One of the things clients most misunderstand is the relationship between their profit and loss account and the money in their bank account.

Much head scratching ensues as they look at their profit and compare it to the money in the bank.

Without muddying the waters even further, hopefully I can clear the fog a little….

 

Before you start reading what comes next, please ensure that you read to the end and that you have no other distractions.

Some receipts into your bank account e.g. monies you have introduced to the business and some payments from your bank account e.g. personal drawings and the capital repayment part of a bank loan will not be included in your profit and loss account.

Then there are items shown in your profit and loss account that you won’t have actually received or paid yet.  So your income will include amounts of money you are owed and your expenses will include monies you have yet to pay out.

Are you still with me?

Read the rest of this entry

Entrepreneur Astrology w/c Monday 15th October 2012

Get your weekly horoscope courtesy of Sally Kirkman at Entrepreneur Soul

Click Here

Judith Morgan, herself an accountant turned serial entrepreneur and writer,  recently wrote an excellent blog post about accounting in your small business, she says ‘Either get good at it or get someone else to do it’

If the thought of getting good at your accounts is like ‘sticking pins in your eyes’, as one of my clients describes it, then you need to find someone you can trust to not only do your accounts on time and done right but also ensure that she takes an interest in your business and explains everything to you in a way you can understand.

Judith shares the advantages here: http://entrepreneursoul.com/accounting-for-small-business-success-by-judith-morgan/

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