Accounting Fundations
Cost of Goods Sold (COGS) Explained: What It Is and How to Calculate It
If your business makes or buys products to sell, there is one number that sits at the very heart of your profitability:…
Tag: SME accounting
10 articles
Accounting Fundations
Bank Reconciliation Explained: A Step-by-Step Guide for SME Owners
Every month, your bank account tells one version of your finances — and your accounting records tell another. Bank reconciliation is the…
Accounting Fundations
Chart of Accounts for SMEs: How to Set One Up and Why It Matters
Before your accounting software can record a single transaction, it needs to know where to put it. That’s the job of the…
Accounting Fundations
Bad Debts and Provisions Explained: What to Do When Customers Don’t Pay
Any business that sells on credit — invoicing customers and waiting for payment — will eventually face a customer who does not…
Accounting Fundations
Inventory Valuation Methods Explained: FIFO, LIFO, and AVCO for SMEs
If your business buys and sells physical goods, one question sits quietly at the centre of your accounts: when you sell a…
Accounting Fundations
Capital Expenditure vs Revenue Expenditure: What’s the Difference and Why It Matters for Your Business
When a business spends money, not every payment is treated the same way in the accounts. A £300 printer cartridge and a…
Accounting Fundations
Accruals and Prepayments Explained: The Accounting Entries Every SME Owner Needs to Understand
If you have ever looked at a set of accounts and noticed entries for things like “accrued expenses” on the balance sheet…
Financial Reporting
Financial Ratios Explained: How to Use Liquidity, Profitability, and Efficiency Ratios to Understand Your Business
Your profit and loss account tells you whether you made money. Your balance sheet tells you what you own and what you…
Accounting Fundations
Depreciation Methods Explained: Straight-Line, Reducing Balance and Beyond
Every piece of equipment, vehicle, and machine your business owns was worth more the day you bought it than it is today.…
Financial Reporting
Understanding the Income Statement: A Complete Guide to Profit & Loss for SMEs
If you have ever stared at your bank balance thinking the business is doing fine, only to discover at year end that…