.
Process Costing
Track costs for mass-produced
products. Used for standardized
products.
Activity-Based Costing
Assign costs to activities. More
accurate information.

7. Financial Planning and Forecasting
Budgeting
1
Forecasting
2
Variance Analysis
3

8. Future of Accounting and
Finance
1
Automation
AI automating routine tasks.
2
Blockchain
Enhancing security.
3
Data Analytics
Transforming data into insights.
4
Sustainability
Integrating ESG factors.

9. Thank you
https://medium.com/@dakgilinskyus