Profitable on paper but perpetually short on cash? The cash conversion cycle reveals exactly how many days your money is trapped in stock, unpaid invoices and supplier terms – and shows precisely where to act. Using a worked example from a bespoke furniture maker, this guide walks through calculating DIO, DSO and DPO, and turning those figures into real, freed-up cash.
IFRS 16 now forces most leases—office space, vans, photocopiers—onto the balance sheet as a right-of-use asset and lease liability. This guide walks through why the change happened, a worked five-year office lease example with journal entries, and what it means for covenants, EBITDA and management reporting.
A finance team that reports numbers without tracking the right numbers is working hard in the wrong direction. Key performance indicators —…
If your business makes or buys products to sell, there is one number that sits at the very heart of your profitability:…
Every month, your bank account tells one version of your finances — and your accounting records tell another. Bank reconciliation is the…
Corporation tax is one of those subjects that many limited company directors leave entirely to their accountant — and while getting professional…
Hiring your first employee is a milestone — but it also marks the moment your accounting gets significantly more complicated. Suddenly you’re…
Before your accounting software can record a single transaction, it needs to know where to put it. That’s the job of the…
Two businesses each report £500,000 in annual revenue. One is thriving; the other is quietly struggling. The difference doesn’t show up in…
When a business buys a piece of equipment, a vehicle, or any other long-term asset, that cost doesn’t hit the income statement…
