Ayah Eca

Become a Profit and Growth Expert Accountants offer valuable services-services every business needs. In fact, businesses are required by law to keep books. So how could you possibly increase the value of your accounting services when they are already extremely valuable? By becoming a Profit and Growth Expert! What is a Profit and Growth Expert? A Profit and Growth Expert uses information from the accounting system to analyze a business’s fiscal standing, sharing that analysis with those who can use it to make more profitable financial decisions. A Profit and Growth Expert is a proactive accountant who realizes that the information he/she generates provides crucial data that can make or break a business. It’s the accountant’s job to share this data with business owners, explaining it in such a way that they both understand what the information indicates and can use it to make important business decisions. Profit and Growth Accounting When you enroll in the Pro...

Theories There are various theories that are relevant to accounts. Many of them relate to the firm's end of year accounts. All firms have to produce a set of accounts at the end of each year, and these are the main window to the firm's performance. It is therefore very important to understand them and be able to analyse them. Use the links below to find out about these various theories: T 1. Balance sheet The balance sheet is one of the financial statements that limited companies and PLCs produce every year for their shareholders. It is like a financial snapshot of the company's financial situation at that moment in time. It is worked out at the company's year end, giving the company's assets and liabilities at that moment. It is given in two halves - the top half shows where the money is currently being used in the business (the net assets), and the bottom half shows where that money came from (the capital employed). The value of the two halves must be the ...

The profit and loss account differs significantly from the balance sheet in that it is a record of the firm's trading activities over a period of time whereas the balance sheet is the financial position at a moment in time. The profit and loss account looks at how well the firm has traded over the time period concerned (usually the last 6 months or year). It basically shows how much the firm has earned from selling its product or service, and how much it has paid out in costs (production costs, salaries and so on). The net of these two is the amount of profit they've earned. In essence this is what the P and L account shows, it just shows it in more detail! A profit and loss account would usually be made up as follows: £ million Turnover (sales revenue) 500 less Cost of goods sold (200) Gross profit 300 less other costs @ (100) Trading / operating profit 200 **** Profit for shareholders (dividends) 75 Retained profit 125 @ These other costs may include mar...

The profit and loss account differs significantly from the balance sheet in that it is a record of the firm's trading activities over a period of time whereas the balance sheet is the financial position at a moment in time. The profit and loss account looks at how well the firm has traded over the time period concerned (usually the last 6 months or year). It basically shows how much the firm has earned from selling its product or service, and how much it has paid out in costs (production costs, salaries and so on). The net of these two is the amount of profit they've earned. In essence this is what the P and L account shows, it just shows it in more detail! A profit and loss account would usually be made up as follows: £ million Turnover (sales revenue) 500 less Cost of goods sold (200) Gross profit 300 less other costs @ (100) Trading / operating profit 200 **** Profit for shareholders (dividends) 75 Retained profit 125 @ These other costs may include mar...

One of the most important uses of the Trading and The Profit and Loss account is to compare the results obtained with the results expected. There are two profit measures: The Gross Profit. This is calculated in the Trading Account and is the excess of sales over the cost of goods sold during the period. The Net Profit. This is calculated in the Profit and Loss Account and is what remains after all other costs used up in the period have been deducted from the Gross Profit. It is now usual for the trading and the Profit and Loss accounts to be shown under one combined heading, The Trading Account being the top section and the Profit and Loss account being the lower section. It would be unusual for a trader to have sold all the goods at any particular date. So in most cases there would be stock in hand at the end of the trading period. So it is normal practice for this stock to be counted and valued at the price for whi...