Some of your Finance questions are answered here…
Contact me if there are any others you would like to see added to this page!
What is a Company Tax return?
A Company Tax return is a document that is filed with Companies House each (financial) year for companies liable for Corporation Tax. This document needs to be filed even if no profit is made in the period.
How detailed does my Business Plan need to be?
A business plan will help you develop your idea and get a better feel for whether you have a viable, and profitable business idea. Taking time to complete a thorough business plan before you start your business will reduce the risk of you missing something.
A plan will also be required by your bank and other lenders before they offer you credit. But it’s a document that is worth producing and keeping up to date on a regular basis. It gives others an indication of your plans on what the business is likely to be able to deliver. Completing the plan will help you think through your ideas and assess whether the concept is viable.
A Business Plan will normally contain at least the following:
- Aims and objectives
- Business Strategy
- Resources – who is in your team?
- Financial forecasts
What are the benefits of having a detailed Business Plan?
A good business plan will help you focus your mind and help secure funding. It can be used to track progress and enable you to celebrate your success and progress.
What is a Company Mission?
A Company Mission is a short statement describing your business goals and philosophies. it defines what an organisation is, why it exists and its reason for being.
What is the difference between a Mission and a Vision?
Simply, a mission describes what a company does today, whilst a vision describes what the company wants to do and be in the future.
What is a Balance Sheet?
A Balance Sheet is used as a snapshot of the state of your business at any given time, it shows the company Assets, Liabilities and Owners Equity – these values change regularly and are carried forward from year to year.
What is Owners Equity?
It’s important to note that the owner of the business and the business itself are two separate things. Even if you are the sole owner of the business, you are still not “the business”. The Owners Equity is the difference between the Assets and Liabilities, and depending on the circumstance, it can either be owed to the owner, or owed to the business by the owner.