As we move into the month of September, let's revisit our blogs from August - content designed to help you navigate the complexities of accounting with ease and confidence.
Bank of England Cuts the Base Rate to 5%
- On the 1st August 2024, the Bank of England cut the base rate from 5.25% to 5% – marking the first base rate cut in over four years!
- Read the full blog here
What is a Business Bank Account?
- A business bank account specifically manages the finances of a business. Unlike personal bank accounts, business bank accounts offer features tailored to business needs, helping you to manage income, expenses, and financial transactions more effectively.
- Read the full blog here
What is a P45?
- A P45 document records details about your income and the tax you’ve paid while working for a particular employer. You will receive a P45 when you leave a job; whether you resign, retire, or your employer makes you redundant.
- Read the full blog here
What is a P60?
- Employers issue P60s at the end of each tax year, summarising employee income and tax deductions from April 6th to April 5th of the following year.
- Read the full blog here
What is a P30?
- Employers use P30s to report National Insurance Contributions (NICs) to HMRC. Employers are responsible for deducting NICs from their employees’ wages or salaries. The P30 ensures that employers report the correct amount of NICs they owe.
- Read the full blog here
What is an Accounting Journal?
- An accounting journal is a record where businesses document their financial transactions in chronological order. This process is the first step in the accounting cycle.
- Read the full blog here
What is an Accounting Ledger?
- An accounting ledger records all financial transactions organised by account. This ledger records every financial move made by the business, providing an overview of its financial health.
- Read the full blog here
What is an Accounting Period?
- An accounting period is a specific timeframe for which a business prepares its financial statements and reports. The purpose of an accounting period is to provide a consistent basis for measuring and reporting financial performance.
- Read the full blog here
What is a Balance Sheet?
- The Balance Sheet provides a snapshot of a company’s assets, liabilities and equity at a given point in time. This enables stakeholders to assess the financial health and operational results of the business.
- Read the full blog here
What is an Income Statement?
- An Income Statement, also known as a Profit and Loss Statement (P&L), summarises a company’s income and expenses over a specific period. It provides a snapshot of a business’s financial performance.
- Read the full blog here
What is a Cash Flow Statement?
- A Cash Flow Statement outlines the inflows and outflows of cash and cash equivalents in your business. It provides insights into your company’s liquidity by covering debts and operating expenses without additional financing.
- Read the full blog here
CIS Statements
- Contractors issue CIS statements to subcontractors under CIS. These are legal records that substantiate the financial transactions between contractors and subcontractors.
- Read the full blog here
We hope you found our August blogs both informative and engaging. If you have any questions or would like to discuss any of the topics further, please feel free to reach out. Stay tuned for more insights and tips in the coming months.
Founder & Director @ Pi Accountancy | ACCA Fellow | Ice Hockey Player for Bristol Underdogs
5 个月On 1st August 2024, the Bank of England lowered the base rate from 5.25% to 5% - the first cut in over four years. This rate change is meant to make borrowing cheaper, which can help the economy grow. It’s good news if you have a loan or mortgage, but it might mean slightly lower returns for savers. Cheaper borrowing can lead to more spending, which can benefit small businesses and freelancers with more opportunities. However, watch out for rising prices due to increased demand.