Cash Accounting Scheme for VAT

Usually when you account for VAT you would use the date you receive invoices for expenses or send out invoices to customers for when to account for the VAT on income and expenses. Unfortunately this can cause some problems for cash flow, especially if you have customers who do not pay right away and you […]

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Reading Financial Statements: Balance Sh...

In an earlier blog we looked at the different sections of the profit and loss account and what to look for as points of concern and indicators that a business is doing well. In this blog we will look at the accompanying financial statement known as the balance sheet or statement of financial position. Unlike […]

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Reading Financial Statements: Profit and...

Reading Profit and Loss Accounts

Profit and loss accounts or income statements are useful documents that allow you to see how well a business is doing. This is handy when you are deciding whether or not to purchase or invest in a business and also useful because¬†you can see how your business is faring. Unfortunately most people are not sure […]

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Keeping Records: General Advice and Tips

Keeping Records

If you run your own business, an important thing you need to do is keep records. The reason to keep records is so that you have evidence of your business activities. This is mainly for money coming into your business through sales and money that your business has paid out through expenses. What happens if […]

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Drawing Money from your Company: Wages

Drawing Company Wages

It’s one thing to have a successful business that is making money, but how would you go about taking your profit so that you can use the money for personal expenses or investments? With a sole trader business it’s easy, as you are the one earning the money it is yours to spend how you […]

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Capital Allowances

Normally with business expenses you would claim the amounts you have paid in the tax year you made the payments in. Some items, such as vehicles and other business assets are not treated in this way and are instead claimed as capital allowances. Capital allowances are a way of taking the cost of items that […]

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