Group 5 presents...

How to Start a Business:

Execution Stage
AND

Basic accounting
and Financial
Statements
GEE-TEM Research Presentation
BS PSYCH 1-A
INTRODUCTION
Execution is the practical and realistic
key component when beginning a
business
INTRODUCTION
Execution is the practical and realistic
key component when beginning a
business
The execution makes planning useful.
INTRODUCTION
Execution is the practical and realistic
key component when beginning a
business
The execution makes planning useful.
Executing the business requires many
abilities such as an exceptional
understanding of basic accounting and
financial statements.
 OBJECTIVES

To discuss the steps on how

to start a business.

To utilize and instill knowledge of

basic accounting and financial
statements.
How to Start a Business:
Execution Stage
According to Wright, strategy execution is a circular process
that forms and accomplishes the business’s plan and strategies
in the reality of entrepreneurship. It fulfills the vision, mission,
ideation, and formation that the business desires.

Tracking and
01 Strategic planning 04 Reporting
Performance and
02 Communication 05 Management
Goal Setting and
03 Alignment 06 Rewarding
01 STRATEGIC PLANNING
The planning process is a rudimentary and
fundamental step since careless and unmethodical
plans with faulty assumptions lead to failure.
01 STRATEGIC PLANNING
The planning process is a rudimentary and
fundamental step since careless and unmethodical
plans with faulty assumptions lead to failure.

Your Plan Needs to Address these Questions!

What are you going to ultimately achieve?

What are your company’s core business
metrics (Financial Metrics like Gross Profit,
Gross Profit Margin, Net Profit, Net Profit
Margin, Monthly Recurring Revenue,
Operational Metrics, and so on)?
What steps will you take to get there?
01 STRATEGIC PLANNING
The planning process is a rudimentary and
fundamental step since careless and unmethodical
plans with faulty assumptions lead to failure.

Your Plan Needs to Address these Questions!

What framework will you use to keep you

focused and on track (think the Cascade
Model, Balanced Scorecard, McKinsey's Three
Horizons model, etc.)?
How will you structure your strategy
reporting?
01 STRATEGIC PLANNING
The planning process is a rudimentary and
fundamental step since careless and unmethodical
plans with faulty assumptions lead to failure.

Your Plan Needs to Address these Questions!

What’s the frequency of your strategy reviews

and meetings?
What communications plan do you have in
place for your strategy?
Who will your strategy mentors or advisers
be?
02 COMMUNICATION
Communication must be done throughout the whole
business process and shared with everyone within the
organization.
Guidelines and policies from leaders are likely to get
feedback and ideas from the entire business
organization, so two-way communication is needed.
02 COMMUNICATION
Communication must be done throughout the whole
business process and shared with everyone within the
organization.
Guidelines and policies from leaders are likely to get
feedback and ideas from the entire business
organization, so two-way communication is needed.
Two-way communication is achieved through
Internal communication.
02 COMMUNICATION
Communication must be done throughout the whole
business process and shared with everyone within the
organization.
Guidelines and policies from leaders are likely to get
feedback and ideas from the entire business
organization, so two-way communication is needed.
Two-way communication is achieved through
Internal communication.
Internal communication must consider the
people, the influence on the narrative, the goals
or Key Performance Indicators (KPI), the
schedules, and the strategies..
02 COMMUNICATION
Constructive communication is
facilitated by the following:

Regular team meetings to converse on progress

and coordinate the goals with the business’s
strategic plan.
Dissemination of information to all employees to
develop organizational transparency.
Feedback encouragement to foster an open and
collaborative culture.
Formal and informal questionnaires and surveys
to collect insights.
03 GOAL SETTING AND ALIGNMENT
Thoroughly associating the business’s strategic
plan with every team activity achieves goal setting
and alignment.
Business owners must ensure that every member
has goals for themselves. When the members
create personal goals, these goals must, likewise,
align with the business’s goals.

Business owners and leaders provide a focal

point of strategic clarity and structure to the
execution for their teams to create unity as they
work to flourish the business and themselves.
03 GOAL SETTING AND ALIGNMENT
The goal-setting and alignment management or
process reveals critical insights that effectively refine the
business plan.
A good example of those critical insights is the
revelation of the realities of a business through
given resource constraints such as financial
statements.
It can also reveal the employee's understanding,
skills, and suitability for the business.
So, goal management becomes the foundation of
the execution stage since it directs tracking,
reporting, and performance.
03 GOAL SETTING AND ALIGNMENT
Goals in a strategic plan aren’t static elements
since deadlines. An example is how COVID-19
affected deadlines and time-bounded goals for
many businesses.
Furthermore, goals can be rewritten as the
business progresses, but these changes must be
shared and visible to every company member. .
04 TRACKING AND REPORTING
Tracking and reporting are the next phases in executing
a business to establish strategic control and continue
pursuing progress.

A few good examples of when an organization

does tracking and reporting are reports on
finances, employee performance, sales, and
many more while ensuring and maintaining its
alignment with the business’s goals.

Consequently, it is crucial but demanding since

it needs to be clear, concise, effective, and
meticulous.
04 TRACKING AND REPORTING
Two key components obtain effective and
influential tracking and reporting.

1. The workers in the organizations must regularly

update on the progress of their goals. It can be
done through strategy execution platforms.
2. Updates must incorporate a quantitative
measure of progress that affects the goals and
Key Performance Indicators (KPI). It must also
include short comments to provide contexts for
those measures.
05 PERFORMANCE AND MANAGEMENT
Strategy implementation approaches unravel through
performance management.
Performance management is viewed as the sole
domain of human resources since this sector
enlists, evaluates, trains, and manages applicants
and employees while implementing worker
benefits, but business owners can do it too.
Performance management is viewed as the s
domain of human resources since this sec
enlists, evaluates, trains, and manages applica
and employees while implementing wor
benefits.
05 PERFORMANCE AND MANAGEMENT
Business owners or leaders must review and measure how
their employees’ performance and contributions relate to
their company’s strategic plan, goal, and KPIs.

Performance Management Practices to aid Owners

Individual goals and KPIs relate

directly to the organization’s strategic
plan.
It helps you review and reward people
for their contributions to the overall
strategy.
05 PERFORMANCE AND MANAGEMENT
Business owners or leaders must review and measure how
their employees’ performance and contributions relate to
their company’s strategic plan, goal, and KPIs.

Performance Management Practices to aid Owners

The system is convenient and as close

to “fun” as possible.

It’s social, transparent, fair, and well-

understood.
06 REWARDING
Rewarding employees is the natural conclusion of
performance management.
Business owners and employees must be rewarded
enough for planning, communicating, and goal-
setting efforts.
Rewards need to be balanced and deliberate
since the rewards could overcompensate the
reality of the business’s progression.
A good reward is the salary for every employee
and employer since almost everyone works for it,
but rewarding is not bounded by monetary
means. It can also be gifts.
Basic Accounting and
Financial Statements
 Definition of Accounting
In its most basic sense, accounting describes the
process of tracking an individual or company's
monetary transactions. Accountants record and
analyze these transactions to generate an overall
picture of their employer's financial health.

what are the basics of Accounting?

Basic accounting concepts used in the

business world cover revenues, expenses,
assets, and liabilities. These elements are
tracked and recorded in documents including
balance sheets, income statements, and cash
flow statements.
 WHAT ARE SOME
ACCOUNTING CONCEPTS?
Introduction to accounting frequently identifies assets, liabilities,
and capital as the field's three fundamental concepts. Assets
describe an individual or company's holdings of financial value.
Accruals Concept
Liabilities are debts and unpaid expenses. Capital describes the
money the entity has on hand.
 ACCOUNTING CONCEPTS

business entity concept Conservativism Concept

Business Entity Concept: According to this concept, The conservatism concept suggests that
a business is treated as a separate entity from its accountants should be cautious in recognizing
owners. This means that the financial transactions revenues and assets to avoid overstating the
and records of the business should be kept financial position of a business. It advises
separate from the personal finances of the owners. recognizing potential losses promptly while only
recognizing gains when they are realized.

Accruals Concept Consistency Concept

Accruals Concept: The accruals concept states that Consistency Concept: The consistency concept
financial transactions should be recorded when requires that a business uses the same accounting
they occur, regardless of when the cash is actually methods and principles from one accounting period
exchanged. This concept emphasizes matching to another. This concept ensures comparability and
revenues with expenses, even if the cash flow reliability in financial statements over time.
happens at a different time.
 TYPES OF ACCOUNTANT
Certified public accountants
Management accountants are two of the profession's most
common specializations. Management accountants are
also known as cost accountants.
Accruals Concept
Auditors and
forensic accountants are another important branch of the
field.
Definition of Basic Financial
Statement

A basic financial statement is typically

considered the balance sheet. It's like a
snapshot of a company's financial position
at a specific point in time, such as the end
of a month, quarter, or year. Imagine it's a
photograph of the company's finances at
that moment.
The balance sheet is important because it
shows two key things:

What the company owns (assets): This

includes things like cash, inventory,
equipment, and buildings.

What the company owes (liabilities): This

includes money owed to
banks, suppliers, and other creditors.

By subtracting liabilities from assets, you

get the company's shareholders' equity,
which essentially tells you what the
company is worth to its owners.
 Financial Statements
There are four main financial statements that
businesses use to communicate their financial health:

Balance Sheet
Balance Sheet: This statement provides a snapshot
of a company's financial position at a specific point
in time, typically the end of a quarter or year. It lists
the company's assets (what it owns), liabilities (what
it owes), and shareholders' equity (the difference
between assets and liabilities). Essentially, it answers
the question: "What is the company worth?".
 Financial Statements

Income Statement
Income Statement: Also known as the profit and loss
statement, this report shows how much money a
company earned and spent over a period of time
(usually a quarter or year). It starts with revenue and
subtracts expenses to arrive at net income (profit) or
net loss. This helps understand a company's
profitability.
 Financial Statements

Cash flow Statement

This statement focuses on the movement of cash in
and out of the business. It categorizes cash flow from
operating activities (revenue and expenses),
investing activities (buying or selling assets), and
financing activities (issuing debt or stock). This is
important to assess a company's liquidity, its ability
to meet its short-term obligations.
 Financial Statements

Statement of Retained earnings

This statement explains the changes in a company's
retained earnings, which is the part of profit not paid out
as dividends to shareholders but reinvested back into
the business. It shows how much of the company's profit
is being retained for future growth.
 Financial Statements

By analyzing these financial statements together, you

can get a comprehensive picture of a company's
financial well-being and its potential for success.
 Group 5

Business Report Presentation

Thank You
For Your Attention