Language
-advantage
-business
Invoices and Statements
Invoice:
-the bill
-bontains customer name/address
-itmeized goods
-total payment
-seperate total with VAT
-date of invoice
-invoice number
-your business address
Statement:
-a reminder
-your business address
-your customer address
-prompt your customer to pay you timely - 2 weeks after invoice
Terms and Conditions
-designed to protect your rights and interests
-costs
-delivery arrangements
-payment terms
-credit limits
-your right to charge interest on overdue amount and claim compensation for recovery costs
The Statement
-send out on or day before the due date
-send out every month there after
-how much is owed
-court
Accounting
-keeping track of who owes you money
-see how much you are spending on materials and services
-see money coming in and going out
-make sure you don't spend more than you earn
Accounting Software
-small business - recommended for use
-Quick Books
-Bank Tree
-Sage
-Turbo Cash
Money in - business - money out
-diagram
Accountant
Chartered - No
Certified - Yes
-find out how much they are going to charge you
Start-up costs
-spend cash on new equipment
-design web site
-register company name
-design logo
-decorate premises
-launch party
(governmnet got banks to put 8billion into new business start up's)
-many companies get a loan to cover costs
-usually have to pay back quickly after 2-3month
Where does the money come from?
-banks - Barclays, Natwest, HSBC, Lloyds
-funding organisations and investors
-the arts council, yorkshire forward, venture capitalists (dragons den- want a cut of profits), shareholders (sell shares for so much each)
Prizes and Awards
-shell live wire
-make your mark
-go for ones with big prize money
-looks great on your CV even if you don't win - shortlisted - finalist
What banks want to know?
-marketing plan
-how much money do you need?
-how much money have you got
-how will you spend the money
-how will you pay the money back
-if you don't put in as much as you are asking from them they see them as the risk
Indirect Costs
-utilities - gas, water, electricity
-office supplies
-equipment leases
-part time help
-insurance
-rent
-known as: overheads, fixed costs, cost of doing business
Direct Costs
-a cost directly attributable to the manufacturing of a product
-or what the customer takes away with them
(e.g. a bottle of water - bottle and cap and labels would cost about 3p to make but is charged 80p-£1.50 to buy. This is because it covers the indirect costs and everything gone towards making it + profit)
Tangible Assets
-company name - brand
-Intellectual Property -IP - designs
-trade secrets
-copyrights
-trade marks
-goodwill
-competitive advantage
Difference between cost and price
Cost:
-the total time, money and resources associated with a purchase or activity
Price:
-the total price that is charged to customers
DON'T GET THEM MIXED UP
Capital Assets
-the money, property and other valuables which collectively represent and individual or business
-reciepts
-money coming to to business, e.g. from sales
Payments
-money going out, e.g. rent adn materials
-cash flow or net cash flow
-cash reciepts
-minus cash payments
Taxes
-income Tax - tax on personal income
-corporation tax - tax on profits of limited company
-Vat - value added tax is a tax on scales
-council tax - based on the value of a property
Business rates
-tax based on the value of a property
What to do when you start a business
-open seperate bank accounts for your business
-find a certified accountant
-find a local solicitor
-register your business with the Inland Revenue
(Listen to Podcasts from lecture)
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