Read e-book online Book-keeping and Accounts for Entrepreneurs PDF

By Martin Quinn

ISBN-10: 0273723952

ISBN-13: 9780273723950

Book-keeping and debts is a perfect booklet for first-time or quite novel marketers. It follows the cycle of occasions of a standard new company enterprise from an accounting view.   After a grounding in a few basic accounting ideas and phrases, the reader is guided at the accounting components of a marketing strategy and resources of finance for a company enterprise. simple book-keeping is then defined and this leads into the training of key monetary statements - the source of revenue assertion, stability sheet and funds stream assertion. ultimately, advice on easy methods to examine debts and cost a company is given, either one of that are fairly proper to the entrepreneur who's able to stream directly to the following enterprise or extend an current one.   Examples in undeniable English during the e-book clarify key book-keeping and accounting themes. also, QuickBooks accounting software program is utilized in numerous chapters to reinforce those examples and disclose the advantages of accounting software program to a hectic entrepreneur.  

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Additional resources for Book-keeping and Accounts for Entrepreneurs

Example text

Capital expenditure is expenditure on the purchase or modification of capital items, that is, non-current assets such as buildings, machinery or motor vehicles. Obviously, you need funds to purchase such items. We will see in Chapter 6 that capital expenditure usually is spread across several years in accounting, using an accounting technique known as depreciation. Revenue expenditure (yes, I know, the term seems a bit of a contradiction) is expenditure which is incurred in the normal day-to-day running of a business.

This is because such costs are not directly part of the product or service. For example, if I go into a bank to withdraw some cash, I go to a teller. This transaction has one direct cost, which is the cost of the teller’s salary for the time taken to give me my cash. There are many indirect costs associated with this: the cost of light and heat in the bank, the bank manager’s salary, cost of delivering cash to the bank, and so on. You might have guessed from this example that allocating indirect costs to a product or service is not simple.

Chapters 8 and 9 will provide much more detail on the importance of cash. 7 as a starting point. QXD:Layout 1 1/10/09 14:39 Page 30 ➔ All sales are on credit. Customers pay the month following sale. ➔ Material suppliers are paid one month in arrears. ➔ Labour costs and all fixed costs are paid in the month incurred. ➔ Some office equipment will be bought in February for £5,000 and a delivery van in March for £15,000. ➔ You invest £20,000 of your own money in the business in January. The key points about the cash budget relate to when cash is actually paid.

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Book-keeping and Accounts for Entrepreneurs by Martin Quinn


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