Looking after your money.
Accounting
-Keep track of who owes you money
- See how much you're spending on materials & services.
Invoices & statements.
Invoice is essentially a bill.
Statement is a reminder
essentials of an invoice:
-Business address (your business)
-Customers address
-The date of the invoice
-Item by item detail of the service provided
-Total amount due.
essentials of a statement:
-Your business address
-Customers address
-List of recent invoices
-Details of invoice (paid/unpaid)
-Total amount due.
Terms & conditions
-Designed to protect your rights and interests
-Costs
-Delivery arrangements
-Payment terms
>estimate given is based upon pre-arranged conditions for the work
>They can be in breach of these conditions
Terms | shorthand you might use in communicating. So you know who you are referring to.
(terminology)
If things aren't written then they will argue any loop hole.
30 days credit > have 30 days to pay > pay after this you can charge interest.
- Credit limits
- A commitment to quality
- Data protection
The statement
- send out on or the day before due date
- send out every month thereafter
- how much is owed
- how long it has been outstanding
- a call to action.
Accounting Software
Quick books - £75
Online quick book essentials - £19 / month
Bank Tree - £26
Sage - £240 < pretty good!
> know who is spending the most money with you - best customers.
Profit > loss standard
Accountant
Chartered - NO
Certified - yes
} ask for a quote before you agree to any work with an accountant.
What do businesses spend money on
1. Start up costs
2. Overheads - things regardless of work > rent etc.
3. Direct Costs
Start up
-New equipment
-Register company
-Decorate premises
-Website design
-Design logo
-Launch party?
> alot of businesses get a loan...Risky...
>Pay back each month over 2-3 years
| Where from? |
Banks
-Barclays - Natwest - HSBC - LLoyds TSB
Crowd Funding
-find them online
-reasonable funding for no return
Funding organisations & investors
-The Arts Council, Yorkshire forward, Venture Capitalists, Shareholders > % of a business
Prizes & Awards
What do investors want to know?
-Marketing plan
-How much money you need
-How much money you've got
-How will you spend the money
-How will you pay it back
-How much you'll earn & when
Indirect costs
Also know as:
Overheads
Fixed costs
Cost of doing business
-Utilities
-Office supplies
-etc
Direct costs
-Cost directly attributed to the manufacturing of a product.
-Or what the customer takes away
Bottle of water
water | bottle&cap | Label | Tray & cling film
Tangible assets
-vehicles - equipment
Intangible assets
-trade secrets - trademarks - reputation - copyright - good will
Cost & price?
What you spend - what you can charge
Capital
-Money - property - other valuables which collectively represent wealth of an individual or business
Capital assets
Receipts
-Money coming into the business e.g. from safe
Payments
-Money going out of the business - for rent - materials.
Cash flow // net cash flow
-cash receipts minus cash payments.
Balance
-the amount of money in an account at any given moment
Profit
-The positive gain from investment or from a business operation after subtracting all expenses.
Loss
-Position in which a companies expenses are more than their income.
Taxes
Income tax
Corporation tax
Business rates
- open a separate bank account
- Find a certified accountant
- Find a local solicitor
- Register your business with inland revenue
Google.
Business link
Start ups
HM Revenue & customs
Creative choices
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