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The difference between Goals and Objectives A goal is a general statement, a broad outline, it’s open ended and helps set the scene. For example, ‘I want to earn more money this year’ Well, earning a £1 more than last year achieves that goal so it’s not going to...
Turning Objectives into Actions An ounce of action is worth a ton of theory. Ralph Waldo Emerson We have set our goals and turned them into objectives. Now we need to work out what actions we need to take, and who is going to take them in order to achieve our...
A guide to overcoming your businesses cashflow problems and tackling late payment. More than any other factor, a business is defined by the balance between the money coming in and the money going out over any period of time. Ideally, the scales should be tipped in...
Debits and credits can sometimes seem confusing but you will need a basic understanding of how debit and credit transactions affect your accounts to be able to understand your business reports and spot any anomalies. The concept of double entry accounting dates back...
A question we are often asked - is profit or cash more important. Both are important of course, but for a business to survive it needs cash first and profit second. A balanced approach and clear objectives should focus the company on delivering: 1. Effective and...
The business is growing slowly but surely, you have a great sustainable and profitable customer base providing you with a comfortable income, good relationships with suppliers and a happy team working for you. You realise you are ready for the next step but realise...
The purpose of this article is to give you an introduction to the basic accounting concepts. Essentially what you sell, less what you buy equals your profit. Single entry or 'cash' accounting The smallest and most simple business may be accounting on a 'cash basis'...
What are prepayments? As we learned in the article Understanding Accruals - it has been a long-accepted accounting principle that revenue and costs should be recognised as they are earned or accrued, rather than when their cash value is received or paid. If payments...
The construction industry scheme works a little like a payroll scheme but for the constructions industry. Contractors employ subcontractors for jobs, on which they must deduct tax but not national insurance and pay it monthly to HMRC. Deductions count as advance...
Accounting for CIS So we understand the principles of CIS, but how do we account for the transactions in our accounting software? See An introduction to CIS if you need to recap. Account Codes We recommend that you set up the following general ledger account codes in...