SoE - Accounting principles and procedures Flashcards
Give me some examples of how you forecast your individual fee income.
- Upcoming projects
*Work in Progress and likely completion/invoicing
What is a cashflow statement?
A financial statement that shows all the cash inflow a company receives from operations and external investment. It also shows cash outflow that pays for business activities during a given period.
How do you deliver healthy cashflow?
How do you deliver healthy cashflow?
How are fee proposals prepared?
A fee proposal is prepared using an estimate of the time required to carry out a job multiplied by the cost of your hire on an hourly rate. A percentage will then be added for company overheads.
What is retention and why do we keep this?
Retention is the withholding of a percentage of a contract sum to ensure the contractor properly completes the activities required within the rectification period.
Why do chartered surveyors in your pathway need to understand and be able to interpret company accounts?
- For assessing the financial strength of contractors and those tendering for contracts
- For assessing competition
- To assist with business operations
- When setting up a new firm
What is the Construction Industry Scheme (CIS)?
The Construction Industry Scheme (CIS) is a scheme created by HM Revenue & Customs (HMRC) for tax from contractors and subcontractors. The scheme is designed to minimize tax evasion within the construction industry. Contractors deduct tax from payments to subcontractors. All contractors and subcontractors must register with the scheme before work starts.
What is Capital Expenditure?
The cost of purchasing or upgrading an existing asset, the cost of which are spread over the useful life of the asset and shown on the balance sheet.
What is Revenue Expenditure?
The cost of maintaining existing assets, the cost of which are placed wholly on the profit and loss account for that period.
What procedures can you implement to improve Cash Flow?
- Negotiate shorter payment terms with clients
- Negotiate longer payment terms with suppliers and sub-contractors.
What do companies need to provide every year in accordance with the Companies Act 2006?
What do companies need to provide every year in accordance with the Companies Act 2006?
What Is GAAP?
Generally Accepted Accounting Principles - UK GAAP, is the overall body of regulation establishing how company accounts must be prepared in the United Kingdom. Company accounts must also be prepared in accordance with applicable company law (for UK companies, the Companies Act 2006
Can you give me some examples of 5% or 0 rate VAT items?
From VAT notice 708
5%
* Installation of energy saving materials
* Renovation of empty residential properties
0%
* Alteration to suit the conditions of people with disabilities
What are Financial accounts?
Financial accounts are a published account, which gives external organisations (banks, other businesses etc) information about the company’s annual performance.
What are the requirements on the companies act 2006?
Company to keep adequate accounting records.
