Tag: financial management
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Shares and shareholders
Selling shares in your company is one way of raising long-term finance for your business. This is also known as equity finance. The advantage of equity finance is that you don’t always have to repay the finance or pay interest, as you would with an overdraft or bank loan. Shares in a company represent ownership.…
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Business budgeting
It’s essential to plan and tightly manage your business’ financial performance. Creating a budgeting process is the most effective way to keep your business – and its finances – on track. This guide outlines the importance of budgeting as part of your business planning, and explains how to go about this. It suggests action points…
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Get help and advice about your debt problems
Many businesses run into financial difficulties but, however big or small the problem, there is plenty of good advice to be found. Whether you are having trouble paying suppliers, or you have received a County Court claim, there are organisations that can help you. Government agencies, solicitors, accountants, some charitable organisations and debt counsellors are…
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Choose and work with an accountant
Accountants can offer your business a range of services, from basic bookkeeping to specialist business advice. You may employ an accountant to prepare financial statements for your end-of-year tax return or for other services, such as auditing. By law, your business accounts must be audited each year, although some small companies are exempt – eg…
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Avoid insolvency
A business is insolvent if it doesn’t have sufficient assets to cover its debts, or it is unable to pay its debts as and when they are due. If you monitor your business’ actual performance against your budget and the cashflow forecast regularly, this will give you an early warning of potential problems. You can then…
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Financial and management accounts: the basics
The accounting needs of your business will vary according to its size, type and sector. As the business owner, it’s your responsibility to make sure your business keeps accurate records and accounts. There are two types of accounting information – financial accounts and management accounts. Financial accounts describe the performance of your business and have…
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How do I survive until my business is off the ground?
It can be a number of months before a new business is profitable and generating a cash surplus. You may need alternative sources of income during this period, if only to cover your outgoings. If your business does make a profit, you may want to re-invest it to help your business develop. This guide gives…
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Change your accounting date
If you are self-employed, in a partnership, a limited liability partnership (LLP) or a director of a limited company, your business must keep adequate accounts or financial records. These records allow limited companies and LLPs to prepare annual accounts which report on the performance and activities of the company or LLP during the financial year. The…
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Set up a simple profit and loss account for your business
A profit and loss account is a summary of business transactions for a given period – normally 12 months. By deducting total expenditure from total income, it shows on the ‘bottom line‘ whether your business made a profit or loss at the end of that period. A profit and loss account is produced primarily for…