Preparing for an audit for the first time can be a daunting prospect for the best of us, having someone check your work making sure everything is in the correct place and it all balances can create stress even if you know it's all ok, just the thought can make...
ABC of Accounting – Deciding on a Business Structure – Part 2
In this weeks ABC of Accounting blog we look continue to look at the various types of legal business structures available in the UK and explain the most commonly selected types along with the reasons and benefits why a company makes the choice it does. Deciding on a Business Structure...
ABC of Accounting – Deciding on a Business Structure – Part 1
In this weeks ABC of Accounting blog we look at the various types of legal business structure available in the UK and explain the most commonly selected types along with the reasons and benefits why a company makes the choise it does. Deciding on a Business Structure The first step...
ABC of Accounting – Understanding Debits and Credits
Every business transaction consists of at least two entries, one debit and one credit, this process is termed as double entry bookkeeping as every entry must balance. An entry can involve more than one debit as it may relate to various charges but the credit must equal the debits and...
ABC of Accounting – Accounting for Corporation Tax
If your business is a limited company then you are liable for Corporation Tax on any profit your business makes. When you register your company you have a legal obligation to inform HMRC. Depending on your level of expertise in the tax and accounting arena you or your accountant will...
ABC of Accounting – Accounting Ratios – Part 2
Accounting Ratios – Part 2 We continue our blog on accounting ratios highlighting what you should consider when looking to invest in a company and what investors will study should they wish to invest into yours. The Quick Ratio/Acid test The Quick ratio sometimes referred to as the 'acid test'....
ABC of Accounting – Accounting Ratios – Part 1
Accounting Ratios - Part 1 Accounting ratios are a very useful tool to use when analysing the performance of your business. Knowing how to use and interpret these will enable you to get a better understanding of your business and in turn act as an aid to manage your business...
ABC of Accounting – Tax and Accounting Year end checklist
Although the tax year ends in March for many of us it's also our business end of year, and many of us will be looking to close off our last financial year. Getting everything in place and making sure that all is accounted for prior to producing your year end...
ABC of Accounting – Bank Reconciliation
The importance of bank reconciliation Bank reconciliation plays a pivotal part in the monthly accounts of any company, large or small. Ensuring your bank is reconciled with your accounting package every month is on the top of every bookkeeper and accountants checklist and should be on yours. Making sure your...
ABC of Accounting – The year end closing entries.
As many of us will be looking to close down the financial year 2019, in this blog post we will attempt to clarify what the closing entries for the year consist of, when making an the entries for the closure of the accounting year. The closing entries The closing entry/entries is...
ABC of Accounting – The Balance sheet
The Balance Sheet is the accounting report that reflects the economic and financial situation of a company at a given time. That is, it is a "still photo" of the situation of the company, which allows us to analyze the state of the company and make decisions accordingly. It is also possible that...
ABC of Accounting – no booking without a voucher
Today we write again about the basic principles - our ABC of accounting. One of the first things to learn about accounting at school is the following principle: Nothing gets booked without receipt. Document organization is the basis for proper bookkeeping. Vouchers can have different formats. Here are some examples: For the purchase of goods or services, we receive...