1. B R I A N W S T E E L
developing higher performance
Starting in Business
Finance – Keeping track

2. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Finance –
Keeping track

3. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Why keep records?
Monitor success
Inform decision making
Provide information for bank and others
Attract investors
Budgeting
Prep tax returns
Tracking costs
Monitor and account for VAT
Control wages, NI and other staff costs
Distribute and account for profit.

4. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Accounting for profit
Must keep all business records for 6 years
Must keep all personal bank statements for 6 years
Must keep all contracts for fixed assets
You must seek professional advice on accounting from the start.
You must comply with all HMRC requirements on accounting.

5. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Key records – The book-keeping system
Petty Cash records
Bank Statements [business and personal]
Invoices received
Invoices sent out
Day book – sales and purchases

6. B R I A N W S T E E L
developing higher performance
Day Book – simple book-keeping LEFT hand page - EXPENDITURE
Date Description Cost VAT Total
1/9 Petrol 40.00 8.00 48.00
1/9 Road Tax 135.00 135.00
3/9 Business cards 5.00 1.00 6.00

7. B R I A N W S T E E L
developing higher performance
Day Book – simple book-keeping RIGHT hand page - INCOME
Date Description Cost VAT Total
2/9 Evans & Co 600.00 120.00 720.00
2/9 Baldwins 1500.00 300.00 1800.00

8. B R I A N W S T E E L
developing higher performance
Day Book – simple book-keeping LEFT hand page - EXPENDITURE
Date Description Course Advice Books Speakg VAT Total
20/6 Bath Uni 1500.00 300.00 1800.00
24/6 Business West 800.00 160.00 960.00
24/6 P.Wilson L’pool
Nine Steps
29.99 29.99
26/6 J.Jones
MD Elliot & Co
425.00 85.00 510.00
28/6 Bath Chamber 300.00 60.00 360.00

9. B R I A N W S T E E L
developing higher performance
Day Book – simple book-keeping RIGHT hand page - INCOME
Date Description Course Advice Books Speakg VAT Total
20/6 Bath Uni 1500.00 300.00 1800.00
24/6 Business West 800.00 160.00 960.00
24/6 P.Wilson L’pool
Nine Steps
29.99 29.99
26/6 J.Jones
MD Elliot & Co
425.00 85.00 510.00
28/6 Bath Chamber 300.00 60.00 360.00

10. B R I A N W S T E E L
developing higher performance
Computer accounts

11. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Finding an Accountant.
One that has been recommended
Members of an official accounting body
Have experience dealing with accounts of small businesses.
Willing to let you talk to existing clients
Prepare an initial statement before discussing services with an
accountant.

12. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Credit control
Vital for survival
State terms on invoices, quotes and estimates.
Include ‘errors and omissions’ statement
State preferred payment method
Record due dates of payments to follow up.
Follow 14 days protocol
Remind buyer if payment not made on time RED LETTER
Give 14 days to complete
Failure to comply generates Notice to Recover Debt
After 7 days pass to Debt Recovery Specialist
Keep a record of all contact

13. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
FINAL DEMAND
Our last statement that was sent to you at the beginning of this month
showed in detail that the amount of £1175.00 is overdue for payment to
ourselves.
We have again attached details of this amount, and respectfully request
that your account is paid immediately. Alternatively please let me know
your reasons for non-payment.
If you require any additional information to enable you to make payment
of the overdue balance on your account please contact me immediately
on the below number.

14. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
FINAL DEMAND
It appears from our records that we have not received Payment of the
above mentioned invoice dated 00/00/00 as per our terms of sale.
We would respectfully like to request that settlement for this invoice is
forwarded to us immediately.
If you have already sent payment for this invoice within the last few days
please accept our apologies and disregard this letter.

15. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Finding your break-even point
BEP = [Fixed costs + Drawings [Overheads]]/Contribution per unit
£12,000 per year from college.
Need to make £30,000.
Got fixed costs of £2,500 per year
How many days do I need to sell to break even if I can make
£500 per day?

16. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Finding your break-even point
BEP = [Fixed costs + Drawings [Overheads]]/Contribution per unit
£12,000 per year from college.
Need to make £30,000.
Got fixed costs of £2,500 per year
How many days do I need to sell to break even if I can make
£500 per day?
[30,000 – 12,000 + 2,500]/500 = 41 days

17. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Forecastingand
The ARTof
cash flow management

18. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Forecasting -
the black art

19. B R I A N W S T E E L
developing higher performance
The Start-up Programme – City of Bristol College
Seven key factors in forecasting:
1. Be realistic. No deliberate under estimating or over estimating.
2. Out with the old, in with the new. Life changes – be flexible and
responsive to changing customer demands and opportunities.
3. If you give credit, keep your trading terms up to date. Changes in trading
terms directly effect income.
4. Plan promotions/offers into the cash flow.
5. Monitor sales constantly.
6. Learn your customers payment habits
7. Check the paperclips

20. Jan Feb Mar Apr May Jun Total
Revenue
[A] Cash Sales
[B] Credit Sales
[C] Total Revenue [A+B]
[D]Materials and Stock purchased
[E] Gross Profit [C – D]
Gross profit %age [E/C]100
Overheads
Salaries/Wages
Rent/Rates
Water
Insurance
Repairs/Renewals
Heat/Light/Power
Maintenance
Printing/Stationery
Transport
Telephone
Professional Fees
Capital payments
Loan repayments
Bank charges
[F] Total Overheads
[G] Net Profit before drawings
[E – F]
Net profit %age [G/C]100