What are non-financial records
- Accident records
- Vehicle records
→ Health and safety records - risk assessments
→ Food hygiene
→ PAT records (electrical appliances)
→ Sickness/absences
→ employee records
→ stock and equipment and feed
→ passport
→ health history/ vet records
→ legal documents and licensing
→ DBS checks
What are some financial records
→ Invoices
→ Receipts
→ Taxes
→ Wages
→ Cash flow
→ Profits and losses
→ Bank statements
→ Income and expenditure
→ Debts and loans
→ TAX
→ VAT
→ Cash books
What do financial records show
->Whether your income is greater than your expenditure
→ Whether your business is making a profit or a loss, so you can stay in business
→ Monitor actual performance against your planned budget for the year
→ Show potential problems before it is too late e.g. delay a purchase or plan another source of income
What is cashflow
Cash flow is the amount of money you have at any one time
When do problems arise
when there isn’t enough money in the bank to pay bills
→ These can be caused by:
- Buying a large amount of something e.g feed
- Clients not paying bills when they should
How do you monitor the cash flow and what will the cash flow help with
By keeping accurate records
Records from previous years to help you forecast cash flow for the coming year.
- can help you to identify particular times when cash flow may be difficult, and to plan when to make major purchases
→ Cash flow forecasts can be used to help predict outcomes and give the owner an idea about whether the business maybe financially viable
What are the reasons for keeping records
→ Loans- If the business needs to get a loan (to build more kennels / machinery, animals) the bank / loaner will want to see financial records.
→ Records will need to date back at least twelve months (normally accounts are needed for three years to loan large sums of money).
→Risk assessments - why?
- Records of accidents/ incidents at work - why?
- Records of hazardous substances COSHH
- Some businesses also need to keep records of how their work impacts on the environment.
What is VAT
Value Added Tax
What is VAT
Is a tax added to most products and services sold byVAT-registered businesses.
How does a business qualify to charge VAT
Businesses have to register forVATif theirVATtaxable turnoveris more than £85,000. They can also choose to register if their turnover is less than £85,000.
