Management accounts – the balance sheet current assets

The current assets are the category most people would be familiar with. They are items which are expected to be converted into cash and consist of: Stock o Stock consists of the items purchased by the business to sell and is valued at the lower of cost or net realisable value o There should be […]

Management accounts – the balance sheet fixed assets

Fixed assets are broken down into tangible, intangible and investments. They are items which are needed to run the business and cannot be easily converted into cash and they consist of: Tangible assets o These are assets purchased to run the business such as computers, plant and machinery, furniture fixtures and fittings, freehold land and […]

Management accounts – the balance sheet basic format

As mentioned in the first blog on management accounts the management accounts consist of a profit and loss account, a balance sheet and a cash flow. The profit and loss account has been discussed in detail in previous blog posts and now we turn to the balance sheet. The top half of the balance sheet […]

Management accounts – the profit and loss account detailed format 2

This blog gives more details relating to the items shown in the previous blog post Management accounts – the profit and loss account basic format Expenses can be categorised into as many different categories and costs as required. In addition these can be further split by department if the reporting is required at that level. […]

Employment allowance for 2014/15

From the 6th April 2014 every business and charity (including community amateur sports clubs) will be entitled to an allowance of £2,000 to reduce their Employer Class 1 National Insurance Contributions (NIC) on both employees’ and directors’ earnings in 2014/15. To claim the allowance the Employment Payment Summary (EPS) on your payroll will have a […]

Management accounts – the profit and loss account detailed format 1

This blog gives more details relating to the items shown in the previous blog post Management accounts – the profit and loss account basic format Sales: • Sales of services and the sale of goods excluding VAT (where VAT registered) • Also include customer carriage costs and discounts given in respect of the sale of […]

Management accounts – the profit and loss account basic format

The format of the management accounts is tailored to suit your business. There are no rigid formats to follow unlike the statutory accounts. Preparation is eased if the general ledger is set up along the lines of the format of the management accounts. In addition if there are separate departments within the business, costs are […]

Cash flow forecasting and why it is important

These two articles show why cash flow forecasting is important in running a business. The first is “The Benefits of Cash Flow Forecasting” and shows why cash flow forecasting is a really useful tool for your business: http://www.connector.barclays.co.uk/article/The-benefits-of-cashflow-forecasting/143?cid=eml-rr-pro-060220141222219. The second is “The Ten Cash Commandments” and this shows why businesses fail if they do not […]