Author Archive
The Revenue Budget Is An Essential Management Information Tool
The first stage is to ensure the organisational chart clearly represents the management responsibility of each department and activity area. Financial accountancy and cost accounting should be integrated and aligned to enable detailed management information reporting and accurate financial records for each activity.
The cost and management information reporting system should be focused upon critical items […]
Balance Sheet Comprises A Statement Of Assets And Liabilities
Fixed assets are the long term items the business owns which the business has acquired and uses to generate business over a number of years. Fixed assets consist of tangible items such as land and buildings, plant and machinery, fixtures and fittings, vehicles and computers.
The numerical value of the fixed assets shown in the […]
Benefits of Outsourcing Payroll Against Payroll Software
The essentials element of payroll administration in the UK is to accurately calculate the income tax and national insurance contributions deducted from the employee each pay period, produce payslips for each employee and account to the tax office for the payroll deductions.
Running a payroll system is natural for medium and large companies who may employ […]
Accounting And Audit Exemptions For Small Companies In The UK
To qualify for being able to file shortened accounts a small company should satisfy at least two of three conditions. The three exemption conditions prior to April 2008 were that annual turnover is less than 5.6 million pounds, balance sheet total is less than 2.8 million pounds and the average number of employees is less […]
Beat the Credit Squeeze With Flexible Business Finance
The credit squeeze is a fact of business life and is not just about money but confidence in the market too. There are always winners and losers in every business situation and confidence and business finance can beat the credit crunch.
1. Ensure the bookkeeping and financial accounts of the business are up to date.
Keeping the […]
Sales Accounting For Profit With Accounting Software
It is a natural phenomenon for small business to be deeply involved in the particular skills and operations of the business. A fundamental issue that many small businesses overlook is that the particular industry in which they work and their personal skills are just tools of the trade not the trade of business itself. That […]
Accounting For Profit With Marginal Costing
Business costs and expenses as expressed as a unit cost of a product can vary significantly as purchase or production volumes change. The first stage in using marginal costing to generate higher levels of profit is to identify the variability of all the individual cost elements.
Costs which are a component part of the product would […]
Cash Accounting Or Accrual Accounting
Bookkeeping based upon cash accounting principles is the easiest accountancy practise but not necessarily the most accurate or beneficial for tax purposes for the business. This is because cash accounting adopts the date of financial documents such as sales invoices and purchase invoices as the automotive date for those primary financial records to be entered […]