GENERAL LEDGER: Once upon a time, accounting systems were kept in a book that listed the increases and decreases in all the accounts of the company. That book was called the general ledger. Today, you probably have a computerized accounting system. Still, the general ledger is a collection of all Balance Sheet and Income Statement accounts.all the assets, liabilities and equity. It is the report that shows ALL the activity in the company. Often this listing is called a detail trial balance on the report menu of your accounting program. The detail trial balance is my favorite report when I am trying to find a mistake, or make sure that we have entered information in the right accounts.

How do you stop being a lone wolf? Tap into your current family and friends experiences, expertise’s, or networks. Take out a piece of paper and make a table with 4 columns.

For example, the cash flow examples is simply a detailed “budget”. You take your monthly sales assumptions and add any other incoming “cash” (loan dollars for example) and subtract your expenses. Carry over any extra (or loss) to the next month until you have populated the statement for 12 months. Voila! Another section completed.

Flipping houses isn’t an easy job. The process of managing the rehab itself will require excellent organization & people skills. It is also very important that you learn how to estimate repair costs as quickly as possible.

Plan trades with business discipline. Most plans cover Entries, Exits, Stops and Profit Targets. Still, no one enters a business with a few bullet points. Your trading plan must address the very defining reason of “Why trade?” What is your motivation (each day, month and quarter)? E.g. build up the children’s education fund, pay for household expenses or self-directed retirement? How robust do you want your home business to be? It’s reflected in the construction of your portfolio and trade plan.

The “plus” side of your Net Worth is found in things of real value to the marketplace; things like your 401-k and IRA accounts, certificates of deposit (CDs), cash in the bank, equity in your home, cars you own, collectibles you could sell, and debts other people owe you.

Corporations operate in much the same manner. First, like a paycheck, they generate cash from operating the business. This is called Operating Cash flow (OCF). From this, they subtract their Capital Expenditures. Capital expenditures are expenses for capital equipment and other physical property, like real estate. What’s left over is their free cash flow.

Earnings growth signifies that the company is making more that enough to offset its costs. Established companies should show consistent results, but young companies often display strong revenue growth with little or no earnings. Witness the myriad of Internet companies with lots of sales and no profits.