Picture this: your profit and loss statement shows £40,000 profit, but your bank account is nearly empty. How is this possible? The answer lies in understanding cash vs accrual accounting methods. As a chartered certified accountant with over 10 years of experience helping UK small businesses, I’ll explain how these two accounting approaches can paint completely different pictures of your business performance – and why choosing the right method could transform how you understand your profits and make crucial business decisions.
Category: Bookkeeping
5 Bookkeeping Mistakes That Are Killing Startup Funding Deals (And How to Fix Them)
Don’t let poor financial records kill your startup dreams – here are the 5 critical errors that make investors run and exactly how to fix them before your next pitch.
Understanding Management Accounts: A Key to Business Growth
Running a small business can feel like juggling a dozen balls at once. You’re overseeing operations, managing employees, engaging with customers, and of course, keeping an eye on the financial health of your company. But are you really getting…
Why Choose a Chartered Certified Accountant for Your Business?
Why Choose a Chartered Certified Accountant for Your Business? Chartered certified accountants are regulated by a professional body and bound by a Code of Ethics. This means you can have total confidence in their professionalism.
10 Essential Bookkeeping Tips for Small Businesses-Streamlining Your Financial Management
Effective bookkeeping is crucial for the success of any small business. It helps you understand your financial position, make informed decisions, and ensure compliance with tax laws. Here are 10 essential bookkeeping tips to streamline your financial processes and…
Choosing the Right Bookkeeping Software for Your Business
Discover the best bookkeeping software options for small businesses in our comprehensive comparison guide. Learn about the pros and cons of Xero, QuickBooks, Sage, and FreeAgent to make an informed decision for your business needs.
Streamline Your Business with E-Invoicing in Xero
Invoicing admin can be a significant headache for small business owners. From chasing clients for financial documents to manually entering details into software, the traditional invoicing process can consume valuable time and resources. However, there’s a solution that promises to revolutionise your accounts payable and receivable experience: e-invoicing.
Understanding Direct Costs, Overheads, and Fixed Assets in Business
Running a successful business goes beyond generating revenue; it requires a deep understanding of your costs. This article dives into the essentials of business finances, breaking down direct costs, overheads, and fixed assets. Learn practical strategies to manage expenses, optimise assets, and make informed financial decisions that drive long-term success.
Self-employed/Sole Traders: Personal Bank Account vs Business Bank Account
It’s not a legal requirement for sole traders to have business bank accounts. It’s fine if you use your own personal bank accounts. However, there are a number of benefits of setting up a business account if you are self-employed or a sole trader.