0:15
Hello, is there anyone here? Excuse the water you
0:19
asked for. Oh, I was meditating,
0:22
meditating. Yes, to find
0:24
balance. Yes, I have to find
0:26
balance, but from my accounts, this water
0:29
isn't very cold, let's say. Yes, it's the fridge. I
0:34
change it. I already dried it.
0:38
The stools also need a little more time. Did you
0:40
hurt yourself? No, but it interrupted my
0:48
flow. For things to work
0:51
correctly in a company, it is
0:53
important to have constant control of
0:55
its finances. The balance sheet, the
0:58
profit and loss statement, and the cash flow statement
1:00
give us the necessary information for
1:04
this. The balance sheet is like a snapshot of
1:07
the company's financial situation on
1:09
a specific date. In the
1:12
long-term assets, we will find the investments
1:14
made that will remain
1:16
in the company for more than a year: the purchase of the premises,
1:19
the works carried out, the purchase of
1:21
computers, etc. In the
1:24
short-term assets, we have the inventory of
1:26
raw materials or finished products, the
1:34
bank. And in the liabilities, we would see how
1:37
these investments have been financed: first,
1:40
the debt that we must repay in the short
1:42
term, and then the debt to be repaid after
1:44
a year or more. And finally, equity,
1:49
always... There has to be a
1:51
balance between the sources of
1:53
financing, since too much debt
1:55
would drown the company and too little would
1:58
prevent it from making investments sometimes
2:01
essential for its survival.
2:04
What are you playing at, reviewing irregular verbs?
2:18
later. Where are you going with so much money? You're
2:21
rolling in it. If it's not mine, I have to go and pay for the
2:23
leather bracelets. At least you
2:26
touch money because what I have is a lot of
2:28
charging, a lot of paying, a lot of spending, and in the
2:29
end there's not a penny in the house. I'll
2:32
collect it from here. Yes. Keep the change. No, yes,
2:35
with me. You're going to be in for a shock.
2:39
The bar owner doesn't understand
2:42
the accounts because perhaps he still doesn't know that
2:45
in accounting terms, income is not
2:47
synonymous with collection and an expense is not the
2:51
same as a payment. This difference is very
2:54
important to understand the numbers of
2:56
a company that are controlled through
2:58
the profit and loss account and the
3:03
cash account. When a company invoices a
3:05
client, the company records an
3:07
income, even though it has not yet been collected.
3:10
Only when it receives the money can it
3:14
collection. The profit and loss account contains
3:17
the income and expenses that a company has had.
3:22
reflects the receipts and payments
3:25
made. For a company to be
3:30
profit and loss account with profits and a
3:34
positive cash account are essential. Confusing income with receipts and
3:37
expenses with payments can be misleading.
3:40
For example, it can make us think that because we are
3:43
generating liquidity, our
3:45
business is doing well when it may
3:48
actually be experiencing
3:52
losses. So, where do I write it down? Are they
3:55
going to pay you for the bracelets? No, yes, one day
3:59
or another, let's hope so. Then write it down in the
4:06
V), and what I owe you for the
4:09
accounting classes in the expenses column.
4:12
But you'll pay me back, yes, one day or another, let's
4:19
hope so. If a company were a car,
4:22
the balance sheet would be the exterior: the
4:24
bodywork, the wheels, etc. The
4:27
profit and loss account would be the engine, and the cash account would be the
4:31
fuel. For the company to function, it
4:34
needs a body and wheels in good
4:37
condition, an engine that works
4:39
correctly, and enough fuel to be
4:41
able to operate. In summary, we must have
4:45
these three aspects under control:
4:48
a balanced balance sheet with a
4:50
profit and loss account showing
4:52
sufficient profit and a positive cash account (i).
