Summary of Experience

Question 1

How can you plan for your business

Answer 1

With a SWOT analysis

Strength’s
Weaknesses
Opportunities
Threats

Question 2

What system do you use to update your figures

Answer 2

I use CBRE’s client IQ

It a multifunction platform that allows for data to be input, dated and set for invoice.

Question 3

What is a debit?

Answer 3

Used in a double entry accounting

debits record all of the money flowing into an account.

A debit increases the balance of an asset or expense account.

Question 4

What is a credit

Answer 4

Credits records money that flows out of an account

Decreases the balance of an asset or expense account

increased the balance of a liability or equity account

Question 5

What are the Financial Accounts

Answer 5

Profit & Loss account

Balance Sheet

Cash Flow Statement (Depends)

Directors

there is an option for simpler filing for micro-enteritis

Question 6

What is the difference between management and financial accounts

Answer 6

Management Accounts
For the use of the Management team

Financial Accounts
Company accounts required by UK Law

Question 7

What must you do with Financial accounts?

Answer 7

Send them to HMRC
Companies House
Shareholders
People who go to board meetings

Question 8

What is a Profit and Loss Statement (Income Statement)

Answer 8

Profit and Loss statement shows all the companies income and expenses incurred over a given period.

This will show if a profit has been made

Revenue - Expense = Profits

Question 9

What is a Balance Sheet?

Answer 9

Provides a snap shot of what a company owns and owes
+
The amount invested by shareholders

Question 10

What is a cash flow statement

Answer 10

A cash flow statement shows where cash comes from or is anticipated from, where it goes and how much you have on hand at any given point.

It measures if you can pay your bills

Question 11

What are liquidity ratios

Answer 11

Current assets / Current Liabilities

usually 1.5

less than 0.75 can be a sign of insolvency

Question 12

What is the difference between debtors and creditors

Answer 12

Creditors
Owed money by another entity

Debtors
Entities that are owe money

Question 13

What is an Escrow Accounts

Answer 13

A separate account owned by a third party on behalf of two other parties.

Defined contractual conditions for the release of funds

Can be used as a project bank account

Question 14

why would not recommend a contractor with a low credit rating?

Answer 14

May not perform in a satisfactory manner

Risk of not deploying correct resources and materials

The could go insolvent

Question 15

How could you protect your client from a contractor with a low credit rating

Answer 15

Request a performance bond if they fail to perform

Make sure interim valuations were accurate and not over claimed.

Add a project bank account

Question 16

What are the different forms of insolvency

Answer 16

** Administration
An administrator is appointed to save the company
Work on behalf of the creditors

** Liquidation
Ends a companies operations
Assets are sold to pay creditors

** Bankruptcy
A way for individuals to deal with debts they can’t [ay
gives them certain protections and a fresh start