Accounting
Invoices and statements
Bills and reminders
Invoice Date, Invoice number total Terms -when it is due.
Business address
Customers address
Items by tem details of service provided
Total amount due
Statement
Busness addres
Customers address
A list of recent invoices you have sent out
Deatils of invoices paid and unpaid
Total amount outstanding
On the reverse -Terms and conditions
Designed to protect your rights and interests
Costs
Delivery arrangements
Payment terms
Credit limits
Your right to charge interest on overdue anoubts and ccliam compensation for recovery of costs
A commitment to quality
Data protection
The statement
Send out before the invoice id due or before the due date
Send out every month there after
How much is owed
How long it had been outstanding
A call to action
Accounting software -
Quick books - simple start
Quick book £75
Online quick books essentials £19 per mth
Bank tree !26
Sage £240
Accountant - Chartered (to expensive) or Certified
What business spend money on
1.start up costs
2. Overheads
3. direct costs
Start up costs
Sepnd cash on equipemt
Design website
Register company name
Design logos - make signs
Decorate premises
Launch party
Funding
Many companoes get a loan to cover these initial expenses
Short term payback each mth over 2-3 years
From
Banks (not likely at the moment)
Crowd funding - Find them online eg opening your project online, not usually have to give shares
Investors and councils
The Arts Council, Creative England (was Yorkshire Forward), Venture Capitalists, Shareholders. Venture capitalists - get a % stake or return in your business.
Prizes and awards
Shell live Wire, Make you mark, BIPP< D&DA
What investors want to know:
What your marketing plan is (50% of your business plan)
How much money your need?
How much money you can invest?
How ill you spend the money?
How will you pay it back
ie how much you forecast to earn
Indirect costs
Untilities
Office supplies
Equipment leases
Part time help
Insurance
Bank chags
These are also know as
Overheads or fixed costs or the costs of doing business
Direct costs
A cost directly attributable to manufacturing of aproduct
Or what the customer takes away with them
Eg A bottle of water
Direct costs
Water 0.25p
Bottle with a cap
Label
Tray and cling wrap
The overheads or indirect costs all add up
Tangible assets
Assets having a physical existence and that maintain
Name an intangiable assets
Brand
Reputation
Intellectual property
Goodwill
Trade secrets
Copyrights
Trade marks
The things that give you a intangible asset
What is the difference between cost and price?
Cost - what your spend
Price - What you charge
Capital
The money, property and other valuables which colletively represent the wealth of an individual or business
Capital Assest
Receipts - money coming into the business eg from sales
Payments - Money going out of the business for rent and materials
Cash flow or net cash flow - cash minus cash payments
Balance
The amount of money in an account at any given moment
Profit
The positive gain from an investment or from a business operation after subtracting all the expenses
Loss
A position in which a company's expenses have exceeded it receipts. A reduction in the value of an investment
Tax
Income tax
Corporation tax
VAT
Council tax
Business rates - Check if you rent if you will pay ontop of the rent
What to do if starting a business
1. Open a seprate bank account for your business
2. Find a certified accountant
3. Find a local solicitor
4. Register your Business with the Inland Revenue
Four online sources
Business Link
Startups
HM Revenue & Customs
Creative Choices - David Parrish wrote this book Tshirts and suits. can download this book for free.
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