1. Slide 1 The Structure of Organisations & Finance

2. Slide 2 Simple Example

3. Slide 3 Credit Creditor –Someone who gives you a loan –You owe money to Debtor –Someone you give a loan to –They owe you money

4. Slide 4 Creditors 30 days credit is standard Regular creditors demand prompt payment Need for cash

5. Slide 5 Debtors Standard is 30 days – on paper Typically 45-60 days average –Must be in cash flow plan Credit References Companies House Specialist Agencies for high values

6. Slide 6 Simple P/L

7. Slide 7 Simple Cash Flow

8. Slide 8 P/L Fixed Costs Overheads Wages NI Rent Rates – Business & Water Gas & Electricity Telephone, ISP Postage, Printing, Stationary Advertising Insurance

9. Slide 9 P/L Fixed Costs …….. Repairs & Maintenance Interest Payments Bank Charges Depreciation Travel Legal Subscriptions and Periodicals

10. Slide 10 Sales And Income Product Sales –Discounting Fixed price –Enough Contingency –Profit margin Cost Plus –Right Grade of Staff Support

11. Slide 11 Cash In – Not Sales Equity Bank Loan/Mortgage VAT These DO NOT appear in profit/loss