accountant toowong

so expenses could be greater than the income or you may have a surplus and that’s the ideal now to demonstrate this further if I bring up a basic budget so here we go so this is just a basic annual budgets we have job one let’s do 15 thousand pounds could be dollars job two that says five thousand and you may have other income too perhaps you have interest on savings it could be some sort of welfare or state benefit you receive perhaps a pension all of this can be listed here and we would list the figures this is our our budget this is money in so total income total money in is just over twenty thousand pound and then we have our expenses our money going elsewhere things like rent for a year electric gas council tanks

these figures aren’t really realistic it’s purely for an example so the bottom here we have total expenses or total money out I got credit card interest and you’ll see that there’s money left over so at the end of the year that’s three and a half thousand pound just over left there’s a surplus of income which is ideal if it was not like that let’s make this figure a lot bigger you’ll see we have a minus figure so there’s actually a budget deficit now this is keeping things really really simple if what I was going to be a bit more complex and come and teach this from an accounting perspective then some of these things might not be classed as expenses there could be money going out that’s a mortgage payment or perhaps some sort of loan repayment that’s not really an expense it’s money you’re paying back but just to keep this simple we have money coming in and money going out and is I ever a deficit or a surplus at the end so let’s carry on with this in case a budget deficit budget surplus moving on to the next slide so cash flow

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