I recently read an article questioning if small businesses should be required to prepare accounts. The author argued that a small business owner knows how well their business was doing by the customers coming through the door and the cash balance in their bank. In...
Many businesses will often have a short-term focus and a business plan can help them set their longer term targets. A business plan is a written document and will normally set out aspirations and will include accounting and cash flow projections. Although factors are...
Many companies will experience short-term trading and cashflow issues during their lifetime. If these become significant and the company is unable to recover, then the Directors may need to consider placing the company into insolvency. In law, a company is insolvent...
When I discuss a set of financial statements with a business owner, an often uttered lament is “I have made this profit but where’s the cash gone?”. In days of your, it was a requirement that a set of financial statements would include a cash flow statement as an...
I thought I would revisit one of the tests I do when I review a client’s accounts. I try to look at the threats to a business. What could occur which might imperil the wellbeing of the business? One such danger might be the over-dependence of one customer. I would...
In business, your profits are your reward for your endeavours. In fact, profitability is the only reliable measurement of a business’ success. Profits are the very lifeblood of a business. They fuel growth, support the owners, provide for the well-being of the...
