ENTREPRENEURIAL

ACCOUNTING – Part 1
Marinor Gallardo, CPA, MBA, Ph.D.
Lecturer
 OUTLINE
I. DEFINITION OF ENTREPRENEUR AND
ENTREPRENEURSHIP
II. COMPARISON BETWEEN AN
ENTREPRENEUR AND EMPLOYEE
III. COMPARISON BETWEEN LINEAR &
RESIDUAL INCOME
IV. LONG-TERM PLANNING
V. CASHFLOW QUADRANT
VI. ACTIVE INCOME VS. PASSIVE INCOME
 OUTLINE
VIII. CORE VALUES & PRIORITIES IN LIFE
VII. PURPOSE -DRIVEN MISSION
INDIVIDUAL'S PASSION THAT CAN
TURN INTO BUSINESS POTENTIALS
IX. ASPECTS OF LIFE
X. SEASONS IN LIFE
XI. SETTING – UP GOALS
 OUTLINE
XII. STRATEGIES OF EARNING MONEY
XIII. COMPARATIVE ANALYSIS OF BEING
AN EMPLOYEE AND ENTREPRENEUR
X. TYPES AND FORMS OF BUSINESS
XI. SETTING UP A SOLE PROPRIETORSHIP
BUSINESS
XII. ACCOUNTING FOR SOLE PROPRIETORSHIP
XIV. TAXATION FOR SOLE PROPRIETORSHIP
XV. CLOSING OF BUSINESS
 DEFINITION OF
ENTREPRENEUR

> a person who establishes a business

whether merchandising, manufacturing or
service for profit.
Poverty in the Philippines
 DEFINITION OF
ENTREPRENEURSHIP
>en·tre·pre·neur·ship /ˌäntrəprəˈnərˌSHip/
> noun
> the activity of setting up a business or
businesses, taking on financial risks in
the hope of profit.
 COMPARISON
Most people : Some people:
• Can’t afford to buy a car • Can afford to visit
• Can’t afford to buy a and tour foreign
decent house countries
• Will only see other • Sleep well at night
countries in a magazine because they are
• Don't sleep very well financially stable
every single night because
they have money
problems
• Philippine Minimum
Wage: PHP15,000.00 a
month
 COMPARISON OF AN
ENTREPRENEUR & EMPLOYEE

> EMPLOYEE:
1) SALARY/ COMPENSATION
2) FIXED/VARIABLE AMOUNT IF PER
HOUR OR PER QUANTITY BASIS
3) LINEAR INCOME
4) SCHEDULE OF OFFICE WORK
 COMPARISON OF AN
ENTREPRENEUR & EMPLOYEE

> ENTREPRENEUR:
1) RESIDUAL INCOME
2) VARIABLE INCOME
3) FREEDOM OF TIME
Poverty in the Philippines

>
 NETWORK MARKETING /
REFERRAL MARKETING
> Profit goes exponentially when satisfied
customers referred their friends, family
and those referred friends & family in turn
refers their family and friends;
> we are using time leveraging;
> Based on Jim Rohn's mentor, it is not
enough that we work harder but preferably
work smarter.
 NETWORK MARKETING /
REFERRAL MARKETING
> Advocates of network marketing:
1. Robert Kiyosaki of Rich Dad, Poor Dad;
2. Bob Proctor – How to Turn your Monthly
Income to Annual Income;
3. Anthony Robbins;
4. Donald Trump
1. Long-term Preparation
Planning
➢LIST 5
IMPORTANT
PERSONS IN YOUR
LIFE
➢OUT OF THE 5
PERSONS TRIM IT
TO 3
➢THEN OUT OF THE
3 TRIM IT TO 1
 ICE BREAKER 1

KNOW YOUR PRIORITIES

1. Arrange the following according to
your priority:
God, Career with linear income,
family, financial freedom – work that
gives residual income, friends, health,
others (identify).
2. Choose your top 4 priorities in life.
 ANALYSIS

1.GOD
2. HEALTH
3. FAMILY
4.FINANCIAL
FREEDOM – residual
income
 PURPOSE / MISSION
IN LIFE
God, Career with linear
income, family,
financial freedom –
work that gives
residual income,
friends, health, others
(identify).
 PURPOSE / MISSION
IN LIFE
➢Goodbye to
“comfort zone” and
hello to “courage
zone”
➢“COURAGE ZONE”
- where dreamers
achieve their dreams
and live a life of
purpose.
 WHAT IS YOUR
PASSION?

➢ What are your skills

that
can turn into your
potentials?

➢e.g. writing,
singing, painting,
dancing, public
speaking, etc.
 STRATEGIC
PLANNING
➢Based on Napoleon Hill's
The Master Key to
Success, the following are
the master mind principle:
1. Decide what you want
to do during the next 3
years & write it down;
2. Decide how much
money you want and how
you will earn it and write
it down.
 ICE BREAKER 2:

➢LIST 5
IMPORTANT
PERSONS IN YOUR
LIFE
➢OUT OF THE 5
PERSONS TRIM IT
TO 3
➢THEN OUT OF THE
3 TRIM IT TO 1
 ASK YOURSELF
THESE 5 QUESTIONS
1. When are you going
to retire? date?
Age?
2. How much money
do I need to retire?
3. How precisely?
4. Proven system? –
emotionally &
financially
5. Immediate Action