Most balance sheets are prepared in a format where a bundle of assets and liabilities are “financed by” the ownership interest. This is the format prescribed by the Companies Act 2006, which is in turn based upon the Fourth Directive of the European Union. Businesses which are not companies are free to prepare their accounts in any format which they find useful, and might like to consider the other principal format. This has the profit shown in the profit and loss account as the bottom line being replicated as the top line on the balance sheet. The profit feeds into the ownership interest, which “represented by” a bundle of assets and liabilities. We can show profits, then drawings, then a subtotal, and then other movements in business capital. The “represented by” section then appears as a confirmation of the calculation.
Archives for June 2015
After Each Job
that we do, we will hold a little inquest to see how the job could have been done a bit faster using technological improvements. We will then make those improvements straight away. It helps here to have an accountant who is also a computer programmer, so he only has to hold a meeting with himself in order to get anything done.
Features and Benefits
If a business searches on Google for some combination of accountant(s) and Carlisle, we naturally want to make a good showing. We have organised our Google snippet and the top panel on Google+ using a features and benefits system of presentation. The features we want to mention in the short time and space that we get are the use of radical new technology and the existence of an online quotation system. The benefits are cheaper accounts and VAT returns, and a quick no-fuss quotation to confirm this. We also need to mention our location in Stanwix, and we want to try to plug everything seven times, which is the classic marketing formula.
Open for Business
Daniel Defoe was the author of The Complete English Tradesman. There are chapters in the book on the subject of reputation and credit. Let’s just suggest what sort of advice he might give today to Greece. I think he would say that the priority is simply to stay open for business. Greece has a lot of income from tourists, so all tourists, but particularly German tourists, must be made to feel welcome. They must at all times be able to withdraw cash from any ATM. They must not be plagued by civil commotion, beggars or anything else. We all know Greece has problems, but they must not be inflicted on a principal source of revenue.
Alternatives to University
Many people go straight from school to university at around the age of 18, which is what I did. The question of whether or not a university education offers value for money is in the news. Here we will just point out the alternative that accountants can follow.
Value Added Tax deadline on 7 July 2015
Value Added Tax returns for the quarter ended 31 May 2015 are due to be submitted by 7 July, and any payment which is due should be made electronically by the same date.
P11D and Form 42 Deadline on 6 July 2015
If an employee or a director has received any benefits in kind for the PAYE year ended 5 April 2015, then a form P11D is due to be submitted by 6 July 2015. Examples of benefits in kind are free health insurance, free housing or accommodation, any loan to the employee or director and the provision of a company car.
New Quotation System
We now have a new instant quotation system where you type in a description of your business on the screen, and it gives you a quotation for your annual accounts and any VAT returns at once. There are separate pages to fill in if you are registered for VAT. I have had to learn a bit of Javascript programming in order to develop this system.
Should Accountants have Posh Accents?
This is a topical item. It is claimed that having gone to public school, and speaking with a posh accent, is the key to success in life. Well I did go to public school, but my accent hardly betrays the fact. Should I be taking elocution lessons?
Companies with September 30 Year Ends
Small private companies with a year end of September 30th 2014 and in their second or later year of existence should file their accounts at Companies House by June 30th 2015 in order to avoid incurring a Late Filing Penalty.