Accounting, Business planning, client care Flashcards
Define Financial Statements; Profit and Loss, Cashflow Statements and Balance sheets.
Financial Statements – written records that convey the business activities and the financial performance of a company.
Balance Sheet – a statement of the business’s financial position showing assets and liabilities at a given date.
Profit and Loss – Is a summary of the business’s income and expenditure transactions, prepared on an annual basis.
Cashflow Statement – is a financial statement that summarises the movement of cash and cash equivalents that come in and go out of a company. Highlighting a companies cash management
What is the difference between balance sheets and profit and loss?
A profit and loss account (income statement) is a summary of the business income and expenditure, prepared usually on an annual basis, whilst a balance sheet is a statement of the business’ financial position showing its assets and liabilities at a given date, usually at the end of the financial year.
Client Money Handling 2019 – be prepared to talk about it. six main areas
Six main areas of good practice for this professional statement, those being:
1) Holding client money
2) Providing information to clients
3) Receipts of client money
4) Payments from client accounts
5) Accounting records and controls
6) Compliance
Handleing client money principles
- Client accounts must be kept separate and clearly identifiable.
- The word ‘client must be on the account and cheque book.
- A client must be able to have their moneys on demand
- Payment of interest is agreed with a client and their account must be kept in credit.
- Accurate records are kept with a running balance available.
- Money can be withdrawn from a client account if properly required.
What is the difference between a managed account and an audited account?
A managed account is prepared for internal use by a business and are not audited, whilst an audited account is prepared by a chartered or certified accountant.
What would you do if a client asked to pay you in cash?
The business’s policy of handling cash is that it should be avoided at all times unless absolutely necessary and previously authorized as specific procedures. I would ask the client why they wished to pay in cash and if it was a large amount of cash I may suspected fraud
What is on a dun and bradstreet ?
The D&B Rating provides a quick and clear indication of the credit-worthiness of an organisation, which helps you to identify profitable opportunities for growth and risks that could affect bad debt and cashflow.
What does d and b show
Financial Strength – Based on tangible net worth from the latest financial accounts
Risk indicator – Derived from B&B failure score but also takes in to account expert rules and overrides
What is the importance of business planning?
By effectively forward planning you can identify potential threats from market shift and micro economic variables. A SWOT analysis can be used to identify any potential strengths, weaknesses, opportunity’s or threats within the market that the company or instruction is currently in.
How is business performance monitored?
Business performance is monitored through financial KPIs, ensuring targets are met. Each month I see the profit and loss statement for the development division which also highlights key business activities.
speed to which we get instructions out
number of reports that are sent back from clients
What KPIs would you look for when business planning?
When business planning I would look for KPIs in expected revenue and costs, to calculated expected profit to focus on the profitability of the business.
number of reports handed back and speed to which we send report out from instruction.
What are the benefits of being knowledgeable about other areas of the business?
So I can provided the best level of service to clients, when I am not the right person for the job I am able to confidently recommend other areas of the business.
What are the different types of company structures?
Sole practitioner – a solo professional who practices independently.
Partnership – When partners share responsibility for a business.
LLP – When two or more partners go into business together but are not liable for another partners decision.
Limited company – a business structure whereby the company is considered a legally distinct body. The business is legally distinct from the people who run it.
PLC – A business that is legally allowed to sell its shares to the public, but members of a PLC have limited liability.
What is your business’s mission statement?
Our vision is to be the real estate adviser of choice in the markets we serve. We do not wish to be the biggest, just the best (as judged by our clients).
what is on an incans report
d and b
income statement
probability of failure
bond rating
turnover
