Year end accounts are produced using the "accruals" accountancy concept. At its simplest, this means matching your sales and expenses to the year the work was done. An accrual journal is typically an expense which occurred in the next year of trading but which relates to the prior year. It should ...
Aged Creditors is a report which provides a list of the suppliers to whom your business owes money and how old the debt is.
Aged Debtors is a report of the customers who owe you money and how old their debt is. This report can be used to see how much each customer owes you, along with how much all of your customers owe you in total.
The writing-off over time of the value of an intangible asset, such as goodwill.
From 30 June 2016, the Annual Return is being replaced with a Confirmation Statement. The new statement contains some new and important information about ‘Persons of Significant Control’ (PSC) but is very similar to the outgoing annual return. A reminder about the information contained in the outgo...
In the broadest terms, an asset is something that is: Owned / controlled by the company. Going to last for more than 1 year. Intended to be used in the company to generate more income. For example, a telephone used to make business calls, or a tool for your work such as a lapto...
A snapshot of the business at a particular date, showing the amounts owed to other people, and the assets (such as stock, and money in the bank) that the business owns. The total at the bottom shows the value of the business at that date (ignoring goodwill and other intangible assets).
Bank Deposits and depositing cheques
When you pay cash or cheques into your company bank account, this is classed as a bank deposit and you should enter this in the Crunch app to ensure your banking records are up to date. From the 'Banking' tab you can select 'New bank deposit' to do this. If you are recording any cheque deposits, you...
Benefit in kind
Benefits in kind can be thought of as perks enjoyed personally, using company funds. Due to the fact that these perks effectively increase your personal income and are not taxed as part of a regular salary, each of these expenses may incur National Insurance Contributions at 13.8% These types of be...
'Capital Allowances' are the allowing by HMRC of a certain amount of money spent by a company on fixed assets to be taken off the profits of the company before tax is imposed. Capital allowances are only allowed for certain kinds of assets. See what you can claim capital allowances for here.