entrep

• Profit


  Amount you gain after selling your product
• Gross profit


  Difference between net sales and cost of sales
• Variable costs


  Things that change based on the amount of product
• Regulatory bodies


  • Department of Trade and Industry (DTI)
  • Securities and Exchange Commission (SEC)
  • Bureau of Internal Revenue (BIR)
  • Mayor's Office
  • Social Security System (SSS)
• Objectives of an entrepreneur


  Have a clear idea of the purpose of setting up their enterprise
• Steps to set up a business


  • Register business tradename
  • Obtain Mayor's Business Permit
  • Register for BIR TIN
  • Register with SSS, PhilHealth, Pag-IBIG
• Steps to set up a business


  1. Set up accounting system or hire accountant

  2. Advertise the business

  3. Secure insurance for the business
• Keeping business records


  Can help protect the business, measure performance and maximize profit
• Bookkeeping


  Systematic and chronological manner of recording transactions
• Bookkeeper


  In charge of recording transactions
• Time allocation


  Entrepreneur should have a timetable or schedule
• Progress monitoring


  Entrepreneur should monitor the development of tasks
• Business structure


  Sole proprietorship, partnership or corporation
• Books of accounts


  • Journal
  • Ledger
• General Journal


  Book of original entry
• General Ledger


  Group of all accounts
• Subsidiary ledger


  Group of accounts directly associated from the general ledger
• Accounts Receivable Ledger


  Records all credit sales made by the business
• Accounts Payable Ledger


  Contains details of all invoices received from suppliers
• Debit


  Value received
• Credit


  Value parted with
• 1. account


  Convenient and factual way of reporting journal entries
• Asset


  Resources with economic value
• Liability


  Something a person or company owes
• Owner's Equity


  Shareholders' equity (or owners' equity for privately held companies)
• Revenue


  Money brought into a company, commonly known as service income
• Expense


  Cost of operations that a company incurs