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March 2014

Accountancy Terms and Formula

ACCOUNTANCY TERMS AND FORMULA. Confused with accountancy terms and formula? Here are a few examples to help:- Growth  1          % change in sales                               =                       sales Yr2 – sales Yr1               % sales Yr1 Profitability 1          gross profit %                                     =                      gross profit                                % sales 2          operating profit %                              =                         operating profit                       % sales 3          net profit %                                         =                     net profit after interest & tax    % sales Do you as a company director leave time to set out your budgets and company objectives? Need help with this? Are you working too much in the business …Read More

Business Break-Even point?

Do you know your Business Break-Even point?  Break-even is the point of zero loss or profit. “At break-even point, the revenues of the business are equal its total costs and its contribution margin equals its total fixed costs.” Every business director should know what the break-even point of the business is. It is a fundamental piece of information that is essential for the business leader. If you are unaware of your break-even point or do not understand the significance of the break-even point, It may be time to make that initial no cost, no obligation appointment with John Barnes.

Employing Staff for First Time

There are 6 things you need to do when employing staff for the first time. Decide how much you need to pay someone – you must pay your employee at least the National Minimum Wage (NMW). Check if someone has the legal right to work in the UK. You may have to do other employment checks as well. Get employment insurance – you need employers’ liability insurance as soon as you become an employer. It must cover you for at least £5 million and come from an ‘authorized insurer’. Send details of the job (including terms and conditions) in writing …Read More

PITCHING FOR BUSINESS FUNDS -THE FIVE MINUTE PITCH

Are you about to pitch for business funds? Remember you only have one chance to make that first impression. Your presentation is very important; it’s the ice breaker, it’s the elevator pitch, it’s the reason you are there.   Make sure you have at least three minutes of material without interruptions.  When pitching you will normally have up to 4-5 minutes to deliver it but most Business Angels / Venture Capitalists will interrupt you and you need to know it well enough to come back to your script. We recommend that you prepare: 1 minute on the Product/service 1 minute …Read More

Definition of a Director

There is a general statement in the Companies Act which states that the expression “director” includes “any person occupying the position of director, by whatever name called”, which includes a person who is treated by the board as such, despite not having been validly appointed (often referred to as a “de facto” director). The law also recognises the concept of “shadow directors” and many of the statutory provisions which apply to directors also apply to “shadow directors”. Shadow Director A shadow director is defined as “a person in accordance with whose directions or instructions the directors of the company are …Read More

Duty to promote the success of the company

The Companies Act provides that a director must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In so doing, the director must have regard (among other matters) to: the likely consequences of any decision in the long term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others; the impact of the company’s operations on the community and the, environment; the desirability of the company maintaining a reputation for high …Read More