Letters of credit

Letters of credit is one of those terms many people have heard of but do not necessarily what it means. If you export goods then letters of credit can be essential to your business. This article from Open to Export explains all about letters of credit http://bit.ly/1NyGlOG . A letter of credit is essentially a […]

Small business commissioner to be appointed

Under the new Enterprise Bill introduced by The Government in the Queen’s Speech, a new small business commissioner is to be appointed to tackle late payments in respect of goods and services. The role of the small business commissioner is to: – Be a first point of contact for small businesses, providing advice and support […]

The ultimate business plan

Following on from my last blog post about starting a new business, this blog now concentrates on one specific point which was raised in that blog – the business plan. The article “3 steps to the ultimate business plan” can be found by following the link http://bit.ly/1E3lAnm. Even though the business plan contains a financial […]

Starting a new business?

If you are thinking of or are in the process of starting a new business then this article http://bit.ly/1SBxsYS raises three important factors to think about. The article states that starting a new business can be one of the hardest things to get right and quite often there will be a certain amount of trial […]

Increase in demand for alternative financing

As most people are aware businesses are turning away from the traditional forms of financing such as the banks and are looking elsewhere when it comes to funding their businesses. This article http://bit.ly/1BVGQfl contains the results of research, which has been carried out on this subject. They found that nearly two-thirds of small business owners […]

Crowdfunding guide

Crowdfunding is now becoming a more popular way to raise finance for businesses. Many people will have heard of crowdfunding, but what is it and how do you go about raising finance through crowdfunding? ICAEW has published a comprehensive guide which they have called “Crowdfunding Explained – A guide for small and medium sized enterprises […]

How to use your cash flow to fuel your growth

In previous blog posts I have talked about the importance of cash flow management and why it is important to your business. The following acticle http://bit.ly/1D2gtnI discusses how the cash flow of your business can fuel the growth of your business. The article also points out the pitfalls of not staying on top of your […]

Forecasting

Once a business has monthly data it becomes easy to forecast and prepare budgets. The preparation of the annual budget has been detailed in previous blogs so here we will concentrate on forecasting. Why prepare a forecast? The reason for a preparing a forecast is to try and manage any nasty surprises which may hit […]

Management accounts – cash flow

The final schedule of the management accounts is the cash flow. The basic format is: Opening balance Add: Cash receipts o Received from customers o Other receipts Less: Cash payments these can be shown in the categories which are most important to the business o Payments made to suppliers o Net salaries o PAYE/NIC o […]

Management accounts – the balance sheet current liabilities

Again current liabilities are a category on the balance sheet which most people would be familiar with. They are items which are owed by the business to third parties such as suppliers of HMRC and they consist of: • Trade creditors or accounts payable (AP) are the invoices received from suppliers • PAYE/NIC paid monthly […]