All businesses have to prepare a profit and loss (P&L) account as part of their annual accounts. However this calculation is also a valuable part of your monthly management accounts. A P&L account shows exactly what has happened in a business, in terms of income and expenditure, during a specified period.
This factsheet explains the profit and loss account, and details the key terms you need to understand. It also provides hints and tips, and guides you to sources of further information.
Understanding Balance Sheets £5.99
A Balance Sheet is a snapshot of the financial aspects of your business at any given moment in time. Understanding that picture is a key skill in managing your business successfully.
Calculating Breakeven £5.99
This is a very important calculation for any business because it is a way of working out the level of business or sales required to enable it to meet all the costs of doing business.
For a budding entrepreneur or an employee looking to leave their job to start their first business it can be the green light that encourages them or the red light that tells them to think again.
Pricing your Product or Service £5.99
Setting too high a price for your product or service can lead to lost sales. Undercharging can eat into your profits and possibly result in you being unable to deliver on your contracts. The prices you charge should reflect your costs on the one hand, and the strength of the market on the other.
This factsheet provides guidance about the things you should take into account when setting your prices, and the other calculations you should make to benefit the sales and profitability of your business.
Raising the Right Type of Finance
Raising the Right Type of Finance £5.99
The relationship (or otherwise) that you have with your Bank Manager and how you run your account will both have an impact on your ability to borrow for your business. Thinking through the what will I need and when, how money will be used and how repaid are all important. So too is understanding whether your proposition is one which other might agree to lend on.
This fact sheet walks you through the process and discusses the various methods of financing used for different purposes and the sources for those types of funding.
Clich here to see a sample page.