Silicon Valley Business School

Contents of SVBS Course: Finance & Accounting

This module presents finance and accounting with special emphasis on the entrepreneur and startup venture. Topics covered include Finance & Accounting Principles, The Profit & Loss / Income Statement, The Balance Sheet, The Cash Flow Statement, The (Startup) Capitalization Table, Discounted Cash Flow & The Time Value of Money, Business Valuation, Patent Valuation and Business Accounting Software.

Learning Objectives and Outcomes

Upon completion of this course you will be able to:

Explain the essential principles of accounting and bookkeeping.
Structure a capitalization (share ownership) table for a venture capital backed, high-tech startup venture.
Create and interpret financial statements such as the profit and loss statement, balance sheet and cash flow statement.
Appreciate how modern business accounting software operates and can be used by a small company.

Course Sections

The course is organized into the following sections:

Finance: Finance & Accounting Essentials
Finance: The Profit & Loss / Income Statement
Finance: The Balance Sheet
Finance: The Cash Flow Statement
Finance: The (Startup) Capitalization Table
Finance: Discounted Cash Flow & The Time Value of Money
Finance: Business Accounting Software
Finance: Cost Accounting
Finance: Financial Ratios
Finance: Bookkeeping
Finance: Taxes
Finance: Banking
Finance: Capitalization Table
Finance: Finance & Accounting for Startup Ventures

Finance: Finance & Accounting Essentials
  • Video ~ Financial Reports
  • The financial reports that have traditionally been used to assess the financial health of a company are the Balance Sheet, the Income Statement (also known as the Profit and Loss Statement), and the Cash Flow Statement.

  • Video ~ Balance Sheet
  • The Balance Sheet is a snapshot of the financial status of a company at a point in time.

  • Video ~ Income Statement
  • The Income Statement shows a track record of how a company has performed over a period, usually in a quarter or a year.

  • Video ~ Revenue Recognition
  • Video ~ Cash Flow Statement
  • Video ~ Forecasts
  • Video ~ GAAP ~ Generally Accepted Accounting Principles
  • Generally Accepted Accounting Principles (GAAP) is a standard framework of guidelines for financial accounting in the U.S.

  • Video ~ Traditional Banks & Startup Clients
  • This voice narrated slideshow presents information regarding the services that startups can get from "traditional" banks.

  • Video ~ Financial Audits
  • Video ~ Sarbanes Oxley & Audit Requirement
  • This voice narrated slideshow provides information regarding the Audit requirements of the Sarbanes Oxley Act.

  • Video ~ Different Types of Financial Statements
  • Video ~ Business Accounting
  • Slideshow Handout ~ Finance & Accounting Essentials
  • This PDF document presents information regarding concepts in finance and accounting that are essential for entrepreneurs.

    Finance: The Profit & Loss / Income Statement
  • Video ~ What is Profit?
  • In this video, the term "profit" is explained. Terms like: "Gross Profit", and "Operating Profit", among others, are explained.

  • Reading ~ Introduction to the Income Statement
  • The Income Statement (also referred to as Profit and Loss statement (P&L), Revenue Statement, Statement of Financial Performance, Earnings Statement, Operating Statement or Statement of Operations) is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line").

  • Reading ~ Income Statement
  • The Income Statement is important because it shows the profitability of a company during the time interval covered by the Income Statement.

    Finance: The Balance Sheet
  • Video ~ What is a Balance Sheet?
  • This video explains what a Balance Sheet is, and the type of information it contains, and how you can use it.

  • Reading ~ Introduction to the Balance Sheet
  • A Balance Sheet or Statement of Financial Position is a summary of the financial balances of a business at a particular point int time. The Balance Sheet provides a snapshot of the company's financial position, showing how the company's assets compare with its debts or liabilities.

  • Reading ~ Balance Sheet
  • Finance: The Cash Flow Statement
  • Video ~ What is a Cash Flow Statement?
  • This video explains what a Cash Flow Statement is, and what it can reveal to investors.

  • Reading ~ Introduction to Cash Flow Statements
  • Reading ~ Cash Flow Statement
  • The Cash Flow statement reports the cash generated and used during the time interval covered by the Cash Flow statement.

    Finance: The (Startup) Capitalization Table
    Finance: Discounted Cash Flow & The Time Value of Money
  • Video ~ The Time Value of Money
  • Video ~ What is the Time Value of Money?
  • Reading ~ Introduction to the Time Value of Money
  • Finance: Business Accounting Software
  • Video ~ Bookkeeping & Accounting Systems
  • Video ~ Introducing QuickBooks
  • The video is an introduction to QuickBooks 2013 and discusses, among other things, the chart of accounts, check writing, and bank reconciliation.

  • Video Playlist ~ QuickBooks Training Course
  • Video Playlist ~ QuickBooks Tutorial
  • Reading ~ Introducing Accounting Software
  • Accounting software is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system.

    Finance: Cost Accounting
  • Video ~ Understanding Cost Accounting
  • Video ~ Cost Concepts for a Manufacturing Business
  • Video looks at the cost-flow in a manufacturing business which produces envelopes.

  • Reading ~ What is Cost Accounting?
  • Finance: Financial Ratios
  • Video ~ Financial Ratios and Financial Ratio Analysis Explained
  • Reading ~ Financial Ratios
  • Reading ~ Financial Ratios Based on the Balance Sheet
  • Reading ~ Financial Ratios Based on the Income Statement
  • Reading ~ Statement of Cash Flows
  • Finance: Bookkeeping
  • Video ~ Introduction to Bookkeeping
  • Reading ~ Bookkeeping: Past and Present
  • Reading ~ Bookkeeping: Accrual Method
  • Reading ~ Bookkeeping: Double-Entry, Debits and Credits
  • Finance: Taxes
  • Video ~ Basic Taxes for Individuals
  • Video ~ Deductions for Your Company: Accounting for Small Business
  • Video ~ Bizarre Taxes from Around The World
  • Video ~ The Basics of Tax Deductions
  • Video ~ Learn the Basics of Tax Credits
  • Video ~ Common Tax Mistakes Businesses Make
  • Video ~ Employment Tax Basics
  • Video ~ 10 Red Flags That Can Cause a Tax Audit
  • Video ~ What are Capital Gains Taxes?
  • Video ~ Capital Gains Tax 1
  • Video ~ Capital Gains Tax 2
  • Video ~ Capital Gains Tax 3
  • Video ~ Warren Buffett's 2nd Rule - Understanding Capital Gains Tax
  • Video ~ Tax Exempt Organizations
  • In this video, you will get acquainted with the types of organizations that can apply for 501(c)(3) tax-exempt status, as well as the steps that you need to take before your organization can apply to the IRS for a 501(c)(3) tax-exempt status.

  • Video ~ How to Register your Employee ID Number
  • Video explains why you need an EIN and how to register one.

  • Video ~ Why Choose a C-Corporation for Your Startup Journey
  • In this podcast you will learn why C-Corporations are the vehicle of choice for tech startups in Silicon Valley and the tech sector and how IRC section 1202 can be used to escape paying taxes on the gains made on shares in a C-Corporation.

  • Reading ~ Federal Business Taxes: Introduction
  • Reading ~ Business Taxes
  • Reading ~ Deducting Business Expenses
  • Reading ~ Small Business Tax Deductions: Current vs. Capital Expenses
  • Reading ~ Businesses with Employees
  • This article provides an introduction to the tax responsibilities of businesses with employees.

  • Reading ~ What is a Section 83(b) Election and Why Should you File One?
  • Vesting stock is common in startups and taxes can be minimized through filing an 83(b) election with the IRS.

  • Reading ~ Tax Exempt Organizations
  • This article looks at the requirements for an organization to be tax-exempt under section 501(c)(3) of the Internal Revenue Code.

  • Reading ~ What is a 501(c)(3)?
  • This article provides information regarding 501(c)(3) organizations, including types of 501(c)(3) organizations, as well as how to obtain 501(c)(3) status.

  • Reading ~ Tax Treatment for Intellectual Property
  • The U.S. drops the rate of tax to 13% for patent licenses, to compete with Ireland and other countries, but increases the tax rate for patent sales--classifying patent sales as ordinary income.

    Finance: Banking
  • Video ~ Open a Bank Account for Your Company
  • Video explains that it's a good idea to create a separate bank account for your business--and not to commingle your private funds with business funds. The bank may require a Federal tax ID number, minimum balances, incorporation papers, ID and other documents. Don't expect banks will lend you funds until you have established a relationship.

  • Video ~ Banking Identification numbers You Need: Accounting for Small Business
  • Video explains that you will need a federal tax ID and tax ID number when you operate a business. You will need a resale number if you're selling products.

  • Reading ~ How to Open a Small Business Bank Account Online
  • The documents that will be required to open a Small Business bank account online, depends on the structure of your business, e.g. Whether your business is a Sole Proprietorship, General Partnership, Limited Partnership, etc. It is important to realize there are several factors that can prohibit one from opening a business bank account on the internet. For example, if a company provides money services, including check cashing, issuing money orders, issuing store value cards, exchanging currency, or wiring funds in exchange for a fee, banks will not allow you to open an account online. You will need to go to the branch personally to open an account.

    Finance: Capitalization Table
  • Video ~ Capitalization Table
  • Video ~ Understanding Stock Options and Earning Equity in a Company
  • Reading ~ Book: Zero-to-IPO ~ Startup Capitalization Table
  • Employee Stock Options (ESO)
  • Employee Stock Options: Definitions and Key Concepts
  • Reading ~ Book: Zero-to-IPO ~ Stock-Option Plan
  • Finance: Finance & Accounting for Startup Ventures
  • Video ~ Common Startup Finance Issues
  • Video ~ Financial Advice for Startups
  • This voice narrated slideshow looks at the variety of service providers that can provide financial advice to startup companies.

  • Video ~ Financial Services Popular with Startups
  • Video ~ Tax Concerns for Startups
  • Video ~ The Startup Capitalization Table
  • How do you structure founder's shares, investor shares, stock option? This voice narrated slideshow provides an introduction to the various forms of shares issued by startup companies including common stock, preference share and options.

  • Slideshow Handout ~ Startup Capitalization Table
  • PDF slides for the learning material titled: "Video ~ The Startup Capitalization Table".

  • Reading ~ Book: Zero-to-IPO ~ Startup Capitalization Table
  • Reading ~ Book: Zero-to-IPO ~ Stock-Option Plan
  • Certificate Course
    This certificate tracks your progress and tests you in each section. Once you have passed all the quizzes, submitted an assignment and reviewed all the materials, you will be awarded a certificate of completion.