Accounting in a Small Business

The course covers bookkeeping and accounting in a small business setting together with the essentials of sound financial management. 

Attendees will gain an awareness of the requirement to pay tax on their business income and may need to seek further guidance and expertise, as appropriate, on managing their tax affairs. 

Content includes: 

Getting started:

• Overview of different business structures and options
• The requirement to register and how to register a new business
• Business finance, owner’s capital and shares.

Accounting fundamentals:

• Accounting systems and record keeping
• Terminology, including assets, liabilities, income and expenses
• Cash basis of accounting and accrual accounting
• The accounting process from source document to final accounts
• Transactions recording using double-entry bookkeeping
• Accounting standards, concepts and conventions
• Adjusting asset values and matching revenue and cost
• Capital expenditure, depreciation and amortisation
• The Profit and Loss (P&L) and Balance Sheet reports.

Using financial information: 

• Reading financial statements and using ratios to interpret results
• Financial measures for a small business owner.

Reporting business income and paying tax:

• Overview of financial information required by Companies House
• Awareness of tax assessment process for business income and profit, and requirement to submit information to HMRC.

Financial management: 

• Cash flow planning and maintaining liquidity
• Managing inventory, trade debtors and trade creditors
• Understanding cost type, cost behaviour and contribution margin
• Break-even point of sales and profit forecasting
• Capital expenditure planning and investment appraisal.

Employing people and considering risk: 

• Financial considerations when employing staff
• Business insurance
• Common pitfalls to avoid.