What is a Limited Company?

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of accountant blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

What is a Limited Company?

Most businesses start out small, owned by one person or by a partnership. The most common type of business when there are multiple owners is a Limited Company.

The law sees a Limited Company as real, live person. Like an adult, a Limited Company is treated as a distinct and independent individual who has rights and responsibilities.

A Limited Company 's "birth certificate" is the legal form that is filed with the Secretary of State and Companies House. It must have a legal name, just like a person.

A Limited Company is separate from its owners. It's responsible for its own debts. The bank can't come after the shareholders if a Limited Company goes bankrupt- except under certain circumstances.

A Limited Company issues ownership share to persons who invest money in the business. These shares are documented and the Company has to keep a register, or list, of how many shares everyone owns. Owners of a Company are called shareholders because they own shares issued by the company. One share of stock is one unit of ownership and how much one share is worth depends on the total number of shares that the business issues. The more shares a business issues, the smaller the percentage of total owners' equity each share represents.

Nottingham Accounting Solutions Ltd offer accounts, bookkeeping and payroll services in the Nottingham , Mansfield and Sutton in Ashfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at Accountant in Nottingham Mansfield and Sutton in Ashfield to see our website.

What is financial window dressing?

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of accountant blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

What is financial window dressing?

Financial managers can do certain things to increase or decrease net income that's recorded in the year. This is called profit smoothing, income smoothing or just plain old window dressing. This isn't the same as fraud, or cooking the books.

Most profit smoothing involves pushing some amount of revenue and/or expenses into other years than they would normally be recorded. A common technique for profit smoothing is to delay normal maintenance and repairs. This is referred to as deferred maintenance. Many routine and recurring maintenance costs required for cars, trucks, machines, equipment and buildings can be delayed, or deferred until later.

A business that spends a significant amount of money for employee training and development may delay these programs until the next year so the expense in the current year is lower. A company can cut back on its current year's outlays for market research and product development.

A business can ease up on its rules regarding when slow-paying customers are written off to expense as bad debts or uncollectible accounts receivable. The business can put off recording some of its bad debts expense until the next reporting year. A fixed asset that is not being actively used may have very little current or future value to a business. Instead of writing off the un-depreciated cost of the impaired asset as a loss in the current year, the business might delay the write-off until the next year.

You can see how manipulating the timing of certain expenses can make an impact on net income. This isn't illegal although companies can go too far in massaging the numbers so that its financial statements are misleading. For the most part though, profit smoothing isn't much more than robbing Peter to pay Paul. Accountants refer to these as compensatory effects. The effects next year offset and cancel out the effects in the current year. Less expense this year is balanced by more expense the next year.

Nottingham Accounting Solutions Ltd offer accounts, bookkeeping and payroll services in the Nottingham, Sutton in Ashfield and Mansfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at Accountant in Nottingham, Mansfield and Sutton in Ashfield website.

Disclosure in Accounts

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of accountant blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

Disclosure in Accounts

Financial statements are the backbone of a complete financial report. In fact, a financial report is not complete if the three primary financial statements are not included. But a financial report is much more than just those statements. A financial report requires disclosures. This term refers to additional information provided in a financial report. Therefore, any comprehensive and ethical financial report must include not only the primary financial statements, but disclosures as well.

The chief executive of a business (usually the CEO in a publicly held corporation) has the primary responsibility to make sure that the financial statements have been prepared according to generally accepted accounting principles (GAAP) and the financial report provides adequate disclosures. He or she works with the chief financial officer or controller of the business to make sure that the financial report meets the standard of adequate disclosures.
Some common methods of disclosures include:

--Footnotes that provide information about the basic figures. Nearly all financial statements require footnotes to provide additional information for several of the account balances in the financial statements.

--Supplementary financial schedules and tables that provide more details than can be included in the body of the financial statements.

--Other information may be required if the business is a public corporation subject to regulations regarding financial reporting to its stockholders. Other information is voluntary and not strictly required legally or according to GAAP.

Nottingham Accounting Solutions Ltd offer accounts, bookkeeping and payroll services in the Nottingham, Sutton in Ashfield and Mansfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at http://www.nottingham-accounting-solutions.co.uk/

Who uses a forensic accountant?

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of accountant blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

Who uses a forensic accountant?

Forensic accountants are financial investigative specialists who work with financial information for the purpose of conveying complicated issues in a manner that others can easily understand. While some forensic accountants and forensic accounting specialists are engaged in the public practice of forensic examination, others work in private industry for such entities as banks and insurance companies or governmental entities such as police departments and HMRC.

The occupational fraud committed by employees usually involves the theft of assets. Embezzlement has been the most often committed fraud for the last 30 years. Employees may be involved in kickback schemes, identity theft, or conversion of corporate assets for personal use. The forensic accountant couples observation of the suspected employees with physical examination of assets, invigilation, inspection of documents, and interviews of those involved.

Experience on these types of engagements enables the forensic accountant to offer suggestions as to internal controls that business owners could implement to reduce the likelihood of fraud.

At times, the forensic accountant may be hired by lawyers to investigate the financial trail of persons suspected of engaging in criminal activity. Information provided by the forensic accountant may be the most effective way of obtaining convictions. The forensic accountant may also be engaged in bankruptcy proceedings when submitted financial information is suspect or if employees (including managers) are suspected of taking assets.

Opportunities for qualified forensic accountants abound in private companies. CEOs must now certify that their financial statements are faithful representations of the financial position and results of operations of their companies and rely more heavily on internal controls to detect any misstatement that would otherwise be contained in these financials.

In addition to these activities, forensic accountants may be asked to determine the amount of the loss sustained by victims, testify in court as an expert witness and assist in the preparation of visual aids and written summaries for use in court.

Nottingham Accounting Solutions Ltd do not offer forensic accounting but we do offer accounts, bookkeeping and payroll services in the Nottingham, Sutton in Ashfield and Mansfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at www.nottingham-accounting-solutions.co.uk

What is a forensic accountant?

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of accountant blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

What is a forensic accountant?

Forensic accounting is the practice of utilising accounting, auditing, and investigative skills to assist in legal matters. It encompasses 2 main areas - litigation support, investigation, and dispute resolution. Litigation support represents the factual presentation of economic issues related to existing or pending litigation. In this capacity, the forensic accountant quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes, even before they reach the courtroom. If a dispute reaches the courtroom, the forensic accountant may testify as an expert witness.

Investigation is the act of determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, and insurance fraud have occurred. As part of the forensic accountant's work, he or she may recommend actions that can be taken to minimize future risk of loss. Investigation may also occur in civil matters. For example, the forensic accountant may search for hidden assets in divorce cases.

Forensic accounting involves looking beyond the numbers and grasping the substance of situations. It's more than accounting...more than detective work...it's a combination that will be in demand for as long as human nature exists. Who wouldn't want a career that offers such stability, excitement, and financial rewards?

In short, a forensic accountant requires the most important quality a person can possess: the ability to think. Far from being an ability that is specific to success in any particular field, developing the ability to think enhances a person's chances of success in life, thus increasing a person's worth in today's society. Could you become a forensic accountant??

Nottingham Accounting Solutions Ltd offer do not offer Forensic accounting but we do offer accounts, bookkeeping and payroll services in the Nottingham, Mansfield and Sutton in Ashfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at http://www.nottingham-accounting-solutions.co.uk/

Who are auditors and are they accountants?

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

Who are auditors and are they accountants?

Auditors are generally accountants that help to ensure that the Nation's firms are run efficiently, its public records kept accurately, and its taxes paid properly and on time. They perform these vital functions by offering an increasingly wide array of business and accounting services, including public, management, and government accounting, as well as internal auditing, to their clients. Beyond carrying out the fundamental tasks of the occupation-preparing, analysing, and verifying financial documents in order to provide information to clients-many accountants now are required to possess a wide range of knowledge and skills. Accountants and auditors are broadening the services they offer to include budget analysis, financial and investment planning, information technology consulting, and limited legal services.

Specific job duties vary widely among the four major fields of accounting: public, management, and government accounting and internal auditing.

Internal auditors verify the accuracy of their organization's internal records and check for mismanagement, waste, or fraud. Internal auditing is an increasingly important area of accounting and auditing. Internal auditors examine and evaluate their firms' financial and information systems, management procedures, and internal controls to ensure that records are accurate and controls are adequate to protect against fraud and waste. They also review company operations, evaluating their efficiency, effectiveness, and compliance with corporate policies and procedures, laws, and government regulations.

There are many types of highly specialized auditors, such as electronic data-processing, environmental, engineering, legal, insurance premium, bank, and health care auditors. As computer systems make information timelier, internal auditors help managers to base their decisions on actual data, rather than personal observation. Internal auditors also may recommend controls for their organization's computer system, to ensure the reliability of the system and the integrity of the data.

Government accountants and auditors work in the public sector, maintaining and examining the records of government agencies and auditing private businesses and individuals whose activities are subject to government regulations or taxation. Accountants employed by governments guarantee that revenues are received and expenditures are made in accordance with laws and regulations.

Nottingham Accounting Solutions Ltd do not offer auditing amongst their services but do offer accounts, bookkeeping and payroll services in the Nottingham, Sutton in Ashfield and Mansfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at Accountant in Nottingham, Mansfield and Sutton in Ashfield website.

Managing the Bottom Line with your accountant

Accounts, Bookkeeping and Payroll can be a burden to small business. This new series of blogs from Nottingham Accounting Solutions aims at making Accounts, Bookkeeping and Payroll a little clearer.

Managing the Bottom Line with your accountant

If you don't keep track of how much money you're making, you have no idea whether your business is successful or not. You can't tell how well your marketing is working. And I don't just mean you should know the amount of your total sales or gross revenue. You need to know what your net profit is. If you don't, there's no way you can know how to increase it.

If you want your business to be successful, you need to make a financial plan and check it against the facts on a monthly basis, then take immediate action to correct any problems. If you have monthly Management Accounts produced by your accountant then this will help you to be aware of any changes in the business, allowing you to make timely changes.

So, here are the steps you should take:

* Create a financial plan for your business. Estimate how much revenue you expect to bring in each month, and project what your expenses will be. Ensure your accountant produces Management Accounts for you on a regular basis – say monthly.

* Remember that lost profits can't be recovered. When entrepreneurs compare their projections to reality and find earnings too low or expenses too high, they often conclude, "I'll make it up later." The problem is that you really can't make it up later: every month profits are too low is a month that is gone forever.

* Read your Management Accounts (you would be surprised how many business owners don’t do this) and make adjustments right away. If revenues are lower than expected, increase efforts in sales and marketing or look for ways to increase your rates. If overhead costs are too high, find ways to cut back. There are other businesses like yours around. What is their secret for operating profitably?

* Think before you spend. When considering any new business expense, including marketing and sales activities, evaluate the increased earnings you expect to bring in against its cost before you proceed to make a purchase.

* Evaluate the success of your business based on profit, not revenue. There is an old adage that says “Turnover is Vanity, Profit is Sanity”. It doesn't matter how many thousands of dollars you are bringing in each month if your expenses are almost as high, or higher. Many high-revenue businesses have gone under for this very reason -- don't be one of them.

Nottingham Accounting Solutions Ltd offer accounts, bookkeeping and payroll services in the Nottingham, Mansfield and Sutton in Ashfield area as well as Sage sales, set-up and 1 - to - 1 training on Sage accounts and Sage payroll. So why not take a look at http://www.nottingham-accounting-solutions.co.uk/

Accountant in Nottingham moves offices

Accountant in Nottingham moves offices

Nottingham Accounting Solutions Ltd has just moved to new offices just outside Nottingham to offer an even better service to Nottingham clients. We can relieve you of an enormous accounting and bookkeeping burden by taking care of all your accountant needs including accounts, accounting and bookkeeping in and around Nottingham using the latest Sage Accounting software.

Your time can be spent more profitably by concentrating on what you are good at … and out-source the paperwork to us.

What’s included in our Accounts and Bookkeeping service :

Preparation of Sage Accounts

• Maintenance of Accounting records complying with Statutory requirements
• Purchase, Sales and Nominal Ledgers
• Bank Reconciliation
• Maintenance of VAT records
• Credit control
• Factoring and Invoice Financing – if required

Preparation of Quarterly VAT Returns

Our first step is to work with you to gain an understanding of your business and establish a one-to-one working relationship. We can then tailor our services to your requirements and provide exactly the accountant services, accounts and bookkeeping that you need.

So visit our Accountant in Nottingham webpage or all for an informal, confidential, no obligation chat to see where Nottingham Accounting Solutions can help you save time and money.

Accountant in Mansfield moves offices

Accountant in Mansfield moves offices


Nottingham Accounting Solutions Ltd has just moved to new offices just outside Mansfield to offer an even better local service to Mansfield clients. We can relieve you of an enormous accounting and bookkeeping burden by taking care of all your accountant needs including accounts, accounting and bookkeeping in and around Mansfield using the latest Sage Accounting software.

Your time can be spent more profitably by concentrating on what you are good at … and out-source the paperwork to us.

What’s included in our Accounts and Bookkeeping service :

Preparation of Sage Accounts

• Maintenance of Accounting records complying with Statutory requirements
• Purchase, Sales and Nominal Ledgers
• Bank Reconciliation
• Maintenance of VAT records
• Credit control
• Factoring and Invoice Financing – if required

Preparation of Quarterly VAT Returns

Our first step is to work with you to gain an understanding of your business and establish a one-to-one working relationship. We can then tailor our services to your requirements and provide exactly the accountant services, accounts and bookkeeping that you need.

So visit our Accountant in Mansfield webpage or all for an informal, confidential, no obligation chat to see where Nottingham Accounting Solutions can help you save time and money.

Accountant in Sutton in Ashfield moves offices

Accountant in Sutton in Ashfield moves offices


Nottingham Accounting Solutions Ltd has just moved to new offices just outside Sutton in Ashfield to offer an even better local service to Sutton in Ashfield clients. We can relieve you of an enormous accounting and bookkeeping burden by taking care of all your accountant needs including accounts, accounting and bookkeeping in and around Sutton in Ashfield using the latest Sage Accounting software.

Your time can be spent more profitably by concentrating on what you are good at … and out-source the paperwork to us.

What’s included in our Accounts and Bookkeeping service :

Preparation of Sage Accounts

• Maintenance of Accounting records complying with Statutory requirements
• Purchase, Sales and Nominal Ledgers
• Bank Reconciliation
• Maintenance of VAT records
• Credit control
• Factoring and Invoice Financing – if required

Preparation of Quarterly VAT Returns

Our first step is to work with you to gain an understanding of your business and establish a one-to-one working relationship. We can then tailor our services to your requirements and provide exactly the accountant services, accounts and bookkeeping that you need.

So visit our Accountant in Sutton in Ashfield webpage or all for an informal, confidential, no obligation chat to see where Nottingham Accounting Solutions can help you save time and money.