Today I was walked through a process of how to use a financial spreadsheet. A financial spreadsheet is a layout of everything your company is making and spending. At the first glance of it, it was very intimidating because it was long and full of percentages and numbers and words that I have never heard of. At the beginning of the walk through, I was sure that somewhere along the line I would get lost and not a moment too soon I did. I was able to quickly catch back up on where I needed to be. I begin putting in hypothetical numbers that I projected my business to be doing and making in a separate spreadsheet. This thought process took a few minutes because for each month you will have different projections because of what goes on for photographers in certain times of the year. I was able to end up with a decent amount of money totaled at the end of this worksheet. I was told that having anywhere from $50,000 to $100,000 was a good number to have and I ended up with $60,000. After this was done, I then put these projected numbers into the financial spreadsheet where they were needed. As I was told what each column represented, I immediately understand a majority of them for the most part. There are still many that I am confused by and need to research more on. Doing the research and making sure I understand it completely will help finish a financial spreadsheet successfully. For the future of my business I will make sure that I know and understand all of these terms because I know that I will not be able to afford and accountant right away to help me. Doing this process has helped me understand better and I will utilize this knowledge in the future of my business.
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