As a new small to medium or enterprise level business owner, you probably have a lot of questions. From starting a business and increasing sales, to how to get your employees to be more productive so your business can grow, today’s business owners have a lot to learn about running their businesses. While we can’t teach you how to increase sales and productivity directly, we can answer your accounting questions including, ‘What’s the difference between accounts payable and receivable?’, or ‘How do I file my small business taxes?’.
The team of professionals at Fortuous are experts when it comes to business accounting. We provide accurate and efficient accounting solutions for many of today’s top SME’s and we are always here to help. With that being said, we are going to take a look at some popular accounting questions that today’s small business owners ask. Let’s get started:
Popular Accounting Questions Answered By The Experts At Fortuous
How should I structure my small business?
There are 4 ways to structure your small business in the UK. These include:
- Sole Trader
- Partnership
- Limited Liability Partnership
- Limited Company
Should I open a separate business bank account?
Having a separate bank account for your business is important as it will ensure that your personal funds are protected and that your taxes are filed correctly.
Are there any accounting terms I should know?
Most of your business’ accounting should be handled by a professional, but there are still some accounting terms that you should know.
Assets: this is the tangible or intangible property that adds value to your business.
Cost Of Goods Sold (COGS): this is the amount of money you have spent on the products you are selling. Subtract this from the sale price to see your profit.
Equity: this is the value your business after subtracting your liabilities from your assets.
Liabilities: this is the money that your business owes.
Revenue: this is the amount of money your business brings in from sales.
What’s the difference between accounts payable and accounts receivable?
Accounts payable is the money you owe to vendors and accounts receivable is money owed to your business.
How do I calculate my business’s profit?
Calculating your business’ profit can be done using the following formula: ‘Net Profit = Revenue – Cost of Goods Sold – Expenses’
Contact Fortuous
To learn more, contact Fortuous today and speak with an experienced London accountant who can answer any questions you might have. Be sure to click this link to Get An Instant Quote today!
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