Making Tax Digital is no longer optional for VAT-registered businesses, and MTD for Income Tax is arriving fast for sole traders and landlords. This guide explains the digital link rules, upcoming thresholds, penalty risks, and a worked VAT example so SME owners know exactly what to do next.
Turnover growth can hide a shrinking margin. Learn how horizontal and vertical analysis work together to reveal the real trends and structure behind your financial statements, with a worked SME example.
For most owner-managers of limited companies, dividends are the primary way they extract profit from their business — and for good reason.…
Many SME owners assume revenue should hit the profit and loss account the moment an invoice is raised or cash is collected. Under IFRS 15 and revised FRS 102, that is often wrong. This article breaks down the five-step revenue recognition model with a full worked example of a £60,000 software and support contract, showing exactly how to allocate transaction price and recognise revenue over time.
Choosing between salary and dividends is not a rounding error for director-shareholders. This guide walks through a real £50,000 worked example, showing how a small salary topped up with dividends can put nearly £4,000 more in your pocket than a salary-only approach, with no change to company performance.
Petty cash is one of those accounting topics that sounds too simple to merit a guide — and yet it is responsible…
A rising ROE can mean genuine operational improvement or simply more borrowing. DuPont analysis splits return on equity into profitability, efficiency, and leverage so SME owners can tell which force is really driving the number before a lender or buyer asks.
Growing businesses often outgrow FRS 105 without realising it. This guide compares FRS 105, FRS 102 and IFRS with a worked example showing how the same investment property produces three very different sets of numbers.
Understanding the Annual Investment Allowance can save SME owners thousands in corporation tax simply by timing equipment purchases correctly. This guide breaks down how AIA works, what qualifies, and how to claim the full deduction in the right accounting period.
One of the earliest and most consequential decisions any business owner makes is also one of the least understood: should you operate…
