Bibliography of Interviews 43 b. Resource Targeting Table 45 2. Calculations for Exemptions 47 3.
Financial health indicators Where forecasts provide an estimate of your financial position, financial statements are historical and outline the actual results achieved.
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Financial statements are usually produced monthly and at the end of the financial year. It is important to set aside time each month to analyse your financial statements, to enable you to control and improve your business Financial statements may include: Analysis KPI Formula What percentage of the sales price covers the cost of providing or producing the product or service?
The higher the gross profit margin the better, as your business keeps more from each dollar of sales.
If your gross profit margin decreases over time you will need Tuckshop essay notes guide determine the reason and take action to address the decline. The net profit margin is an indicator of how much profit you make before tax from every dollar you spend.
A fall in net profit margin generally means you are paying more in expenses, which needs to be monitored. More profitable businesses generally spend less of their income on expenses. View our example profit and loss statement Your business structure will determine how some expenses are calculated.
Your accountant can provide detailed advice regarding your structure.
Sole traders — drawings money taken by the owner for personal use are not an expense. Partners — if there is a partnership agreement, net profit is allocated according to the proportion set out in the agreement.
If there is no agreement, net profit is shared equally between the partners. Each partner pays tax on the amount of net profit they receive, regardless of how much the partner may have taken out as drawings.
Net profit and taxable income can be different because for tax purposes some expenses may or may not be allowable and some income may be assessable or not assessable. Balance sheet A balance sheet is a snapshot of what a business owns assets and owes liabilities at a specific point in time.
A balance sheet is usually completed at the end of a month or financial year and is an indicator of the financial health of your business. A balance sheet is in three sections: Current assets Items of value that are expected to be consumed or converted into cash within the next 12 months, such as stock that turns over regularly and payments from debtors.
Non-current assets Items not expected to be consumed or converted into cash within the next 12 months, such as equipment, vehicles, buildings, and goodwill. Current liabilities Items expected to be paid within the next 12 months, such as credit card debts, tax owed, short-term loans, and stock purchases.
Non-current liabilities Items not expected to be settled within the next 12 months, such as mortgages on buildings and long-term loans.Essay about Notes Class notes – 4/27/13 1) Management structure – very important to know a) Tactical mgmt. – guide operational mgmt.
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Personal Strengths and Weaknesses What are my personal strengths and weaknesses? When I think about this question, the first thing that comes to mind is a job interview.
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