accountancy & financial issues for sme's
DESCRIPTION
By Mark Graham, Naas, Kildare, for ID8 Consulting for the Kildare Artisan Network for County Kildare Leader Partnership Accountancy Issues for Small Business in Ireland Given 21/3/2013TRANSCRIPT
by Mark Graham & Co Chartered Management Accountants and
Registered Auditors
Mark Graham & Company
a. No Cash – No Businessb. Profits DO NOT equal Cashc. Seasonalityd. Bad Cash Controle. Shortage of Cash/Business Failuref. Importance of Cash Planning & Control
Mark Graham & Company
New companies/under capitalised Level of funding required Cash Flow projections Types of Funding
Mark Graham & Company
Annual Audit AccountsKPI’s - Monthly BasisOne Page ReportGross Profit/Net ProfitDebtor/Creditor/Stock DaysBank BalancesTaxes Outstanding
Mark Graham & Company
Over reliance on one contract Have you underpriced? Have you sufficient resources? Sufficient staff? Retention money?
Mark Graham & Company
Working Capital requirements Bank Loans (Increase) Interest payments (Increase) Cash Reserves (Decrease) Profits (Decrease)
Mark Graham & Company
What is the real cost of producing your product or service?
Know what price to charge Know when to change the price Prices too low – expenses not covered Prices too high – sales volume lost
Mark Graham & Company
Little or no Market Research Is there a Sales Plan Do you understand the market you are in? Define your Market Place Do you know your target customer
Mark Graham & Company
Increased working Capital requirement Increased labour numbers or skills
requirement Increased fixed assets requirement Increased capital funding requirement Less time, everyone is busier
Mark Graham & Company
Most common in Family businessesPersonal drawings should not exceed profitsRetained profits – Future requirementsDoes the Business owe you a living?What is the quality of that “living”?
Mark Graham & Company
Income Tax Return 31st October yearly Books easier to maintain Register Business Name with CRO Business Name Certificate display at
business premises Copy given to Bank Closing down is relatively straight forward
Mark Graham & Company
Legal entity Shareholder not personally liable for debts
(exceptions – fraudulently trading – personal guarantees)
Taxation Company name legally protected Large organisation will not deal with non-
limited companies Annual filing with CRO Business losses v’s Personal Income Compliance with Companies Act
Mark Graham & Company
1. There is no guarantee of success in business. Some businesses will be get lucky but depending on luck is a risky pastime.
2. The risk of failure can be reduced – but not eliminated – by planning along the lines outlined above.
3. Remember, failing to plan is effectively planning to fail.
Mark Graham & Company
by Mark Graham & Co Chartered Management Accountants and
Registered Auditors
Mark Graham & Company
was set up to provide services in :
Annual Audits Management Accounts Taxation Computerised Bookkeeping Payroll for small and medium-size businesses Company Secretarial Personal Financial Planning
With over thirty years experience in practice and industry, we are able to give a
continuous and dedicated personalised service. We strive to provide top quality
service and advice in a cost effective manner. We can help with your business
needs, whether you are starting, expanding, or planning for retirement, or sale
of your business.
Mark Graham & Company
Presented by
Mark Graham & Co Chartered Management Accountants and
Registered Auditors 045-897981
Email: [email protected]
Mark Graham & Company