By Jim Dewhurst
This article is the revised and up-to-date successor to "Small enterprise: Finance and Control". it truly is serious about the supply and correct use of cash in small and medium sized companies within the united kingdom and it's designed to assist those companies to begin up, develop and function extra successfully. This re-creation emphasizes making plans - either strategic and fiscal - because the an important consider small enterprise luck. it really is meant for use on small enterprise classes in better and additional schooling in addition to by means of practitioners. Jim Dewhurst is writer of "Business Mathematics".
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Additional info for Small Business: Planning, Finance and Control
Should the proprietor die, the business is deemed to have ceased and this can cause both legal and tax problems. Partnerships If two or more individuals start up a business together, they are said to conduct a business as a partnership. That partnership can take the form of an informal oral understanding or a formally drawn up partnership agreement. The partnership has many of the characteristics of the sole trader; ease of formation and running and unlimited liability. Partners are taxed as if the business income were their personal income.
Sometimes they offer training courses and managed workshops or offices. Frequently they have access to local cash grants and financial institutions. Generally they have a staff of only two or three counsellors, often secondees from banks, firms of accountants or larger companies. The largest is the London Enterprise Agency which has a staff of over 20. Enterprise Agencies are funded mainly by local authorities, large firms and other organisations. However, the Local Enterprise Agency Grant Scheme which came into operation in 1986 to run for a five-year trial period, will provide a measure of central government support.
At the very beginning a growing business must have its own regularly maintained, though simple, book-keeping system. Initially this might not be a full-time job, but it is easy enough to get someone to come in monthly to 'write up the books'. However, the growing business will rapidly find that it does need someone to work full time. Then it will find that it needs a more sophisticated accounting system (microcomputer-based systems are surprisingly inexpensive). We look at some different systems of accounting later in the book.