develop a sense of how the financial statements for a venture should be created and managed. Watch the Cengage video – B2B CFO -to discuss the pros and cons of using an outside source for financial preparation. Read The Entrepreneurial Process feature in Chapter 11 “Watching Your Accounts Receivables” and discuss the importance of managing accounts receivables for more effective cash flow.

Intro to Entrepreneurship

It is time to decide on how financial statements should be set up for a proposed venture. Even though they may be pro forma statements at this point, there needs to be a clear understanding of who will be creating and managing the documents.

The purpose is to develop a sense of how the financial statements for a venture should be created and managed. Is it better to outsource or develop the knowledge on your own? This question must be answered.

Everyone, watch the Cengage video – B2B CFO -to discuss the pros and cons of using an outside source for financial preparation. You will have to decide if it is better to outsource or develop the knowledge on your own. This is part of step 1.

You should read The Entrepreneurial Process feature in Chapter 11 “Watching Your Accounts Receivables” and discuss the importance of managing accounts receivables for more effective cash flow. This is part of step 1.

Activities to do: Create a document and attach it.

Step 1: Each of you provides input on the best way to handle the financial statements for the venture. Watch the 32B CFC – to discuss the pros and cons of using an outside source for financial preparation. This discussion should include the topic of the creation of a Pro-forma and the eventual management of the actual statements as well.

Step 2: Then, weigh the pros and cons of each suggested method and compare it back to the text material in Chapter 11 as to why certain financial decisions are critical for the entrepreneur.

Step 3: Based on that analysis and discussion, come to an opinion on the creation and management of the financial statements.

Step 4: Finally, you need to go back to Appendix 6-A and complete the financial analysis section in detail. This section should be turned in as part of the assignment. Use this canvas module to submit the Appendix 6-A section noted. Just focus on 6a-1f Financial Analysis. This is located at the end of ch 6 (see below) and just recreate the items no need to use the actual form. Include budgets with numbers samples

6a-1fFinancial Analysis Explanation: Summarize the critical assumptions upon which the financial information is based; in other words, show how the numbers have been derived. A pro forma income statement and a statement of cash flows are the two most critical financial documents to add here—even though they may include preliminary outside sources needed to get some idea of the generation of revenue and the cash position of the venture during the first three  years. If possible, provide a break-even analysis to demonstrate where the venture moves from survival to growth.