Lecture 8
Stash your cash

Invoice
Statement

Essentials of an invoice:
- your business address
- their address
- date of invoice
- item by item list
- total amount due

Statement - both have a copy perforated down the centre containing the information

Essentials of a statement are the same as an invoice however an additional list of all the recent invoices you have sent to them.

Terms and Conditions:
-designed to protect your rights & interest
- costs
- delivery arrangements
- payment terms
- credit limits
- rights to charge interest
- a commitment to quality
- data protection
- liability
- damage
- inclusion of VAT
- warranty

The statement
- sent out the day or day before the due date
- sent out every month thereafter until response
- how much is owed
- outstanding debts

Accounting
-keep track of who owes you
- see how much is coming in and spending

Bank Tree - £26
Sage Accounting - £151
Quickbooks - £113
Turbo Cash - free download

What businesses spend money on:
Starting up:
-new equipment
-website
-registered company
-logo
-decorate premises
-launch party?

Where would you get money from?
Banks
Arts Council
Yorkshire Forward
Share Holders
Prizes and Awards

What do the banks need to know?
marketing plan
how much you will need
how much you are putting in
how much you will spend
how much will you pay back

Indirect Costs: things that cost you on a daily running of a job
-gas, water, electricity
- office supplies
- equipment leases
- part time help
- insurance and rent
- phone bill
- marketing

Also known as: Overheads, Fixed costs.

Direct costs: things that help to the manufacturing of a product
- print costs
- materials
- packaging

Tangible Assets - something physical
- car
- camera
- printer

Intangible Assets - virtual things you can not touch
- trade secrets
- secret recipes

Cost: your money going out
Price: the money you charge customers

Taxes:

Income tax
Corporation Tax
VAT
Business rates

First things to do starting up:
Open bank account
Find certified accountant
Local solicitor
Register your business with inland revenue.