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 . 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 […]

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 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 […]


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 […]

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 […]