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BusinessRunning a BusinessHow to Understand Accounts Book and eBook

How to Understand Accounts Book and eBook


Reference: 9781913714338
United Kingdom - Book
United Kingdom - eBook

Product description

The secrets of understanding accounts are about to be revealed...

  • Need help understanding accounts?
  • Struggling to interpret what your accounts actually mean for your business?
  • Want to understand creative accounting?

How to Understand Accounts is a guide for the layperson to understanding and interpreting your accounts. It reveals just how easy it should be to prepare, read and act on your business accounts. Now in its new 2022 edition, How to Understand Accounts is an essential guide for non-accountants who need to understand and interpret accounts. It is designed for those who need to quickly grasp the essentials of accounts.... and make effective decisions based on what they have learnt. If professional accountants prepare your accounts, you need to understand and act on them. And if professional accountants don't prepare your accounts, then it is even more vital that you understand exactly what you are doing (and get to know what you could be doing). How to Understand Accounts will quickly teach you how to make informed decisions about the future of your business based on understanding its accounts. It will also ensure that you don't fall foul of tax regulations. In a simple, easy-to-follow, step-by-step way this book reveals the secrets to understanding accounts. And here's the first secret you should learn: understanding your accounts is really not that hard. How to Understand Accounts includes: 

  • Trading and Profit and Loss Accounts
  • Balance Sheets
  • Company Accounts
  • Reviewing Accounts
  • Management Accounts
  • Creative Accounting
  • Case Studies revealing how you can review and interpret accounts
  • Example accounts of sole traders, partnerships and small companies
  • Checklists to help you quickly and effectively review accounts, value stock and troubleshoot your business

Understanding accounts may not be rocket science... but How to Understand Accounts will help sky-rocket the performance of your business. Read it now and start benefiting immediately.

About the author

David Rouse is a chartered accountant with many years’ experience advising businesses and other organisations on accountancy and related financial matters. He has worked for major national and international accountancy firms and has run his own small practice. He has also provided technical consultancy services and written in-house manuals for other accountants in practice.

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Technical Specifications

About the author 

1 The Trading and Profit and Loss Account
Goods for own use
Cost of sales
Gross profit
Net profit/loss
Examples of Trading and Profit and Loss Accounts
Income and Expenditure Account
Receipts and Payments Account

2 The Balance Sheet
Fixed assets
Current assets
Current liabilities
Liabilities due after more than one year
Going concern
Examples of Balance Sheets

3 The Statement of Cash Flows
Receipts and Payments Account
Statement of Cash Flows for medium companies

4 Company accounts
The limited company
Limited by guarantee
Company accounts
Signing accounts
The annual audit
Group accounts
Prior year adjustments
Statement of Comprehensive Income
Statement of Changes in Equity
Micro company accounts
Limited liability partnerships (LLPs)
Ratios for companies

5 Reviewing the accounts
General points
Cost of sales and gross profit
Net profit or loss
Net assets
Fixed assets
Case study

6 Management accounts
Cash flow forecast
Computerised management accounts

7 Creative accounting
Art or science?
Comparing figures
Accounting considerations when buying a business
Group transactions
Window dressing
Off-Balance Sheet financing
Revenue recognition

A.1 Sole Trader Profit and Loss Account
A.2 Sole Trader Balance Sheet
A.3 Sole trader Notes to the Accounts
B.1 Partnership Profit and Loss Account
B.2 Partnership Balance Sheet
B.3 Partnership Notes to the Accounts
C.1 Small company Directors’ Report
C.2 Small Company Statutory Profit and Loss Account
C.3 Small Company Balance Sheet
C.4 Small Company Notes to the Accounts
C.5 Small Company Detailed Profit and Loss Account
D Small Company Profit and Loss Account
E Medium Company Statement of Cash Flows
F.1 Micro Company Profit and Loss Account
F.2 Micro Company Balance Sheet
G.1 Receipts and Payments Account (vertical)
G.2 Receipts and Payments Account (horizontal)
H Checklist for Reviewing Accounts
I Troubleshooting Checklist
J Stocktaking and Stock Valuation Checklist
K The Treatment of Value Added Tax (VAT) in the Accounts



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